Document:

<PAGE>
                                                                    EXHIBIT 4.68

                          ACKNOWLEDGEMENT AND AGREEMENT

BETWEEN:

LENDER: ROYAL BANK ASSET BASED FINANCE, A DIVISION OF ROYAL BANK OF
        CANADA, ("LENDER")

NAME OF BORROWERS:       FALLS MOUNTAIN COAL INC. ("FMC")

NAME OF THIRD PARTY:     RIDLEY TERMINALS INC. ("RIDLEY")

RE:     TERMINAL SERVICES AGREEMENT BETWEEN RIDLEY AND FMC

WHEREAS:

Ridley operates a terminal facility for the handling of bulk commodities on
Ridley Island, Prince Rupert, British Columbia ("TERMINAL").

Ridley has entered into a Terminal Services Agreement with FMC dated for
reference November 15, 2005 ("SERVICES AGREEMENT"); pursuant to which Ridley has
agreed to handle FMC's low volatile or semi-anthracite coal ("COMMODITY") which
is produced by FMC at its Willow Creek mine in Pine Valley, British Columbia
("MINE"), including the provision that Ridley shall store the Commodity.

The Lender has entered into certain financing transactions with FMC ("BORROWER")
and the Lender has been or will be granted a security interest in, inter alia,
all of the inventory of the Commodity produced from the Mine ("INVENTORY") and
accounts receivable ("ACCOUNTS") of the Borrower.

In consideration of the Lender extending credit to FMC and other good and
valuable consideration, the receipt and sufficiency of which Ridley hereby
acknowledges, the PARTIES AGREE AS FOLLOWS:

1.   Ridley acknowledges that:

     (a)  the Services Agreement is valid and in full force and effect and has
          not been assigned to any person whatsoever; and

     (b)  it is not aware of any default under the Services Agreement as at the
          date hereof.

2.   Ridley agrees that at any time Ridley gives notice of default to FMC under
     the Services Agreement it will provide a copy of such notice to the Lender
     at 320 Front St West, 11th floor, Toronto, Ontario, M5V 3B6. Attention:
     Asset Based Finance, by registered mail or facsimile ((416) 974-0716))

3.   The Lender shall have the right, but not the obligation, to cure any
     default, if any, under the Services Agreement within a period of 30 days
     from the date of receipt by the Lender of a notice (a "RIDLEY NOTICE")
     pursuant to Subsection 2. Any payment made, or act

<PAGE>

     done, by the Lender to cure any default under the Services Agreement shall
     not constitute an assumption by the Lender of that agreement or any
     obligations of FMC thereunder.

4.   For so long as FMC is not in default under the Services Agreement, and for
     the 30 day period referred to in Section 3 above, Ridley on written
     direction from the Lender, agrees not to deliver the Inventory as directed
     by FMC and, instead, agrees to hold the Inventory subject to the Lender's
     further direction, and to deliver the Inventory as may be reasonably
     directed by the Lender, at the Lender's cost, provided, that the Lender
     indemnifies Ridley in full for all liabilities and expenses incurred by
     Ridley for following the Lender's direction, and provided the Lender pays
     all amounts owing to Ridley by FMC. For greater certainty, if the Lender
     directs Ridley to deliver the Inventory to a location other than on board a
     vessel the Lender shall pay to Ridley the full amount of the throughput
     rate payable under the Services Agreement in respect of such Inventory as
     if such Inventory had been loaded onto a vessel, together with the costs
     incurred by Ridley in effecting delivery of the Inventory to the location
     requested by the Lender.

5.   The Lender, including its authorized agents or representatives, shall upon
     reasonable advance notice and subject to compliance with Ridley's security,
     safety and other requirements, have access to the Terminal at any time and
     from time to time during Ridley's normal business hours to inspect the
     Inventory.

6.   Ridley shall have no liability to FMC if it complies with any written
     direction from the Lender or any provision of this Acknowledgement and
     Agreement and FMC agrees that it will continue to pay to Ridley all amounts
     owing to Ridley under the Services Agreement.

7.   The Lender or its authorized agents or representatives may, at any and all
     times:

     (a)  request that Ridley provide the Lender, at the Lender's cost, to view
          at Ridley's office upon reasonable advance notice and subject to
          compliance with Ridley's security, safety and other requirements, any
          and all of FMC's books and records and other information or data of
          FMC, if any, held by Ridley, including, without limitation,
          information and data from any of FMC's computer equipment or systems
          and any and all of FMC's information, data and records stored
          electronically, and any other information in relation to collecting or
          otherwise dealing with any of the Accounts, and Ridley must provide
          such access to books, records, information and data within a
          reasonable time period so long as it retains possession of such books,
          records, information and data, regardless of whether or not FMC is in
          default of any of its obligations to Ridley or the Services Agreement
          has been terminated; and

     (b)  during normal business hours of Ridley, provided the Lender has
          settled in full all obligations of FMC to Ridley, the Lender may upon
          reasonable advance notice and subject to compliance with Ridley's
          security, safety and other requirements, enter upon and use the
          Terminal for the purpose of taking possession of the Inventory being
          stored at the Terminal, including without limitation that the Lender
          or its authorized agents or representatives can inspect or remove from
          the

                                       2
<PAGE>

          Terminal any or all of the Inventory free and clear of any right of
          restraint or mechanic's or other lien of Ridley.

8.   This Acknowledgement and Agreement (i) may be executed in any number of
     counterparts by facsimile transmission, each of which counterparts shall be
     deemed to be originals and all of which when taken together shall form one
     and the same agreement, (ii) shall be governed by and in accordance with
     the laws of the Province of British Columbia and the federal laws of Canada
     applicable therein and (iii) shall enure to the benefit of the Lender and
     its successors and assigns, and shall be binding upon the successors and
     assigns of Ridley.

         IN WITNESS WHEREOF, the parties to this Acknowledgement and Agreement
have executed and delivered this Acknowledgement and Agreement with effect as of
the 23rd day of December, 2005.

                               RIDLEY TERMINALS INC.

                               Per: /s/ Greg Slocombe
                                    --------------------------------------------
                                        Authorized Signatory I have authority to
                                        Bind the corporation

                               FALLS MOUNTAIN COAL INC.

                               Per: /s/ Martin Rip
                                    --------------------------------------------
                                        Authorized Signatory
                                        I have authority to bind the corporation

                               ROYAL BANK ASSET BASED FINANCE, a
                               division of Royal Bank of Canada

                               By:  /s/ Marcelle Fernandes
                                    --------------------------------------------
                                        Name: Marcelle Fernades
                                        Title:  Portfolio Manager

                               By:  /s/ Tro DerBedrossian
                                    --------------------------------------------
                                        Name: Tro DerBedrossian
                                        Title:  Manager, Underwriting

                                       3<PAGE>
                                                                    EXHIBIT 4.69

                  AMENDMENT TO ASSIGNMENT OF MATERIAL CONTRACTS

         THIS AMENDMENT TO ASSIGNMENT OF MATERIAL CONTRACTS dated as of December
23, 2005, is made by FALLS MOUNTAIN COAL INC., Suite 501-535 Thurlow Street,
Vancouver, B.C. V6E 3L2 a corporation existing under the laws of the Province of
British Columbia (the "ASSIGNOR") in favour of ROYAL BANK ASSET BASED FINANCE, A
DIVISION OF THE ROYAL BANK OF CANADA, 11th Floor, 320 Front Street West,
Toronto, Ontario M5V 3B6 (the "BANK");

         WHEREAS pursuant to a credit agreement made as of the 8th day of
September, 2005 between the Bank and the Assignor and other parties all of whom
are defined in the Credit Agreement as the "Borrower" (as amended, restated, or
replaced from time to time, the "CREDIT AGREEMENT"), the Bank has agreed to
provide certain financing to the Assignor;

         AND WHEREAS, as a condition precedent to the making of advances under
the Credit Agreement, the Assignor arranged for certain Material Contracts to be
amended to provide for the assignment of those Material Contracts to the Bank,
and the Assignor executed and delivered an Assignment of Material Contracts (the
"ASSIGNMENT") in relation to those Material Contracts;

         AND WHEREAS, the Assignor has entered into a Terminal Services
Agreement with Ridley Terminals Inc. ("RIDLEY"), dated for reference November
15, 2005 ("RIDLEY AGREEMENT"), in relation to the provision of terminal handling
services at Ridley Island, Prince Rupert, B.C., to be provided by Ridley in
relation to the Assignor's coal;

         AND WHEREAS, the Assignor has agreed to amend the Assignment to add the
Ridley Agreement to the Material Contracts assigned to the Bank;

         NOW THEREFORE for good and valuable consideration the receipt of which
is hereby acknowledged, the Assignor agrees, for the benefit of the Bank, as
follows:

1. DEFINITIONS

Unless otherwise defined herein (including in the preamble or recitals hereto)
or the context otherwise requires, terms used in this Amendment have the
meanings defined in the Assignment.

2. AMENDMENT

The Assignor amends the Assignment as of the date of this Amendment, to add the
Ridley Agreement to the Assignment and Schedule "A" to the Assignment is amended
so that the new Schedule "A" is as set out as Schedule "A" to this Amendment.

3. CONTINUATION OF ASSIGNMENT

With the exception of the foregoing amendment, the provisions of the Assignment
shall continue in full force and effect unamended.

         IN WITNESS WHEREOF the Falls Mountain Coal Inc. has duly executed this
Agreement on the date first written above.

<PAGE>

                                FALLS MOUNTAIN COAL INC.

                                Per: /s/ Martin Rip
                                     -------------------------------------------
                                         Name: Martin Rip
                                         Title: Secretary

                                Address:   Suite 501 -- 535 Thurlow Street
                                           Vancouver, British Columbia, V6E 3L2
                                Attention: Jeff Fehn
                                Facsimile No.: 604.682.4698

                                       2
<PAGE>

                                  SCHEDULE "A"

                               MATERIAL CONTRACTS

1.   Spot Contract between Neptune Bulk Terminals (Canada) Ltd. and Falls
     Mountain Coal Inc. dated July 1, 2004

2.   Agency Agreement between Falls Mountain Coal Inc. and Neptune Bulk
     Terminals (Canada) Ltd. dated July 1, 2004

3.   Confidential Transportation Agreement between B.C. Rail Partnership and
     Falls Mountain Coal Inc. dated June 4, 2004

4.   Terminal Services Agreement between Ridley Terminals Inc. and Falls
     Mountain Coal Inc. dated for reference November 15, 2005

                                       3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]