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COAL
SALES ORDER
 THIS
COAL SALES ORDER
 ORDER NUMBER:     Red Trail WCSC #001-2007SOURCE:
    
    The source of the coal to be delivered hereunder shall be from Western
Energy Companys (WECO) Rosebud Mine located at Colstrip, Montana. WCSC
and Buyer may discuss the potential to also supply coal from the
Westmoreland Resources, Inc. (WRI) Absaloka Mine at Sarpy Creek,
Montana, Dakota Westmoreland Corporation (DWC) Beulah Mine at Beulah,
North Dakota. WECO and DWC are affiliates of WCSC.TERM:
    
    April 18, 2007 through December 31, 2007. Buyer has the option to order
coal for (i) subsequent calendar year 2008, or (ii) subsequent calendar
years 2008 and 2009. Buyer must exercise the option, if at all,
regardless of whether the exercise is for just calendar year 2008 or for
both calendar years 2008 and 2009, no later than October 1, 2007.QUANTITY:
    
    For the period April 18 through December 31, 2007, Buyer will purchase
and WCSC shall sell a minimum of one (1) twenty-four to thirty (24-30)
car oddlot shipments from the WECOs Rosebud Mine per week or as
otherwise scheduled by the parties to reasonably pro rate delivery
volumes throughout the Term, given that deliveries might not commence
until May or June 2007. WCSC shall coordinate and schedule with Buyer the
train cars required for delivery of the oddlot shipments of coal,
however, all such coal shall continue to be sold F.O.B. the mine.Buyer and WCSC shall determine by mutual agreement if and when Buyer can
accept unit trains of coal from the Rosebud Mine and/or Absaloka Mine in
the future, or as an alternative, accept deliveries of lignite from the
Beulah Mine or a mixture of lignite with coal from the other mines.The total quantity of coal delivered during April 18 through December 31, 2007 will not exceed 40,000 tons unless otherwise agreed by the
parties.If Buyer exercises its option for 2008 and 2009, the quantities for
subsequent full calendar years will be no less than 95,000 tons and no
more than 115,000 tons per year.For purposes of this Order, a ton shall mean 2,000 pounds avoirdupois.In the event Buyer shuts down for any reason or cause and does not
purchase coal from other sources, the amount of coal which Buyer would
ordinarily consume during such shutdown will be reduced and such amount
shall be deducted from the amount of coal Buyer is required to purchase
pursuant to this Order. Buyer will give prompt notice to WCSC of any
shutdown and the reduced amount of coal required as a result during such
shutdown.In the event WCSC fails to provide the coal required in a timely manner,
other than due to an event of force majeure, and Buyer is required to
obtain the coal through alternate means (i.e. using trucks to haul the
coal from the mines or obtaining coal from another company), and Buyer
has provided WCSC a reasonable opportunity to provide coal from other
sources or to otherwise address its delay in a timely manner, WCSC shall
be liable to Buyer for the cost difference between the cost to obtain the
coal under the terms of this Order and the cost actually paid by Buyer to
obtain the coal using alternate means, specifically excluding any
incidental or consequential costs or damages.DELIVERY DATE & SCHEDULE:Buyer and WCSC shall coordinate and agree upon the delivery schedule in a
prompt manner based on the needs of Buyer.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.




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PRICE:
    
    US $15.45 per ton FOB Mine for
deliveries during calendar year 2007 ( the Price). The Price for 2007
will be reviewed after December 31, 2007 and, if necessary, adjusted to an amount that results in an
average 2007 Price to Buyer of $13.90 per net ton FOB Mine as weighted against all 2007 deliveries of
coal to Buyer from mines affiliated with WCSC under this or any other
Order or agreement. WCSC shall
promptly invoice or credit Buyer for any such adjustment. If Buyer orders coal for 2008 and 2009 as
provided under Term above, the Price shall be increased January 1, 2008 and again on January 1, 2009
by three percent (3%) to reflect inflation from a base price of $13.90 in 2007.In the event, subsequent to December 31, 2007, the supplying Mine(s) has increased costs in the
mining, production, processing, delivery or marketing of coal under this Order as a result of any new,
amended or reinterpreted federal, state or local law, regulation, rule or order, WCSC shall have the
right to increase the Price in an amount equal to the increased costs. Notwithstanding the foregoing
and in lieu of paying the increased Price, Buyer shall have the right to elect to terminate this Order
upon thirty (30) days prior written to WCSC.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.
 Quality
    
    Rosebud Mine*
    
    Absaloka Mine*Btu/lb
    
    
    8,500
    
    
    
    8,675Sulfur
    
    
    0.85
    %
    
    
    0.64
    %Na20 in Ash
    
    
    2.00
    %
    
    
    2.00
    %Ash
    
    
    9.35
    %
    
    
    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%). WCSC will use commercially reasonable efforts to maintain a top size
not to exceed three inches (3).* Subject to agreement on Buyers ability to accept unit trains, as provided under Quantity above.BILLING:
    
    Buyer will be invoiced for coal to the address shown below unless Buyer otherwise advises WCSC in
writing of a different address to which invoices should be mailed:P.O. Box 11 
Richardton, ND 58652 
Telephone #: 701-974-3308 
Telefax #: 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 WCSC. Invoices will be sent every two weeks.WEIGHTS:
    
    The weight of the coal shall be determined by WCSC at the Mine by certified commercial weigh scale(s).GENERAL TERMS AND CONDITIONS: The General Terms and Conditions
are as attached.
  Buyer: Red Trail Energy, LLCBy:
    
    /s/ Mick J. MillerTitle:
    
    PRESIDENTWCSC: Westmoreland Coal Sales CompanyBy:
    

/s/ Todd A. MyersTitle:
    
    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 WCSC or
Buyer of their respective obligations under this Order. A force majeure event affecting any of
WCSCs suppliers, including its mining contractor, shall be considered a force majeure event
affecting WCSC. 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 WCSC 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 WCSC.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 WCSC.4.
    
    WCSC 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. WCSC will provide to Buyer one ASTM sample for
each train load, and WCSC shall also provide by email to Buyer an electronic copy of WCSC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
WCSC 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 WCSC, Buyers ability to perform hereunder has become impaired, WCSC shall have the right,
upon notice to Buyer, to suspend further shipments until WCSC receives adequate assurance of
Buyers performance. If such security is not furnished within ten (10) days after receipt of
such notice. WCSC 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 hereunder, 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, WCSC 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 WCSC 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 WCSC 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.
    
    WCSC 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 WCSC, to (a) Buyers or its contracted rail
carriers equipment while on WCSCs property except to the extent such damage is caused by the
negligence of Buyer or its contracted rail carrier, and (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-coa! material having been interspersed with the coal prior to
leaving WCSC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.