Document:

EX-10.3

 

Exhibit 10.3

     THIS AMENDMENT made and entered into effective the 1st day of January, 2006, by and between
ACIN LLC, a Delaware limited liability company, successor in interest to CSTL LLC through merger,
(hereinafter referred to as “Lessor”), and ALPHA LAND AND RESERVES, LLC, a Delaware limited
liability company (hereinafter referred to as “Lessee”).

     WHEREAS, by Coal Mining Lease dated April 9, 2003, effective as of April 1, 2003, Lessor did
demise, lease and let to Lessee the Leased Premises (all capitalized terms used herein shall have
the meaning given in the Lease), for the purpose of mining, preparation, loading, removal,
transportation and shipping of coal, as more fully set forth in the Lease; and

     WHEREAS, said Coal Mining Lease has heretofore been amended by First Amendment to Coal Mining
Lease dated September 30, 2003, effective April 1, 2003; Partial Surrender Agreement dated December
12, 2003, effective December 1, 2003; Second Amendment to Coal Mining Lease dated and effective
December 15, 2003; Third Amendment to Coal Mining Lease dated and effective October 1, 2004; Fourth
Amendment to Coal Mining Lease dated and effective September 1, 2005; two Partial Surrender
Agreements dated and effective September 1, 2005; Partial Surrender Agreement effective November 1,
2005; and various letter agreements (said Coal Mining Lease, as supplemented and amended, being
hereinafter referred to as the “Lease”); and

     WHEREAS, Lessor and Lessee desire to further amend the Lease as hereinafter set forth.

W I T N E S S E T H:

     That for and in consideration of the terms, conditions and stipulations embodied within the
Lease, as amended, to be performed and observed by Lessor and Lessee, the sufficiency of which is
hereby acknowledged, effective January 1, 2006 and continuing thereafter during the term of the
Lease, Lessor and Lessee do hereby agree that the third paragraph of Section 2 of the Lease shall
be amended in its entirety as follows:

 

 

     Lessee recognizes and acknowledges that the Source Deeds contain certain
Restrictions that relate to the surface, timber, oil and gas estates in or on the
Leased Premises, and Lessee hereby accepts this Lease subject to those Restrictions
and agrees to be bound by said Restrictions and to comply with same (including any
requirements to give notice to the beneficiary of such Restrictions, providing a
simultaneous copy to the Lessor) in all its activities hereunder. Provided however,
in the event the Restrictions require the payment of monies relative to any of the
matters contained therein and Lessee’s activities under this Lease will cause the
requirement to pay such monies, then and in that event, Lessee will endeavor to give
Lessor as much advance notice of such requirement as possible. Lessor shall
reimburse Lessee one-half of any monies paid with respect to the Restrictions within
thirty (30) days after receipt of invoice and Lessee’s proof of payment to the
beneficiary of the same.

     All other terms and conditions of the Lease, as previously amended, not inconsistent herewith,
shall remain in full force and effect, without modification or amendment.

     IN WITNESS WHEREOF, Lessor and Lessee have caused this Amendment to be executed as of the day
and year first above written.

	 	 	 	 	 	 	 
	 	 	ACIN LLC, a Delaware limited liability company,
	 	 	By NRP (Operating) LLC, a Delaware limited liability company
	 	 	and its Sole Operating Manager
	 

	 	 	 	 	 	 
	 

	 	By:
	 	  /s/ Nick Carter	 	 
	 

	 	 	 	 	 	 
	 	 	Nick Carter, Its President and Chief Operating Officer
	 

	 	 	 	 	 	 
	 	 	ALPHA LAND AND RESERVES, LLC
	 

	 	 	 	 	 	 
	 

	 	By:
	 	  /s/ Vaughn R. Groves	 	 
	 

	 	 	 	 	 	 
	 	 	Vaughn R. Groves, Its President and Manager

2

 

	 	 	 	 	 	 	 	 	 
	STATE OF

	 	West Virginia)
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	COUNTY OF

	 	Cabell), to-wit:
	 	 	 	 	 	 

     The foregoing instrument was acknowledged before me this 2nd day of March, 2006, by Nick
Carter, President and Chief Operating Officer of NRP (Operating) LLC, a Delaware limited liability
company and the sole operating manager of ACIN LLC, on behalf of ACIN LLC, a Delaware limited
liability company.

	 	 	 	 	 
	 

	 	  /s/ Paddy Sue Gay	 	 
	 

	 	 	 	 
	 

	 	Notary Public	 	 
	 
	 	 	 	 
	My commission expires: November 1, 2008

	 	     [seal]	 	 

	 	 	 	 	 	 	 	 	 
	STATE OF

	 	Virginia)
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	COUNTY OF

	 	Washington), to-wit:
	 	 	 	 	 	 

     The foregoing instrument was acknowledged before me this 1st day of March, 2006, by Vaughn R.
Groves, as President and Manager of ALPHA LAND AND RESERVES, LLC, on behalf of ALPHA LAND AND
RESERVES, LLC, a Delaware limited liability company.

	 	 	 	 	 
	 

	 	     /s/ Wanda K. Fields	 	 
	 

	 	 	 	 
	 

	 	Notary Public	 	 

My commission expires: June 30, 2007

3EX-10.4

 

Exhibit 10.4

AGREEMENT

     THIS AGREEMENT is made as of February 17, 2006, between ACIN LLC, a Delaware limited liability
company (“ACIN”), with an address of 1035 Third Avenue, Suite 300, Huntington, West Virginia 23527,
ALPHA LAND AND RESERVES, LLC, a Delaware limited liability company (“Alpha”), with an address of
P.O. Box 2345, Abingdon, Virginia, and VIRGINIA ELECTRIC AND POWER COMPANY, a Virginia public
service corporation, or assigns (“VEPCO”), with an address of 5000 Dominion Boulevard, Glen Allen,
Virginia 23060.

     WHEREAS, ACIN owns certain land described on Exhibit A attached hereto that it
acquired through its merger with CSTL LLC.

     WHEREAS, Alpha entered into a Coal Mining Lease dated April 3, 2003, effective April 1, 2003,
with CSTL LLC, in which the leased premises include the land described on Exhibit A.

     WHEREAS, ACIN is entering into an Option Contract with VEPCO, whereby ACIN will grant to VEPCO
an option to purchase the land described on Exhibit A, hereinafter referred to as the
“option land.”

     WHEREAS, ACIN, Alpha, and VEPCO believe it is in their mutual interests to enter into an
agreement as to the parties’ rights and obligations with regard to the land described on
Exhibit A.

     NOW, THEREFORE, for and in consideration of ten dollars ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

	 	1.	 	Alpha will conduct only first mining in the previously unmined portion of the
Jawbone seam that is located: (a) to the north of the Paramont #3 Mine; and (b)
within the boundaries of the option land, as further illustrated on Exhibit A.
For purposes of this Agreement, first mining shall mean removal of 50% or less of the
coal in a manner that leaves coal pillar support. Notwithstanding the foregoing,
Alpha will not mine in the circled area identified as “AREA WHERE PERMANENT STRUCTURES
MAY BE LOCATED” as shown on Exhibit A.
	 
	 	2.	 	Alpha may continue to use the existing mine works beneath the option land for
mining operations, including, but not limited to, ventilation, drainage and
transportation of personnel, supplies and coal, and rehabilitation work; however,
Alpha may not remove additional coal from the option land, other than the Jawbone seam
as noted in Paragraph 1 above.

 

 

	 	3.	 	ACIN recognizes that the limitations placed upon Alpha’s mining operations in
Paragraphs 1 and 2 will not permit recovery of all mineable coal under the option land
or in areas adjacent to or accessed through the option land. Consequently, ACIN will
not assert a lost coal claim for: (1) any area within the option land; (2) any area
in which mining is restricted under Paragraphs 1 and 2 above; or, (3) any area that
cannot be accessed because of the restrictions imposed under Paragraphs 1 and 2.
	 
	 	4.	 	In the event VEPCO, or its assignee, exercises its option to purchase the
option land from ACIN, VEPCO, on its own behalf, and on behalf of its assignee, hereby
releases Alpha, and its affiliates, from liability for subsidence on the option land
resulting from mining prior to the date of this agreement and for subsidence on the
option land resulting from mining permitted pursuant to paragraph 1 above.
	 
	 	5.	 	As it relates to the option land and within one hundred (100) feet of the
option land, Alpha will provide VEPCO, or its assignee, (i) all documentation it has
of undermined areas, (ii) all information it has on geotechnical testing, and (iii)
all drilling information it has. Alpha will also provide maps of any first mining
that occurs after the date hereof that is conducted in the area permitted pursuant to
Paragraph 1 above.
	 
	 	6.	 	In the event the option land is not sold to VEPCO, or its assignee, the
mining restrictions imposed under Paragraphs 1 and 2 will be extinguished as of the
date the Option Contract between ACIN and VEPCO expires without being exercised.
	 
	 	7.	 	This Agreement is binding on the parties hereto and their successors in title
and shall be enforceable by the parties and their successors in title.
	 
	 	8.	 	This Agreement may be executed simultaneously in two or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

     IN WITNESS WHEREOF, the parties have signed their names hereto as of the date first above
written.

 

 

	 	 	 	 	 	 	 
	 	 	ACIN, LLC, a Delaware limited liability company
	 	 	By NRP (Operating) LLC, a Delaware limited liability company
	 	 	Its sole operating manager
	 
	 	 	 	 	 	 
	 

	 	By:
	 	  /s/ Nick Carter	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	     Nick Carter	 	 
	 

	 	 	 	     Its President and Chief Operating Officer	 	 

STATE OF WEST VIRGINIA

COUNTY OF CABELL

     The foregoing instrument was acknowledged before me on this 3rd day of March, 2006, by Nick
Carter, President and Chief Operating Officer of NRP (Operating) LLC, a Delaware limited liability
company and the sole operating manager of ACIN LLC, on behalf of ACIN LLC, a Delaware limited
liability company.

     My commission expires: November 1, 2008

	 	 	 	 	 
	[seal]

	 	/s/ Paddy Sue Gay	 	 
	 

	 	 	 	 
	 

	 	Notary Public	 	 

	 	 	 	 	 	 	 
	 	 	ALPHA LAND AND RESERVES, LLC
	 	 	a Delaware limited liability company
	 
	 	 	 	 	 	 
	 

	 	By:
	 	  /s/ Vaughn R. Groves	 	 
	 

	 	 	 	 	 	 

COMMONWEALTH OF VIRGINIA

COUNTY OF WASHINGTON

     The foregoing Assignment and Assumption Agreement was acknowledged before me on this 17th day
of February, 2006, by Vaughn R. Groves, President and Manager of ALPHA LAND AND RESERVES, LLC, a
Delaware limited liability company, on behalf of the company.

	 	 	 	 	 
	 

	 	  /s/ Susan R. Reynolds	 	 
	 

	 	 	 	 
	 

	 	Notary Public	 	 

My commission expires: March 31, 2006.

 

 

	 	 	 	 	 	 	 
	 	 	VIRGINIA ELECTRIC AND POWER COMPANY
	 
	 	 	 	 	 	 
	 

	 	By
	 	     /s/ James K. Martin	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	     Title:	 	 

COMMONWEALTH OF VIRGINIA

CITY/COUNTY OF HENRICO:

     The foregoing instrument was acknowledged before me this 7th day of March, 2006 by James K.
Martin as Vice President of VIRGINIA ELECTRIC AND POWER COMPANY, a Virginia public service
corporation, on behalf of the corporation.

     My commission expires: October 31, 2007

	 	 	 	 	 
	 

	 	     /s/ Lois H. Jenkin	 	 
	 

	 	 	 	 
	 

	 	Notary Public

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