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Exhibit 99.1
 NRP (GP) L.P.
 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM




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NRP (GP) L.P.
 CONSOLIDATED BALANCE SHEETS
(In thousands)
 ASSETS
 December 31,
    
    
    December 31,2006
    
    
    2005Current assets:Cash and cash equivalents
    
    $
    66,763
    
    
    $
    50,086Accounts receivable
    
    
    23,358
    
    
    
    21,947Accounts receivable  affiliate
    
    
    21
    
    
    
    6Other
    
    
    1,411
    
    
    
    833Total current assets
    
    
    91,553
    
    
    
    72,872Land
    
    
    17,781
    
    
    
    14,123Plant and equipment, net
    
    
    29,615
    
    
    
    5,924Coal and other mineral rights, net
    
    
    798,135
    
    
    
    590,459Loan financing costs, net
    
    
    2,197
    
    
    
    2,431Other assets
    
    
    932
    
    
    
    1,583Total assets
    
    $
    940,213
    
    
    $
    687,392LIABILITIES AND PARTNERS CAPITALCurrent liabilities:Accounts payable and accrued liabilities
    
    $
    1,041
    
    
    $
    677Accounts payable  affiliate
    
    
    105
    
    
    
    88Current portion of long-term debt
    
    
    9,542
    
    
    
    9,350Accrued incentive plan expenses  current portion
    
    
    5,850
    
    
    
    1,237Property, franchise and other taxes payable
    
    
    4,330
    
    
    
    4,138Accrued interest
    
    
    3,846
    
    
    
    1,534Total current liabilities
    
    
    24,714
    
    
    
    17,024Deferred revenue
    
    
    20,654
    
    
    
    14,851Accrued incentive plan expenses
    
    
    4,579
    
    
    
    5,395Long-term debt
    
    
    454,291
    
    
    
    221,950Minority interest
    
    
    424,300
    
    
    
    416,686Partners capital:Limited partners interest
    
    
    12,424
    
    
    
    12,286General partners interest
    
    
    2
    
    
    
    2Accumulated other comprehensive loss
    
    
    (751
    )
    
    
    (802
    )Total partners capital
    
    
    11,675
    
    
    
    11,486Total liabilities and partners capital
    
    $
    940,213
    
    
    $
    687,392
  2




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NRP (GP) L.P.
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 1. Basis of Presentation and Organization
   2. Summary of Significant Accounting Policies
 Principles of Consolidation
  Reclassification
  Use of Estimates
  Cash Equivalents
  Accounts Receivable
  3




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Land, Coal and Mineral Rights
  Plant and Equipment
  Asset Impairment
  Concentration of Credit Risk
  Fair Value of Financial Instruments
   Deferred Financing Costs
  Income Taxes
  4




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Share-Based Payment
 Share-Based
Payment,
 5




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3. Allowance for Doubtful Accounts
  2006
    
    
    2005
    
    
    2004(In thousands)Balance, January 1
    
    $
    85
    
    
    $
    185
    
    
    $
    306Provision charged to operations:Accounts charged off
    
    
    822
    
    
    
    30
    
    
    
    Recovery of prior charge offs
    
    
    (1
    )
    
    
    (130
    )
    
    
    (121
    )Balance, December 31
    
    $
    906
    
    
    $
    85
    
    
    $
    185
 4. Plant and Equipment
  December 31,
    
    
    December 31,2006
    
    
    2005(In thousands)Plant and equipment at cost
    
    $
    30,266
    
    
    $
    6,019Less accumulated depreciation
    
    
    (651
    )
    
    
    (95
    )Net book value
    
    $
    29,615
    
    
    $
    5,924
 5. Coal and Other Mineral Rights
  December 31,
    
    
    December 31,2006
    
    
    2005(In thousands)Coal and other mineral rights
    
    $
    970,342
    
    
    $
    734,242Less accumulated depletion and amortization
    
    
    (172,207
    )
    
    
    143,783Net book value
    
    $
    798,135
    
    
    $
    590,459
 6




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6. Long-Term Debt
  December 31,
    
    
    December 31,2006
    
    
    2005(In thousands)$300 million floating rate revolving credit facility, due October 2010
    
    $
    214,000
    
    
    $
    25,0005.55% senior notes, with semi-annual interest payments in June and
December, with annual principal payments in June, maturing in June 2023
    
    
    50,100
    
    
    
    53,4004.91% senior notes, with semi-annual interest payments in June and
December, with annual principal payments in June, maturing in June 2018
    
    
    61,850
    
    
    
    67,9005.55% senior notes, with semi-annual interest payments in June and
December, maturing June 2013
    
    
    35,000
    
    
    
    35,0005.05% senior notes, with semi-annual interest payments in January and
July, with scheduled principal payments beginning July 2008, maturing in
July 2020
    
    
    100,000
    
    
    
    50,0005.31% utility local improvement obligation, with annual principal and
interest payments maturing in March 2021
    
    
    2,883
    
    
    
    Total debt
    
    
    463,883
    
    
    
    231,300Less  current portion of long term debt
    
    
    (9,542
    )
    
    
    (9,350
    )Long-term debt
    
    $
    454,291
    
    
    $
    221,950
  2007
    
    $
    9,5422008
    
    
    17,2342009
    
    
    17,2342010
    
    
    231,2342011
    
    
    17,234Thereafter
    
    
    171,355$
    463,833
  
    
    the higher of the federal funds rate plus an applicable margin ranging from .00% to
1.00% or the prime rate as announced by the agent bank; or
    
    at a rate equal to LIBOR plus an applicable margin ranging from 0.75% to 2.00%.
   
    
    a ratio of consolidated indebtedness to consolidated EBITDDA (as defined in the
credit agreement) of 3.75 to 1.0 for the four most recent quarters; provided
however, if during one of those quarters the Partnership has made an acquisition,
then the ratio shall not exceed 4.0 to 1.0 for the quarter in which the acquisition
occurred and (1) if the acquisition is in the first half of the quarter, the next
two quarters or (2) if the acquisition is in the second half of the quarter, the
next three quarters; and
    
    a ratio of consolidated EBITDDA to consolidated fixed charges (consisting of
consolidated interest expense and consolidated lease operating expense) of 4.0 to 1.0
for the four most recent quarters as defined in the credit agreement.
 7




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7. Related Party Transactions
   8. Commitments and Contingencies
 Legal
  Environmental Compliance
  8




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9. Incentive Plans
    Outstanding grants at the beginning of the period
    
    
    211,931Grants during the period
    
    
    61,166Grants vested and paid during the period
    
    
    (13,947
    )Forfeitures during the period
    
    
    (1,540
    )Outstanding grants at the end of the period
    
    
    257,610
  10. Subsequent Events (Unaudited)
 Acquisitions
 Cline
 9




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Dingess-Rum
 Distributions
  10