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THIS COAL SALES ORDER
 ORDER NUMBER:
    
    Red Trail WRI-#001-2007SOURCE:
    
    The source of the coal to be
delivered hereunder shall be from the Westmoreland Resources,
Inc. (WRI) Absaloks Mine, located at Sarpy Creek Montana.TERM:
    
    April 18, 2007 through May 31, 2007.QUANTITY:
    
    For the period April 18 through May 31, 2007, Buyer will purchase and WRI shall
sell two unit trains of coal from the WRIs Absaloka Mine.The total quantity of coal delivered during April 18 through May 31, 2007
will not exceed 25,000 tons.For purposes of this Order, a ton shall mean 2,000 pounds avoirdupois.DELIVERY DATE& SCHEDULE:
    
    Buyer and WRI shall coordinate and agree upon the delivery schedule in a prompt manner based on the needs of Buyer and availability of coal at the Absaloka Mine.POINT OF DELIVERY:
    

  The
Point of Delivery for coal sold hereunder shall be F.O.B. Mine,
loaded into Buyer provided railcars. All title and risk of loss shall
transfer to Buyer upon loading into railcars.PRICE:
    
    US $**** per ton FOB Mine (the Price).QUALITY:
    
    Typical coal quality specifications are set forth below. Buyer acknowledges that
the quality of actual coal deliveries may vary based on industry standards from the typical
specifications below. All qualities below are on as As-Received basis.
 Absaloka MineBtu/lb
    
    
    8,875Sulfur
    
    
    0.64
    %Na20 in Ash
    
    
    2.00
    %Ash
    
    
    9.50
    %
 The size of the coal provided hereunder shall be two inch by zero inch (2 x 0) with a
maximum oversize of ten percent (10%). WRI will use commercially reasonable efforts to
maintain a top size not to exceed three inches (3).BILLING:
    
    Buyer will be invoiced for coal to the address shown below unless Buyer otherwise advises
WRI in writing of a different address to which invoices should be mailed:P.O. Box 11Richardton, ND 58652Telephone #: 701-974-3308Telefax #: 701-974-3309PAYMENT:
    
    Buyer shall pay invoices within ten (10) days after the date of the invoice at
the address provided on the invoices, including by wire if requested by WRI. Invoices will
be sent every two weeks.WEIGHTS;
    
    The weight of the coal shall be determined by WRI at
the Mine by certified commercial weigh scale(s).




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GENERAL TERMS AND
CONDITIONS: The General Terms and Conditions are as attached.SALES AGENT:
    
    Westmoreland Coal Sales Company shall be the exclusive sales agent for and on behalf
of WRI for all purposes under this Order.
  Buyer:
    
    Red Trail Energy, LLCBy:
Title:
    
    /s/ Mick J. Miller

PresidentWRI:
    
    Westmoreland Resources, Inc.By:
Title:
    
    /s/ Thomas L. Rossetto

President




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GENERAL TERMS AND CONDITIONS
 1.
    
    Title to and risk of loss of the coal shall pass to Buyer at the Point of Delivery.2.
    
    The term force majeure shall mean any cause beyond the control of the party affected
thereby, such as acts of God, strike, lockout, labor
dispute, labor shortage, fire, flood, war, riot, explosion, accident, car shortage, embargo,
contingencies of transportation, inability to secure
supplies or fuel or power. Breakdown of machinery or apparatus, regulation or rule or law of any
governmental authority, or any other
cause, whether similar or dissimilar to the aforestated causes and whether or not foreseen or
foreseeable by the parties. which wholly or
partially prevents, interrupts or delays the performance by WRI or Buyer of their respective
obligations under this Order. A force majeure
event affecting any of WRIs suppliers, including its mining contractor, shall be considered a
force majeure event affecting WRI.
Settlement of a strike, lockout or other labor dispute shall be deemed beyond the control of the
party claiming excuse thereby regardless
of the cause of, or the ability of such party to settle, such dispute.If because of force majeure either Buyer or WRI is unable to carry out its obligations under
this Order, except obligations to pay money to the other party, then the obligations of such
party shall be suspended to the extent made necessary by such force majeure and during its
continuance, provided such force majeure is eliminated insofar as possible and economically
practicable with all reasonable dispatch. Any deficiency in coal tonnage to be delivered under
this Order caused by such force majeure shall not be made up except by mutual consent of Buyer
and WRI.3.
    
    The coal sold hereunder may not be used at, or reconsigned to, any location other than
Buyers facility, without the prior written consent of
WRI.4.
    
    WRI shall provide for sampling and analysis of the coal at the Mine in accordance with ASTM
standards. Buyer shall have the right to have
a representative present during sampling at any and all times to observe the sampling process.
WRI will provide to Buyer one ASTM
sample for each train load, and WRI shall also provide by email to Buyer an electronic copy of
WRls quality analysis for each train load.5.
    
    Failure of the Buyer to pay for coal delivered in accordance with the terms hereof shall give
WRI the option to (a) suspend further
shipments until all previous shipments are paid for, or (b) cancel the Order upon written notice
to Buyer, provided that Buyer shall have a
thirty (30) day cure period after receipt of a notice of cancellation hereunder. if in the
judgment of WRI, Buyers ability to perform
hereunder has become impaired, WRI shall have the right, upon notice to Buyer, to suspend
further shipments until WRI receives
adequate assurance of Buyers performance, If such security is not furnished within ten (10)
days after receipt of such notice. WRI shall
have the right to cancel this Order upon notice to Buyer.6.
    
    This Order shall not be assigned by either party without the prior written consent of the
other party, which consent shall not be
unreasonably withheld. Notwithstanding the foregoing, either party may assign this Order without
such consent to a parent company, or
any other affiliate of the assigning party, or for purposes of securing indebtedness. but
assignor shall continue to be liable for its
performance hereunder.7.
    
    A partys failure to insist in any one or more instances upon strict performance of a
provision of, or to take advantage of any of its rights
under this Order shall not be construed as a waiver of such provision or right. No default of
either party to this Order in the performance of
any of its covenants or obligations herounder, except the obligation for payment, shall result
in a right to the other party to cancel this
contract unless such defaulting party shall fail to correct the default within thirty (30) days
after written notice of claim of such default has
been given by the party claiming such default.8.
    
    Notice sent by facsimile, first class, certified or registered U.S. Mail, or a reputable over
night courier service, addressed to the party to
whom such notice is given, at the address of such party stated in this Order or to such other
address (or facsimile number) as such party
may designate, shall be deemed sufficient notice in any case
requiring notice under this Order.9.
    
    EXCEPT AS EXPRESSLY STATED IN THIS ORDER, WRI MAKES NO WARRANTIES, WHETHER EXPRESS OR
IMPLIED, WRITTEN
OR ORAL, ARISING FROM A COURSE OF DEALING, USAGE OF TRADE, OR OTHERWISE, REGARDING
MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, QUALITY, QUANTITY, OR OTHERWISE,Neither party shall be liable
for any punitive,
special, incidental or consequential damages (including without limitation, loss of profits or
overhead), based upon breach of warranty or of
contract, negligence or any other theory of legal liability arising
out of this Order; provided,
however, such limitation regarding incidental or
consequential damages shall not apply to any liability for third party claims for which WRI has
indemnified Buyer pursuant to paragraph 12
below, to the extent that Buyer has liability for such incidental or consequential damages.10.
    
    The terms and conditions set forth in this Order are considered by both Buyer and WRI to be
CONFIDENTIAL. Neither party shall
disclose any such information to any third party without the advance written consent of the
other party, except where such disclosure may
be required by law (including by rule or order of the Securities and Exchange Commission) or is
necessary to assert a claim or defense in
judicial or administrative proceedings, in which event the party desiring to make the disclosure
shall advise the other party in advance in
writing and shall cooperate to the extent practicable to minimize the disclosure of any such
information. If a party believes that any
disclosure of the terms of this Order are required by law, such party shall (i) provide prompt
written notice to the other party, and (ii) take
such steps are reasonably available to minimize the disclosure of the terms of this Order.11.
    
    This Order shall be governed in all respects by the law of the State of Montana, without regard
to its choice of laws provisions.




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12.
    
    WRI shall be (i) liable to Buyer for, and (ii) indemnify and save harmless Buyer from and
against any and all claims made or brought by
any third party in respect of, any damage, caused by the negligent
acts or omissions of WRI, to
(a) Buyers or its contracted rail carriers
equipment while on WRIs property except to the extent such damage is caused by the negligence of
Buyer or its contracted rail carrier,
end (b) Buyers equipment, including mobile railcars and stationary equipment at Buyers coal
combustion facility, to the extent said
equipment is damaged due to non-coal material having been interspersed with the coal prior to
leaving WRIs mine property.13.
    
    This Order contains the entire agreement of the parties, is expressly limited to the terms
and conditions specifically set forth or
incorporated by reference herein, supersedes all prior communications between the parties
regarding the subject matter of this Order and
shall be amended or modified only by agreement of the parties in writing. Should any provision of
this Order for any reason be declared
invalid or unenforceable by an order of any court having jurisdiction, such decision shall not
affect the validity or enforceability of the
remaining provisions of this Order, and such provisions shall remain in full force and effect as
if this Order had been executed without the
invalid or unenforceable provision.