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                                                                   Exhibit 10.11

                         ALPHA NATURAL RESOURCES, INC.

                         2005 LONG-TERM INCENTIVE PLAN

      SECTION 1. PURPOSE. The purpose of this Plan is to advance the interests
of Alpha and its stockholders by providing incentives to certain Eligible
Persons who contribute significantly to the strategic and long-term performance
objectives and growth of the Company.

      SECTION 2. DEFINITIONS. Certain capitalized terms applicable to this Plan
are set forth in Appendix A.

      SECTION 3. ADMINISTRATION. This Plan shall be administered by the
Committee. The Committee shall have all the powers vested in it by the terms of
this Plan, such powers to include exclusive authority to select the Eligible
Persons to be granted Awards under this Plan, to determine the type, size, terms
and conditions of the Award to be made to each Eligible Person selected, to
modify or waive the terms and conditions of any Award that has been granted, to
determine the time when Awards will be granted, to establish performance
objectives, to make any adjustments necessary or desirable as a result of the
granting of Awards to Eligible Persons located outside the United States and to
prescribe the form of the agreements evidencing Awards made under this Plan.
Awards may, in the discretion of the Committee, be made under this Plan in
assumption of, or in substitution for, outstanding Awards previously granted by
(i) the Company, (ii) any predecessor of the Company, or (iii) a company
acquired by the Company or with which the Company combines. The number of Common
Shares underlying such substitute awards shall be counted against the aggregate
number of Common Shares available for Awards under this Plan.

      The Committee is authorized to interpret this Plan and the Awards granted
under this Plan, to establish, amend and rescind any rules and regulations
relating to this Plan, and to make any other determinations that it deems
necessary or desirable for the administration of this Plan. The Committee may
correct any defect or omission or reconcile any inconsistency in this Plan or in
any Award in the manner and to the extent the Committee deems necessary or
desirable to carry it into effect. Any decision of the Committee in the
interpretation and administration of this Plan, as described in this Plan, shall
lie within its sole and absolute discretion and shall be final, conclusive and
binding on all parties concerned (including, but not limited to, Participants
and their Beneficiaries or Permitted Transferees). The Committee may act only by
a majority of its members in office, except that the members thereof may
authorize any one or more of their members or any officer of the Company to
execute and deliver documents or to take any other ministerial action on behalf
of the Committee with respect to Awards made or to be made to Participants.

      No member of the Committee and no officer of the Company shall be liable
for anything done or omitted to be done by such member or officer, by any other
member of the Committee or by any other officer of the Company in connection
with the performance of duties under this Plan, except for his or her own
willful misconduct or as expressly provided by statute. In addition to all other
rights of indemnification and reimbursement to which a member of the Committee
and an officer of the Company may be entitled, the Company shall indemnify and
hold harmless each such member or officer who was or is a party or is threatened
to be made a party to any threatened, pending or completed proceeding or suit in
connection with the performance of duties under this Plan against expenses
(including reasonable attorneys' fees), judgments, fines, liabilities, losses
and amounts paid in settlement actually and reasonably incurred by him or her in
connection with such proceeding or suit, except for his or her own willful
misconduct or as expressly provided otherwise by statute. Expenses (including
reasonable attorneys' fees) incurred by such a member or officer in defending
any such proceeding or suit shall be paid by the Company in advance of the final
disposition of such proceeding or suit upon receipt of a

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written affirmation by such member or officer of his or her good faith belief
that he or she has met the standard of conduct necessary for indemnification and
a written undertaking by or on behalf of such member or officer to repay such
amount if it shall ultimately be determined that he or she is not entitled to be
indemnified by the Company as authorized in this Section.

      SECTION 4. PARTICIPATION. Consistent with the purposes of this Plan, the
Committee shall have exclusive power to select the Eligible Persons who may
participate in this Plan and be granted Awards under this Plan. Eligible Persons
may be selected individually or by groups or categories, as determined by the
Committee in its discretion.

      SECTION 5. AWARDS UNDER THIS PLAN.

            (a) Types of Awards. Awards under this Plan may include, but need
      not be limited to, one or more of the following types, either alone or in
      any combination thereof: (i) Stock Options, (ii) Stock Appreciation
      Rights, (iii) Restricted Stock, (iv) Restricted Stock Units, (v)
      Performance Grants and (vi) any other type of Award deemed by the
      Committee in its discretion to be consistent with the purposes of this
      Plan (including, but not limited to, Associated Awards, Awards of or
      options or similar rights granted with respect to unbundled stock units or
      components thereof, and Awards to be made to Participants who are foreign
      nationals or are employed or performing services outside the United
      States). In the case of an Award granted in conjunction with an Associated
      Award, the Award may be reduced on an appropriate basis to the extent that
      the Associated Award has been exercised, paid to or otherwise received by
      the Participant, as determined by the Committee.

            (b) Maximum Number of Common Shares that May be Issued. There may be
      issued under this Plan (as Restricted Stock, as Restricted Stock Units, in
      payment of Performance Grants, pursuant to the exercise of Stock Options
      or Stock Appreciation Rights or in payment of or pursuant to the exercise
      of such other Awards as the Committee, in its discretion, may determine)
      an aggregate of not more than ____________ Common Shares, subject to
      adjustment as provided in Section 15. No Eligible Person may receive
      Awards under this Plan for more than _______ Common Shares in any one
      fiscal year of Alpha, subject to adjustment as provided in Section 15.
      Common Shares issued pursuant to this Plan may be either authorized but
      unissued shares, treasury shares, reacquired shares or any combination
      thereof. If any Common Shares issued as Restricted Stock, Restricted Stock
      Units or otherwise subject to repurchase or forfeiture rights are
      reacquired by the Company pursuant to such rights or, if any Award is
      canceled, terminates or expires unexercised, any Common Shares that would
      otherwise have been issuable pursuant to such Award will be available for
      issuance under new Awards.

            (c) Rights with Respect to Common Shares and Other Securities.
      Except as provided in subsection 8(c) with respect to Awards of Restricted
      Stock and unless otherwise determined by the Committee in its discretion,
      a Participant to whom an Award is made (and any Person succeeding to such
      a Participant's rights pursuant to this Plan) shall have no rights as a
      stockholder with respect to any Common Shares or as a holder with respect
      to other securities, if any, issuable pursuant to any such Award until the
      date a stock certificate evidencing such Common Shares or other instrument
      of ownership is issued to such Participant. Except as provided in Section
      8 or Section 15, no adjustment shall be made for dividends, distributions
      or other rights (whether ordinary or extraordinary, and whether in cash,
      securities, other property or other forms of consideration, or any
      combination thereof) for which the record date is prior to the date such
      stock certificate or other instrument of ownership, if any, is issued. A
      Participant holding an Award providing for the issuance of Common Shares
      in the future shall have no rights as a stockholder with respect to such
      Common Shares until a stock certificate representing such Common Shares is
      issued to such Participant.

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      SECTION 6. STOCK OPTIONS. The Committee may grant Stock Options or sell
Purchased Options; provided that an Incentive Stock Option may be granted only
to Eligible Persons who are employees of Alpha or any parent or subsidiary of
Alpha and provided further that Participants who have Associated Awards may not
receive Incentive Stock Options if such Associated Awards disqualify the
Incentive Stock Option's status as such under the Code. Each Stock Option
granted or sold under this Plan shall be evidenced by an agreement in such form
as the Committee shall prescribe from time to time in accordance with this Plan
and shall comply with the applicable terms and conditions of this Section and
this Plan, and with such other terms and conditions, including, but not limited
to, restrictions upon the Stock Option or the Common Shares issuable upon
exercise thereof, as the Committee, in its discretion, shall establish.

            (a) The exercise price of a Stock Option may be less than, equal to,
      or greater than, the Fair Market Value of the Common Shares subject to
      such Stock Option at the time the Stock Option is granted, as determined
      by the Committee; provided, however, that in the case of an Incentive
      Stock Option granted to an employee of Alpha or any parent or subsidiary
      of Alpha, the exercise price shall not be less than the Fair Market Value
      of the Common Shares subject to such Stock Option at the time the Stock
      Option is granted, or if granted to a Ten Percent Employee, such exercise
      price shall not be less than 110% of such Fair Market Value at the time
      the Stock Option is granted. In no event, however, will the exercise price
      per share of a Stock Option be less than the par value per share of a
      Common Share.

            (b) The Committee shall determine the number of Common Shares to be
      subject to each Stock Option.

            (c) Any Stock Option may be exercised during its term only at such
      time or times and in such installments as the Committee may establish.

            (d) A Stock Option shall not be exercisable:

                  (i) in the case of any Incentive Stock Option granted to a Ten
            Percent Employee, after the expiration of five years from the date
            it is granted, and, in the case of any other Stock Option, after the
            expiration of ten years from the date it is granted; and

                  (ii) unless payment in full is made for the shares being
            acquired under such Stock Option at the time of exercise as provided
            in subsection 6(i).

            (e) The Committee shall determine in its discretion and specify in
      each agreement evidencing a Stock Option the effect, if any, the
      termination of the Participant's employment with or performance of
      services for the Company shall have on the exercisability of the Stock
      Option; provided, however, that an Incentive Stock Option that is
      exercised at a time that is beyond the time an Incentive Stock Option may
      be exercised in order to qualify as such under the Code shall cease to be
      an Incentive Stock Option.

            (f) In the case of an Incentive Stock Option, the amount of the
      aggregate Fair Market Value of Common Shares (determined at the time of
      grant of the Stock Option) with respect to which incentive stock options
      are exercisable for the first time by an employee of the Company during
      any calendar year (under all such plans of his or her employer corporation
      and its parent and subsidiary corporations) shall not exceed $100,000 or
      such other amount as is specified in the Code.

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            (g) It is the intent of Alpha that Nonqualified Stock Options
      granted under this Plan not be classified as Incentive Stock Options, that
      the Incentive Stock Options granted under this Plan be consistent with and
      contain or be deemed to contain all provisions required under Section 422
      and the other appropriate provisions of the Code and any implementing
      regulations (and any successor provisions thereof), and that any
      ambiguities in construction shall be interpreted in order to effectuate
      such intent. If a Stock Option is intended to be an Incentive Stock
      Option, and if for any reason such Stock Option (or portion thereof) shall
      not qualify as an Incentive Stock Option, then, to the extent of such
      nonqualification, such Stock Option (or portion thereof) shall be regarded
      as a Nonqualified Stock Option granted under this Plan; provided that such
      Stock Option (or portion thereof) otherwise complies with this Plan's
      requirements relating to Nonqualified Stock Options. In no event shall any
      member of the Committee or the Company (or its employees, officers or
      directors) have any liability to any Participant (or any other Person) due
      to the failure of a Stock Option to qualify for any reason as an Incentive
      Stock Option.

            (h) A Purchased Option may contain such additional terms not
      inconsistent with this Plan, including but not limited to the
      circumstances under which the purchase price of such Purchased Option may
      be returned to the holder of the Purchased Option, as the Committee may
      determine in its sole discretion.

            (i) For purposes of payments made to exercise Stock Options, such
      payment shall be made in such form (including, but not limited to, cash,
      Common Shares, the surrender of another outstanding Award under this Plan
      or any combination thereof) as the Committee may determine in its
      discretion; provided, however, that, for purposes of making such payment
      in Common Shares, such shares shall be valued at their Fair Market Value
      on the day of exercise and unless the Committee determines otherwise shall
      have been held by the Participant for a period of at least six (6) months.

      SECTION 7. STOCK APPRECIATION RIGHTS. The Committee may grant Stock
Appreciation Rights. Each Award of Stock Appreciation Rights granted under this
Plan shall be evidenced by an agreement in such form as the Committee shall
prescribe from time to time in accordance with this Plan and shall comply with
the applicable terms and conditions of this Section and this Plan, and with such
other terms and conditions, including, but not limited to, restrictions upon the
Award of Stock Appreciation Rights or the Common Shares issuable upon exercise
thereof, as the Committee, in its discretion, shall establish.

            (a) The Committee shall determine the number of Common Shares to be
      subject to each Award of Stock Appreciation Rights.

            (b) Any Stock Appreciation Right may be exercised during its term
      only at such time or times and in such installments as the Committee may
      establish.

            (c) The Committee shall determine in its discretion and specify in
      each agreement evidencing an Award of Stock Appreciation Rights the
      effect, if any, the termination of the Participant's employment with or
      performance of services for the Company shall have on the exercisability
      of the Award of Stock Appreciation Rights.

            (d) An Award of Stock Appreciation Rights shall entitle the holder
      to exercise such Award or to surrender unexercised an Associated Award (or
      any portion of such Associated Award) to Alpha and to receive from Alpha
      in exchange thereof, without payment to Alpha, that number of Common
      Shares having an aggregate value equal to (or, in the discretion of the
      Committee, less than) the excess of the Fair Market Value of one Common
      Share, at the time of such exercise, over the exercise price, times the
      number of Common Shares subject to the Award

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      or the Associated Award, or portion thereof, that is so exercised or
      surrendered, as the case may be. The Committee shall be entitled in its
      discretion to elect to settle the obligation arising out of the exercise
      of a Stock Appreciation Right by the payment of cash or Other Alpha
      Securities or property, or other forms of payment or any combination
      thereof, as determined by the Committee, equal to the aggregate value of
      the Common Shares it would otherwise be obligated to deliver. Any such
      election by the Committee shall be made as soon as practicable after the
      receipt by the Committee of written notice of the exercise of the Stock
      Appreciation Right.

            (e) A Stock Appreciation Right may provide that it shall be deemed
      to have been exercised at the close of business on the business day
      preceding the expiration date of the Stock Appreciation Right or of the
      related Stock Option (or other Award), or such other date as specified by
      the Committee, if at such time such Stock Appreciation Right has a
      positive value. Such deemed exercise shall be settled or paid in the same
      manner as a regular exercise thereof as provided in subsection 7(d) of
      this Agreement.

      SECTION 8. RESTRICTED STOCK AND RESTRICTED STOCK UNITS. The Committee may
grant Awards of Restricted Stock and Restricted Stock Units. Each Award of
Restricted Stock or Restricted Stock Units under this Plan shall be evidenced by
an agreement in such form as the Committee shall prescribe from time to time in
accordance with this Plan and shall comply with the applicable terms and
conditions of this Section and this Plan, and with such other terms and
conditions as the Committee, in its discretion, shall establish.

            (a) The Committee shall determine the number of Common Shares to be
      issued to a Participant pursuant to the Award of Restricted Stock or
      Restricted Stock Units, and the extent, if any, to which they shall be
      issued in exchange for cash, other consideration, or both.

            (b) Until the expiration of such period as the Committee shall
      determine from the date on which the Award is granted and subject to such
      other terms and conditions as the Committee in its discretion shall
      establish (the "RESTRICTED PERIOD"), a Participant to whom an Award of
      Restricted Stock is made shall be issued, but shall not be entitled to the
      delivery of, a stock certificate representing the Common Shares subject to
      such Award.

            (c) Unless otherwise determined by the Committee in its discretion,
      a Participant to whom an Award of Restricted Stock has been made (and any
      Person succeeding to such a Participant's rights pursuant to this Plan)
      shall have, after issuance of a certificate for the number of Common
      Shares awarded and prior to the expiration of the Restricted Period,
      ownership of such Common Shares, including the right to vote such Common
      Shares and to receive dividends or other distributions made or paid with
      respect to such Common Shares (provided that such Common Shares, and any
      new, additional or different shares, or Other Alpha Securities or
      property, or other forms of consideration that the Participant may be
      entitled to receive with respect to such Common Shares as a result of a
      stock split, stock dividend or any other change in the corporation or
      capital structure of Alpha, shall be subject to the restrictions set forth
      in this Plan as determined by the Committee in its discretion), subject,
      however, to the options, restrictions and limitations imposed thereon
      pursuant to this Plan.

            (d) The Committee shall determine in its discretion and specify in
      each agreement evidencing an Award of Restricted Stock or Restricted Stock
      Units the effect, if any, the termination of the Participant's employment
      with or performance of services for the Company during the Restricted
      Period shall have on such Award.

            (e) The Committee may grant Associated Awards of Dividend
      Equivalents to Participants in connection with Awards of Restricted Stock
      Units. The Committee may provide,

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      at the date of grant or thereafter, that Dividend Equivalents shall be
      paid or distributed when accrued or shall be deemed to have been
      reinvested in additional Common Shares, or other investment vehicles as
      the Committee may specify; provided that, unless otherwise determined by
      the Committee, Dividend Equivalents shall be subject to all conditions and
      restrictions of the underlying Restricted Stock Units to which they
      relate.

      SECTION 9. PERFORMANCE GRANTS. The Committee may grant Awards of
Performance Grants. The Award of a Performance Grant to a Participant will
entitle him or her to receive a specified amount determined by the Committee
(the "ACTUAL VALUE"), if the terms and conditions specified in this Plan and in
the Award are satisfied. Each Award of a Performance Grant shall be subject to
the applicable terms and conditions of this Section and this Plan, and to such
other terms and conditions, including but not limited to, restrictions upon any
cash, Common Shares, Other Alpha Securities or property, or other forms of
payment, or any combination thereof, issued with respect to the Performance
Grant, as the Committee, in its discretion, shall establish, and shall be
evidenced in an agreement in such form and substance as is determined by the
Committee.

            (a) The Committee shall determine the value or range of values of a
      Performance Grant to be awarded to each Participant selected for an Award
      and whether or not such a Performance Grant is granted in conjunction with
      an Associated Award. As determined by the Committee, the maximum value of
      each Performance Grant (the "MAXIMUM VALUE") shall be: (i) an amount fixed
      by the Committee at the time the Award is made or amended thereafter, (ii)
      an amount that varies from time to time based in whole or in part on the
      then current value of the Common Shares, Other Alpha Securities or
      property, or other securities or property, or any combination thereof or
      (iii) an amount that is determinable from criteria specified by the
      Committee. Performance Grants may be issued in different classes or series
      having different names, terms and conditions.

            (b) The award period ("AWARD PERIOD") related to any Performance
      Grant shall be a period determined by the Committee. At the time each
      Award is made or within the first 90 days of any performance period, the
      Committee shall establish performance objectives to be attained within the
      Award Period as the means of determining the Actual Value of such a
      Performance Grant. The performance objectives shall be based on such
      measure or measures of performance, which may include, but need not be
      limited to, the performance of the Participant, the Company or one or more
      of its divisions or units, or any combination of the foregoing, as the
      Committee shall determine, and may be applied on an absolute basis or be
      relative to industry or other indices or any combination thereof. The
      Actual Value of a Performance Grant shall be equal to its Maximum Value
      only if the performance objectives are attained in full, but the Committee
      shall specify the manner in which the Actual Value of Performance Grants
      shall be determined if the performance objectives are met in part. Such
      performance measures, the Actual Value or the Maximum Value, or any
      combination thereof, may be adjusted in any manner by the Committee in its
      discretion at any time and from time to time during or as soon as
      practicable after the Award Period, if it determines that such performance
      measures, the Actual Value or the Maximum Value, or any combination
      thereof, are not appropriate under the circumstances.

            (c) The Committee shall determine in its discretion and specify in
      each agreement evidencing a Performance Grant the effect, if any, the
      termination of the Participant's employment with or performance of
      services for the Company during the Award Period shall have on such
      Performance Grant.

            (d) The Committee shall determine whether the conditions of a
      Performance Grant have been met and, if so, shall ascertain the Actual
      Value of the Performance Grant. If the Performance Grant has no Actual
      Value, the Award and such Performance Grant shall be deemed

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      to have been canceled and the Associated Award, if any, may be canceled or
      permitted to continue in effect in accordance with its terms. If the
      Performance Grant has any Actual Value and:

                  (i) was not awarded in conjunction with an Associated Award,
            the Committee shall cause an amount equal to the Actual Value of the
            Performance Grant earned by the Participant to be paid to him or her
            or such Participant's Permitted Transferee or Beneficiary; or

                  (ii) was awarded in conjunction with an Associated Award, the
            Committee shall determine, in accordance with criteria specified by
            the Committee (A) to cancel the Performance Grant, in which event no
            amount with respect to such Performance Grant shall be paid to the
            Participant or his or her Permitted Transferee or Beneficiary, and
            the Associated Award may be permitted to continue in effect in
            accordance with its terms, (B) to pay the Actual Value of the
            Performance Grant to the Participant or his or her Permitted
            Transferee or Beneficiary as provided below, in which event the
            Associated Award may be canceled or (C) to pay to the Participant or
            his or her Beneficiary, the Actual Value of only a portion of the
            Performance Grants, in which event all or a portion of the
            Associated Award may be permitted to continue in effect in
            accordance with its terms or be canceled, as determined by the
            Committee.

            Such determination by the Committee shall be made as promptly as
      practicable following the end of the Award Period or upon the earlier
      termination of employment or performance of services, or at such other
      time or times as the Committee shall determine, and shall be made pursuant
      to criteria specified by the Committee.

            (e) Payment of any amount with respect to the Performance Grants
      that the Committee determines to pay as provided above shall be made by
      Alpha as promptly as practicable after the end of the Award Period or at
      such other time or times as the Committee shall determine, and may be made
      in cash, Common Shares, Other Alpha Securities or property, or other forms
      of payment, or any combination thereof or in such other manner, as
      determined by the Committee in its discretion. Notwithstanding anything in
      this Section to the contrary, the Committee may, in its discretion,
      determine and pay out the Actual Value of any Performance Grant at any
      time during the Award Period, provided that such authority or action does
      not result in an adverse tax impact on the Participant holding such
      Performance Grant or on any other Participant.

      SECTION 10. DEFERRAL OF COMPENSATION. The Committee shall determine
whether or not an Award shall be made in conjunction with the deferral of the
Participant's salary, bonus or other compensation, or any combination thereof,
and whether or not such deferred amounts may be:

            (a) forfeited to the Company or to other Participants or any
      combination thereof, under certain circumstances (which may include, but
      need not be limited to, certain types of termination of employment or
      performance of services for the Company);

            (b) subject to increase or decrease in value based upon the
      attainment of or failure to attain, respectively, certain performance
      measures; and/or

            (c) credited with income equivalents (which may include, but need
      not be limited to, interest, dividends or other rates of return) until the
      date or dates of payment of the Award, if any.

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      SECTION 11. DEFERRED PAYMENT OF AWARDS. The Committee may specify that the
payment of all or any portion of cash, Common Shares, Other Alpha Securities or
property, or any other form of payment, or any combination thereof, under an
Award shall be deferred until a later date. Deferrals shall be for such periods
or until the occurrence of such events, and upon such terms, as the Committee
shall determine in its discretion. Deferred payments of Awards may be made by
undertaking to make payment in the future based upon the performance of certain
investment equivalents (which may include, but need not be limited to,
government securities, Common Shares, other securities, property or
consideration, or any combination thereof), together with such additional
amounts of income equivalents (which may be compounded and may include, but need
not be limited to, interest, dividends or other rates of return or any
combination thereof) as may accrue thereon until the date or dates of payment,
such investment equivalents and such additional amounts of income equivalents to
be determined by the Committee in its discretion.

      SECTION 12. TRANSFERABILITY OF AWARDS. A Participant's rights and interest
under this Plan or any Award may not be assigned or transferred, hypothecated or
encumbered in whole or in part either directly or by operation of law or
otherwise, including, but not by way of limitation, execution, levy,
garnishment, attachment, pledge, bankruptcy or in any other manner; provided,
however, the Committee may permit such transfer to a Permitted Transferee; and
provided, further, that, unless otherwise permitted by the Code, any Incentive
Stock Option granted pursuant to this Plan shall not be transferable other than
by will or by the laws of descent and distribution, and shall be exercisable
during the Participant's lifetime only by Participant or by such Permitted
Transferee.

      SECTION 13. AMENDMENT OR SUBSTITUTION OF AWARDS UNDER THIS PLAN. The terms
of any outstanding Award under this Plan may be amended or modified from time to
time by the Committee in its discretion in any manner that it deems appropriate
(including, but not limited to, acceleration of the date of exercise of any
Award and/or payments under any Award) if the Committee could grant such amended
or modified Award under the terms of this Plan at the time of such amendment or
modification; provided that no such amendment or modification shall adversely
affect in a material manner any right of a Participant under the Award without
his or her written consent. The Committee may, in its discretion, permit holders
of Awards under this Plan to surrender outstanding Awards in order to exercise
or realize the rights under other Awards, or in exchange for the grant of new
Awards, or require holders of Awards to surrender outstanding Awards as a
condition precedent to the grant of new Awards under this Plan.

      SECTION 14. TERMINATION OF A PARTICIPANT. For all purposes under this
Plan, the Committee shall determine whether a Participant has terminated
employment with, or the performance of services for, the Company; provided,
however, an absence or leave approved by the Company, to the extent permitted by
applicable provisions of the Code, shall not be considered an interruption of
employment or performance of services for any purpose under this Plan.

      SECTION 15. DILUTION AND OTHER ADJUSTMENTS. If any change in the
outstanding Common Shares occurs by reason of any stock split of or stock
dividend on the Common Shares, then, except as otherwise determined by the
Committee without liability to any Person, the terms of any outstanding Awards
shall be equitably adjusted in the manner determined by the Committee without
liability to any Person. If any change in the outstanding Common Shares occurs
by reason of any split-up, split-off, spin-off, recapitalization, merger,
consolidation, rights offering, reorganization, combination or exchange of
shares, sale by the Company of all of its assets, distribution to stockholders
(other than a stock split or stock dividend as provided above or a normal cash
dividend on the Common Shares), or other extraordinary or unusual event, then
the Committee may determine, in its discretion and without liability to any
Person, to terminate all outstanding Awards immediately prior to the
consummation of any such event, to make an equitable adjustment in the terms of
any outstanding Award and/or the number of Common Shares available for Awards,
or to make no adjustments. Any such determination by the Committee may be set
forth in any agreement evidencing an Award. Any such termination or adjustment

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made by the Committee shall be final, conclusive and binding for all purposes of
this Plan. Unless otherwise provided by the Committee, all outstanding Awards
shall terminate immediately prior to the consummation of any dissolution or
liquidation of the Company.

      SECTION 16. DESIGNATION OF BENEFICIARY BY PARTICIPANT. A Participant may
name a beneficiary to receive any payment to which such Participant may be
entitled with respect to any Award under this Plan in the event of his or her
death, on a written form to be provided by and filed with the Committee, and in
a manner determined by the Committee in its discretion (a "BENEFICIARY"). The
Committee reserves the right to review and approve Beneficiary designations. A
Participant may change his or her Beneficiary from time to time in the same
manner, unless such Participant has made an irrevocable designation. Any
designation of a Beneficiary under this Plan (to the extent it is valid and
enforceable under applicable law) shall be controlling over any other
disposition, testamentary or otherwise, as determined by the Committee in its
discretion. If no designated Beneficiary survives the Participant and is living
on the date on which any amount becomes payable to such a Participant's
Beneficiary, such payment will be made to the legal representatives of the
Participant's estate, and the term "BENEFICIARY" as used in this Plan shall be
deemed to include such Person or Persons. If there are any questions as to the
legal right of any Beneficiary to receive a distribution under this Plan, the
Committee in its discretion may determine that the amount in question be paid to
the legal representatives of the estate of the Participant, in which event the
Company, the Board, the Committee, the Designated Administrator (if any), and
the members thereof, will have no further liability to anyone with respect to
such amount.

      SECTION 17. FINANCIAL ASSISTANCE. If the Committee determines that such
action is advisable, the Company may assist any Participant in obtaining
financing from the Company (or under any program of the Company approved
pursuant to applicable law), or from a bank or other third party, on such terms
as are determined by the Committee, and in such amount as is required to
accomplish the purposes of this Plan, including, but not limited to, to permit
the exercise or receipt of an Award and/or the payment of any taxes with respect
to such Award. Such assistance may take any form that the Committee deems
appropriate, including, but not limited to, a direct loan from the Company, a
guarantee of the obligation by the Company or the maintenance by the Company of
deposits with such bank or third party.

      SECTION 18. MISCELLANEOUS PROVISIONS.

            (a) Any proceeds from Awards shall constitute general funds of
      Alpha.

            (b) No fractional shares may be delivered under an Award, but in
      lieu thereof a cash or other adjustment may be made as determined by the
      Committee in its discretion.

            (c) No Eligible Person or other Person shall have any claim or right
      to be granted an Award under this Plan. Determinations made by the
      Committee under this Plan need not be uniform and may be made selectively
      among Eligible Persons under this Plan, whether or not such Eligible
      Persons are similarly situated. Neither this Plan nor any action taken
      under this Plan shall be construed as giving any Eligible Person any right
      to continue to be employed by or perform services for the Company, and the
      right to terminate the employment of or performance of services by
      Eligible Persons at any time and for any reason is specifically reserved.

            (d) No Participant or other Person shall have any right with respect
      to this Plan, the Common Shares reserved for issuance under this Plan or
      in any Award, contingent or otherwise, until written evidence of the Award
      shall have been delivered to the Participant and all the terms, conditions
      and provisions of this Plan and the Award applicable to such Participant
      (and each Person claiming under or through such him or her) have been met.

                                      -9-
<PAGE>

            (e) No Common Shares, Other Alpha Securities or property, other
      securities or property or other forms of payment shall be issued under
      this Plan with respect to any Award unless counsel for Alpha shall be
      satisfied that such issuance will be in compliance with applicable law and
      any applicable rules of any stock exchange or other market quotation
      system on which Common Shares are listed.

            (f) It is the intent of Alpha that this Plan comply in all respects
      with Rule 16b-3 and Section 162(m), that any ambiguities or
      inconsistencies in construction of this Plan be interpreted to give effect
      to such intention and that if any provision of this Plan is found not to
      be in compliance with Rule 16b-3 or Section 162(m), such provision shall
      be deemed null and void. Except as otherwise determined by the Committee,
      with respect to Awards granted to executive officers of Alpha, such Awards
      shall be deemed to be automatically modified to the minimum extent
      required to permit such Awards to comply with Rule 16b-3 and Section
      162(m). It is also the intent of Alpha that this Plan comply in all
      respects with the provisions of the Code providing favorable treatment to
      Incentive Stock Options, that any ambiguities or inconsistencies in
      construction of this Plan be interpreted to give effect to such intention
      and that if any provision of this Plan is found not to be in compliance
      with the Incentive Stock Option provisions of the Code, such provision
      shall be deemed null and void with respect to Incentive Stock Options
      granted to employees of the Company to the extent required to permit such
      Incentive Stock Options to receive favorable treatment under the Code.

            (g) The Company shall have the right to deduct from any payment made
      under this Plan any federal, state, local or foreign income or other taxes
      required by law to be withheld with respect to such payment. It shall be a
      condition to the obligation of Alpha to issue Common Shares, Other Alpha
      Securities or property, other securities or property, or other forms of
      payment, or any combination thereof, upon exercise, settlement or payment
      of any Award under this Plan, that the Participant (or any Beneficiary or
      Person entitled to act) pay to Alpha, upon its demand, such amount as may
      be required by the Company for the purpose of satisfying any liability to
      withhold federal, state, local or foreign income or other taxes. If the
      amount requested is not paid, Alpha may refuse to issue Common Shares,
      Other Alpha Securities or property, other securities or property, or other
      forms of payment, or any combination thereof. Notwithstanding anything in
      this Plan to the contrary, the Committee may, in its discretion, permit an
      Eligible Person (or any Beneficiary or Person entitled to act) to elect to
      pay a portion or all of the amount requested by the Company for such taxes
      with respect to such Award, at such time and in such manner as the
      Committee shall deem to be appropriate (including, but not limited to, by
      authorizing Alpha to withhold, or agreeing to surrender to Alpha on or
      about the date such tax liability is determinable, Common Shares, Other
      Alpha Securities or property, other securities or property, or other forms
      of payment, or any combination thereof, owned by such Person or a portion
      of such forms of payment that would otherwise be distributed, or have been
      distributed, as the case may be, pursuant to such Award to such Person,
      having a Fair Market Value equal to the amount of such taxes).

            (h) The expenses of this Plan shall be borne by the Company;
      provided, however, the Company may recover from a Participant or his or
      her Beneficiary, heirs or assigns any and all damages, fees, expenses and
      costs incurred by the Company arising out of any actions taken by a
      Participant in breach of this Plan or any agreement evidencing such
      Participant's Award.

            (i) This Plan shall be unfunded. The Company shall not be required
      to establish any special or separate fund or to make any other segregation
      of assets to assure the payment of any Award under this Plan, and rights
      to the payment of Awards shall be no greater than the rights of the
      Company's general creditors.

                                      -10-
<PAGE>

            (j) By accepting any Award or other benefit under this Plan, each
      Participant (and each Person claiming under or through him or her) shall
      be conclusively deemed to have indicated his or her acceptance and
      ratification of, and consent to, any action taken under this Plan by the
      Company, the Board, the Committee or the Designated Administrator (if
      applicable).

            (k) The appropriate officers of the Company shall cause to be filed
      any reports, returns or other information regarding Awards under this Plan
      or any Common Shares issued pursuant to this Plan as may be required by
      applicable law and any applicable rules of any stock exchange or other
      market quotation system on which Common Shares are listed.

            (l) The validity, construction, interpretation, administration and
      effect of this Plan, and of its rules and regulations, and rights relating
      to this Plan and to Awards granted under this Plan, shall be governed by
      the substantive laws, but not the choice of law rules, of the State of
      Delaware.

            (m) Records of the Company shall be conclusive for all purposes
      under this Plan or any Award, unless determined by the Committee to be
      incorrect.

            (n) If any provision of this Plan or any Award is held to be illegal
      or invalid for any reason, the illegality or invalidity shall not affect
      the remaining provisions of this Plan or any Award, but such provision
      shall be fully severable, and this Plan or Award, as applicable, shall be
      construed and enforced as if the illegal or invalid provision had never
      been included in this Plan or Award, as applicable.

            (o) The terms of this Plan shall govern all Awards under this Plan
      and in no event shall the Committee have the power to grant any Award
      under this Plan that is contrary to any of the provisions of this Plan. In
      the event of a conflict between any term or provision of this Plan and any
      term or provision of the Stockholders Agreement dated _________ among
      Alpha and certain of its stockholders, the applicable terms and provisions
      of such Stockholders Agreement will govern and prevail.

            (p) For purposes of interpretation of this Plan, the masculine
      pronoun includes the feminine and the singular includes the plural
      wherever appropriate.

      SECTION 19. PLAN AMENDMENT OR SUSPENSION. This Plan may be amended or
suspended in whole or in part at any time from time to time by the Committee. No
amendment of this Plan shall adversely affect in a material manner any right of
any Participant with respect to any Award previously granted without such
Participant's written consent, except as permitted under Section 13; provided,
however, that the Committee may amend this Plan in such manner as it deems
necessary to permit the granting of Awards meeting the requirements of the Code
or other applicable laws.

      SECTION 20. PLAN TERMINATION. This Plan shall terminate upon the earlier
of the following dates or events to occur:

            (a) upon the adoption of a resolution of the Board terminating this
      Plan; or

            (b) the tenth anniversary of the Effective Date; provided, however,
      that the Board may, prior to such date, extend the term of this Plan for
      an additional period of up to five years for the grant of Awards other
      than Incentive Stock Options.

      No termination of this Plan shall materially alter or impair any of the
rights or obligations of any Participant, without his or her consent, under any
Award previously granted under this Plan, except that

                                      -11-
<PAGE>

subsequent to termination of this Plan, the Committee may make amendments or
modifications permitted under Section 13.

      SECTION 21. EFFECTIVE DATE. This Plan shall be effective, and Awards may
be granted under this Plan, on or after the Effective Date.

                                      -12-
<PAGE>

                                   APPENDIX A

      The following terms shall have the meaning indicated:

            "ACTUAL VALUE" has the meaning set forth in Section 9.

            "ALPHA" shall mean Alpha Natural Resources, Inc., a Delaware
      corporation.

            "ASSOCIATED AWARD" shall mean an Award granted concurrently or
      subsequently in conjunction with another Award.

            "AWARD" shall mean an award of rights to an Eligible Person under
      this Plan.

            "AWARD PERIOD" has the meaning set forth in subsection 9(b).

            "BENEFICIARY" has the meaning set forth in Section 16.

            "BOARD" shall mean the board of directors of Alpha.

            "CODE" shall mean the Internal Revenue Code of 1986, as it now
      exists or may be amended from time to time, and the rules and regulations
      promulgated thereunder, as they may exist or may be amended from time to
      time.

            "COMMITTEE" shall mean the person or persons responsible for
      administering this Plan. The Board shall constitute the Committee until
      the Board appoints a Board Committee, after which time the Board Committee
      shall constitute the Committee, provided, however, that at any time the
      Board may designate itself as the Committee or designate itself to
      administer certain of the Committee's authority under this Plan, including
      administering certain Awards under this Plan. The Board or the Board
      Committee may designate a Designated Administrator to constitute the
      Committee or to administer certain of the Committee's authority under this
      Plan, including administering certain Awards under this Plan, subject to
      the right of the Board or the Board Committee, as applicable, to revoke
      its designation at any time and to make such designation on such terms and
      conditions as it may determine in its discretion. For purposes of this
      definition, the "BOARD COMMITTEE" shall mean a committee of the Board
      designated by the Board to administer this Plan. Except as otherwise
      determined by the Board, the Board Committee (i) shall be comprised of not
      fewer than three directors, (ii) shall meet any applicable requirements
      under Rule 16b-3, including any requirement that the Board Committee
      consist of "Non-Employee Directors" (as defined in Rule 16b-3), (iii)
      shall meet any applicable requirements under Section 162(m), including any
      requirement that the Board Committee consist of "outside directors" (as
      defined in Treasury Regulation Section 1.162-27(e)(3)(i) or any successor
      regulation), and (iv) shall meet any applicable requirements of any stock
      exchange or other market quotation system on which Common Shares are
      listed. For purposes of this definition, the "DESIGNATED ADMINISTRATOR"
      shall mean one or more Company officers designated by the Board or a Board
      Committee to act as a Designated Administrator pursuant to this Plan.
      Except as otherwise determined by the Board, a Designated Administrator
      shall only be appointed if Rule 16b-3 permits such appointment and the
      exercise of any authority without adversely affecting the ability of
      Awards to officers of Alpha to comply with the conditions for Rule 16b-3
      or Section 162(m). The resolutions of the Board or Board Committee
      designating the authority of the Designated Administrator shall (i)
      specify the total number of Common Shares subject to Awards that may be
      granted pursuant to this Plan by the Designated Administrator, (ii) may
      not authorize the Designated Administrator to designate him or herself as
      the recipient of any Awards pursuant to

                                      -13-
<PAGE>

      this Plan and (iii) shall otherwise comply with the requirements of the
      Delaware General Corporation Law, including Section 157(c) thereunder.

            "COMPANY" shall mean Alpha and any parent, subsidiary or affiliate
      of Alpha.

            "COMMON SHARES" shall mean shares of common stock, par value $_____
      per share, of Alpha and stock of any other class into which such shares
      may thereafter be changed.

            "DIVIDEND EQUIVALENTS" shall mean an Associated Award of cash or
      other Awards with a Fair Market Value equal to the dividends which would
      have been paid on the Common Shares underlying an outstanding Award of
      Restricted Stock Units had such Common Shares been outstanding.

            "EFFECTIVE DATE" shall mean the date the Board adopts this Plan.

            "ELIGIBLE PERSON(S)" shall mean those persons who are full or
      part-time employees of the Company or other individuals who perform
      services for the Company, including, without limitation, directors who are
      not employees of the Company and consultants and independent contractors
      who perform services for the Company.

            "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as it
      now exists or may be amended from time to time, and the rules promulgated
      thereunder, as they may exist or may be amended from time to time.

            "FAIR MARKET VALUE" shall mean such value rounded up to the nearest
      cent as determined by the Committee in accordance with applicable law.

            "INCENTIVE STOCK OPTION" shall mean a Stock Option that is an
      incentive stock option as defined in Section 422 of the Code. Incentive
      Stock Options are subject, in part, to the terms, conditions and
      restrictions described in Section 6.

            "MAXIMUM VALUE" has the meaning set forth in subsection 9(a).

            "NONQUALIFIED STOCK OPTION" shall mean a Stock Option that is not an
      incentive stock option as defined in Section 422 of the Code. Nonqualified
      Stock Options are subject, in part, to the terms, conditions and
      restrictions described in Section 6.

            "OTHER ALPHA SECURITIES" shall mean Alpha securities (which may
      include, but need not be limited to, unbundled stock units or components
      thereof, debentures, preferred stock, warrants, securities convertible
      into Common Shares or other property) other than Common Shares.

            "PARTICIPANT" shall mean an Eligible Person to whom an Award has
      been granted under this Plan.

            "PERFORMANCE GRANT" shall mean an Award subject, in part, to the
      terms, conditions and restrictions described in Section 9, pursuant to
      which the recipient may become entitled to receive cash, Common Shares,
      Other Alpha Securities or property, or other forms of payment, or any
      combination thereof, as determined by the Committee.

            "PERMITTED TRANSFEREE" means (i) any person defined as an employee
      in the Instructions to Registration Statement Form S-8 promulgated by the
      Securities and Exchange Commission, as such Form may be amended from time
      to time, which persons include, as of the date of adoption

                                      -14-
<PAGE>

      of this Plan, (a) executors, administrators or beneficiaries of the
      estates of deceased Participants, guardians or members of a committee for
      incompetent former Participants, or similar persons duly authorized by law
      to administer the estate or assets of former Participants, and (b)
      Participants' family members who acquire Awards from the Participant other
      than for value, through a gift or a domestic relations order. For purposes
      of this definition, "FAMILY MEMBER" includes any child, stepchild,
      grandchild, parent, stepparent, grandparent, spouse, former spouse,
      sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
      daughter-in-law, brother-in-law, or sister-in-law, including adoptive
      relationships, any person sharing the Participant's household (other than
      a tenant or employee), a trust in which these persons have more than fifty
      percent of the beneficial interest, a foundation in which these persons
      (or the Participant) control the management of assets, and any other
      entity in which these persons (or the Participant) own more than fifty
      percent of the voting interests. For purposes of this definition, neither
      (i) a transfer under a domestic relations order in settlement of marital
      property rights; nor (ii) a transfer to an entity in which more than fifty
      percent of the voting interests are owned by family members (or the
      Participant) in exchange for an interest in that entity is considered a
      transfer for "VALUE".

            "PERSON" means any individual, firm, corporation, partnership,
      limited liability company, trust, incorporated or unincorporated
      association, joint venture, joint stock company, governmental body or
      other entity of any kind.

            "PLAN" shall mean this Alpha Natural Resources, Inc. 2005 Long-Term
      Incentive Plan.

            "PURCHASED OPTION" shall mean a Stock Option that is sold to an
      Eligible Person at a price determined by the Committee. Purchased Options
      are subject, in part, to the terms, conditions and restrictions described
      in Section 6.

            "RESTRICTED PERIOD" has the meaning set forth in subsection 8(b).

            "RESTRICTED STOCK" shall mean an Award of Common Shares that are
      issued subject, in part, to the terms, conditions and restrictions
      described in Section 8.

            "RESTRICTED STOCK UNITS" shall mean an Award of the right to receive
      either (as the Committee determines) Common Shares or cash equal to the
      Fair Market Value of a Common Share, issued subject, in part, to the
      terms, conditions and restrictions described in Section 8.

            "RULE 16b-3" shall mean Rule 16b-3 promulgated by the Securities and
      Exchange Commission under the Exchange Act and any successor rule.

            "SECTION 162(m)" shall mean Section 162(m) of the Code, any rules or
      regulations promulgated thereunder, as they may exist or may be amended
      from time to time, or any successor to such section.

            "STOCK APPRECIATION RIGHT" shall mean an Award of a right to receive
      (without payment to Alpha) cash, Common Shares, Other Alpha Securities or
      property, or other forms of payment, or any combination thereof, as
      determined by the Committee, based on the increase in the value of the
      number of Common Shares specified in the Stock Appreciation Right. Stock
      Appreciation Rights are subject, in part, to the terms, conditions and
      restrictions described in Section 7.

            "STOCK OPTION" shall mean an Award of a right to purchase Common
      Shares. The term Stock Option shall include Nonqualified Stock Options,
      Incentive Stock Options and Purchased Options.

                                      -15-
<PAGE>

            "TEN PERCENT EMPLOYEE" shall mean an employee of Alpha or any parent
      or subsidiary of Alpha who owns stock representing more than ten percent
      of the voting power of all classes of stock of Alpha or any parent or
      subsidiary of Alpha.

            "TREASURY REGULATION" shall mean a final, proposed or temporary
      regulation of the Department of Treasury under the Code and any successor
      regulation.

EFFECTIVE DATE:  __________ __, 2005

                                      -16-<PAGE>
                                                                   Exhibit 10.12

                                COAL MINING LEASE

      THIS COAL MINING LEASE ("Lease") dated April 9, 2003, effective as of
April 1, 2003, by and between CSTL LLC ("Lessor"), a Delaware limited liability
company, and ALPHA LAND AND RESERVES, LLC ("Lessee"), a Delaware limited
liability company.

SECTION 1.  LEASE FOR COAL MINING PURPOSES.

      In consideration of the terms, conditions, and stipulations set forth to
be performed and observed by Lessee, Lessor, acting on its own behalf and with
the intention of exercising any right, option or power held by it on behalf of
any other person or entity, does, to the extent that it now or hereafter owns or
controls same, hereby demise, lease and let to Lessee, the coal (the "Leased
Coal") within those certain seams lying in, on or under the premises obtained by
Lessor in the deeds (the "Source Deeds") described on Exhibit A hereto, and
hereinafter referred to as the "Leased Premises", together with the sole and
exclusive right of mining and removing all of the Leased Coal and together
further with the sole and exclusive right to exercise and enjoy all such other
rights in or relating to the Leased Premises obtained by Lessor in the Source
Deeds as may be necessary or convenient for the mining, preparation, loading,
removal, transportation and shipping of the Leased Coal, Foreign Coal (as
hereinafter defined), including the products and by-products of each and
synthetic fuel produced from each, and the reclamation of the Leased Premises in
connection therewith in accordance with applicable law, subject to the
Restrictions, as hereinafter defined, and the reservations and exceptions
expressly set forth in Section 2 of this Lease.

      "Foreign Coal," as used in this Lease, shall mean any coal mined from any
lands other than the Leased Premises, and "foreign coal refuse," as used in this
Lease, shall mean refuse resulting from the processing of Foreign Coal.

      Lessee has reviewed and is familiar with the restrictions, conditions,
reservations, obligations, notice requirements and deadlines (the
"Restrictions") contained in the Source Deeds, and all rights to mine the Leased
Premises which are granted herein are granted only to the extent Lessor obtained
such rights and properties in the applicable Source Deed.

      Subject to the limitations contained above and without limiting the
foregoing, to the extent that Lessor now or hereafter owns or controls same,
Lessee shall have all and exclusive coal and mining rights in, on and under the
Leased Premises and shall also have, subject to the provisions hereof, the right
to use as much of the surface of the Leased Premises, and the right to take and
use stone, soil and water thereon, as may be necessary for, or incident to, (a)
the mining, preparation, loading, removal, transportation and shipping of Leased
Coal and Foreign Coal; (b) the construction, maintenance and use of all
structures, fixtures, equipment, plant or facilities deemed necessary or
convenient by Lessee, including without limitation, preparation facilities,
synthetic fuel facilities, buildings, offices, impoundments, valley fills,
tipples, roads, railroads, utilities, pipelines, conveyors and other structures,
facilities and improvements necessary for, or incident to, the purposes of this
Lease; (c) storage of all such coal, any mine refuse and any equipment,
materials and supplies; (d) the dumping of rock, slate, overburden, fill
material and other refuse (including foreign coal refuse); (e) the pumping,
discharge,

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
deposit, treatment, diversion and draining of water; and (f) the unrestricted
right of ingress and egress to and from the Leased Premises for any purposes
incidental to the above.

      Subject to the provisions and limitations contained above, Lessee shall
have the right to mine the Leased Coal by all mining methods now existing or
hereafter developed, including surface mining methods (including contour strip
mining, mountaintop removal, area mining, and highwall mining), and underground
mining methods (including room and pillar and longwall mining methods);
provided, however, that Lessee shall not mine any Leased Coal by the auger
mining method without first obtaining the prior written consent of Lessor, which
consent shall not be unreasonably withheld, delayed or conditioned. To the
extent that Lessor has the right to grant same, Lessor hereby waives the right
to lateral and subjacent support and any claim or liability for damages to the
surface or subsurface or water thereon or therein, and grants Lessee the right
to subside the surface and overlying strata, including water, without liability
to Lessor therefor.

      Subject to the above limitations and to the extent that Lessor owns and
can grant same, Lessee is hereby granted the right to store upon and transport
through, over, across or under the Leased Premises Foreign Coal, and men,
materials, timber, supplies and equipment in connection with mining on or
removal of timber from the Leased Premises or any other lands. The above
transportation rights are granted at no additional cost to Lessee.

SECTION 2.  RESTRICTIONS, RESERVATIONS AND EXCEPTIONS.

      All rights, title and interest in or to the Leased Premises described on
Exhibit A hereto as Area 1, vested in Lessor and not herein granted to Lessee
are reserved to Lessor, its successors and assigns.

      Without limiting the generality of this reservation, there are hereby
expressly excepted from this Lease, with respect to the Leased Premises
described on Exhibit A hereto as Area 1, and reserved to Lessor, its successors
and assigns and further subject to the extent such rights are vested in the
Lessor:

      (1)   all existing licenses, easements and rights-of-way to third parties
            for railroad or other purposes heretofore granted by or otherwise
            lawfully acquired from Lessor or its predecessors in title;

      (2)   all oil, gas (including gas and/or methane in the Leased Coal,
            provided, however, that Lessee shall have the right to vent,
            liberate or otherwise remove such gas or methane in the course of
            mining operations pursuant hereto or pursuant to any other deed,
            lease, license, agreement or easement, without liability or payment
            therefor), timber (provided, however, that Lessee shall have the
            right to remove trees or timber growing on the Leased Premises as
            necessary or convenient to its mining operations, after giving
            Lessor at least six months' advance written notice thereof), and
            minerals other than coal;

      (3)   the following rights and privileges in and respecting the Leased
            Premises:

            (a) the right at all reasonable times to enter upon the Leased
            Premises, and to drill, bore, excavate, cut, remove, develop, store,
            and market (or to lease or license to others said rights), all such
            oil, gas, timber and other minerals hereinabove excepted;

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
            (b) the right to construct and operate railroads, roads, structures,
            and appliances which may be necessary for the removal or processing
            of such oil, gas, timber and other minerals, or to serve other
            properties of the Lessor;

            (c) the right and privilege of leasing to tenants the surface of the
            Leased Premises for the purposes of occupying and farming said
            surface or of constructing thereon such facilities as may be needed
            for the removal or processing of said oil, gas, timber and other
            minerals; provided, however that, notwithstanding anything in this
            Lease to the contrary, Lessor shall not without Lessee's consent,
            which consent shall not be unreasonably withheld, enter into leases
            for surface occupation, residential purposes, farming or business
            development on property (i) within the Permitted Areas or (ii)
            within areas reasonably designated by Lessee as likely to be
            affected by Lessee's operations; and

            (d) the right to grant and convey from time to time to any electric
            or other power company, pipeline, gas, oil, mining or railroad
            company, so much of the surface of the Leased Premises as may be
            required for rights-of-way by such company or companies; provided
            that Lessor shall use its commercially reasonable efforts to ensure
            that such rights of way shall include, for the benefit of Lessor and
            Lessee, the right to demand relocation thereof at no cost in
            connection with operations pursuant to this Lease.

      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. Further, 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 cause the requirement to pay such monies, then and in that event, the
parties shall negotiate in good faith for the appropriate allocation and payment
of such monies; provided, however, that Lessee shall be entitled to exercise any
such rights and pay such monies pending determination of such allocation.

      In the event Lessor desires to exercise any of the rights reserved herein
and such exercise shall include operations to be conducted on a portion of the
Leased Premises with regard to which Lessee has posted a reclamation or
performance bond or has received a permit or other authorization from, or has a
pending permit application with, any federal, state, local or other governmental
agency to conduct operations on such portion of the Leased Premises or on any
area within three hundred (300) feet of any exterior permit boundary
(collectively "Permitted Areas"), then Lessor shall give Lessee at least thirty
(30) days prior written notice thereof, and shall not exercise any such rights
with respect to any Permitted Areas without Lessee's prior written consent,
which consent shall not be unreasonably withheld, delayed or conditioned.
Without limiting the above, such consent can be conditioned upon Lessor or its
subsequent lessee or assign agreeing to remove any equipment, material or
fixtures that any of them might have installed that subsequently interfere with
Lessee's mining operations under this Lease. Lessor shall, within 30 days after
receiving Lessee's invoice, reimburse Lessee for all costs added by Lessor's
operations to Lessee's costs of compliance with such bonds, permits, and/or
other authorizations and for costs related to accommodation of Lessor's
operations. Any lease, assignment or

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
other transfer of the rights retained by Lessor hereby shall contain provisions
that expressly incorporate the provisions set forth above and shall require the
holder of such rights to likewise reimburse Lessee.

      To the extent that Lessor has the right to grant same, but notwithstanding
anything herein to the contrary, the rights granted to Lessee by this Lease are
dominant, and the rights and privileges hereby excepted and reserved in this
Section shall be exercised in such manner as to not interfere with Lessee's
exercise of its rights hereunder or with Lessee's mining operations in
connection therewith, having due regard for the requirements, convenience, and
safety of said rights and operations; and provided further, that Lessor shall
indemnify Lessee for all direct costs and liabilities incurred by Lessee
resulting from Lessor's exercise of such rights and privileges (including claims
of personal injury or property damage resulting from the activities of Lessor or
any of Lessor's lessees, licensees, invitees, contractors or subcontractors);
provided, further, however, that it is not the intent of this sentence that
Lessee shall be entitled to charge Lessor any usage fees for the exercise of
reserved rights.

SECTION 3.  TERM.

      The initial term (the "Initial Term") of this Lease shall be for a period
of ten (10) years from the effective date set forth in the preamble paragraph
hereto (hereinafter, the "anniversary date"), unless sooner terminated as
hereinafter provided. This Lease shall be automatically extended upon the
expiration of the Initial Term for consecutive terms of five (5) years each, up
to a maximum of fifty (50) years from the expiration of the Initial Term,
subject to the right of Lessee to terminate this Lease on the expiration of the
Initial Term or the expiration of any subsequent five year extension period by
delivering written notice of its desire to do so to Lessor at least ninety (90)
days prior to such termination date. For purposes of this Lease, "Lease Year"
shall mean the period beginning on the effective date hereof and ending on
December 31, 2003 with respect to the first Lease Year, and thereafter the
twelve-month period beginning on each January 1 so long as this Lease remains in
effect.

      In the event all the mineable and merchantable coal underlying the Leased
Premises shall have been mined and removed from the Leased Premises pursuant to
the provisions of this Lease and mining operations by Lessee have ceased upon
the Leased Premises, then this Lease shall cease and terminate upon the date
when all such coal shall have been mined and removed and such mining operations
have ceased. Notwithstanding anything herein to the contrary, (a) the term of
this Lease may be extended beyond such date by Lessee to the extent reasonably
required by Lessee to continue the operation of any facilities that are located
on the surface of the Leased Premises that are useful for the handling or
processing of any Foreign Coal, provided that Lessee shall pay Lessor $[***] in
annual rental at the same time and in the same manner that Minimum Annual
Royalty would have been payable hereunder; and (b) Lessee shall have the right
to enter upon the Leased Premises after the termination or forfeiture of this
Lease, without rental, (i) for the purpose of removing all of Lessee's
buildings, structures, machinery, equipment and other property from any part of
the Leased Premises following the termination of this Lease in accordance with
Section 14 hereof; and (ii) for the purpose of conducting reclamation activities
on the Leased Premises or on any other lands and complying with applicable law,
provided that if Lessee exercises its rights pursuant to this subparagraph (b),
the provisions of the last four paragraphs of Section 5 shall apply during said
time. As used in this Lease, "mineable and merchantable coal" shall mean coal
that can be mined at a reasonable profit to Lessee, using modern mining methods
and equipment, when reached in the ordinary course of Lessee's operations.

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
SECTION 4.  ROYALTIES.

      (a) Lessee shall pay to Lessor, CSTL LLC, P.O. Box 2495, Columbus, Ohio
43260 or at such other places as Lessor may from time to time designate in
writing, during the term of this Lease, a Tonnage Royalty in the amount of the
greater of [***] percent ([***]%) of the gross selling price or $[***] per ton
for the coal mined from the Leased Premises and sold during each calendar month
of the term hereof, to be received by Lessor within twenty (20) days from the
end of the month to which payment applies. In the event Lessor consents to
mining on the Leased Premises by the auger mining method, then the royalty
attributable to all coal so mined by the auger mining method shall be [***]
percent ([***]%) of the gross selling price.

      (b) Beginning April 1, 2003, Lessee shall pay to Lessor a Minimum Annual
Royalty in the amount of $[***] for the first Lease Year. Beginning on January
1, 2004 and thereafter during the Initial Term hereof, as same may be extended,
Lessee shall pay to Lessor a Minimum Annual Royalty in the amount of $[***], and
for each Lease Year during any extension of the Term, a Minimum Annual Royalty
in the amount of $[***]. Each payment shall be made in advance, in equal
quarterly installments, with each installment equal to one-fourth of the Minimum
Annual Royalty, on the first day of January, April, July and October of each
Lease Year. Each quarterly payment shall hereinafter be referred to as a
"Quarterly Payment". Lessee shall have the right to recoup a Quarterly Payment
at any time after payment of same, by deducting the amount of such payment from
Tonnage Royalty payments due, at any time, so long as this Lease remains in
effect. Notwithstanding anything herein to the contrary, upon the payment by the
Lessee of Tonnage Royalties and a Quarterly Payment or Quarterly Payments in any
Lease Year, which equal or exceed, in the aggregate, the Minimum Annual Royalty
due for such Lease Year, no further Quarterly Payment shall be due or payable
during such Lease Year.

      If at any time after the Initial Term, in the opinion of Lessor's engineer
or an independent professional engineer mutually acceptable to Lessor and
Lessee, upon the request of Lessee, the amount of mineable and merchantable
Leased Coal is not sufficient to provide enough Tonnage Royalty to recoup all
unrecouped Minimum Annual Royalty previously paid under this Lease, then the
obligation to pay Minimum Annual Royalty or any subsequent Quarterly Payment
thereof shall immediately cease.

      The term "coal" referred to herein shall include any low-coal content
merchantable product that is sometimes sold and shipped under various trade
names including bone, coal, fuel and middlings, and, for purposes of this Lease,
synthetic fuel produced by Lessee from Leased Coal. The term "ton" referred to
herein shall mean 2,000 pounds.

      Subject to the qualification hereinafter stated in this paragraph, "gross
selling price" of coal shall, for all purposes under this Lease, be the amount
received, by Lessee, upon sale thereof after preparation and/or tippling, to an
unaffiliated third party purchaser f.o.b. railroad cars, trucks or other
transport at the loading point at which Leased Coal mined hereunder has been
prepared and loaded for shipment to such unaffiliated third party purchaser,
without any deduction for selling expense or sale commission but with proper
deduction for transportation costs incurred in the instances where the f.o.b.
selling point is different than the loading point. It is this section's intent
that the gross selling price be the price received by Lessee or its affiliates,
in the last arm's length transaction between an unaffiliated third party

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
purchaser and Lessee or its affiliates for such Leased Coal. If Lessee or any
affiliate of Lessee shall consume any of the Leased Coal, the price of the
Leased Coal as consumed shall be considered equal to (1) the average gross
selling price of Leased Coal of comparable quality and as is then being sold to
unaffiliated third party purchasers, or (2) if there are no unaffiliated third
party purchasers, the average gross selling price of comparable coal in the open
market.

      Lessee shall furnish to Lessor on or before the 20th day of each calendar
month the railroad and truck scale weights showing the quantity of Leased Coal
shipped from the Leased Premises and weights of Leased Coal, if any, consumed on
the Leased Premises or at the preparation plant or tipple by Lessee or its
affiliates during the preceding calendar month. Lessee shall comply with all
reasonable rules and regulations that may reasonably be prescribed by Lessor's
engineer for the ascertainment of and payment of tonnage royalties on the Leased
Coal mined and sold or consumed under this Lease. Lessee shall keep accurate and
correct books of account showing all coal mined, and all coal consumed on,
transported, or shipped from the Leased Premises or elsewhere, together with the
correct weights and gross selling price thereof, to which books and records
Lessor shall at all reasonable times and with reasonable notice have access for
verification of statements to be furnished by Lessee for a period of five (5)
years from the date of payment.

      Lessor, for like purposes, is hereby authorized to demand and require of
any railroad company or other agents transporting the products of the Leased
Premises, inspection of its books and records, showing the weight and quantity
of such products and pertinent information in relation thereto. Lessee hereby
authorizes and requests such carriers and other agents to show Lessor, or its
agents, all such books and records and to furnish all such information when
requested.

      In the event it shall be necessary or reasonably convenient in mining
Leased Coal to load the same over a tipple or tipples over which other coal is
loaded, thereby mixing the Leased Coal with other coal, Lessee shall keep a
strict account of the tonnage of Leased Coal as well as a strict account of the
tonnage of other coal being loaded over the same tipple or tipples. Before other
coal may be mixed with Leased Coal, the method of determining these respective
tonnages shall be approved in writing by the Engineer of Lessor consistent with
standard industry practice, which approval shall not be unreasonably withheld,
delayed or conditioned.

      In the event Leased Coal is so commingled, then the gross selling price,
as set forth in Section 4 hereof, shall be the average gross selling price for
all coal with which such Leased Coal is commingled, to the end that unless the
Leased Coal is mined, processed, stored and sold separately from all other
coals, then the gross selling price shall be the average gross selling price for
all coal sold from the Lessee's facility with which Leased Coal is commingled.

      It is the intent of this Lease to allow monthly royalty payments to be
paid on either a sales or production basis in Lessee's sole discretion; however,
all coal produced from the Leased Premises shall be reconciled to total sales
along with any Foreign Coal that is commingled with coal from the Leased
Premises. This reconciliation shall be done monthly for coal reported and
royalty paid on a sales basis and not less than annually for coal reported and
royalty paid on a production basis. The only allowable adjustment to total sales
is a reduction for Foreign Coal segregated and not commingled at any time with
coal from the Leased Premises. Lessor's portion of total sales shall be prorated
based on Lessor's percentage of total production since the last reconciliation
and adjustments made, plus or minus, at that

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
time. There will be no other adjustments to sales tons or methods used to
reconcile Lessor's royalty payments unless expressly agreed to in writing, in
advance, by Lessor.

SECTION 5.  TAXES AND INSURANCE.

      Lessor will, in the first instance, pay all the taxes, levies and
assessments on or in respect of Lessor's ownership of the Leased Premises and,
during the continuance of this Lease, Lessee shall reimburse to Lessor the
amount of such taxes, levies, and assessments attributable to the Leased Coal
and the Leased Premises, but excluding taxes attributable to all rights excepted
and reserved, if separately assessed, including taxes attributable to timber,
oil, gas and other minerals, after Lessee's receipt of Lessor's statement
therefor, such amounts to constitute and be treated as additional rental
hereunder; provided that the obligation of Lessee shall be prorated for any
partial calendar years for the first year and the last year of this Lease.
Lessee shall promptly pay at the several times they become due and payable all
taxes levied or assessed upon coal mined from or products manufactured from coal
upon the Leased Premises. Lessee shall also pay any and all taxes due to the
state and/or its subdivision for severing, removing, processing, or preparing of
said coal, except for taxes on gross or net income of Lessor on receipt of
royalties, and Lessee shall also pay all royalties for removal of coal required
by any existing or future labor agreements of lessee, its agents, operators or
affiliates. If Lessor fails to pay the taxes, levies and assessments set forth
above or if there are any taxes or encumbrances due on the Leased Premises, then
Lessee may pay the same and any penalties, or redeem the Leased Premises from a
tax sale, and deduct the amount expended attributable to taxes attributable to
all rights excepted or reserved, if separately assessed, as well as penalties
and interest assessed due to Lessor's failure to timely pay any taxes, levies
and assessments, from any rents and royalties subsequently accruing.

      Lessee may, at any time during the continuance of this Lease, at its own
cost and expense, and after reasonable notice to Lessor of its intention so to
do, contest any of the taxes, levies, or assessments to be borne by Lessee as
above provided. In the event of any such contest, Lessee is authorized to
proceed in the name of Lessor with respect to the reversionary interest of
Lessor in the Leased Premises, but Lessee shall indemnify Lessor against any
costs, penalties, expenses, or interest charges arising out of such contest.

      Lessee shall submit to Lessor, for its review, a copy of annual coal
appraisal reports or returns prepared pursuant to laws or regulations in the
Commonwealth of Virginia with respect to Lessor's ownership prior to the filing
with any governmental agency. It is understood and agreed that the taxes levied
or assessed from such reports are based, in part, upon the permitting and/or
production of Lessee and for that reason, Lessee's payments to Lessor as
provided for in this section shall continue and survive any termination of this
Lease until the earlier of such time as (a) said taxes levied or assessed are
not based on production or the designation of the Leased Coal as mineral under
development, (b) the Leased Coal is leased to any third parties (or if partially
leased, to the extent so leased); or (c) one year following termination of this
Lease. Notwithstanding the foregoing, after termination of the Lease, Lessee's
responsibilities for payment of taxes shall be limited to the incremental
difference between the amount of taxes due based on the designation of coal
reserves as mineral under development and the amount of taxes that would be due
if such reserves were not under development. Lessor shall use its commercially
reasonable efforts to minimize all taxes payable by Lessee under this Lease.

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
      Lessee agrees that it shall comply with all of the terms and provisions of
the black lung laws (defined below) and will secure the payment of black lung
benefits (defined below) as hereinafter provided. "Black lung laws" mean the
Black Lung Benefits Act, Title IV of the Federal Mine Safety and Health Act of
1977, 30 U.S.C. 901 et seq., and the Internal Revenue Code, 26 U.S.C. 1 et seq.,
Black Lung Benefits Reform Act of 1977 (P.L. 95-239), Black Lung Benefits
Revenue Act of 1977 (P.L. 75-227), Black Lung Benefits Revenue Act of 1981 (P.L.
97-119), as now or hereafter amended, and all rules and regulations adopted
pursuant thereto. "Black lung benefits" means any and all benefits payable
pursuant to the black lung laws. Lessee acknowledges that, as between itself and
Lessor, it is, and shall be deemed to be, the operator of any coal mine or coal
preparation facility or facility used for the extraction, preparation or
transportation of Leased Coal and of all related activities, including, but not
limited to, coal mine construction or maintenance, engaged in by Lessee pursuant
to the terms of this Lease with respect to any claim for black lung benefits
filed by or on account of any of its employees or former employees. To the
extent required under the black lung laws, Lessee shall secure and shall require
any other person or entity who operates, controls or supervises a coal mine or
coal preparation facility on the Leased Premises or performs services of
construction, maintenance, transportation, or other activities related to coal
mining or preparation associated with this Lease, and who otherwise is liable
for the payment of black lung benefits, to secure the payment of such black lung
benefits to or on account of employees or former employees in accordance with
the black lung laws and shall provide Lessor, upon request, with appropriate
certification that each of them has provided security in compliance with all
black lung laws for the payment of such black lung benefits. Without limiting
the generality of Lessee's obligations to comply with all other provisions of
this Lease, Lessee agrees that it will secure and guarantee the payment of all
black lung benefits required to be paid under the black lung laws by reason of
mining, construction, transportation, and related activities under this Lease,
and Lessee does hereby agree that it will indemnify and hold Lessor harmless
from any liability or expenses, including reasonable attorney fees and expenses,
which Lessor may suffer directly or indirectly, as a result of or with respect
to any claim for black lung benefits filed by or on account of any of Lessee's
employees or former employees, or employees or former employees of others
operating on the Leased Premises pursuant to this Lease who may be required to
secure the payment of black lung benefits as provided above. Notwithstanding
anything in this Lease to the contrary, this Lease does not empower Lessor to
make any decisions and Lessor hereby expressly waives and disclaims any right to
make any decisions with respect to the terms and conditions under which the
leased coal is extracted or prepared, such as, but not limited to, the manner of
extraction or preparation or the amount of leased coal to be produced at any
particular time, all within the meaning of the black lung laws. The parties
hereto acknowledge, however, that Lessor has reserved certain rights and has
imposed certain requirements under the terms of this Lease solely for the
purpose of preventing waste and protecting the reserved rights of Lessor.

      Lessee further covenants and agrees that all employees of Lessee and/or
any and all other persons performing work on the Leased Premises pursuant to the
rights granted in this Lease will be fully covered by or insured at all times by
Workers' Compensation, and to that end Lessee shall comply with all applicable
Workers' Compensation laws, rules and regulations and shall make all necessary
contributions and/or premium or other payments.

      Lessee covenants and agrees to indemnify and save harmless Lessor, its
owners and its or their partners (general and limited), officers, directors,
agents, employees, successors and assigns from and against (a) any and all
claims, demands, actions or causes of action by or on behalf of any person,
firm,

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
corporation or governmental body for damages, injuries, deaths, penalties,
fines, assessments or otherwise caused by, arising out of, resulting from or as
a consequence of, in whole or in part, (i) any acts or omissions of Lessee, its
officers, directors, employees, sublessees, contractors, subcontractors,
licensees, invitees, engineers, agents, successors, assigns or parent or
affiliated corporations or any other persons or entities acting by direct or
indirect authority of Lessee, or pursuant to any rights granted in this Lease or
(ii) the use and enjoyment of the Leased Premises pursuant to this Lease, or
(iii) the approval by Lessor of any Mine Plans (as hereafter defined) and (b)
any and all costs, counsel fees, expenses and liabilities reasonably incurred in
or about any such claim or action brought thereon. Notwithstanding anything
herein to the contrary, Lessee shall not be liable for special, consequential or
punitive damages incurred by Lessor, but as between Lessor and Lessee, Lessee
shall be liable for special, consequential or punitive damages incurred by
unaffiliated third parties as a result of Lessee's actions on the Leased
Premises.

      During the term of this Lease, Lessee shall carry, and shall require any
sublessees or contractors to carry, with a limit of $l million per person and $5
million per occurrence, general liability, including contractual liability,
insurance. Lessor shall be named as an additional insured and provided a
certificate of insurance reflecting such coverage, which shall not be cancelable
except after thirty (30) days' notice to Lessor. Such insurance shall be written
on an "occurrence" basis unless the policy is available only on a "claims made"
basis, in which case such "claims made" insurance coverage shall be maintained
in effect for a period of at least five (5) years after the termination of this
Lease, or until final release of Lessee's environmental reclamation bonds
required by any regulatory authority, whichever shall last occur.

SECTION 6.  METHOD OF OPERATION.

      Upon termination of this Lease for any reason, Lessee shall, at Lessor's
option, to be exercised within thirty (30) days, if at all, sell and convey to
Lessor, at fair market value, any real property owned by Lessee or its
affiliates within the Controlled Properties Boundary as depicted on Exhibit B.
Lessee covenants and agrees that when it commences operation in any of the seams
leased herein it will thereafter prosecute its operations hereunder utilizing
modern mining equipment and to conduct such operations in a careful, skillful,
and workmanlike manner, and in compliance with the present and any future laws
of the Commonwealth of Virginia and of the United States, and also according to
the rules and practices of good mining and with due regard for the value of the
Leased Premises. Minimum Annual Royalty paid hereunder shall be in lieu of any
implied covenant of diligent development.

      Lessee shall be responsible for complying with all present and future laws
and governmental regulations, including environmental laws and regulations,
related to or controlling mining and related operations by Lessee, its
sublessees and contractors, on the Leased Premises, which responsibility shall
survive termination of this Lease. If Lessee violates, or is claimed to have
violated, laws or governmental regulations, then Lessee shall indemnify Lessor
and hold it harmless from any penalties, fines, costs, and expenses, including
reasonable legal fees and court costs, imposed upon or incurred by Lessor as a
result of said claim, violation or violations.

      Notwithstanding Lessee's obligation to comply with all laws, rules,
regulations and orders as set forth above, Lessor shall not declare a default
hereunder solely as a result of one or more operational violations which Lessee
cures or abates as promptly as practical. Lessee shall be solely responsible for
treatment of any water discharge caused by its operations, if required by
present or future law or

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
regulation, which responsibility shall survive termination of this Lease. Lessor
shall consent to Lessee's election of post-mining land uses (including
post-mining retention of roads and ponds in place to the extent allowed by
applicable law) and shall execute all consents, waivers and authorizations
reasonably requested by Lessee with respect thereto.

      Lessee agrees that it will work and mine the coal in accordance with
general and detail maps and plans of mining and descriptions to be prepared by
Lessee (hereinafter collectively called "Mine Plans") and will submit a copy of
same to the Lessor. Said Mine Plans shall take into consideration the entire
area proposed to be developed by Lessee, and shall make suitable provisions for
(1) the proper protection of overlying and underlying seams of Leased Coal
consistent with the terms of this Lease and (2) the reasonable and proper
removal of all the mineable and merchantable coal within such Mine Plans. No
Mine Plan shall be proposed which, if adopted, and Lessor may refuse to approve
any Mine Plan that, would render any substantial portion of otherwise mineable
and merchantable coal unmineable or unmerchantable or substantially more
difficult or expensive to mine. The Mine Plans shall be submitted to the Lessor
at least thirty (30) days prior to the commencement of any operation on the
Leased Premises. In the event Lessor determines, in the reasonable exercise of
its discretion, that the Mine Plans submitted by Lessee fail to comply with any
of the terms of this Lease, Lessor shall so notify Lessee, in which event Lessee
will make reasonable attempts to modify the Mine Plans to comply with the terms
and conditions hereof. No material change in, modification of, or departures
from any Mine Plans so approved shall be made in the development or operation of
the mine or mines except pursuant to modified Mine Plans submitted by Lessee to
Lessor for the purpose of allowing Lessor to determine, in the reasonable
exercise of its discretion, that said modification complies with the terms of
this Lease. Lessor's right to notify Lessee that proposed mining plans fail to
comply with this Lease is a right reserved solely to protect Lessor's interest
in the Leased Premises and to prevent waste and is not intended to give and
shall not be construed to give Lessor any control over Lessee's operations.
Lessor shall have no authority to determine the manner in which or the methods
by which any of Lessee's mining operations are to be conducted, all of which
shall be solely determined by Lessee. Lessor acknowledges its approval of all
Mine Plans of Lessee which show an approval date on the front thereof as of
April 1, 2003 and made available to Lessor during Lessor's due diligence review
related to the transaction described in that certain Purchase and Sale Agreement
of even date herewith between Lessee and Lessor or which were approved pursuant
to a lease dated effective December 1, 2002 covering a part of the Leased
Premises. All Mine Plans submitted by Lessee to Lessor shall be deemed, for all
purposes under this Lease, approved by Lessor, unless Lessor disapproves any
such Mine Plan in writing, within 30 days after Lessor's receipt thereof.
Lessor's approval of Mine Plans submitted by Lessee pursuant to this Lease shall
not be unreasonably withheld, delayed or conditioned.

      Anything contained in this Lease to the contrary notwithstanding, for
those Leased Premises described on Exhibit A hereto as Area 1, the Lessee shall
give notice in writing to the Lessor at least six (6) months prior to the start
of any operations authorized herein which would require or result in the
displacement or removal of trees or timber on the surface of the Leased Premises
where said surface is owned by Lessor. Lessor may, at its election, remove such
trees or timber. Lessor shall make all reasonable efforts to complete any
harvesting operations for trees or timber sold "on the stump" prior to start-up
operations by Lessee, but it is understood that both activities may continue
simultaneously, provided such continuance does not unreasonably interfere with
Lessee's operations. Notwithstanding the foregoing, if Lessor has not removed
timber within such six (6) month period, Lessee may remove or destroy such
timber without liability or payment therefor. As an additional option, Lessee
may give

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
written notice to Lessor and elect to reimburse Lessor for such trees and timber
at the fair market value and dispose of such trees or timber in any manner
Lessee shall deem appropriate or necessary and upon Lessee making payment in
full to Lessor, the Lessor shall execute and deliver to Lessee any and all
documents necessary to convey title to such trees and timber to Lessee or
Lessee's assignee, and the Lessee shall not have any further obligation to the
Lessor with respect to such trees and timber or the disposition thereof.

      Lessee may conduct its operations under this Lease through its contractors
or agents, provided in any case Lessee shall be and remain liable to Lessor for
all obligations of the Lessee under this Lease.

      If it is found and reported to Lessee in writing by Lessor that in the
progress of the work any areas of mineable and merchantable coal, which Lessee
had planned to mine pursuant to a Mine Plan approved by the Lessor, have been
passed by or abandoned with the result that mineable and merchantable coal has
not been mined and removed, which in accordance with good mining practice should
have been mined and removed, it shall be the duty of Lessee to return as soon as
reasonably practicable to such areas and mine and remove the mineable and
merchantable coal therefrom, or failing so to do, Lessee shall account for the
mineable and merchantable coal contained therein and pay the royalty therefor
the same as though it had been mined. If Lessee subsequently mines and removes
any coal that has been bypassed and paid for within the contemplation of this
Section, Lessee shall not be liable for any additional royalty for such coal.

      Lessee shall employ a competent mining engineer, duly registered in the
Commonwealth of Virginia, whose duty it shall be to keep up the mine surveys and
make accurate maps thereof, which maps shall at all reasonable times and upon
reasonable notice be subject to the inspection of Lessor, or its duly authorized
agents, and copies furnished to the Engineer of Lessor on or before February 1
and August 1 of each year. Such maps shall show the location of the coal section
numbers obtained by Lessor during mine inspections, in a form convenient to
Lessee and acceptable to the Engineer of Lessor.

      Lessee shall furnish Lessor copies of data derived from any and all future
coal exploration activities within the Leased Premises, including, but not
limited to, driller's logs, geophysical logs, and coal laboratory analyses of
core holes and associated geological maps.

      Upon request of Lessor, Lessee shall make available for Lessor's
inspection and copying any and all laboratory analyses made of coal mined from
the Leased Premises.

      Upon request of Lessor, Lessee shall make available for Lessor's
inspection, at all reasonable times and upon reasonable notice, and copying any
and all Lessee's correspondence with government agencies or departments which
pertain to the Leased Premises, or to operations undertaken or to be undertaken
thereon.

      Lessor, through its duly authorized agents, shall at all reasonable times,
upon reasonable notice and at its own risk have the right to enter said mines,
inspect the same, and have surveys made thereof to determine if all the terms
and conditions of this Lease are fully complied with, and for these purposes to
use freely the means of access to said mines and the workings thereof without
hindrance, but in such manner as not unreasonably to interfere with the
operation thereof. Lessor shall indemnify and hold Lessee, its members,
managers, officers, employees, contractors, agents and permitted sublessees,
successors and assigns harmless from and against any and all claims, demands,
causes of action, costs

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
and liabilities due to personal injury, death, property damage or loss arising
from or in connection with the entrance in or upon said mines by Lessor or its
duly authorized agents or contractors.

      Lessor shall maintain all records furnished or made available pursuant
hereto in confidence.

      Lessor acknowledges that it has received a copy of that certain Contract,
dated April 25, 2001 (the "A & G Contract"), between Lessee's affiliate
sublessee and A & G Coal Corporation ("A & G"), and consents to the terms
thereof, including A & G's rights under Section 23 of the A & G Contract. To the
extent the A & G Contract grants or conveys more extensive or broader rights
than granted by this Lease, Lessee is nevertheless deemed to have the authority
and power to grant such rights with respect to the property affected by the A &
G Contract, and Lessee shall not be in default as a result thereof or as a
result of the exercise of such more extensive or broader rights by Lessee or A &
G. Additionally, notwithstanding anything in this Lease to the contrary, Lessor
hereby grants Lessee the mining and other rights granted under the A & G
Contract (including the customary practice of cutting timber and retaining the
proceeds therefrom and the right to grant the same rights as set forth in
Section 23 of the A & G Contract), and similar rights with respect to the areas
identified on the map attached hereto as Exhibit B (the "Contract Mine Areas").

      Notwithstanding anything in this Lease to the contrary, Lessee shall be
entitled to enter into contract mining agreements and subleases with any mining
contractor or sublessee, without Lessor's consent, for mining of the Leased
Coal, upon any terms and conditions chosen by the Lessee; provided that the
Lessee shall remain obligated to the Lessor for compliance with all the terms
and conditions of this Lease; and provided further that any such subleases shall
not sublease the Leased Premises in its entirety.

SECTION 7.  REMEDIES OF LESSOR.

      All payments hereunder required to be made by Lessee to Lessor shall be
deemed and considered as rent reserved upon contract, and all remedies now or
hereafter given by the laws of the Commonwealth of Virginia for the collection
of rent are reserved to Lessor in respect of the sums so payable, and a lien is
hereby reserved upon this Lease and the leasehold estate hereby created, to
secure the payment of any and all sums.

      If default be made by Lessee in the payment of the rentals and royalties
herein reserved, or in the performance of any of the other terms or conditions
hereof required to be kept or performed by Lessee, and such default shall
continue for a period of ten (10) days with respect to payment of rentals and
royalties, or thirty (30) days with respect to performance of any of the other
terms or conditions, after written notification thereof has been received by
Lessee, then in such event and as often as the same occurs, Lessor may, at its
option, terminate this Lease without any further notice and re-enter upon and
take possession of the Leased Premises and hold and possess the same as its
absolute property free and clear of any claims of, by, or through Lessee, and
pursue any and all other remedies available under the laws of the Commonwealth
of Virginia for violation of any covenant or condition hereof, and all such
remedies shall be deemed cumulative and not exclusive. Notwithstanding the
foregoing, should physical conditions on the Leased Premises prohibit cure of
any default (other than payment of rental or royalty) by Lessee within the
prescribed thirty (30) day period, then Lessee shall be required to have
diligently and in good faith commenced curative measures and shall within ten
(10) days of notice of default advise

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
Lessor in detail in writing as to what physical conditions are prohibiting
completion of such cure and setting forth a timetable for such cure. Such notice
by Lessee to Lessor shall toll the thirty (30) day curative time until physical
conditions permit completion of curative work in a diligent good faith fashion.
No action by Lessor pursuant to this Section 7 shall impair the right to rental
and royalties due or accrued up to the time of termination and re-entry
hereunder, but none shall be charged for any period thereafter

      Lessee further agrees that if the interest of Lessee in the Leased
Premises shall be sold on execution or judicial sale, or if bankruptcy
proceedings be begun by Lessee, or if Lessee be adjudged a bankrupt, or it makes
an assignment for the benefit of creditors, or a receiver be appointed for it or
for the Leased Premises, or if an assignment occurs by operation of law, then,
and in any such event, this Lease shall forthwith terminate and be forfeited and
the Leased Premises and all improvements thereon shall forthwith become the
property of Lessor, without compensation to Lessee, and without refund of any
royalties paid hereunder.

SECTION 8.  ASSIGNMENT.

      Lessee covenants and agrees that it will not, except as expressly
permitted in this Lease, sell, assign, mortgage, pledge or otherwise transfer or
encumber (collectively "transfer") this Lease or any rights, interests or
estates created by this Lease or all or any portion of the Leased Premises,
either voluntarily or by operation of law, without having first obtained the
written consent of Lessor (which consent shall not be unreasonably withheld,
delayed or conditioned) and in the case of an assignment, without obtaining and
presenting to Lessor a covenant of assumption by the assignee, wherein such
assignee expressly agrees to and with Lessor to assume and be bound by all of
the covenants, terms, conditions and provisions hereof to the same extent as if
said assignee had been named as the original Lessee. Notwithstanding anything
herein to the contrary, Lessee may assign this Lease, or any rights, interests
or estates created by this Lease or all or any portion of the Leased Premises to
an entity affiliated with Lessee, its permitted successors or assigns, without
consent

      Any transfer of this Lease or any portion thereof to an entity affiliated
with Lessee or any sublease of any portion of the Leased Premises to any entity
pursuant to Section 6 shall not relieve Lessee from its obligations to comply
with all the covenants, terms, conditions and provisions of this Lease, and to
assure that the said assignee or sublessee complies with the covenants, terms,
conditions and provisions of this Lease, unless otherwise agreed in writing by
Lessor. In the event Lessor consents to any transfer, such consent shall not
relieve Lessee and/or any transferee from securing Lessor's written consent to
any further transfer, nor shall any such consent be construed as a consent to
any further transfer or as a waiver of any portion of this section or of
Lessor's rights hereunder.

      A transfer of control of Lessee's membership interests, either voluntarily
or by operation of law, shall constitute a "transfer" of the Lease under this
section. "Transfer of Control" as used in the foregoing shall include, without
limitation, (a) an outright sale, assignment or transfer of sufficient
percentages of Lessee's membership interests to vest 51% or more of Lessee's
membership interests in persons or entities controlled directly or indirectly by
persons or entities, some or all of whom are different than those persons or
entities which directly or indirectly control 51% or more of Lessee's membership
interests as of the effective date of this Lease, or (b) a sale, assignment or
other transfer of

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
shares of the capital stock or ownership interest in any corporation,
partnership or other entity, which, as of the effective date of this Lease,
owns, separately or jointly with others, directly or indirectly, 51% or more of
Lessee's capital stock, where such transfer is sufficient to vest 51% or more of
such capital stock or ownership interest in persons or entities, some or all of
whom are different than those persons or entities owning such shares or
ownership interest as of the effective date of this Lease. Accordingly, a
"transfer of control" shall have occurred whenever 51% or more of Lessee's
membership interests shall become subject to the direct or indirect control of
persons or entities, some or all of whom are different than those persons or
entities which directly or indirectly control that portion of Lessee's
membership interests as of the effective date of this Lease. Notwithstanding
anything herein to the contrary, the Transfer of Control of a publicly traded
entity that directly or indirectly controls 51% or more of Lessee's capital
stock or the issuance of publicly traded stock by Lessee or any entity directly
or indirectly controlling Lessee shall not constitute a transfer requiring
consent hereunder.

      Lessee shall have the right, without Lessor's consent, to assign, pledge
or mortgage all of Lessee's rights and interests under this Lease to any
provider of construction, interim, or long-term financing (including a leveraged
lease), or any refinancing thereof, and any trustee or agent acting on their
behalf ("Lenders") as security for Lessee's obligations under all documents and
instruments evidencing, guaranteeing or executed by Lessee in connection with
any financing ("Financing Documents"). Such assignment, pledge or mortgage shall
be in writing, and Lessee shall furnish a copy of such assignment, pledge or
mortgage to Lessor. In the event of such an assignment, pledge or mortgage and
upon occurrence of an event of default by Lessee under this Lease or the
Financing Documents, as the case may be, the Lenders shall have the right (but
not the obligation) to assume, all of the rights, interests and obligations of
Lessee thereafter arising under this Lease. Lessor or Lessee, upon request of
the other shall promptly execute and deliver to the requesting party, and/or
their Lenders a written consent to any such assignment, pledge or mortgage of
this Lease and such written certificates as to the due authorization, execution
and delivery by the executing party, and enforceability against Lessor or Lessee
of this Lease as Lessor or Lessee and/or their Lenders may reasonably request.
Provided, however, in no event and under no circumstances shall any assignment,
pledge or mortgage of Lessee's rights and interests under this Lease to Lenders
be superior to any pledge or mortgage of the properties leased hereunder by
Lessor to a current or future lender who has or will supply financing or
refinancing (short or long-term) to Lessor or to a pledge or grant of the Lease
to said Lessor's Lender as security for said financing or refinancing, and,
accordingly, Lessee acknowledges that any assignment, pledge or mortgage of this
Lease to Lenders will be subordinate to Lessor's financing and the rights
thereunder, whether entered into now or at any time in the future.

      Upon the occurrence of any transfer requiring the prior written consent of
Lessor, without the prior written consent of Lessor, Lessor shall have the
option to terminate this Lease pursuant to Section 7 of this Lease.

SECTION 9.  WAIVERS AND RELEASES, ETC.

      No waiver, release, modification, or amendment of any of the terms,
conditions, or provisions of this Lease shall be valid or set up or relied upon
by Lessor or Lessee, unless the same is in writing duly executed by Lessor and
Lessee. The failure to exercise any right upon nonperformance shall not be
construed as a waiver of the right to insist on subsequent performance of the
terms and conditions hereof.

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
SECTION 10.  ARBITRATION.

      In the event of a dispute between the parties hereto with respect to the
terms of or performance under this Lease, such dispute shall be submitted to
three competent and disinterested arbitrators in the following manner. The party
desiring such arbitration shall select its arbitrator and give written notice
thereof to the other party, and shall in such notice state precisely the matter
or matters which it is proposed to bring before the arbitrators, and only the
matters so stated shall be considered and decided by them. If the party
receiving such notice shall fail to name an arbitrator within thirty (30) days
after notice as aforesaid has been received by it, the Chief Judge of the
District Court of the United States for the Western District of Virginia shall
name and appoint an arbitrator for and in behalf of the party so in default, and
the arbitrator so named and appointed shall have the same power and authority as
if he had been appointed by such party. The arbitrators so chosen shall appoint
a third arbitrator, and in the event they are unable to agree on such
appointment, the appointment of the third arbitrator may be made by the Chief
Judge of the District Court of the United States for the Western District of
Virginia on the application of either of the parties hereto. The three
arbitrators shall immediately upon their selection hear and decide the question
or questions submitted for arbitration and shall give to each of the parties
hereto reasonable notice of the time and place of their meetings, and reasonable
opportunity for the production of evidence. Each party shall set forth its
position in writing. After hearing both parties, the arbitrators shall promptly
make an award in writing upon the question or questions submitted and shall
serve a copy of such award upon each party hereto. The award of such
arbitrators, or a majority of them, shall be final and binding upon the parties
hereto, and the said arbitrators or a majority of them, shall, in their award
and as a part thereof, decide by whom and in what proportion the costs of such
arbitration shall be borne and paid and the amount of such costs. In its
determination, the arbitrators in their award shall adopt the position of one of
the parties. Neither party hereto shall have or enforce any right or remedy
against the other in respect of any matter herein made the subject of
arbitration, until such matter shall have been submitted to and decided by
arbitration in the manner above provided, and then only in accordance with such
decision in arbitration. Notwithstanding the above, either Party may appeal
manifest errors of law to the District Court of the United States for the
Western District of Virginia.

SECTION 11.  NOTICES.

      Until written notice of a different address, all notices which are
anywhere in this Lease provided to be given shall be effective upon receipt and
shall be served upon or mailed to Lessee at 406 West Main Street, Abingdon,
Virginia 24210, and to Lessor at Post Office Box 2827; Huntington, West Virginia
25727-2827. Notices may also be served via facsimile transmission,, provided
that the sender has written confirmation that the transmission was successful.

SECTION 12.  WARRANTY.

      The Lessor, for itself, its successors and assigns, does hereby covenant
and agree with the Lessee, subject to the exceptions and reservations herein set
forth, and subject to such limitations, restrictions and defects in Lessor's
title to the Leased Premises as were in existence at the time of Lessor's
acquisition of title to the various tracts comprising the Leased Premises, and
subject to the Restrictions contained above, that upon the payment of the
rentals and royalties and the performance of all and singular the covenants and
agreements aforesaid, said Lessee shall and may peaceably and quietly have and
enjoy said Leased Premises for and during the term aforesaid, and for the
purposes aforesaid,

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
free from any let or hindrance by the Lessor, its successors and assigns. Lessor
does not warrant generally its title to the Leased Premises but warrants only
that it has done no act to encumber the title that it acquired to the various
tracts comprising the Leased Premises since its acquisition of said tracts. In
the event that Lessee did not have the right to mine coal in any part of the
Leased Premises because of the rights of a holder of an outstanding superior
title antedating Lessor's acquisition of title to the tract or tracts in
question, if the Lessee has mined and removed a part or all of the coal
therefrom and paid the Lessor therefor on the royalty basis, the Lessor agrees
to repay to the Lessee the amount of royalty so paid, without interest, but the
Lessor shall not be otherwise liable for any damage to Lessee on account of the
mining and removing of said coal by the Lessee.

SECTION 13. SUCCESSORS AND ASSIGNS.

      All covenants, agreements, and conditions herein set forth to be performed
by or on behalf of Lessor or Lessee shall bind their respective successors and
assigns, whether so expressed or not, and shall inure to the benefit not only of
Lessor and Lessee, but also the benefit of their respective successors and
assigns; but this Section 13 shall not be construed as in anywise modifying the
provisions of Section 8 hereof.

SECTION 14.  REMOVAL OF PROPERTY.

      Lessee, having performed all the terms and conditions of this Lease to be
by it performed, may, for a period of twelve (12) months following termination
or expiration, remove any and all equipment and personal property owned by
Lessee, and may remove from the surface overlying the Leased Premises any and
all improvements, buildings, or other structures placed thereon by Lessee during
the term hereof. If the Lessee shall fail to remove any of the equipment and
personal property described above within said twelve (12) months, then at
Lessor's option the same shall thereupon be and become the absolute property of
Lessor.

SECTION 15.  MISCELLANEOUS.

      Unless expressly provided for elsewhere in this Lease, this Lease shall be
interpreted in accordance with the following provisions:

            (a) Whenever the context may require, any pronoun used in this Lease
shall include the corresponding masculine, feminine, or neuter forms, and the
singular form of nouns, pronouns and verbs shall include the plural and vice
versa.

            (b) If a word or phrase is defined, its other grammatical forms have
a corresponding meaning.

            (c) A reference to a person, corporation, trust, estate,
partnership, or other entity includes any of them.

            (d) The headings contained in this Lease are for reference purposes
only and shall not affect the meaning or interpretation of this Lease.

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
            (e) A reference to legislation or to a provision of legislation
includes a modification or reenactment of it, a legislative provision
substituted for it and a regulation or statutory instrument issued under it.

            (f) A reference to a writing includes a facsimile transmission of it
and any means of reproducing of its words in a tangible and permanently visible
form.

            (g) The words "hereof," "herein" and "hereunder" and words of
similar import when used in this Lease shall refer to this Lease as a whole and
not to any particular provision of this Lease, and article, section, subsection,
schedule and exhibit references are to this Lease unless otherwise specified.

            (h) The word "including" shall mean including without limitation.

            (i) The Exhibits identified in this Lease are incorporated herein by
reference and made a part of this Lease.

            (j) The parties have participated jointly in the negotiation and
drafting of this Lease. In the event an ambiguity or question of intent or
interpretation arises, this Lease shall be construed as if drafted jointly by
the parties and no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of the authorship of any of the provisions of
this Lease.

            (k) Lessor and Lessee agree to execute and record a short-form or
memorandum of lease for the purpose of providing record notice of this Lease.

      IN TESTIMONY WHEREOF, the parties hereto have caused this Lease to be
executed in their respective names by their respective representatives thereunto
duly authorized, all as of the day and year first above written.

      Executed in duplicate.

                 CSTL LLC

                 By NRP (Operating) LLC
                 Its  Sole Operating Manager
                 By  /s/ Nick Carter
                         Nick Carter, Its President and Manager

                 ALPHA LAND AND RESERVES, LLC
                 By /s/ Michael D. Brown
                        Michael D. Brown, Its President and Manager

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
STATE OF West Virginia
COUNTY OF Cabell, SS:

The foregoing instrument was acknowledged before me this 9th day of April, 2003,
by Nick Carter, President and Manager of NRP (Operating) LLC, sole operating
manager of CSTL LLC, on behalf of CSTL LLC, a limited liability company.

      My commission expires November 1, 2008.
                                /s/ Paddy Sue Gay
                                Notary Public

(S E A L)

STATE OF Virginia
COUNTY OF Washington, SS:

The foregoing instrument was acknowledged before me this 9th day of April, 2003,
by Michael D. Brown, as President and Manager of ALPHA LAND AND RESERVES, LLC,
on behalf of ALPHA LAND AND RESERVES, LLC, a limited liability company.

      My commission expires 03/31/2005.
                                /s/ Teresa J. Darnell
                                Notary Public

(S E A L)

Leases/modellse

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
      THIS PARTIAL SURRENDER AGREEMENT made and entered into this 12th day of
December, 2003, effective as of December 1, 2003, 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 (the "Lease"), 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 was amended by First Amendment to Coal
Mining Lease dated September 30, 2003, effective April 1, 2003; and

      WHEREAS, Lessor and Lessee desire to further amend the Lease by
surrendering a portion of the Leased Premises as hereinafter set forth.

                                   WITNESSETH:

      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, Lessor and Lessee
do hereby agree that the area shown colored in blue on the map attached hereto
and made a part hereof as Exhibit A is surrendered from the Leased Premises.

      Lessor's acceptance of this surrender shall in no way relieve Lessee of
any of its obligations or liability accruing under the Lease with respect to the
surrendered portion of the Leased Premises prior to the effective date hereof.

      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 Partial
      Surrender Agreement 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

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
      STATE OF WEST VIRGINIA
      COUNTY OF CABELL, to-wit:

      The foregoing instrument was acknowledged before me this 23rd day of
December, 2003, 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 12th
day of December 2003, 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/ Juanita Kegley Snead
                                    Notary Public

My commission expires: 11-30-05

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
      THIS FIRST AMENDMENT TO COAL MINING LEASE (this "Amendment") made and
entered into this 30th day of September, 2003, effective as of April 1, 2003, by
and between ACIN LLC, a Delaware limited liability company, successor by merger
with CSTL LLC, a Delaware limited liability company (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 (the "Lease"), 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, Lessor and Lessee desire to amend the Lease as hereinafter set
forth.

                                   WITNESSETH:

      That for and in consideration of the terms, conditions and stipulations
embodied within the

Lease, as amended hereby, to be preformed and observed by Lessor and Lessee, the
sufficiency of which is hereby acknowledged, Lessor and Lessee do hereby agree
that the first paragraph and only the first paragraph of Section 4(b) of the
Lease is hereby deleted and replaced with the following:

            (b) Beginning April 1, 2003, and continuing through the Initial Term
      of this Lease, Lessee shall pay to Lessor a Minimum Royalty or Minimum
      Annual Royalty, as the case may be, in the following amounts:

<TABLE>
<CAPTION>
                                                                                QUARTERLY
                               PERIOD                MINIMUM                    PAYMENT
                               ------                -------                    -------
<S>                                                  <C>                        <C>
      April 1, 2003 through December 31, 2003       $[***]                      $[***]
      January 1, 2004 through December 31, 2012     $[***] per calendar year    $[***]
      January 1, 2013 through March 31, 2013        $[***]                      $[***]
</TABLE>

      In the event this Lease is extended beyond the Initial Term, beginning on
      April 1, 2013 and continuing thereafter during such extension or
      extensions of the Term, Lessee shall pay to Lessor a Minimum Royalty or
      Minimum Annual Royalty, as the case may be, in the following amounts:

<TABLE>
<CAPTION>
                                                                                QUARTERLY
                               PERIOD                MINIMUM                    PAYMENT
                               ------                -------                    -------
<S>                                                  <C>                        <C>
      April 1, 2013 through December 31, 2013       $[***]                      $[***]
      January 1, 2014 and thereafter                $[***] per calendar year    $[***]
</TABLE>

      Each payment shall be made in advance, in equal installments, for each
      calendar quarter that this Lease remains in effect during the applicable
      period, on or before the first day of each such quarter. Each quarterly
      payment shall hereinafter be referred to as a "Quarterly Payment". Lessee
      shall have the right to recoup a Quarterly Payment at any time after

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
      payment of same, by deducting the amount of such payment from Tonnage
      Royalty payments due, at any time, so long as this Lease remains in
      effect. Notwithstanding anything herein to the contrary, upon the payment
      by the Lessee of Tonnage Royalties and a Quarterly Payment or Quarterly
      Payments with respect to any period, which equal or exceed, in the
      aggregate, the Minimum Royalty or Minimum Annual Royalty, as the case may
      be, due for such period, no further Quarterly Payment shall be due or
      payable with respect to such period.

      The remainder of Section 4(b) and all other terms and conditions of the
Lease, 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/ Michael D. Brown
                                    Michael D. Brown, Its President and Manager

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
STATE OF WEST VIRGINIA
COUNTY OF CABELL, to-wit:

                  The foregoing instrument was acknowledged before me this 29th
day of September 2003, 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 AC1N LLC, a Delaware limited liability
company.

                                    /s/Paddy Sue Gay
                                    Notary Public

My commission expires November 1, 2008

                                  [NOTARY SEAL]

STATE OF Virginia
COUNTY OF Washington, to-wit:

                  The foregoing instrument was acknowledged before me this 30th
day of September 2003, by Michael D. Brown, 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: 6-30-07

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
                      SECOND AMENDMENT TO COAL MINING LEASE

      THIS SECOND AMENDMENT TO COAL MINING LEASE (this "Amendment") made and
entered into this 15th day of December, 2003, effective as of December 15, 2003,
by and between ACIN LLC, a Delaware limited liability company, successor by
merger with CSTL LLC, a Delaware limited liability company (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 (the "Lease"), 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, Lessor and Lessee desire to amend the Lease as hereinafter set
forth.

                                   WITNESSETH:

      That for and in consideration of the terms, conditions and stipulations
embodied within the Lease, as amended hereby, to be performed and observed by
Lessor and Lessee, the sufficiency of which is hereby acknowledged, Lessor and
Lessee do hereby agree with the following, applicable to the Border Mine only,
MSHA ID #44-07065:

      Beginning December 15, 2003, continuing only through March 14, 2004, the
tonnage royalty will be suspended at the Border Mine, provided, however, if
prior to March 14, 2004, one of the following two conditions is achieved, then
the tonnage royalty of [***] percent ([***]%) will immediately resume:

            1.    If and when the total aggregate clean production after
                  December 15, 2003, reaches 69,000 tons; the royalty rate on
                  all clean produced tons in excess of 69,000 tons shall revert
                  to [***] percent ([***]%) immediately.

            2.    If and when the aggregate suspended royalties for coal
                  produced after December 15, 2003, reaches [***] Dollars
                  ($[***]), the tonnage royalty rate of [***] percent ([***]%)
                  shall immediately resume on all other produced tons.

All other terms and conditions of the Lease shall remain in full force and
effect, without modification or amendment, including specifically the obligation
to provide monthly tonnage and royalty reports.

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
      IN WITNESS WHEREOF, Lessor and Lessee have caused this Amendment to be
executed as of the day and year first above written.

                                    ACIN LLC
                                    By NRP (Operating) LLC, Its Sole Operating
                                       Manager

                                    By: /s/ Nick Carter
                                            Nick Carter
                                    Its President & COO

                                    ALPHA LAND AND RESERVES, LLC
                                    By: /s/ Vaughn R. Groves
                                    Its: President and Manager

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
STATE OF West Virginia

COUNTY OF Cabell, SS:

            The foregoing instrument was acknowledged before me this 16th day of
      December, 2003, by Nick Carter, President & COO 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

            [NOTARY SEAL]           /s/ Paddy Sue Gay
                                    -----------------
                                          Notary

STATE OF Virginia
COUNTY OF Washington, SS:

The foregoing instrument was acknowledged before me this 6th day of January,
2004 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.

My commission expires: November 30, 2005

Given under my hand and notarial seal this 6th day of January 2005.

                                /s/ Juanita Kegley Snead
                                ------------------------
                                      Notary Public

My Commission expires November 30, 2005

[SEAL]

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
                      THIRD AMENDMENT TO COAL MINING LEASE

      THIS THIRD AMENDMENT TO COAL MINING LEASE (this "Amendment") made and
entered into this 1st day of October, 2004, effective as of October 1, 2004, by
and between ACIN LLC, a Delaware limited liability company, successor by merger
with CSTL LLC, a Delaware limited liability company (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 (the "Lease"), 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 was amended by First Amendment to Coal
Mining Lease dated September 30, 2003, and

      WHEREAS, said Coal Mining Lease was further amended by Second Amendment to
Coal Mining Lease dated December 15, 2003; and

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

                                   WITNESSETH:

      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, Lessor and Lessee
do hereby agree with the following:

      As of October 1, 2004, 559+ acres of Jawbone Seam, as described by
Exhibit A, attached hereto, is added to the Coal Mining Lease dated April 9,
2003, effective as of April 1, 2003. All other terms and conditions of the Coal
Mining Lease 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
                                    By NRP (Operating) LLC, Its Sole Operating
                                    Manager

                                    By: /s/ Nick Carter
                                            Nick Carter
                                    Its President & COO

                                    ALPHA LAND AND RESERVES, LLC

                                    By: /s/ Victoria C. Duffy
                                        Its: Vice President

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
STATE OF West Virginia
COUNTY OF Cabell, SS:

      The foregoing instrument was acknowledged before me this 24th day of
September by Nick Carter, President & COO 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

         STATE OF Virginia
         COUNTY OF Roanoke, SS:

      The foregoing instrument was acknowledged before me this 7th day of
October, 2004 by Victoria C. Duffy, as Vice President of ALPHA LAND AND
RESERVES, LLC, on behalf of ALPHA LAND AND RESERVES, LLC, a Delaware limited
liability company.

                    My commission expires: February 28, 2005

      Given under my hand and notarial seal this 7th day of October, 2004

                                   /s/ Mary S. Meader
                                   ------------------
                                      Notary Public

                     My Commission expires February 28, 2005

      [SEAL]

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.
<PAGE>
                         NATURAL RESOURCE PARTNERS L.P.
                       1035 THIRD AVENUE - P. 0. BOX 2827
                            HUNTINGTON, WV 25727-2827
                       (304) 522-5757 - FAX (304) 522-5401

                                  March 8, 2004

Ms. Victoria C. Duffy
Vice President
ALPHA LAND AND RESERVES, LLC
Post Office Box 858
Vinton, VA 24179

Re:      Second Amendment to Coal Mining Lease
         Lease dated April 9, 2003
         Second Amendment Date: December 15, 2003

Dear Ms. Duffy:

The Second Amendment to Coal Mining Lease dated December 15, 2003, is hereby
extended through April 30, 2004, subject to the limitations set forth in Items 1
and 2 of the Second Amendment to Coal Mining Lease.

All other terms and conditions of the Lease between ACIN and Alpha, as
previously amended, remain in full force and effect, without modification or
amendment.

If Alpha is in agreement, please indicate by executing in the space provided
below and return one counterpart for our records to my attention.

                                    Sincerely,

                                    NRP (Operating) LLC
                                    On Behalf of ACIN LLC
                                    Its Sole Operating Manager

                                    /s/ John H. Mooney
                                    John H. Mooney
                                    Vice President & Regional Manager

JHM/g

ACCEPTED AND AGREED:
--------------------

ALPHA LAND AND RESERVES, LLC

By: /s/ Victoria C. Duffy
Its:    Vice President

The symbol [***] is used to indicate that a portion of the exhibit has been
omitted and filed separately with the commission. Confidential treatment has
been requested with respect to the omitted portion.

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