Document:

exv10w34

 

Exhibit 10.34

SEABRIGHT INSURANCE HOLDINGS, INC.

BONUS PLAN 2007

Objective:

To provide a positive incentive to achieve and exceed the board approved budget goals for a
calendar year. Act as a complement to our overall “pay for performance” compensation program by
augmenting our long-term stock option plan and competitive base salary.

Plan:

Plan consists of three distinct benchmarks of achievement. They are as follows:

     1.
Threshold — adjustment to target value at which a reduced bonus pool is earned and
below which no bonus pool is earned.

     2.
Target — the value at which a full bonus pool is earned and is equal to the board
approved after-tax GAAP profit for year, adjusted to exclude all
capital gains and losses.

     3.
Maximum — the value at which the maximum bonus pool is earned which is capped at 200%
of the pool earned at target.

Plan Outline:

     I)
Each bonus-qualified position (manager and above) that is eligible for participation in any
pool that may be earned has a pre-designated percentage that is
applied against base salary.

	 	 	 
	Bonus Percent Tiers are:
	 
	•   15% at Target

•   20% at Target

•   30% at Target

•   40% at Target

•   50% at Target

•   65% at Target

     II)
Each year the Compensation Committee approves the annual bonus plan and approves the values
for the establishment of any bonus pool. The Compensation Committee shall further approve the
individual award of bonuses paid to Section 16 designated officers. The Compensation Committee
may revise the annual bonus plan from time to time to take into account and adjust for equity
added to the Corporation from capital raising activities.

     III)
The plan consists of two major components:

	 	     i) Board approved corporate after-tax earnings, adjusted for the elimination of capital
gains and losses, must be achieved within the board-approved values before a bonus pool is
established. Approved earnings are inclusive of bonus payments at target.
	 
	 	     ii) If a “bonus pool” is earned, the next component establishes the amount a bonus
eligible employee will receive.

	 	•	 	Individual bonus amounts are calculated, based upon the accomplishment of
individual pre-agreed business unit or department quantitative goals, plus selected
individual personal achievement goals.
	 
	 	•	 	All such values shall be contained in a formal “Bonus Exhibit” which is agreed
upon and signed by the bonus eligible employee and the responsible executive officer.

 

 

     IV)
All individual employee bonus amounts that may result from the application of the plan are
subject to modification based upon the sole discretion of the supervising executive officer,
and the CEO.

     V)
Prior to the payment of any bonus amounts, a schedule shall be created listing each
participant and the recommended amount for each. Such list must be submitted to the Chief
Executive Officer for approval.

     VI)
Payment of any earned bonus shall be made on or about March 15, immediately after the close
of the bonus eligible calendar year.exv10w1

 

Exhibit 10.1

Execution Version

Confidential Materials omitted and filed separately with the Securities and

Exchange Commission. Asterisks denote omissions.

AMENDED AND RESTATED

LIGNITE SUPPLY AGREEMENT

By and Between

NRG Texas Power LLC

and

Texas Westmoreland Coal Co.

Dated as of

September 28, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	1. DEFINITIONS; CONSTRUCTION
	 	 	2	 
	 
	 	 	 	 
	1.1 Definitions
	 	 	2	 
	1.2 Construction
	 	 	12	 
	 
	 	 	 	 
	2. SALE AND PURCHASE; STANDARD OF PERFORMANCE
	 	 	12	 
	 
	 	 	 	 
	2.1 Lignite Supply
	 	 	12	 
	2.2 Standard of Performance
	 	 	13	 
	 
	 	 	 	 
	3. LSA TERM; LIGNITE SUPPLY TERM; SUPPLY SUSPENSION
	 	 	14	 
	 
	 	 	 	 
	3.1 LSA Term
	 	 	14	 
	3.2 Lignite Supply Term
	 	 	14	 
	3.3 Supply Suspension
	 	 	15	 
	 
	 	 	 	 
	4. GOVERNANCE; REPRESENTATIVES; RELATIONSHIP OF PARTIES
	 	 	15	 
	 
	 	 	 	 
	4.1 Nature of Governance
	 	 	15	 
	4.2 Representatives
	 	 	16	 
	4.3 Relationship of the Parties
	 	 	16	 
	4.4 NRG Governance Role
	 	 	16	 
	 
	 	 	 	 
	5. ANNUAL OPERATING PLAN
	 	 	17	 
	 
	 	 	 	 
	5.1 Mine Plan
	 	 	17	 
	5.2 Operations Pursuant to AOP
	 	 	17	 
	5.3 Purpose and Components of AOP
	 	 	17	 
	5.4 Review and Approval of AOP
	 	 	17	 
	5.5 Capital Investments
	 	 	18	 
	5.6 Revisions to the Approved AOP
	 	 	19	 
	5.7 Reporting on Approved AOP
	 	 	19	 
	5.8 Commodities Costs
	 	 	20	 
	5.9 Insurance
	 	 	20	 
	 
	 	 	 	 
	6. RESOLUTION OF DISPUTES
	 	 	20	 
	 
	 	 	 	 
	6.1 Negotiation of Disputes
	 	 	20	 
	6.2 Arbitration Resolution
	 	 	21	 
	6.3 Applicable Law and Arbitration Act
	 	 	22	 
	6.4 Continuation of Services
	 	 	23	 
	6.5 Injunctive Relief
	 	 	23	 
	 
	 	 	 	 
	7. PRICE AND PAYMENT
	 	 	23	 
	 
	 	 	 	 
	7.1 Price Components
	 	 	23	 
	7.2 Mine Cost
	 	 	23	 
	7.3 Management Fee
	 	 	26	 
	7.4 Adjustments
	 	 	26	 
	7.5 [Intentionally Omitted.]
	 	 	30	 
	7.6 Invoices
	 	 	30	 

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	 	 	Page
	8. DELIVERY AND TITLE; SCHEDULING; STOCKPILE MANAGEMENT; NO LIENS
	 	 	31	 
	 
	 	 	 	 
	8.1 Delivery; Title
	 	 	31	 
	8.2 Scheduling
	 	 	31	 
	8.3 Mine Lignite Inventory
	 	 	32	 
	8.4 No Liens
	 	 	32	 
	 
	 	 	 	 
	9. WEIGHTS; SAMPLING AND ANALYSIS; LIGNITE QUALITY
	 	 	33	 
	 
	 	 	 	 
	9.1 Weights
	 	 	33	 
	9.2 Sampling and Analysis
	 	 	33	 
	9.3 Lignite Quality
	 	 	34	 
	 
	 	 	 	 
	10. REPORTING
	 	 	34	 
	 
	 	 	 	 
	10.1 Production Reporting
	 	 	34	 
	 
	 	 	 	 
	11. LAND AND MINERAL LEASES
	 	 	36	 
	 
	 	 	 	 
	11.1 Subleases
	 	 	36	 
	11.2 Lignite Leases
	 	 	36	 
	11.3 Houston Lignite Royalty
	 	 	36	 
	11.4 Percentage Royalty Leases
	 	 	36	 
	11.5 Surface Use Agreement
	 	 	36	 
	 
	 	 	 	 
	12. FINAL RECLAMATION
	 	 	37	 
	 
	 	 	 	 
	12.1 Final Reclamation
	 	 	37	 
	12.2 NRG Obligation to Pay and Hold Harmless
	 	 	37	 
	12.3 Cost of Final Reclamation to Include Contract Fee
	 	 	37	 
	12.4 Reclamation Bonds
	 	 	38	 
	 
	 	 	 	 
	13. FORCE MAJEURE
	 	 	38	 
	 
	 	 	 	 
	13.1 Effect; Notice; Obligation to Mitigate
	 	 	38	 
	13.2 Lignite Deliveries
	 	 	39	 
	 
	 	 	 	 
	14. WAIVERS AND REMEDIES
	 	 	39	 
	 
	 	 	 	 
	14.1 Non-Waiver
	 	 	39	 
	14.2 NO CONSEQUENTIAL DAMAGES
	 	 	39	 
	 
	 	 	 	 
	15. DELIVERY FAILURE; EVENTS OF DEFAULT
	 	 	39	 
	 
	 	 	 	 
	15.1 Delivery Failure
	 	 	39	 
	15.2 Notice of Delivery Failure
	 	 	40	 
	15.3 Remedies for Delivery Failure
	 	 	40	 
	15.4 TWCC Events of Default
	 	 	41	 
	15.5 Remedies Following a TWCC Event of Default
	 	 	42	 
	15.6 NRG Event of Default
	 	 	43	 
	15.7 Remedies Following an NRG Event of Default
	 	 	43	 
	15.8 Payment
	 	 	43	 
	15.9 Specific Performance
	 	 	43	 
	15.10 Step-In Rights
	 	 	44	 

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	 	 	Page
	15.11 Mitigation
	 	 	45	 
	15.12 Effect of Termination
	 	 	45	 
	 
	 	 	 	 
	16. REPRESENTATIONS AND WARRANTIES
	 	 	45	 
	 
	 	 	 	 
	16.1 TWCC Representations and Warranties
	 	 	45	 
	16.2 NRG Representations and Warranties
	 	 	46	 
	16.3 Reliance
	 	 	47	 
	 
	 	 	 	 
	17. INDEMNITIES
	 	 	47	 
	 
	 	 	 	 
	17.1 TWCC Indemnity
	 	 	47	 
	17.2 NRG Indemnity
	 	 	47	 
	 
	 	 	 	 
	18. ASSIGNMENT
	 	 	47	 
	 
	 	 	 	 
	19. GOVERNING LAW
	 	 	47	 
	 
	 	 	 	 
	20. NOTICES AND REPORTS
	 	 	47	 
	 
	 	 	 	 
	21. RECORDS
	 	 	48	 
	 
	 	 	 	 
	22. EXISTING EQUIPMENT AND ASSETS; OPERATIONS THROUGH DECEMBER 31, 2007
	 	 	48	 
	 
	 	 	 	 
	22.1 Existing Equipment and Assets
	 	 	48	 
	22.2 Operations through December 31, 2007
	 	 	49	 
	 
	 	 	 	 
	23. UNION PACIFIC RAIL SPUR
	 	 	49	 
	 
	 	 	 	 
	24. EMPLOYMENT; SUBCONTRACTORS
	 	 	49	 
	 
	 	 	 	 
	24.1 Nondiscrimination
	 	 	49	 
	24.2 TWCC Personnel; Subcontractors
	 	 	50	 
	24.3 Reimbursement
	 	 	51	 
	 
	 	 	 	 
	25. RESTRICTIONS ON TRANSACTIONS WITH AFFILIATES
	 	 	51	 
	 
	 	 	 	 
	26. WARRANTY DISCLAIMER
	 	 	51	 
	 
	 	 	 	 
	27. MISCELLANEOUS PROVISIONS
	 	 	51	 
	 
	 	 	 	 
	27.1 Entire Agreement
	 	 	51	 
	27.2 Amendments or Modifications
	 	 	52	 
	27.3 Severability
	 	 	52	 
	27.4 Construction
	 	 	52	 
	27.5 No Third-Party Beneficiaries
	 	 	52	 
	27.6 Remedies Cumulative
	 	 	52	 
	27.7 Confidentiality
	 	 	52	 
	27.8 Policies and Procedures
	 	 	53	 
	27.9 Captions
	 	 	53	 
	27.10 Counterparts
	 	 	53	 

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LIST OF EXHIBITS

	 	 	 
	Exhibit 1

	 	Mine (§1.1)
	Exhibit 2

	 	Mine Plan (§1.1)
	Exhibit 3

	 	2008 Preliminary AOP (§5.4(b))
	Exhibit 4

	 	AOP Components (§5.3)
	Exhibit 5

	 	List of Experts (§1.1)
	Exhibit 6

	 	Surge Bin (§1.1)
	Exhibit 7

	 	Corporate Support Allowance (§7.2(c))
	Exhibit 8

	 	Form of Invoice (§7.6(a))
	Exhibit 9

	 	Post Execution Savings Actions (§1.1)
	Exhibit 10

	 	Typical Lignite Quality and Characteristics (§9.3(a))
	Exhibit 11

	 	Insurance (§5.9)
	Exhibit 12

	 	[Intentionally Omitted]
	Exhibit 13

	 	Form of Monthly Report Production Summary (§10.1(b))
	Exhibit 14

	 	Form of Monthly Costs Report (§10.1(b))
	Exhibit 15

	 	Form of Monthly and Quarterly Variance Report (§10.1(c))
	Exhibit 16

	 	Information Provided To Jewett Mine Percentage Leases Royalty
Owners Regarding Calculation Of Royalties Under Percentage
Leases In Connection With Royalty Proposal (§11.4)
	Exhibit 17

	 	Cost Incentive Adjustment Sample Calculations (§7.4(a)(v))
	Exhibit 18

	 	Certain Escalation Adjustments (§7.4(a))
	Exhibit 19

	 	Equipment Maintenance Schedule (§22.2)
	Exhibit 20

	 	Prior LSA Provisions (§27.1)

-iv-

 

AMENDED AND RESTATED

LIGNITE SUPPLY AGREEMENT

     This Amended and Restated Lignite Supply Agreement (this “LSA”) is entered into as of
September 28, 2007 (the “Effective Date”), by and between NRG TEXAS POWER LLC, a Delaware
limited liability company (“NRG”), and TEXAS WESTMORELAND COAL CO., a Montana corporation
(“TWCC”). NRG and TWCC may hereinafter be referred to, collectively, as the
“Parties” and each, individually, as a “Party.”

R E C I T A L S

     WHEREAS, NRG and TWCC previously entered into that certain Lignite Supply Agreement, dated as
of August 29, 1979 (the “Original LSA”), which was modified by: (i) that certain
Construction and Operation Agreement, dated December 17, 1985 (the “C&O Agreement”); (ii)
that certain Amendment No. 1 to the Original LSA dated August 1, 1989 (“Amendment No. 1”);
(iii) that certain Settlement Agreement and Amendment of Existing Contracts, dated August 2, 1999
(the “Settlement Agreement”); (iv) that certain Letter Agreement, dated June 18, 2002 (the
“2002 Supplemental Agreement”); (v) that certain Supplemental Settlement Agreement, dated
January 30, 2004 (the “2004 Supplemental Agreement”); (vi) that certain Letter Agreement
dated March 11, 2005 (the “Surcharge Agreement”); (vii) that certain Letter Agreement dated
July 26, 2005 (the “Capital Investment Agreement”; and (viii) that certain Letter Agreement
dated September 21, 2005 (collectively with the Original LSA, C&O Agreement, Amendment No. 1, the
Settlement Agreement, the 2002 Supplemental Agreement, the 2004 Supplemental Agreement, the
Surcharge Agreement, and the Capital Investment Agreement, the “Prior LSA”);

     WHEREAS, the Parties desire to amend and restate the Prior LSA in its entirety as of the
Effective Date (except as provided in Section 3.1);

     WHEREAS, NRG desires to secure a flexible and economically competitive supply of lignite for
NRG’s Limestone Electric Generating Station (“LEGS”) to be produced in accordance with
agreed mining and reclamation plans and budgets;

     WHEREAS, TWCC desires to produce and sell lignite at a reasonable cost plus management fees,
subject to adjustments based upon TWCC performing the Mining Work (as hereinafter defined)
specified in the agreed mining plans and budgets and delivering lignite meeting specified
standards; and

     WHEREAS, NRG and TWCC desire to enter into this LSA to set forth their agreement regarding
such production and sale of lignite.

     NOW, THEREFORE, in consideration of the mutual covenants, undertakings and conditions set
forth below, the receipt and sufficiency of which are acknowledged by both Parties, the Parties,
intending to be legally bound, hereby agree as follows:

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A G R E E M E N T

1. DEFINITIONS; CONSTRUCTION.

     1.1 Definitions. Unless otherwise required by the context in which any defined term appears,
the following defined terms shall have the meanings specified in this Section 1.1:

     “Accounting Expert” shall mean the Person that may be agreed to by the Parties
after the date hereof and added to Exhibit 5 upon such agreement or any other certified
public accountant that (a) is familiar with coal and/or lignite mining, (b) has no past or
present relationship with either Party, and (c) is mutually agreed by both Parties or is
selected by the CPR in accordance with Section 6.2(a)(ii).

     “Affiliate” shall mean, with respect to any Entity (the “applicable
Entity”), (a) each Entity that the applicable Entity Controls, (b) each Person that
Controls the applicable Entity, and (c) each Entity that is under common Control with the
applicable Entity.

     “AOP” shall mean an annual operating plan for the Mine conforming to the
requirements of Section 5.3.

     “AOP Volumes” shall mean, for any Year, the volumes of lignite to be produced
and delivered by TWCC in such Year in accordance with the Approved AOP applicable to such
Year, as the Approved AOP may be adjusted from time to time in accordance with this LSA, and
shall mean for any day, week, or Month the volumes of lignite to be produced and/or
delivered for such day, week, or Month in accordance with Section 8.2, in each case stated
in TBtu.

     “Approved AOP” shall mean, with respect to any Year during the Term commencing
with 2009, the AOP applicable to such Year and approved in accordance with Section 5.4, and
for 2008, the AOP consistent with the preliminary AOP attached hereto as Exhibit 3 and
approved in accordance with Section 5.4, as each such Approved AOP may be modified from time
to time in accordance with Section 5.6.

     “As Received” shall mean the quality of lignite at the Delivery Point and
otherwise as defined by ASTM.

     “ASTM” shall mean the American Society for Testing and Materials.

     “Bankruptcy” shall mean, with respect to any Person, any proceeding or set
circumstances in which (i) such Person shall file a voluntary petition in bankruptcy or
shall be adjudicated as bankrupt or insolvent, or shall file any petition or answer or
consent seeking any reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief for itself under the present or future applicable federal,
state or other statute or law relative to bankruptcy, insolvency, or other relief for
debtors, or shall seek or consent to or acquiesce in the appointment of any trustee,
receiver, conservator or liquidator of such Person or of all or any substantial part of its
properties

-2-

 

(the term “acquiesce” as used in this definition includes the failure to file a
petition or motion to vacate or discharge any order, judgment or decree within fifteen (15)
days after entry of such order, judgment or decree); (ii) a court of competent jurisdiction
shall enter an order, judgment or decree approving a petition filed against such Person
seeking a reorganization, arrangement, composition, readjustment, liquidation, dissolution
or similar relief under the present or any future federal bankruptcy act, or any other
present or future applicable federal, state or other statute or law relating to bankruptcy,
insolvency, or other relief for debtors, and such Person shall acquiesce and such decree
shall remain unvacated and unstayed for sixty (60) consecutive days from the date of entry
thereof, or a trustee, receiver, conservator or liquidator of such Person shall be appointed
with the consent or acquiescence of such Person and such appointment shall remain unvacated
and unstayed for sixty (60) consecutive days; (iii) such Person shall admit in writing its
inability to pay its debts as they mature; (iv) such Person shall give notice to any other
Person of insolvency or pending insolvency, or suspension or pending suspension of
operations; or (v) such Person shall make a general assignment for the benefit of its
creditors or take any other similar action for the protection or benefit of its creditors.

     “Btu” shall mean a British Thermal Unit, which is the amount of energy required
to raise the temperature of one pound of pure water one degree Fahrenheit.

     “Btu Adjustment” shall have the meaning assigned to such term in Section
7.4(c).

     “Business Day” shall mean any day other than a Saturday or Sunday or a national
bank holiday.

     “Capital Investment” shall mean the purchase of equipment or the making of
another investment that would be capitalized as an asset under generally accepted accounting
practices (or the lease of such equipment or asset in lieu of the purchase thereof).

     “Change Order” shall have the meaning assigned to such term in Section 5.6.

     “Change Order Request” shall have the meaning assigned to such term in Section
5.6.

     “Claims” shall mean any and all liabilities (including negligence, warranty,
statutory, product, strict or absolute liability, liability in tort or otherwise),
obligations, losses, damages, penalties, fines, sanctions, claims, Environmental Claims,
actions, or suits of whatever kind or nature, investigations, judgments, Liens (including
any Lien in favor of any Governmental Authority upon LEGS or the Mine for environmental
liabilities and costs or violations of any Environmental Laws) and shall include all
reasonable costs, expenses and disbursements in connection therewith or related thereto, of
any kind or nature, including reasonable legal fees and expenses and costs of investigation.

-3-

 

     “Commodities” shall mean diesel fuel, electricity, tires, and steel used by
TWCC in the ordinary course of operating the Mine.

     “Control” shall mean the possession, directly or indirectly, through one or
more intermediaries, of either of the following:

     (a) (i) in the case of a corporation, 50% or more of the outstanding voting
securities thereof; (ii) in the case of a limited liability company, partnership,
limited partnership or venture, the right to 50% or more of the distributions
therefrom (including liquidating distributions); (iii) in the case of a trust or
estate, including a business trust, 50% or more of the beneficial interest therein;
and (iv) in the case of any other Entity, 50% or more of the economic or beneficial
interest therein; or

     (b) in the case of any Entity, the power or authority, through ownership of
voting securities, by contract or otherwise, to exercise a controlling influence
over the management of the Entity.

     “Corporate Support Allowance” shall have the meaning assigned to such term in
Section 7.2(a)(viii).

     “Cost Components” shall be the actual types of costs incurred by TWCC to
operate the Mine, as further described under Section 7.2 and subject to the exclusions set
forth in Section 7.2.

     “Cost Incentive Adjustment” shall have the meaning assigned to such term in
Section 7.4(a)(iii).

     “CPR” shall have the meaning assigned to such term in Section 6.2.

     “Current Bonding Level” shall have the meaning assigned to such term in Section
12.4(a).

     “Daily Fee” shall have the meaning assigned in Section 7.4(c)(iii).

     “Daily Reports” shall mean the reports to be delivered to NRG in accordance
with Section 10.1(a).

     “Default Termination Date” shall mean the date on which this LSA is terminated
by either Party prior to scheduled expiration of the Term pursuant to Section 15.

     “Delivery Day” shall mean a calendar day in which lignite is delivered by TWCC
to LEGS.

     “Delivery Failure” shall have the meaning assigned such term in Section 15.1.

     “Delivery Point” shall mean the Surge Bin.

-4-

 

     “Dispute Date” shall have the meaning assigned to such term in Section 6.1.

     “Effective Date” shall have the meaning assigned to such term in the
introductory paragraph.

     “Entity” shall mean a corporation, limited liability company, partnership
(including a general partnership, joint venture, limited partnership, limited liability
partnership or partnership association), trust (including a business trust), estate,
Governmental Authority or any other entity.

     “Environmental Claims” shall mean any claim, action, cause of action,
investigation conducted by a Governmental Authority or written notice by any Person or
entity alleging potential liability (including potential liability for cleanup costs,
Remedial Action, Releases, governmental response costs, natural resources damages, property
damages, personal injuries, or penalties) arising out of, based on or resulting from (a) a
presence or Release of any Hazardous Material or (b) circumstances forming the basis of any
obligation under, or alleged violation of, any Environmental Law.

     “Environmental Laws” shall mean all applicable United States Federal, state and
local laws and regulations pertaining to the environment, natural resources, health and
safety, including (a) the Comprehensive Environmental Response, Compensation and Liability
Act of 1980 (42 U.S.C. §9601 et seq.) (“CERCLA”), (b) Emergency Planning and
Community Right to Know Act (EPCRA, SARA Title III) and the Superfund Amendments and
Reauthorization Act of 1986, (c) the Solid Waste Disposal Act (42 U.S.C. §6901 et seq.), (d)
the Resource Conservation and Recovery Act of 1976, (e) the Hazardous and Solid Waste
Amendment Acts of 1984, (f) the Clean Air Act (42 U.S.C. §7401 et seq.), (g) the Clean Water
Act (33 U.S.C. §1251 et seq.), (g) the Federal Water Pollution Control Act, (h) the Toxic
Substances Control Act (15 U.S.C. §2601 et seq.), (i) the Safe Drinking Water Act, (j) the
Mine Safety and Health Act of 1970 (42 U.S.C. §11001 et seq.), (k) the Oil Pollution Act of
1990, (l) the Hazardous Substances Transportation Act (49 U.S.C. §1801 et seq.), and (m) the
Federal Mine Safety and Health Act of 1977 (30 U.S.C. §801 et seq.), and any similar or
analogous statutes, regulations and decisional law of any Governmental Authority, as each of
the foregoing may have been or are in the future amended or supplemented, in each case to
the extent applicable with respect to the property and operation to which application of the
term “Environmental Laws” relates.

     “Event of Default” shall mean an NRG Event of Default or a TWCC Event of
Default.

     “Expert” shall mean an Accounting Expert, a Mining Expert or a Legal Expert, as
the context requires.

     “Fee Adjustment Basis AOP” shall have the meaning given such term in Section
7.4(a)(i).

     “Fee Per Ton” shall have the meaning given such term in Section 7.3.

-5-

 

     “Final Reclamation” shall mean the activities described in Section 12.1.

     “Force Majeure” shall mean any event that (a) renders the affected Party unable
to perform its obligations under the LSA, in whole or in part, (b) is beyond the reasonable
control of the affected Party, (c) is not due to the fault or negligence of the affected
Party or the failure of the affected Party to carry out its obligations under this
Agreement, and (d) cannot be avoided by the affected Party by the exercise of due diligence
and the expenditure of a reasonable sum of money. Subject to the satisfaction of the
conditions set forth in sections (a) through (d) above, Force Majeure shall include:

     (i) fires or serious accidents affecting the Mine, LEGS or the equipment or
facilities of the affected Party;

     (ii) acts of God, exceptional and unpredictable meteorological conditions,
declared or undeclared wars, acts of the public enemy, sabotage, terrorist acts,
commercial embargoes, demonstrations, earthquakes, civil disturbances, revolts, and
insurrections;

     (iii) transportation disasters, whether by waterways, rail, land, or air;

     (iv) strikes or other labor disputes (provided that said disputes are not due
to the breach of the labor contracts or applicable laws by the Party claiming Force
Majeure);

     (v) one of the Parties is unable, despite its best efforts, to obtain in a
timely and appropriate manner any governmental authorization necessary to enable
such Party to comply with its obligations under the LSA;

     (vi) any changes to laws or regulations that would require NRG to reduce or
cease lignite use or significantly modify LEGS to continue to use lignite;

     (vii) any changes to laws or regulations that would require TWCC to reduce or
cease lignite production; and

     (viii) breakdowns of or damage to LEGS, Mine equipment or facilities.

Force Majeure shall not include (A) economic hardship, (B) changes in market conditions, or
(C) late delivery of machinery, equipment, materials or consumable goods except when such
late delivery is due to Force Majeure.

     “GAAP” shall mean generally accepted accounting principles in effect in the
United States from time to time.

     “Governmental Authority” shall mean a federal, state, local or foreign
governmental authority; a state, province, commonwealth, territory or district thereof; a
county or parish; a city, town, township, village or other municipality; a district, ward or
other subdivision of any of the foregoing; any executive, legislative or other governing

-6-

 

body of any of the foregoing; any agency, authority, board, department, office,
commission, committee, council or other administrative body of any of the foregoing; and any
court or other judicial body.

     “Group” shall mean the NRG Group or the TWCC Group, as the context requires.

     “Guaranty” shall mean each of (i) the Guaranty executed by Westmoreland Coal
Company guaranteeing the obligations of TWCC under this LSA as of the date hereof, and (ii)
the Guaranty to be executed by Westmoreland Mining LLC in the same form as (i) and delivered
as part of the Security Document Delivery.

     “Hazardous Materials” shall mean (a) any hazardous materials, hazardous wastes,
hazardous substances, toxic wastes, solid wastes, and toxic substances as those or similar
terms are defined under any Environmental Laws; (b) any asbestos or any material which
contains any hydrated mineral silicate, including chrysolite, amosite, crocidolite,
tremolite, anthophylite and/or actinolite, whether friable or non-friable; (c)
polychlorinated biphenyls (“PCBs”), or PCB-containing materials or fluids; (d) any
other hazardous, radioactive, toxic or noxious substance, material, pollutant, contaminant,
constituent, or solid, liquid or gaseous waste; (f) any petroleum, petroleum hydrocarbons,
petroleum products, crude oil and any fractions or derivatives thereof, and any natural gas,
synthetic gas and any mixtures thereof; and (g) any substance that, whether by its nature or
its use, is subject to regulation under any Environmental Laws or with respect to which any
Environmental Laws or Governmental Authority requires environmental investigation,
monitoring or remediation.

     “Independent Contractor” shall have the meaning assigned to such term in
Section 15.10.

     “Independent Lab” shall have the meaning assigned to such term in Section
9.2(a).

     “Interest Rate” shall mean the lesser of (a) the U.S. Treasury ten year annual
rate (as published in The Wall Street Journal) plus 3%, with such rate determined on the
first Business Day of each Quarter for calculations for that Quarter, and (b) the highest
rate permitted by applicable Law.

     “Launched” shall have the meaning assigned to such term in Section 3.2(e).

     “Law” shall mean any applicable constitutional provision, statute, act, code,
law (including common law), regulation, rule, ordinance, order, writ, judgment, decree,
ruling, decision or other legal or regulatory determination of a Governmental Authority
having valid jurisdiction.

     “Legal Expert” shall mean the Person that may be agreed to by the Parties after
the date hereof and added to Exhibit 5 upon such agreement or any other lawyer that (a) is
familiar with coal and/or lignite mining, (b) has no past or present relationship with

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either Party, and (c) is mutually agreed by both Parties or is selected by the CPR in
accordance with Section 6.2(a)(ii).

     “LEGS” shall have the meaning assigned to such term in the Recitals.

     “LEGS Representative” shall have the meaning assigned to such term in Section
4.2.

     “Lien” shall mean any lien, mortgage, pledge, security interest, charge or
encumbrance of any kind (including any conditional sale or other title retention agreement,
any lease in the nature thereof, mechanic’s liens and other liens arising under law, and any
agreement to give any security interest).

     “Lignite Supply Term” shall have the meaning assigned to such term in Section
3.2(a).

     “LSA” shall have the meaning assigned to such term in the introductory
paragraph.

     “Major Dispute” shall mean any dispute that is not a Minor Dispute.

     “Management Fee” shall have the meaning assigned to such term in Section 7.3.

     “Mine” shall mean the Jewett lignite mine as permitted and/or controlled by
TWCC in the areas of Leon, Limestone, and Freestone Counties in the State of Texas and
included within the boundaries shown on Exhibit 1.

     “Mine Costs” shall have the meaning assigned such term in Section 7.1.

     “Mine Manager” shall have the meaning assigned to such term in Section 24.2(a).

     “Mine Plan” shall mean the mine plan attached hereto as Exhibit 2, as amended,
supplemented or otherwise modified from time to time in accordance with this LSA.

     “Mine Stockpile” shall mean the lignite stored and managed at the Mine at or
near the Delivery Point.

     “Minimum Criteria” shall have the meaning assigned such term in Section 5.4(b).

     “Mining Expert” shall mean the Person that may be agreed to by the Parties
after the date hereof and added to Exhibit 5 upon such agreement or any other mining
engineer that (a) is experienced with coal and/or lignite mining in the western United
States, (b) has no past or present relationship with either Party, and (c) is mutually
agreed by both Parties or is selected by the CPR in accordance with Section 6.2(a)(ii).

     “Mining Work” shall mean all work required to be carried out by TWCC in order
to operate and maintain the Mine, produce and deliver lignite, and perform reclamation

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activities, in each case in accordance with the Mine Plan, each Approved AOP, and this
LSA, and otherwise to perform its obligations under this LSA.

     “Minor Dispute” shall mean any dispute between the Parties under this Agreement
(i) in respect of which the amount in dispute is less than $500,000 or (ii) involving the
approval of or any failure to approve any AOP, any revision to an Approved AOP, or the Fee
Adjustment Basis AOP (regardless of the amount in dispute).

     “MMBtu” shall mean million Btus.

     “Month” shall mean a calendar month.

     “Monthly Fee” shall have the meaning assigned such term in Section 7.4(b)(iii).

     “Mortgage and Security Agreements” shall mean (i) the Deed of Trust, Fixture
Filing and Assignment of Rents to Secure Performance and (ii) the Security Agreement in each
case, entered into by TWCC in favor of NRG and collectively covering all real and personal
property (including coal reserves and Permits) owned or leased by TWCC.

     “Non-Performing Party” shall have the meaning assigned to such term in Section
13.1.

     “NRG” shall have the meaning assigned to such term in the introductory
paragraph.

     “NRG Event of Default” has the meaning assigned to such term in Section 15.6.

     “NRG Group” shall mean (a) NRG; (b) the Affiliates of NRG; (c) any other
members, shareholders, partners or other equity owners of NRG or any of its Affiliates
(other than holders of publicly-traded stock of NRG or any of its Affiliates); (d) the LEGS
Representative; and (e) the respective successors and assigns of the Persons described in
the foregoing clause (a), (b), (c) or (d).

     “Officer” shall mean a duly authorized executive officer for either NRG or
TWCC, as applicable.

     “Optional Supply Termination Date” shall have the meaning assigned to such term
in Section 3.2(c).

     “Party” and “Parties” shall have the respective meanings assigned to
such terms in the introductory paragraph.

     “Permits” shall mean any permit, certificate, license, franchise,
authorization, approval, variance, exemption, concession, lease, instrument or order issued
or granted by any Governmental Authority, or any amendment thereto.

     “Person” shall mean any natural person or any Entity.

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     “Post Execution Savings Actions” means the actions and periods for
implementation set forth in Exhibit 9.

     “PRB” shall mean coal from the Powder River Basin in Wyoming.

     “Prior LSA” shall have the meaning assigned to such term in the Recitals.

     “Prudent Mining Practices” shall mean those procedures, methods, techniques,
and acts that are consistent with professional standards used by the lignite mining industry
for the operation and maintenance of mines similar in type to the Mine. Prudent Mining
Practices are intended to result in the safe, reliable, lawful, economic, and prudent
operation and maintenance of the Mine to maximize lignite production and minimize Mine Costs
in a manner consistent with long-term reliable exploitation of the Mine and the rights and
obligations of the Parties under this LSA. Prudent Operating Practices are not intended to
be limited to optimum practice or methods to the exclusion of all others, but rather to be a
spectrum of reasonable and prudent practices and methods that must take into consideration
the conditions specific to the Mine.

     “Quarter” shall mean each calendar quarter, commencing on January 1, April 1,
July 1 and October 1.

     “RCT” shall mean the Railroad Commission of the State of Texas.

     “Registration Statement” shall have the meaning assigned to such term in
Section 3.2(e).

     “Release” shall mean the release, spill, emission, leaking, pumping, injection,
deposit, disposal, discharge, dispersal, leaching or migrating into the environment of any
Hazardous Material through or in the air, soil, surface water or ground water.

     “Remedial Action” shall mean actions required by any Governmental Authority to
(i) clean up, remediate, remove or treat Hazardous Materials in the environment, (ii)
prevent the Release or further Release or minimize the further Release of Hazardous
Materials or (iii) investigate and determine if a remedial response is needed, to design
such a response and post-remedial investigation, monitoring, operation and maintenance.

     “Reserves” shall mean all of the lignite reserves owned by or leased to TWCC or
that TWCC otherwise has the right to mine for its own account within the boundaries shown on
Exhibit 1, including all of the lignite reserves covered by the Subleases.

     “Scheduled Supply Termination Date” shall have the meaning assigned to such
term in Section 3.2(b).

     “Security Document Delivery” shall occur if and only if (i) Westmoreland Mining
LLC shall have executed and delivered to NRG a Guaranty and the Westmoreland Pledge
Agreement and (ii) TWCC shall have executed, acknowledged and delivered to NRG in proper
form for recording or filing, as applicable, the Mortgage and Security Agreements

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(together with all related UCC-1 financing statements) and a period of 95 days shall
have elapsed from the date of their delivery to NRG.

     “Special TWCC Default Termination” means a termination of the LSA pursuant to
Article 15 due to a TWCC Event of Default if (a) such TWCC Event of Default could reasonably
be expected to result in material loss or liability to NRG and (b) such TWCC Event of
Default arises from (i) the willful misconduct, intentional act or negligence of TWCC or
(ii) a breach of a Guaranty by one or more of the guarantors thereunder. Without limiting
the generality of the foregoing, for the purposes hereof, the failure of the guarantors to
cause TWCC to be funded so as to be able to perform its obligations under the LSA shall be
deemed an intentional breach by TWCC.

     “Standby Purchase Agreement” shall have the meaning assigned to such term in
Section 3.2(d).

     “Subcontractor” shall mean any Person with whom TWCC enters into a subcontract
for the carrying out any part of the Mining Work, including Persons at any level with whom
any Subcontractor has further subcontracted any part of the Mining Work, and the legal or
personal representatives, agents, successors, and assigns of any such Person.

     “Subleases” shall mean that certain Sublease of Coal and Lignite Leases dated
January 10, 1985, recorded in Volume 593 at Page 868 in the Official Records of Leon County,
Texas, recorded in Volume 716 at Page 95 in the Deed Records of Freestone County, Texas, and
recorded in Volume 752 at Page 214 in the Deed Records of Limestone County, Texas; and (ii)
that certain Sublease of Coal Lease dated April 23, 1996 in Volume 0983 at page 703 in the
Deed Records of Freestone County, Texas.

     “Subsections G1 and G2” shall have the meaning assigned to such term in Section
27.1

     “Supply Suspension” shall have the meaning assigned such term in Section 3.3.

     “Surface Use Agreement” shall have the meaning assigned to such term in Section
11.5.

     “Surge Bin” shall mean the surge bin at LEGS described more specifically in
Exhibit 6.

     “TBtu” shall mean trillion Btus.

     “Term” shall have the meaning assigned to such term in Section 3.1.

     “Ton” shall mean a unit of weight equal to 2,000 pounds avoirdupois.

     “TWCC” shall have the meaning assigned to such term in the introductory
paragraph.

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     “TWCC Event of Default” shall have the meaning assigned to such term in Section
15.4.

     “TWCC Group” shall mean (a) TWCC; (b) the Affiliates of TWCC; (c) any other
members, shareholders, partners or other equity owners of TWCC or any of its Affiliates
(other than holders of publicly-traded stock of TWCC or any of its Affiliates); and (d) the
respective successors and assigns of the Persons described in the foregoing clause (a), (b)
or (c).

     “TWCC Lien” shall have the meaning assigned to such term in Section 8.4(a).

     “TWCC Personnel” means all employees of TWCC who will perform the Mining Work.

     “Westmoreland Pledge Agreement” shall mean the Pledge Agreement pursuant to
which Westmoreland Mining LLC pledges 100% of all ownership interests in TWCC to NRG.

     “Year” shall mean a calendar year commencing January 1 and ending December 31.

     1.2 Construction. Unless the context of this LSA otherwise requires, (a) references to “this
LSA” or any other agreement or document shall be construed as a reference to such agreement or
document as amended, modified, or otherwise supplemented from time to time; (b) references to any
Person shall include such Person’s successors and assigns; (c) references to “Sections” and
“Exhibits” are to Sections of, and Exhibits to, this LSA, each of which is made a part of this LSA
for all purposes; (d) the meanings specified are applicable to both the singular and plural; (e)
wherever the words “include,” “includes,” or “including” are used in this LSA, they shall be deemed
to be followed by the words “without limitation”; (f) all references to “herein,” “hereof,”
“hereunder,” and similar terms shall be deemed to refer to this entire LSA; (g) references to any
gender include all others if applicable in the context, and (h) the text of this LSA and the
Exhibits hereto shall be construed consistently, but in the event of any irreconcilable conflicts
the text of this LSA shall control over any Exhibit.

2. SALE AND PURCHASE; STANDARD OF PERFORMANCE.

     2.1 Lignite Supply.

     (a) During each Year of the Lignite Supply Term, TWCC shall sell and deliver, and NRG
shall take and pay for, the AOP Volumes for such Year, upon the terms and subject to the
conditions set forth in this LSA.

     (b) All lignite to be delivered by TWCC under this LSA shall be produced at the Mine.

     (c) TWCC hereby dedicates the Reserves and all lignite produced from the Reserves to
the satisfaction of TWCC’s lignite delivery obligations under this LSA, and

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TWCC shall not sell any portion of such lignite to any Person other than NRG during the
Term.

     (d) Without the prior written consent of NRG, which consent may not be unreasonably
withheld, TWCC shall not and shall not permit any of its Affiliates to acquire or attempt to
acquire any additional reserves of lignite within any of Limestone, Leon, Freestone or
Robertson Counties if such acquisition could reasonably be expected to (i) either extend the
Term of this LSA or increase the Mine Costs under this LSA, (ii) increase the Mine Costs for
reclamation or increase NRG’s obligations relating to reclamation, or (iii) materially
interfere with any efforts of NRG to acquire lignite reserves for LEGS. The preceding
sentence shall not preclude TWCC or Affiliates of TWCC from acquiring an active mining
operation in any of such Counties. For the avoidance of doubt, if TWCC or one of its
Affiliates acquires any such additional reserves of lignite, unless NRG otherwise agrees in
writing such reserves shall not become part of the Mine.

     2.2 Standard of Performance.

     (a) TWCC shall perform the Mining Work in all respects in a good and workmanlike manner
and in accordance with (i) the Mine Plan, (ii) the applicable Approved AOP, (iii) all
applicable Laws, and (iv) Prudent Mining Practices. TWCC shall obtain all Permits required
to do business or perform the Mining Work. Consistent with the Mine Plan and its other
responsibilities and limitations hereunder, TWCC shall use all reasonable efforts to
maximize the gross output of lignite from the Mine, while minimizing Mine Costs.

     (b) Except as set forth herein, all vehicles, machinery and other equipment reasonable
and necessary to the operation of the Mine that are owned, used, or held for use by TWCC
shall be kept at the Mine and employed solely in providing Mining Work under this Agreement.
If in connection with the approval of an AOP for any Year or in connection with any Change
Order or Supply Suspension it is determined by the Parties that any of such vehicles,
machinery, or other equipment belonging to TWCC are unnecessary to the performance of the
Mining Work, TWCC shall have the right to deploy any such vehicles, machinery, or equipment
owned by it to another facility owned or operated by TWCC or any Affiliate of TWCC, subject
to the prior written consent and approval of NRG, such consent and approval not to be
unreasonably withheld; provided, however, that it is agreed that a reasonable basis for
NRG’s withholding such consent shall be that the future operating costs of such deployed
vehicles, machinery, or equipment, at such time as such vehicles, machinery, or equipment is
redeployed to the Mine, would be materially increased as a result of such deployment. At
such time as the then-current Approved AOP reasonably requires the use of any vehicles,
machinery, or equipment that have been deployed to another facility, TWCC at its cost shall
return such vehicles, machinery, or equipment to the Mine in substantially the same
operating condition as when it was removed, ordinary wear and tear excepted. Unless
otherwise agreed by the Parties, all mining equipment purchased with NRG funds or the
acquisition cost of which has been reimbursed with NRG funds shall be titled in the name of
NRG, except for equipment identified on Exhibit 9.

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3. LSA TERM; LIGNITE SUPPLY TERM; SUPPLY SUSPENSION.

     3.1 LSA Term. This Agreement shall be binding and effective as of the Effective Date, but the
terms of the Prior LSA as to the supply and sale of, and payment for, lignite (and as to certain
operations as more particularly specified in Section 22.2) shall apply through December 31, 2007
and are hereby incorporated by reference for such purpose. The term of this LSA (the
“Term”) shall commence on the Effective Date and shall continue through the earlier to
occur of (a) the occurrence of a Special TWCC Default Termination unless Security Document Delivery
has previously occurred; and (b) the completion and termination of all Final Reclamation
activities, including final bond release by all relevant Governmental Authorities, as further
described under Section 12. If a Special TWCC Default Termination occurs prior to Security
Document Delivery, then NRG shall not have any financial liability or responsibility for the Final
Reclamation as set forth under Section 12.1(b).

     3.2 Lignite Supply Term.

     (a) Notwithstanding the Term of the LSA as provided under Section 3.1, the “Lignite
Supply Term” shall commence on January 1, 2008, and shall terminate on the earliest to
occur of (i) the Scheduled Supply Termination Date, (ii) the Optional Supply Termination
Date, (iii) the Default Termination Date, (iv) as provided in Section 3.2(d) or (v) as
provided in Section 3.2(e).

     (b) The “Scheduled Supply Termination Date” shall be December 31, 2018;
provided, however, that NRG shall have the right, exercisable by notice to TWCC on or prior
to the 365th day prior to the then-effective Scheduled Supply Termination Date,
(i) to extend the Scheduled Supply Termination Date to December 31, 2023, and (ii) if it
exercises such right to extend the Scheduled Supply Termination Date, to extend the
Scheduled Supply Termination Date a second time to December 31, 2028, with each such date
becoming the “Scheduled Supply Termination Date” upon such exercise, and further
provided that exhaustion of the Reserves at the Mine has not occurred. When the exhaustion
of the Reserves at the Mine shall occur, the Scheduled Supply Termination Date shall be
deemed to have occurred.

     (c) NRG shall have the right, exercisable by notice to TWCC on or prior to the
180th day prior to December 31 of any Year, to terminate the Lignite Supply Term
on the last day of such Year (the “Optional Supply Termination Date”).

     (d) NRG shall have the right, exercisable by written notice to TWCC on or after January
1, 2008, to terminate the Lignite Supply Term effective as of a date at least 60 days after
the date of such written notice if Westmoreland Coal Company has not entered into, on or
before October 15, 2007, an amendment to the Standby Purchase Agreement dated May 2, 2007
(as subsequently amended on July 3, 2007, the “Standby Purchase Agreement”) pursuant to
which Tontine Capital Partners, L.P. agrees, among other things, to extend the termination
date contained in Section 12(b)(ii) of such Standby Purchase Agreement to at least May 5,
2008, on terms that are expected to provide substantially the same net proceeds to
Westmoreland Coal Company as were expected to have been provided under the initial terms of
the Standby Purchase Agreement.

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     (e) NRG shall have the right, exercisable by written notice to TWCC on or after March
1, 2008, to terminate the Lignite Supply Term effective as of a date at least 60 days after
the date of such written notice if on or before February 29, 2008,(i) the rights offering
has not been Launched which shall mean both (A) Westmoreland Coal Company’s registration
statement ( the “Registration Statement”) in connection with the rights offering described
in its Proxy Statement dated July 19, 2007 (as the terms of such rights offering are amended
pursuant to the amendment to the Standby Purchase Agreement referenced in the preceding
subparagraph) has been declared effective by the Securities and Exchange Commission and (B)
the prospectus included in the Registration Statement and all other necessary offering
materials have been sent to Westmoreland Coal Company’s shareholders commencing the period
for consideration of the rights offering, or (ii) such rights offering has been Launched by
such date but one of the following has occurred: (x) an event has occurred that could
reasonably be expected to prevent Westmoreland Coal Company from successfully completing
such rights offering by April 30, 2008, or (y) an event has occurred that could reasonably
be expected to cause or permit the Standby Purchasers to not timely consummate the share
purchase contemplated by the Standby Purchase Agreement.

     (f) In the event NRG exercises its right of termination pursuant to Section 3.2(d) or
Section 3.2(e), such termination shall not be considered a Special TWCC Default Termination
and NRG shall continue to be responsible for all costs of Final Reclamation pursuant to
Section 12.2 hereof.

     3.3 Supply Suspension. NRG shall have the right to reduce the AOP Volumes to zero either (a)
with respect to any Year, by notice to TWCC on or prior to the 180th day prior to
January 1 of any Year, and (b) otherwise pursuant to a Change Order in accordance with Section 5.6
(either such action being herein called a “Supply Suspension”), in each case for a definite
or indefinite period. A Supply Suspension shall not constitute a termination of the Lignite Supply
Term. During any period of Supply Suspension, (i) TWCC shall continue ongoing reclamation work and
shall to the extent reasonable and in accordance with all applicable laws and regulations maintain
the Mine in a condition such that it may reasonably re-commence operations and lignite deliveries
within a reasonable time, and in any event not less than ninety (90) days or such longer period as
NRG may specify, after a request therefor by NRG (and Supply Suspension shall not entitle TWCC to
permanently shut down the Mine), and (ii) NRG shall be obligated to pay Mine Costs incurred in
connection with so maintaining the Mine, including ongoing reclamation work, together with the
Corporate Support Allowance then in effect. In no event shall TWCC be required to maintain the
Mine in a Supply Suspension mode if such Supply Suspension is contrary to its regulatory
obligations or negatively affects in any material way the permitting of any of the coal or lignite
mining operations of any TWCC Affiliate.

4. GOVERNANCE; REPRESENTATIVES; RELATIONSHIP OF PARTIES.

     4.1 Nature of Governance. Subject to the terms of this LSA, the Mine Plan and Approved AOP’s,
as operator of the Mine, TWCC has the discretion to operate the Mine as it determines is necessary
and appropriate to ensure the safety of its workforce and to comply with all applicable Laws and
leases and to fulfill all of its obligations and rights hereunder. NRG may

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monitor TWCC’s performance and shall have the right to approve or disapprove AOP’s in
accordance with the terms of this LSA.

      4.2 Representatives. NRG shall name a representative (the “LEGS Representative”) to
represent NRG in development of the AOP’s in coordination and cooperation with the President of
TWCC or his designee. NRG and TWCC shall each name a senior corporate Officer (which may be an
executive of such Party’s parent) to whom disagreements or disputes shall be directed, as further
provided in Section 6.

      4.3 Relationship of the Parties. Nothing contained in this LSA shall be deemed or construed
to create the relationship of principal and agent, master and servant, partnership or joint venture
or of any association whatsoever except as expressly provided herein. Neither Party shall have the
right to bind or obligate the other in any manner unless expressly stated herein. In fulfilling
its obligations hereunder, TWCC shall be an independent contractor with respect to NRG and not the
agent of NRG for any purposes other than those specifically described herein.

      4.4 NRG Governance Role. NRG shall participate with TWCC in the financial planning, financial
review and cost control measures relating to Mine operations. NRG shall:

     (a) provide TWCC with the information specified in Section 5.4(a) for use by TWCC in
developing the AOP’s;

     (b) have the right to approve each AOP (including all components thereof) and proposed
revisions to each Approved AOP as provided in Sections 5.4 and 5.6, approve capital
acquisitions and investments as provided in Section 5.5;

     (c) have the right to full access to the Mine (provided that such access does not
unreasonably interfere with or impede the Mining Work and shall be carried out in accordance
with applicable safety rules and regulations; and provided that any incremental cost will be
borne by NRG) and the right to monitor TWCC’s operations, performance and results relative
to each Approved AOP and the individual components of such Approved AOP, including the
following rights:

	 	(i)	 	daily inspection;
	 
	 	(ii)	 	daily interface with Mine management;
	 
	 	(iii)	 	oversight of maintenance programs;
	 
	 	(iv)	 	monitoring capital and operating expenditures;
	 
	 	(v)	 	monitoring dragline and equipment performance and availability;
	 
	 	(vi)	 	oversight of mine safety programs;
	 
	 	(vii)	 	oversight of warehouse inventory;

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       (viii)    oversight of insurance and warranty claims (to the extent not limited
by attorney client privileged communications but the Parties shall cooperate to
provide such information which does not result in a loss of attorney client
privilege (including taking advantage of joint defense arrangements,
etc.));

	 	(ix)	 	monitoring of reclamation activities; and
	 
	 	(x)	 	auditing of books and records.

5. ANNUAL OPERATING PLAN.

     5.1 Mine Plan.

     (a) The Parties acknowledge that each AOP (and each of its constituent components)
shall be based upon the Mine Plan, as modified from time to time, as the guiding principle
for operation of the Mine.

     (b) The Mine Plan will be updated on an annual basis in connection with the approval of
the AOP for each Year and may be otherwise amended, modified or supplemented only by mutual
agreement of the Parties; provided, however, that in connection with any such amendment,
modification, or supplement, NRG shall have the sole authority with respect to material
business decisions, such as projected volumes and delivery schedules, subject only to the
operational feasibility of such business decisions.

     5.2 Operations Pursuant to AOP. TWCC shall, in consultation with NRG, prepare an AOP for each
Year beginning 2008, as further provided below, pursuant to this Section 5, including any Year
after the Lignite Supply Term. An AOP must be approved by NRG and TWCC or through the dispute
resolution procedures in Section 6 to become effective. Unless otherwise mutually agreed in
writing between the Parties, no Approved AOP shall obligate TWCC to supply lignite from sources
other than the Mine. TWCC shall conduct all operations, incur expenses, and direct capital
expenditures pursuant to the Approved AOP for the applicable Year.

     5.3 Purpose and Components of AOP. The purposes of each AOP shall be to provide TWCC and NRG
with the means to describe the Mining Work to be conducted by TWCC during the Year to which such
AOP is applicable, as set forth in the Mine Plan, and to reasonably control Mine Costs to projected
AOP levels. Each AOP shall consist of the components described in Exhibit 4. Each AOP will
include an updated Mine Plan (which, for the avoidance of doubt, will be approved as part of the
Approved AOP pursuant to the process set out in this LSA), such that the AOP for any Year will be
consistent with the Mine Plan at the time of approval of such AOP.

     5.4 Review and Approval of AOP.

     (a) On or before March 15 of each Year beginning in 2008, NRG shall provide TWCC with
the following information that will assist TWCC with the preparation of the AOP applicable
to the following Year:

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     (i) non-binding, good faith estimates of demand for volumes of lignite by
Month for the upcoming two Years, which volumes may be in any amount from zero to
the reasonable capacity of the Mine (considering the prior Year’s actual
production, work performed, and existing Mine equipment fleet and work force);

     (ii) the timing of any planned outages at LEGS during the upcoming two Years;
and

     (iii) such other information as NRG may deem relevant or that is reasonably
requested by TWCC in connection with the preparation of the AOP applicable to the
upcoming Year.

      (b) On or before May 1 of each Year beginning in 2008, and in the case of the 2008 AOP,
on or before October 4, 2007, TWCC shall submit to NRG for its approval a proposed AOP
applicable to the following Year for the estimated volumes for such year supplied by NRG.
The proposed AOP for 2008 shall be consistent with and contain AOP Volumes not less than and
Mine Costs not greater than those set forth in the proposed AOP attached hereto as Exhibit 3
(except that Tons produced for 2008 shall be 70,000 Tons less than Exhibit 3 and Mine Costs
will be reduced accordingly), and, notwithstanding anything to the contrary contained
herein, unless agreed by NRG, the Approved AOP for 2008 shall contain AOP Volumes not less
than and Mine Costs not greater than those set forth in the proposed AOP. If NRG does not
approve any such AOP and the Parties are unable to agree on any aspect of such AOP on or
before July 1 of the relevant Year, or in the case of the 2008 AOP, on or before October 22,
2007, any issues not resolved shall promptly be submitted to dispute resolution pursuant to
Section 6. For the avoidance of doubt, the Parties intend for the Mining Expert to resolve
any such dispute in a way that meets the following minimum criteria (the “Minimum
Criteria”): (i) does not impose on TWCC an obligation to carry out Mining Work that
could not reasonably possibly be performed by a mine operator consistent with applicable
Laws and Prudent Mining Practices, without regard to the reasonableness of incurring the
cost therefor (since the Mine Costs for such Mining Work are to be borne by NRG hereunder)
and (ii) is consistent with a fair and reasonable opportunity for TWCC to earn the
Management Fee for Tons actually delivered to NRG, subject to adjustment as provided in
Section 7.4.

      (c) Notwithstanding that the AOP is based on the projected consumption of the lignite
produced and delivered hereunder at LEGS, nothing in this Agreement shall restrict the use
by NRG of the lignite produced and delivered hereunder to consumption at LEGS, the right of
NRG to resell in its sole discretion any lignite produced and delivered to it hereunder, or
the right of NRG to purchase lignite from any other source whatsoever or any other fuel for
LEGS.

      5.5 Capital Investments. NRG shall have the right to approve all Capital Investments whether
or not included in the Approved AOP. Prior to any such Capital Investment, TWCC shall submit the
purchase order therefor to NRG for its approval, and all such approved purchase orders shall become
part of the AOP. NRG shall respond to any

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submitted request for a Capital Investment within fifteen (15) Business Days after receipt of
such request; failing which such request shall be deemed approved. In connection with each such
Capital Investment, NRG shall have the right (a) to have TWCC make such Capital Investment, in
which case NRG shall remit to TWCC the cost of such Capital Investment as part of the Mine Costs,
or (b) to make such Capital Investment itself and acquire such capital asset, in which case such
capital asset shall be made available to TWCC in accordance with Section 22.1.

     5.6 Revisions to the Approved AOP. NRG may at any time propose that the Approved AOP
applicable to any Year be revised for any reason (specifically including a desire by NRG to
increase or decrease AOP Volumes for the remainder of such Year) by submitting to TWCC a request
for a change to such AOP (a “Change Order Request”). As soon as reasonably practical but
in no event later than the 15th Business Day after such Change Order Request, TWCC shall
submit to NRG a proposed change to the Approved AOP (such change, a “Change Order”) that
sets forth in reasonable detail the changes to the Approved AOP necessary to implement the
modification requested in the Change Order Request, which changes will include changes to the Mine
Costs. If TWCC believes that the Change Order Request or any part thereof would impose on TWCC an
obligation to carry out Mining Work that does not meet the Minimum Criteria, TWCC shall so inform
NRG. If NRG believes that the Change Order proposed by TWCC does not correctly reflect the changes
to the Approved AOP necessary to implement the Change Order Request or disagrees with any such
determination by TWCC that any Mining Work does not meet the Minimum Criteria, and if TWCC and NRG
are unable to agree on changes to the proposed Change Order within 10 Business Days after TWCC’s
receipt of same, NRG shall have the right to have the changes to the AOP required to implement the
Change Order Request be determined by the Mining Expert in accordance with Section 6.2(a);
provided, however, that NRG may always decide in its sole discretion whether or not to approve a
proposed Change Order. For the avoidance of doubt, the Parties do not intend for the Mining Expert
to resolve any such dispute in a way that imposes on TWCC an obligation to carry out Mining Work
that does not meet the Minimum Criteria. Such Change Order, as modified as the Parties may agree,
shall be implemented only if and when accepted by NRG, and the Approved AOP shall be modified as
set forth in such Change Order from and after such acceptance. With respect to any Change Order
implementing a change in the AOP Volumes, the AOP Volumes for the Approved AOP for such Year shall
be adjusted to take into account the change in volumes effected by such Change Order, and the
daily, weekly, and Monthly AOP Volumes shall be reduced or increased, as applicable, in accordance
with such Change Order from and after its effectiveness. The Approved AOP may not be amended,
modified, or supplemented otherwise than as set forth in this Section 5.6 except by the mutual
agreement of the Parties.

     5.7 Reporting on Approved AOP. In addition to other reports TWCC is required to provide under
this LSA, TWCC shall provide the following reports to the LEGS Representative: (a) budget variance
reports that show budget-to-actual expenditures for the preceding Month and Quarter; and (b)
Quarterly budget projection reports that show projected expenditures versus budgeted amounts for
the following Quarter. Such reports shall keep the LEGS Representative notified of TWCC’s
performance and of material anticipated departures for the Year from the Approved AOP applicable to
that Year.

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     5.8 Commodities Costs. In accordance with Section 7.4, each AOP shall state the quantities of
each of the Commodities that are budgeted to be purchased in connection with performing the Mining
Work contemplated by such AOP. Notwithstanding any other provision of this LSA, TWCC shall act in
accordance with Prudent Mining Practices in trying to minimize Commodities costs incurred by TWCC
and its subcontractors.

     5.9 Insurance.

     (a) TWCC shall maintain insurance written in the kinds and minimum limits of liability
specified in Exhibit 11.

     (b) TWCC shall furnish NRG with certificates of insurance acceptable to NRG evidencing
the required coverages, as well as the terms and conditions specified by this LSA upon
execution of this LSA. The policies required by this Section 5.9 shall contain a provision
that coverages afforded under the policies shall not be canceled until thirty (30) days
prior written notice has been provided to NRG. The failure by TWCC to provide NRG with
Certificates of Insurance, or NRG to insist upon Certificates of insurance, shall not be
deemed a waiver of any rights of NRG under this LSA or under any applicable amendment
hereto. The inclusions, coverage and limits required hereby are minimum inclusions,
coverage and limits, and shall not be construed as a limitation of NRG’s rights under the
noted policies. TWCC is responsible for determining what additional coverage, terms or
limits are required to perform this LSA, even though those requirements may be in addition
to, or excess of, the minimum requirements set forth herein. If TWCC fails to maintain or
pay for the insurance coverages required herein, and TWCC does not acquire such insurance
within twenty (20) days after receipt of written notice of such from NRG, NRG shall have the
right (but not the obligation) to secure same in the name of and for the account of TWCC, in
which event, TWCC shall pay the cost thereof and shall furnish upon demand, all information
that may be required to procure such insurance(s). NRG shall have the right to off-set the
costs of procuring the foregoing insurance(s) against any funds due and owing to TWCC. If
no funds are due and owing, then NRG shall have the right to back-charge the costs of the
acquired insurance(s) to TWCC.

6. RESOLUTION OF DISPUTES.

     6.1 Negotiation of Disputes. In the event of any dispute arising out of or relating to the
implementation or performance of this LSA that the Parties have been unable to settle within a
period of fifteen (15) days after written notice by one Party that the dispute or disagreement has
arisen (such date hereinafter referred to as the “Dispute Date”), each Party shall nominate
an Officer to meet at a mutually agreed time and place, not later than twenty (20) days after the
Dispute Date, to attempt to resolve such dispute or disagreement. Should a resolution of such
dispute or disagreement not be obtained within five (5) Business Days after the meeting of Officers
for such purpose, either Party may then by notice to the others submit the dispute to arbitration
in accordance with the provisions of Section 6.2. The negotiation requirements of this Section 6.1
shall not apply to disputes regarding the approval of an AOP, which are instead covered by the
procedures set forth in 
Section 5.4(b).

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     6.2 Arbitration Resolution. Any claim, dispute, or controversy arising out of or relating to
this LSA or the breach or termination thereof, not settled in accordance with the provisions of
Section 6.1 (or Section 5.4(b) in the case of disputes regarding the approval of an AOP) shall be
submitted to binding arbitration, which arbitration shall apply the Rules for Non-Administered
Arbitration of the International Institute for Conflict Prevention & Resolution (“CPR”) in
effect on the date hereof and, to the extent not inconsistent therewith, the procedural laws of the
State of Texas, unless the Parties mutually agree otherwise.

     (a) Minor Disputes shall be resolved in the following manner:

     (i) The Party that wishes to submit a Minor Dispute that the Parties are
unable to resolve pursuant to Section 6.1 (or Section 5.4(b) in the case of
disputes regarding the approval of an AOP) to arbitration under this Section 6.2
shall notify the other Party of the object of the Minor Dispute.

     (ii) Within five (5) days after such notice, the Parties shall jointly notify
the applicable Expert. Minor Disputes related solely to accounting issues shall be
referred to an Accounting Expert. Minor Disputes related solely to legal issues
shall be referred to a Legal Expert. All disputes regarding the approval of an AOP
and all other Minor Disputes, including any Minor Disputes that involve accounting
and/or legal issues together with other non-accounting/non-legal issues, shall be
referred to a Mining Expert. If the Parties are unable to agree on the selection
of the Expert or if either Party fails to join in the joint notification of the
selected Expert, then the Expert shall be selected by the CPR using the criteria
set forth above and/or notified by the CPR.

     (iii) Within fifteen (15) days after the notice to such Expert, each Party
shall submit to the Expert a written position statement with respect to the issues
in dispute. Such statements shall include a short summary of the Party’s position
along with a statement of such Party’s last best offer with respect to the
resolution of the issue, if any. Any applicable accounting guidelines or other
materials may be included with the submission. If required by the Expert, on a day
determined by the Expert on or before the 10th day after the notice to
the Expert, the Parties shall meet with the Expert at a place in Houston, Texas,
determined by the Expert and shall make such presentation and/or shall answer such
queries as the Expert shall determine. The Expert shall render his or her decision
within 24 hours of the conclusion of such meeting or, if no such meeting is
required by the Expert, on or before the 10th day after the notice to
the Expert, it being understood that the Expert shall select either the last best
offer made by TWCC or the last best offer made by NRG with respect to a particular
issue and that the Expert shall have no discretion to award any other relief. The
Expert shall resolve each of the Submitted Issues separately and shall issue a
written award (the “Award”).

     (iv) The Award issued by the Expert shall be final and binding upon the
Parties without the right of appeal to the courts and judgment thereon may be
entered by any court having jurisdiction thereof, unless the Expert fails to comply

-21-

 

with the requirement to select a last best offer as required by Section
6.2(a)(iii) or as otherwise set forth in the Federal Arbitration Act. If the
Expert fails to select a last best offer submitted by one of the Parties, then any
award entered shall be invalid and the matter shall be resubmitted to arbitration.

     (v) The costs and expenses of the arbitrator(s) shall be borne by the losing
Party. Any other fees and costs shall be the responsibility of the Party incurring
them.

     (b) Major Disputes shall be resolved in the following manner:

     (i) The Party that wishes to appeal to an arbitration panel shall notify the
other of the object of the dispute and the name of the arbitrator that it appoints.

     (ii) Within a maximum of ten (10) days after such notice, the other Party
shall notify the first Party of the name of the arbitrator that it appoints. If
this information is lacking at the end of the period agreed to, the interested
Party shall send an application to the CPR requesting the appointment of the second
arbitrator for the silent Party.

     (iii) The arbitrators so appointed shall name a third within a maximum period
of fifteen (15) days as of the date of the last appointment, to chair the
proceedings. If within this period no agreement is reached, this appointment
should be requested to be made by the CPR.

     (iv) The aforementioned arbitration panel shall sit in Houston, Texas.

     (v) The arbitrators shall issue a written decision stating the basis for any
award. The decision of the arbitrators shall be based upon the substantive laws of
Texas and shall be final and binding upon the Parties without the right of appeal
to the courts, except as set forth in the Federal Arbitration Act. The award
rendered by the arbitration shall be final and judgment thereon may be entered by
any court having jurisdiction thereof.

     (vi) The costs and expenses of the arbitration (including reasonable
attorney’s fees) shall be borne by the losing Party. Any other fees and costs
shall be the responsibility of the Party incurring them.

     6.3 Applicable Law and Arbitration Act. Any arbitral award hereunder shall be enforceable in
any court having jurisdiction. All procedural aspects of this agreement to arbitrate, including
the construction and interpretation of this agreement to arbitrate, the scope of the arbitrable
issues and allegations of waiver, delay, appeals, or defenses as to arbitrability, shall be
governed by and construed pursuant to the United States Arbitration Act, 9 U.S.C. 1-16
(“Federal Arbitration Act”). In deciding the substance of any such claim, dispute or
disagreement, the arbitrators shall have no authority to award punitive damages under any
circumstances (whether it be exemplary damages, treble damages, or any other penalty or

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punitive type of damages) regardless of whether such damages may be available under Texas law,
the Parties hereby waiving their right, if any, to recover punitive damages in connection with any
such claims, disputes or disagreements.

     6.4 Continuation of Services. Pending final resolution of any dispute, whether or not
submitted to arbitration hereunder, TWCC and NRG shall continue to fulfill their respective
obligations hereunder.

     6.5 Injunctive Relief. Notwithstanding any provision of this LSA to the contrary, each Party
hereby reserves the right to seek a temporary restraining order or other injunctive relief,
including an order compelling specific performance as contemplated in Section 15.9 and an order
compelling compliance with the step-in rights contemplated in Section 15.10, from a court of
competent jurisdiction in the event of an Event of Default or a material breach by the other Party
of its obligations under this LSA in order to enforce the obligations of such other Party under
this LSA during the pendency of any dispute resolution proceeding.

7. PRICE AND PAYMENT.

     7.1 Price Components. NRG shall reimburse TWCC for all costs actually incurred in mining the
AOP Volumes and delivering the AOP Volumes to the Delivery Point during the Lignite Supply Term
pursuant to an Approved AOP or as otherwise expressly allowed under this LSA, as more specifically
set forth in Section 7.2, provided that such costs are consistent with Prudent Mining Practices
(the “Mine Cost”). No cost or credit in one Cost Component shall be duplicated in another
Cost Component or Capital Investment. In addition, NRG shall pay to TWCC the Management Fee as set
forth in Section 7.3. The Management Fee is subject to adjustment as provided in Section 7.4.

     7.2 Mine Cost.

     (a) The Mine Cost shall be equal to TWCC’s actual cash costs for operating the Mine in
a manner consistent with the Approved AOP, including the following items determined and
allocated in accordance with GAAP, unless specifically agreed upon otherwise by the Parties.

     (i) Costs of mine labor and supervision, including wages and salaries,
overtime, shift differentials (of miners and supervisory personnel), costs of
Subcontractors and contract laborers, severance costs (only to the extent that (A)
such severance costs are consistent with written plans or policies of TWCC in
existence as of the Effective Date, that have been provided to NRG on or prior to
the Effective Date or are otherwise consistent with amendments, supplements or
modifications to such plans that have been approved by NRG, in writing, after the
Effective Date and (B) such severance costs are caused directly by a material
decrease in AOP Volumes that is not consistent with the Mine Plan (including NRG’s
exercise of its Supply Suspension rights under subsection 3.3 of this LSA), but in
no event shall severance costs associated with terminating employees at or in
anticipation of the end of the Lignite Supply Term be Mine Costs), payroll taxes
(including social security taxes, workers’ compensation, and

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other taxes levied by local, state, and federal governmental bodies on wages
and salaries) and fringe benefits (including holidays, vacations, sick leave,
long-term disabilities costs, health, welfare and group insurance plans, and
(subject to the provisions of Section 7.2(e)) pension benefits and post-retirement
medical benefits, and other fringe benefits generally provided in the coal and
lignite mining industries, in each case to the extent that such fringe benefits are
consistent with written plans or policies of TWCC in existence as of the Effective
Date that have been provided to NRG on or prior to the Effective Date or are
otherwise consistent with amendments, supplements or modifications to such plans
that have been approved by NRG, in writing, after the Effective Date); provided,
however, that any unfunded pension obligations with respect to TWCC employees as of
the Effective Date shall remain the obligation of TWCC and NRG shall have no
liability therefor;

     (ii) Materials and supplies, including consumables expended or consumed in the
mining, processing, and/or delivery of lignite and in the performance of
reclamation (including Final Reclamation) activities, costs of maintenance and
repair of equipment and facilities reasonable and necessary to the operation of the
Mine, costs of electric power, including both consumption of electricity and costs
associated with electricity infrastructure, consumed in the course of mining,
processing, and/or delivery of lignite and in the performance of reclamation
(including Final Reclamation) activities, costs of tools, machinery, and equipment
uncapitalized that are consumed in the course of mining, processing, and/or
delivery of lignite and in the performance of reclamation (including Final
Reclamation) activities;

     (iii) Lease and/or rental costs (inclusive of applicable interest) for
vehicles, equipment and machinery reasonable and necessary to the operation of the
Mine and located at the Mine;

     (iv) Local, state, and federal taxes, including production taxes and ad
valorem taxes (imposed on the real and personal property of TWCC necessary to the
operation of the Mine) but excluding income taxes and franchise taxes;

     (v) Royalties, overriding royalties, advance royalties (provided that
royalties are paid in advance only to the extent required by the terms of the
applicable lease), rentals, damage payments payable under the terms of surface and
mineral leases, subject to this LSA, and other costs or payments required to
acquire and maintain necessary leases for lignite mineral rights, surface rights,
rights-of-way, and water rights payable to third parties (but not to TWCC or its
Affiliates or NRG or its associates);

     (vi) Administrative and general expenses, including salaries, wages and
related fringe benefits for non-coal producing Mine management, supervisory,
technical and clerical employees of TWCC directly supporting the Mine, including
functions for general mine management, human resources, legal (including outside
counsel expenses directly related to providing service to NRG

-24-

 

or administration of the Mine) land management, permitting and regulatory
compliance, engineering, sales and contract management and administration, and
clerical support among others, whether or not located at the Mine, including costs
of office supplies and travel and training costs;

     (vii) Mine overheads, including all costs for permitting, regulatory
compliance, and engineering, insurance, and bonding; and

     (viii) a corporate support allowance for each Year in the amount set forth for
such Year in Exhibit 7 (the “Corporate Support Allowance”), allocated in
equal semi-monthly installments to each invoice issued in accordance with Section
7.6(a).

     (b) The Mine Costs shall be reimbursed semi-Monthly in accordance with Section 7.6(a).
TWCC shall supply underlying documentation, satisfactory to NRG, supporting all capital
expenditures, and documentation supporting other costs shall be made available for audit.

     (c) The Corporate Support Allowance referred to in Section 7.2(a)(viii) shall be the
sole compensation payable for the services specified in Exhibit 7 as being covered by the
Corporate Support Allowance, and no additional Mine Costs therefor shall be reimbursable
under Section 7.2(a)(vi) or any other provision of this LSA.

     (d) Mine Costs shall include cash accruals incurred by TWCC, including the following:

     (i) all unrecouped pre-paid royalties for the privilege of conducting mining
operations on the property of a third party which have been paid prior to the
commencement of the Lignite Supply Term by TWCC shall be treated as a Mine Costs at
such time as such royalty would have been payable from lignite production (i.e.,
had such royalties not been paid in advance) and appropriate accounting entries are
made for the expensing of such prepaid amount; and

     (ii) the cost of any equipment and parts inventory purchased by TWCC existing
as of the Effective Date shall be treated as Mine Costs (at an amount equal to the
lower of cost or market) at such time as the equipment or part is taken from
inventory and utilized in the Mining Work.

     (e) The pension benefits and post retirement medical benefits referred to in Section
7.2(a)(i) shall be fixed at (i) $1,990,000 in the aggregate for 2008 and shall be payable in
equal semi-monthly installments at the time each invoice is paid pursuant to Section 7.6(a)
and (ii) the total wages paid to pension eligible employees multiplied by a pension and
post-retirement medical benefits factor of 8.35% in all future Years.

     (f) Notwithstanding anything herein to the contrary, the following are specifically
excluded from Mine Costs and remain the liability of TWCC with no right to collect any
portion thereof from NRG: (i) any liabilities or obligations of TWCC (or any

-25-

 

of its Affiliates) incurred prior to the commencement of the Lignite Supply Term,
except as otherwise provided herein; (ii) any noncash items, including depletion,
amortization, and depreciation, except as otherwise provided herein, (iii) any interest
costs not specifically approved by NRG except for interest costs related to any equipment
that is currently or in the future (if approved by NRG) procured on a capital lease basis,
(iv) costs for obsolete warehouse inventory purchased by TWCC prior to the Effective Date,
(v) any costs for terminating or cancelling any equipment leases entered into as
contemplated in Exhibit 9, (vi) any costs, including all attorneys fees and other litigation
costs incurred as a result of the negligence, gross negligence or willful misconduct of
TWCC; (vii) any penalty or fine imposed by any Governmental Authority for a failure of TWCC
to comply with any applicable Law (unless arising out of NRG’s failure to comply with its
express contractual obligations regarding funding Final Reclamation activity) unless
incurred at the express direction of NRG, (viii) any amounts payable to any Affiliate of
TWCC (other than the Corporate Support Allowance and those amounts specified in Exhibit 7 as
being paid in addition to the Corporate Support Allowance) and not expressly approved as
such in the relevant AOP, (ix) any costs related to any dispute resolution pursuant to
Section 6 of this LSA or other litigation between TWCC (or any of its Affiliates) and NRG,
(x) any costs related to financing activities involving TWCC (or any of its Affiliates) or
pledge of the assets of TWCC (or any of its Affiliates), (xi) any costs related to
negotiation of this LSA or any other agreement or document between TWCC (or any of its
Affiliates) and NRG, (xii) any liabilities or obligations related to the bankruptcy or
insolvency of TWCC (or any of its Affiliates) and (xiii) costs and expenses expressly
excluded or beyond limits expressly provided by this Section 7.2.

     7.3 Management Fee. For each Year during the Lignite Supply Term, NRG shall pay to TWCC a fee
(the “Management Fee”) equal to the product of the number of Tons of lignite delivered in
such Year multiplied by either (a) [****] or (b) if the Post Execution Savings Actions are not
timely implemented, then the lower amount as described in Exhibit 9, escalated annually from
January 1, 2008 (such that the first adjustment is applied as early in 2009 as information is
available), based on the annual increase in the U.S. Gross Domestic Product Implicit Price Deflator
(“GDP-IPD”) published by the Bureau of Economic Analysis of the United States Department of
Commerce, using the first published index values for each Fourth Quarter (October, November and
December) with Fourth Quarter 2007 as the base index value (as so escalated from time to time, the
“Fee Per Ton”), subject to the adjustments set forth in Section 7.4 hereof; provided,
however, that if the AOP Volumes for any Year are reduced by one or more Change Orders to an amount
less than 80% of the AOP Volumes as stated in the original Approved AOP for such year, TWCC shall
be entitled to a Management Fee based on AOP Volumes equal to 80% of such originally approved AOP
Volumes, but subject to adjustment in all respects as provided in this Agreement. For each
semi-Monthly period during such Year, NRG shall pay TWCC in accordance with Section 7.6(a) an
amount equal to the product of the number of Tons of lignite delivered in such semi-Monthly period
multiplied by applicable Fee Per Ton, but subject to the adjustments set forth in Section 7.4
hereof.

     7.4 Adjustments. NRG shall pay to TWCC, or TWCC shall pay to NRG, as may be applicable, the
following adjustments to the Fee Per Ton during the Lignite Supply Term.

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     (a) Cost Incentive Adjustment. Fee Adjustment Basis AOP’s shall be approved as
set forth below to be the bases against which to compare actual Mine Costs for the
determination of Cost Incentive Adjustments, as follows:

     (i) Fee Adjustment Basis AOP. On or before the 10th
Business Day of each Year, commencing with 2009, TWCC shall prepare and deliver to
NRG a proposed adjustment to the Approved AOP applicable to the prior Year (such
adjustment to the AOP being called the “Fee Adjustment Basis AOP”) which
shall reflect (1) the actual unit cost for Commodities incurred by TWCC during the
immediately preceding Year in accordance with Section 7.4(a)(ii); (2) changes in
the Mining Work resulting from any Change Orders; (3) any Mining Work in the
Approved AOP not actually performed; and (4) changes in the Mining Work as
otherwise provided in this LSA. On or before the 10th Business Day
after receipt from TWCC of the proposed Fee Adjustment Basis AOP, NRG shall have
the right to propose changes to the proposed Fee Adjustment Basis AOP, and if NRG
does so propose such changes, the Parties shall discuss and cooperate in good faith
to reach a mutual agreement on the Fee Adjustment Basis AOP. If the Parties have
not agreed on the Fee Adjustment Basis AOP on or before the 10th day
after TWCC’s receipt of NRG’s proposal, either Party shall have the right to refer
the determination of the Fee Adjustment Basis AOP to the Mining Expert in
accordance with Section 6.2(a). The Fee Adjustment Basis AOP as ultimately agreed
to by the Parties or determined by the Mining Expert shall be the Fee Adjustment
Basis AOP for such Year for purposes of the Management Fee adjustments pursuant to
this Section 7.4(a).

     (ii) Commodities. Adjustments shall be made in the Fee Adjustment
Basis AOP’s so that Cost Incentive Adjustments shall not be affected by changes in
the actual unit costs of Commodities incurred by TWCC (whether incurred through
Capital Investments, operating expenses, or other costs) in comparison to Approved
AOP’s. Such adjustments shall be as provided in below.

     (A) Electricity and Diesel. The unit costs projected for
electricity and diesel in the Approved AOP for any Year shall be adjusted in
the Fee Adjustment Basis AOP for such Year to reflect any differences in
unit costs between the unit costs reflected in the Approved AOP and the
actual unit costs incurred by TWCC. The AOP adjustment will be the
difference between actual average unit costs incurred and the expected unit
costs in the Approved AOP multiplied by the original units in the Approved
AOP. No adjustments will be made for changes in unit volumes.

     (B) Tires. Each Approved AOP shall contain a total tire budget
(“Tire Budget”) consisting of categories of tires, the number of
tires to be procured in each category, and the projected cost per tire in
each category. The costs per tire in each category in the Approved AOP for
any Year shall be adjusted in each Fee Adjustment Basis AOP in such Year to
reflect the actual average costs per tire in each category as

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actually incurred by TWCC. In addition, in the event that TWCC
purchases up to ten percent (10%) more tires or ten percent (10%) fewer
tires than the total number of tires in the Tire Budget in a given Approved
AOP, the Fee Adjustment Basis AOP for such Year shall be adjusted to reflect
the total cost for such overage or underage, as the case may be, of up to
ten percent (10%). There shall be no adjustment(s) in the Fee Adjustment
Basis AOP for tire procurement overages or underages, as the case may be,
exceeding ten percent (10%) of the total number of tires in the Tire Budget
in a given Approved AOP, unless such tire procurement overages or underages
were first approved by NRG in a Change Order. An example of the foregoing
calculation is set forth in Exhibit 18.

     (C) Steel. Each Approved AOP shall contain a steel budget
(“Steel Budget”) calculated as (1) seventy percent (70%) of budgeted
wear component costs, and (2) fifty percent (50%) of budgeted parts costs.
The Steel Budget in the Approved AOP for any Year shall be adjusted in each
Fee Adjustment Basis AOP in such Year to reflect the difference in the
inflation rate assumed in the Steel Budget versus the percent change in the
Steel Index, which shall be the PPI-Steel Mill Products, U.S. Bureau of
Labor Statistics Series Id WPU1017 Not Seasonally Adjusted, Group: Metals
and metal products, Base Date: 8200, first published index value (the
“Steel Index”), as follows. The average Steel Index value for each
calendar Quarter shall be compared to the Steel Index value for July of the
prior Year to arrive at a percent change per Quarter. The percent changes
per Quarter in the Steel Index shall be averaged and compared to the percent
increase assumed in the Approved AOP. If the Steel Index average is greater
than the inflation rate assumed in the Approved AOP, the Steel Budget shall
be increased in the Fee Adjustment Basis AOP by the difference in the
respective percentages. If the Steel Index average is less than the
inflation rate assumed in the Approved AOP, the Steel Budget shall be
decreased in the Fee Adjustment Basis AOP by the difference in the
respective percentages. An example of the foregoing calculation is set
forth in Exhibit 18.

     (iii) Annual Adjustment Amount. If the Mine Costs for any Year paid
to TWCC in accordance with Section 7.2 hereof exceed 103% of the total Mine Costs
budgeted in the Fee Adjustment Basis AOP for that Year, then an adjustment amount
equal to one-half of such excess, but not to exceed a total adjustment amount of
[***] per Ton of lignite delivered by TWCC to NRG during such Year, shall be
payable by TWCC to NRG as set forth in Section 7.4(a)(iv). If the total Mine Costs
budgeted in the Fee Adjustment Basis AOP exceed 103% of the Mine Costs for the
applicable Year paid to TWCC in accordance with Section 7.2 hereof, then an
adjustment amount equal to one-half of such excess, but not to exceed a total
adjustment amount of [***] multiplied by the lesser of (A) the total number of Tons
of lignite delivered by TWCC to

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NRG during such Year and (B) the total number of Tons included in the original
Approved AOP applicable to such Year, without taking into account any Change Orders
shall be payable by NRG to TWCC as set forth in Section 7.4(a)(iv) provided,
however, such total number of Tons shall take into consideration any Change Order,
if NRG has requested unreasonably low AOP Volumes and then later implemented a
Change Order for the purpose of depriving TWCC of any Adjustment Amounts. The
amount payable by TWCC to NRG or by NRG to TWCC in accordance with this Section
7.4(a)(iii) is referred to herein as the “Cost Incentive Adjustment”.

     (iv) Payment of Adjustment Amount. If NRG is the Party obligated to
pay such Cost Incentive Adjustment, then the Cost Incentive Adjustment shall be
paid together at the time the next semi-monthly invoice is paid in accordance with
Section 7.6(a). If TWCC is the Party obligated to pay such Cost Incentive
Adjustment, then the Cost Incentive Adjustment credited against the next
semi-monthly invoice or invoices until such time as such Cost Incentive Adjustment
has been fully recovered by NRG through such credits.

     (v) Sample Calculations. Attached hereto as Exhibit 17 are sample
calculations relating to the Cost Incentive Adjustment.

     (b) Monthly Inventory Adjustment. The “Monthly Inventory Adjustment”
is calculated as follows:

     (i) For each of the Months of December 2007 through April 2008, the Monthly
Inventory Adjustment shall be calculated by reducing the Monthly Fee for each such
Month by an amount equal to the product of the Monthly Fee for such Month
multiplied by 0.10% for each 1.00% by which the measured actual Month-end inventory
for such Month is less than the respective stated amounts: December 31, 2007,
170,000 Tons; January 31, 2008, 187,200 Tons; February 29, 2008, 204,400 Tons;
March 31, 2008, 221,600 Tons; and April 30, 2008, 238,800 Tons.

     (ii) Thereafter, the Monthly Inventory Adjustment for each Month shall be
calculated by reducing the Monthly Fee for such Month by an amount equal to the
product of such Monthly Fee multiplied by 0.10% for each 1.00% by which the
measured actual average Month-end inventory for the greater of such Month or the
average of such Month and the previous two Months is less than one twenty-sixth of
the AOP Volumes for the Year then in effect (or such smaller inventory target as
NRG may elect in its sole discretion to approve in an Approved AOP). NRG shall
receive a credit against the Management Fee in the next semi-Monthly invoice or
invoices until such time as such Monthly Inventory Adjustment has been fully
recovered by NRG through such credits.

     (iii) “Monthly Fee” shall mean, for any Month during the Lignite
Supply Term, the product of the Fee Per Ton multiplied by the number of Tons of
lignite delivered in such Month.

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     (c) Btu Adjustment. TWCC shall be subject to Premiums and Penalties, in
addition to reject penalties, based upon the As Received Btu content of lignite delivered,
as provided below (the “Btu Adjustment”).

     (i) Btu Adjustments shall be based on seven (7) day rolling averages weighted
by delivered Volumes (“Rolling Average”), and calculated by multiplying the
Daily Fee on the seventh day of the Rolling Average by 0.1% for each 1 Btu per
pound by which the Rolling Average Btu content is either more than 300 Btu per
pound above (“Premium”) or more than 300 Btu per pound below
(“Penalty”) the target Btu of 6,500 Btu per pound, As Received, for volumes
delivered on such seventh day of the Rolling Average.

     (ii) In addition to the Rolling Average Premium and Penalty Btu Adjustments
above, TWCC shall be subject to a Btu reject quality penalty, which shall be
calculated by multiplying [***] per Ton by the total Tons delivered on each
Delivery Day in which the weighted average Btu content of the lignite so delivered
is less than 6,000 Btu per pound, As Received and by multiplying an additional
[***] per Ton by the total Tons delivered on each Delivery Day in which the
weighted average Btu content of the lignite so delivered is less than 5,800 Btu per
pound, As Received.

     (iii) “Daily Fee” shall mean, for any calendar day during the Lignite
Supply Term, the product of the Fee Per Ton multiplied by the number of Tons of
lignite delivered on such day; and

     (iv) The Btu Adjustment for a given Month shall be summed and if the resulting
sum is a credit, NRG shall pay TWCC the resulting amount along with the next
invoice. If the resulting sum is a debit, NRG shall receive a credit on the next
invoice or invoices until such time as such resulting amount has been fully
recovered by NRG through such credits.

     (d) Each Party hereby stipulates that the payment obligations set forth in Section
7.4(a), 7.4(b), and 7.4(c) are reasonable in light of the anticipated harm and the
difficulty of estimation or calculation of actual damages. Each Party hereby waives the
right to contest such payments as an unreasonable penalty.

7.5 [Intentionally Omitted.]

7.6 Invoices.

     (a) NRG Payments to TWCC. TWCC shall prepare invoices and submit such invoices
to NRG on the first (1st) business day of each Month and on the first business
day after the sixteenth (16th) calendar day of each Month (or, if earlier, ten
(10) Business Days prior to the end of such Month), and, assuming timely receipt of such
invoices, NRG shall use commercially reasonable efforts to make payments on or before the
fifteenth (15th) day (or, if such day is not a Business Day, the next Business
Day) and the last Business Day of each Month to TWCC by wire transfer or other usual and
customary

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means as TWCC may direct in writing to NRG from time-to-time. Invoices shall be in the
form attached hereto as Exhibit 8. TWCC shall invoice separately for capital costs and
non-capital operating expenses. For the avoidance of doubt, invoices for capital costs
shall be on a full cash basis, rather than a depreciated or amortized basis. Late payments
shall bear interest at a rate per annum equal to the Interest Rate. In the event that NRG
disputes the amount of any invoice, NRG shall render payment for the full amount of such
invoice when such payment would otherwise be due under this Section 7.6(a); provided,
however, that NRG shall be entitled to withhold payment any portion of the invoiced amount
other than for Mine Costs to the extent it disputes such amounts in good faith. With
respect to disputed invoiced amounts or payments, NRG shall notify TWCC in writing within
fourteen (14) calendar days of receipt of the disputed invoice stating the reason for such
dispute, and such dispute shall be settled by the respective representatives of the Parties
or as provided in Section 6.

     (b) TWCC Payments to Third Parties. TWCC shall promptly pay all valid accounts
and indebtedness incurred in connection with the operations of the Mine so that no lien can
be sustained against the Mine or equipment or facilities employed at the Mine; provided that
TWCC shall have the right to contest any such lien by proceedings that do not prejudice
title to the Mine or equipment and facilities employed at the Mine. NRG shall not be liable
to reimburse TWCC for penalties or charges assessed against TWCC for late payment(s) to
vendors or contractors.

8. DELIVERY AND TITLE; SCHEDULING; STOCKPILE MANAGEMENT; NO LIENS.

     8.1 Delivery; Title.

     (a) Title to and risk of loss of the lignite purchased and sold under this LSA shall
pass from TWCC to NRG at the time such lignite is delivered at the Delivery Point.

     (b) TWCC hereby warrants title to all lignite delivered by TWCC during the Term
pursuant to this LSA and the right to sell the same to NRG, free and clear of all liens and
other encumbrances. TWCC shall indemnify and hold NRG harmless from any and all Claims of
every kind resulting from or arising out of any breach of this warranty.

     8.2 Scheduling. Consistent with the Approved AOP, TWCC and NRG shall cooperate in scheduling
daily, weekly, and Monthly deliveries of AOP Volumes in order to accommodate NRG’s fuel
requirements and consistent with TWCC’s abilities to meet such requirements. Such AOP Volumes
shall be scheduled on a TBtu basis. The Parties shall also cooperate in the same manner in
notifying each other in advance of scheduled outages or downtime in order to avoid unnecessary
inconvenience and delay and to facilitate efficient use of said downtime. TWCC shall maintain the
capability of reasonably continuous delivery of AOP Volumes as provided under each Approved AOP,
and NRG shall maintain the capability of reasonably continuous receipt of such AOP Volumes;
provided, however, that the Parties acknowledge that unloading of trains delivering boiler fuel
acquired from other suppliers may temporarily restrict NRG’s ability to receive lignite from the
Jewett Mine, and such restriction

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shall not constitute a failure to maintain the capability of reasonably continuous receipt of
AOP volumes.

     8.3 Mine Lignite Inventory. The Parties recognize the need to maintain substantial lignite
inventory at the Mine.

     (a) TWCC shall conduct Mine Stockpile and pit inventory surveys once each Month during
the Lignite Supply Term. The survey process shall include on the ground measurement of the
profile of the lignite, engineering estimates of lignite density, and calculations of the
tonnage in each location. TWCC shall report Mine Stockpile and in-pit inventories to NRG on
a weekly and Monthly basis.

     (b) Throughout the Lignite Supply Term, TWCC shall use best efforts to maintain,
subject to Prudent Mining Practices, a target total lignite inventory of no less than one
twenty-fourth of the AOP Volumes for the Year then in effect.

     8.4 No Liens.

     (a) Creation of Liens. TWCC shall not directly or indirectly create, incur,
assume, or suffer to be created by it or any subcontractor, employee, laborer, materialman,
or other supplier of goods or services any Lien on the Mine, the Reserves, any mining
equipment owned, used, or held for use by TWCC and/or procured with NRG funds, or any part
thereof or interest therein (a “TWCC Lien”), except for liens of carriers,
warehousemen, landlords, mechanics, vendors, laborers, and materialmen arising solely by
operation of law incurred in the ordinary course of business for sums not yet due or being
diligently contested in good faith, other than the Liens created by the Mortgage and
Security Agreement, and TWCC shall pay or discharge and discharge of record any TWCC Lien or
other charges that, if unpaid, might be or become a TWCC Lien, if any such TWCC Lien has
been of record for more than 120 days (or earlier if it creates an imminent risk of
foreclosure resulting therefrom) or is, when added to all other TWCC Liens, in excess of
$1,000,000. TWCC shall immediately notify the LEGS Representative of the assertion of any
TWCC Lien.

     (b) Indemnity from Liens. TWCC shall indemnify, defend, and hold harmless the
NRG Group from and against TWCC Liens and, provided that TWCC is being paid on a current
basis pursuant to this LSA, all other claims, demands, and causes of action in connection
with any subcontractor’s provision of design, labor, materials, equipment, supplies, and/or
services under this LSA.

     (c) Discharge of Liens. Upon the failure of TWCC to promptly pay, discharge,
or provide security reasonably acceptable to NRG for any TWCC Lien within thirty (30) days
of notice of the existence thereof from any source, NRG may, but shall not be obligated to,
pay or discharge such TWCC Lien and, upon the payment or discharge thereof, shall be
entitled to immediately recover from TWCC the amount thereof together with expenses incurred
by it in connection with such payment or discharge or to set off all such amounts against
any such sums owed by NRG to TWCC.

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9. WEIGHTS; SAMPLING AND ANALYSIS; LIGNITE QUALITY.

     9.1 Weights. The lignite delivered hereunder shall be weighed upon delivery to the Delivery
Point by TWCC using equipment and procedures agreed upon by the Parties. TWCC shall conduct
semi-annual (or more frequently as needed) belt scale tests and calibrate said equipment as
necessary to maintain an accuracy consistent with then-current standards set forth in Handbook 44
published by the National Institute of Standards and Technology (or any successor to such handbook
or such agency), and furnish copies of such calibration reports to the LEGS Representative. A Ton
shall be the unit of measurement. NRG shall have the right to check the accuracy of said equipment
and procedures used in weighing the lignite and calibrating said equipment, and the right to have a
representative present at the calibration and weighing. If upon calibration any scale is are found
to be in error by an amount greater than 0.25%, such scale shall be recalibrated for future
shipments and the amount of lignite delivered during the period affected by such error or
inaccuracy shall be corrected. The Parties shall agree upon the total weight of lignite delivered
hereunder since the date of the last calibration and TWCC shall charge or credit NRG, as
appropriate, for one half of the difference in weight of lignite measured by the scale in question,
including any adjustments to prior periods. Should the Parties fail to agree within ninety (90)
days of the discovery of the error upon the allowable error in calibration or the total weight of
lignite delivered since the last calibration, the matter shall immediately be submitted to dispute
resolution for determination pursuant to Section 6.

     9.2 Sampling and Analysis.

     (a) At least one (1) representative sample from the Delivery Point from each day’s
shipment of lignite shall be taken by TWCC and delivered to an independent third party
laboratory mutually agreed upon by the Parties (the “Independent Lab”) for analysis.
The Independent Lab shall analyze the daily samples from the Delivery Point and shall
promptly submit a copy of the report to NRG and TWCC. Sampling and analysis shall be
performed in accordance with then-current ASTM standards and procedures, or such other
methods as the Parties may agree upon. NRG shall have the right to have a representative
present to observe the sampling, and both NRG and TWCC shall have the right to have a
representative present to observe the analysis.

     (b) The Independent Lab shall divide each daily sample into no less than (4) parts.
The first part shall be tested by the Independent Lab per Section 9.2(a). The second,
third, and fourth parts shall be stored in suitable airtight containers in each case to be
held available by the Independent Lab for a period of at least sixty (60) calendar days
after the end of the Month in which such sample was taken.

     (c) One part of each sample shall be for NRG’s analysis; one part shall be available
for TWCC’s analysis.

     (i) If either Party takes exception to the Independent Lab’s analysis of the
first part within sixty (60) calendar days after the end of the Month in which such
sample was taken, then such Party shall send a notice of exception to the other
Party and both Parties shall direct the Independent Lab to analyze such Party’s
portion of the applicable sample. Each Party hereto assumes the cost of

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analysis of its respective sample. The Independent Lab shall average the
results of the analysis of the original sample and the analyses of the Parties’
samples. The Independent Lab shall then disregard the result farthest from the
resulting average of the three samples, and shall then average the remaining two
results. Such resulting average shall be provided to both Parties and shall be
deemed conclusive.

     (ii) If no Party takes exception to the Independent Lab analysis within sixty
(60) calendar days after the end of the Month in which such sample was taken, the
Independent Lab’s analysis shall be deemed conclusive.

     9.3 Lignite Quality.

     (a) The lignite shall be of a quality consistent with the reserve computer modeling
projections of the Mine Plan, as modified from time to time, and shall in any event meet the
quality requirements set forth in Exhibit 10, unless the Parties otherwise agree. Such
lignite shall be reasonably free of partings and extraneous materials and TWCC shall
otherwise comply with the provisions of Sections 9.3(b) and 9.3(c). Unless stated
otherwise, all qualities identified in this LSA shall be determined on a weighted average
Delivery Day As Received basis.

     (b) Each Approved AOP shall contain TWCC’s best estimate of the ferric oxide content of
the lignite to be mined in such year. TWCC shall use commercially reasonable efforts to
deliver lignite during any hour of such day with ferric oxide content that does not exceed
13.00%, dry basis ash, based on the sampling and analysis program in effect on the Effective
Date.

     (c) Each Approved AOP shall contain TWCC’s best estimate of the sulfur content of the
lignite to be mined in such year. TWCC shall use commercially reasonable efforts to deliver
lignite on each day with sulfur content that does not exceed 5.00 pounds sulfur dioxide
(SO2) per MMBtu.

10. REPORTING.

     10.1 Production Reporting. TWCC shall provide each of the following reports in an electronic
format approved by NRG:

     (a) Daily Reports. TWCC shall, prior to 8:00 a.m. on each day, deliver to NRG
a written report describing the Mining Work carried out by TWCC during the previous day,
which report shall include the following:

     (i) the Tons delivered for the day and the estimated quality of such Tons;

     (ii) details of the operational or maintenance status of the draglines;

     (iii) details of any accidents and incidents occurring in carrying out the
Mining Work whether involving lost time, injury or otherwise;

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     (iv) details of any breakdowns or failure of equipment or facilities; and

     (v) climatic conditions encountered.

     (b) Monthly Reports. TWCC shall, not later than ten (10) Business Days
following each Month, deliver to NRG a written report describing the Mining Work carried out
by TWCC during the previous Month, which report shall include the following:

     (i) a production summary covering period production statistics and equipment
availability/performance and cumulative year to date statistics, as shown on
Exhibit 13;

     (ii) monthly cost reports by mining function as shown on Exhibit 14;

     (iii) staffing report, salaried and hourly employees;

     (iv) reports required by any Governmental Authority;

     (v) a report on major maintenance activities;

     (vi) safety report;

     (vii) environmental audit report;

     (viii) report on current reclamation;

     (ix) report on production and sale of lignite tonnage for each lease;

     (x) report on lignite quality;

     (xi) report on lignite inventory; and

     (xii) any other reports requested from time to time by NRG for monitoring of
the Mining Work.

     (c) Variance Reports. TWCC shall, not later than fifteen (15) Business Days
following the end of each Month and each Quarter, provide the detailed budget and variance
information as set forth in Exhibit 15.

     (d) Other Reports and Information. TWCC shall prepare and deliver to NRG such
other written reports and information regarding the Mine, lignite reserves, the Mine Plan,
and the Mining Work as NRG shall reasonably request from time to time. In addition, TWCC
shall work with NRG to provide information to enable joint use of web-based tools to
facilitate monitoring of mining progress.

     (e) Financial and other Reports. TWCC shall provide to NRG all reports and
notices that TWCC or Westmoreland Mining LLC provides to any lender to

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Westmoreland Mining LLC, allowing redaction or omission of any and all information
specific to any Westmoreland Mining LLC subsidiary other than TWCC.

11. LAND AND MINERAL LEASES.

     11.1 Subleases. NRG and TWCC agree to, and do hereby ratify and confirm the Subleases.

     11.2 Lignite Leases. NRG has subleased part of the Reserves to TWCC pursuant to the
Subleases, thereby granting to TWCC the possessory interest in such leases. The Subleases provide
that TWCC shall assume the obligations of the primary leases, and that TWCC shall maintain those
leases in good standing. For the purposes of this LSA, primary leases are defined as those
instruments executed by the owner of the lignite reserves, under the authority of which the
reserves are to be mined. Such lignite shall be produced only in furtherance of the purposes of
this LSA, and the Subleases shall terminate at such time as this LSA is terminated or expires.
TWCC shall not cause or allow any Liens or claims to attach to the interests covered by the
Subleases other than Liens or claims resulting from the actions of NRG. NRG waives any and all
royalty claims on production and/or sales and any other payment from its interests in fee property,
lignite leases and lignite royalties within the Mine. The parties agree that NRG can file
amendments of record to the Subleases to reflect the provisions of this Section 11.2.

     11.3 Houston Lignite Royalty. TWCC shall not be obligated to pay the overriding royalty
reserved in that certain Assignment of Coal and Lignite Leases, dated August 31, 1979 by and
between The Dow Chemical Company (f/k/a Destec now d.b.a. Houston Lignite), as Assignor and Houston
Lighting & Power Company, now NRG, as Assignee, recorded in Volume 540, Page 518, of the Official
Records of Freestone County, Texas. NRG shall have the obligation to satisfy this overriding
royalty.

     11.4 Percentage Royalty Leases. With respect to all leases held by TWCC wherein the royalty
payable to the lessor(s) is to be calculated based on a percentage of proceeds received by TWCC,
such royalties shall be calculated in accordance with the royalty calculation methodology set forth
in that certain Information Provided To Jewett Mine Percentage Leases Royalty Owners Regarding
Calculation Of Royalties Under Percentage Leases In Connection With Royalty Proposal attached
hereto as Exhibit 16, or as established by a valid enforceable court decree. TWCC shall also
include the calculation of such percentage royalties any amounts paid by NRG with respect to the
Houston Lignite Royalty in accordance with Section 11.3 above. NRG shall provide TWCC on a
Quarterly basis, for the purpose of calculating the percentage royalties, the cost component for
the return on and return of the mining equipment and mining facilities owned by NRG at the Mine,
and any amounts paid by NRG with regard to the Houston Lignite Royalty.

     11.5 Surface Use Agreement. NRG and TWCC agree that the Surface Use Agreement by and between
Houston Lighting & Power Company, now NRG and Northwestern Resources Co., now TWCC, dated February
12, 1998 and recorded in Volume 987, Page 803, of the Deed Records of Freestone County (the
“Surface Use Agreement”) continues to be in full force and effect unless terminated by the
provisions contained therein.

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12. FINAL RECLAMATION.

     12.1 Final Reclamation.

     (a) Final Reclamation shall include any and all reclamation and remediation obligations
of TWCC at the Mine as required under any Permit issued by any Governmental Authority, any
state, federal or local law, regulation or rule, or otherwise. Final Reclamation of the
Mine will be required at the end of its useful life, upon termination of lignite deliveries
pursuant to Section 3.2, and/or in areas where all lignite deliveries have ceased prior to
the end of lignite deliveries from the Mine as a whole. Final Reclamation costs are
categorized as final pit restoration, facility removal, and post-mine management. Final pit
costs are the costs incurred for the reduction of the final highwall, regrade of
spoil/spoils, drainage reconstruction, topsoil replacement, rebuilding of public and private
roads and facilities, and revegetation of the final pit areas. Facility removal costs are
the costs associated with the removal and reclamation of permanent facilities such as
buildings, haul roads, rail lines, power lines, ponds, crushing facilities, other
infrastructure, etc. Post mine management costs are the costs incurred for erosion control,
water control, monitoring, and management of reclaimed lands which includes agricultural
activities required until final bond release. TWCC shall from time to time at the request
of NRG and in each AOP include a reclamation plan, reclamation schedule, and estimate of
Final Reclamation costs based on the Mine Plan, which plan and cost estimates shall be
sufficient to substantiate accrual and liability estimates under the applicable regulations
of the Securities and Exchange Commission.

     (b) NRG shall be responsible for the payment of the Final Reclamation and shall have
the right to approve all costs associated therewith and the schedule of work related
thereto, subject to the requirements of Law, the Permits and prudent practices. If,
however, (i) this LSA shall terminate as a result of a Special TWCC Default Termination, and
(ii) TWCC has not completed the Security Document Delivery prior to such termination, NRG
shall be relieved of any further obligation regarding Final Reclamation and the Final
Reclamation obligation shall become the responsibility of TWCC.

     12.2 NRG Obligation to Pay and Hold Harmless. Except as provided in Section 12.1(b), NRG
shall be responsible for all of the costs of Final Reclamation and shall reimburse TWCC for such
costs pursuant to invoices delivered in accordance with Section 7.6(a) and shall otherwise
indemnify and hold TWCC harmless against any costs or claims related to Final Reclamation
liabilities, in each case other than costs or claims arising through the negligent acts or
omissions by TWCC in the course of performing its Final Reclamation obligations hereunder.

     12.3 Cost of Final Reclamation to Include Contract Fee. The cost of Final Reclamation paid by
NRG shall include a profit component to TWCC equal to [*]% of the actual costs incurred by TWCC for
work performed by TWCC (as opposed to work performed by any subcontractor to TWCC) in performing
all Final Reclamation; provided, however, that no profit component shall be paid if (a) NRG has
terminated the Lignite Supply Term by January 1, 2010, and (b) Security Document Delivery has not
occurred prior to such termination. For the avoidance of doubt, TWCC shall comply with the
requirement to minimize Mine Costs when deciding whether such work shall be performed by TWCC or a
subcontractor.

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     12.4 Reclamation Bonds.

     (a) TWCC shall maintain in full force and effect and/or replace such bonds and in such
amounts as it has provided to the RCT on or prior to the Effective Date, including
third-party bonding in the amount of approximately $26,000,000 and self-bonding (supported
by the corporate guarantee referred to in Section 12.4(b)(i)) in the amount of approximately
$50,000,000 (the “Current Bonding Level”) to secure TWCC’s reclamation obligations
under its mining permits for the Mine.

     (b) NRG shall (i) maintain and/or replace the corporate guarantee provided under
Article G, subsection 1, of the Settlement Agreement for TWCC’s self-bonding included within
the Current Bonding Level and (ii) provide to the RCT any and all additional bonds,
additional bond amounts or bond collateral over and above the Current Bonding Level (the
“Additional Bonds”) that are necessary to secure TWCC’s reclamation obligations
under TWCC’s mining permits for the Mine, unless and until a Special TWCC Default
Termination has occurred. In the event that a Special TWCC Default Termination has occurred,
NRG shall have the right to withdraw any credit support for any Current Bonding Level
obligation, and TWCC shall as soon as is commercially practical replace such credit support
(including with additional third-party bonds) and any Additional Bonds provided by NRG. The
Additional Bonds may be provided in any form permitted by the RCT regulations.

     (c) If any Special TWCC Default Termination occurs and Security Document Delivery has
not occurred prior to such termination, any Additional Bond is forfeited or there is
otherwise a drawing under such Additional Bond and NRG incurs any reimbursement obligation
in connection therewith, then TWCC shall (i) immediately reimburse the issuer of such
Additional Bond for the amount of such forfeiture or drawing and (ii) defend and indemnify
NRG against any and all claims by any such issuer of such Additional Bond in connection with
any such forfeiture or drawing.

13. FORCE MAJEURE.

     13.1 Effect; Notice; Obligation to Mitigate.

     (a) If either Party (a “Non-Performing Party”) is rendered unable by Force
Majeure to carry out, in whole or part, its obligations (other than the obligation to make
payments then due or becoming due with respect to performance prior to the event) under this
LSA, such Non-Performing Party shall give notice orally to the other Party as soon as
reasonably practicable, followed within five Business Days thereafter by a written notice
setting forth, in reasonable detail, the cause or causes constituting such Force Majeure.
The obligations of the Party affected by such Force Majeure (other than the obligation to
make payments then due or becoming due with respect to performance prior to the event) shall
be suspended to the extent made necessary, and for no longer than is required, by the cause
or causes constituting such Force Majeure.

     (b) The Non-Performing Party shall initiate and continue commercially reasonable good
faith efforts to remedy the Force Majeure with all reasonable dispatch;

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provided, however, that the settlement of strikes, lockouts or other labor disputes
shall be totally within the sole discretion of the Non-Performing Party.

     (c) In the event of partial Force Majeure which reduces the ability or capacity of TWCC
to mine or deliver lignite to NRG, or reduces the ability or capacity of NRG to receive or
transport lignite, or reduces the ability or capacity of LEGS to utilize lignite, then to
such extent the Non-Performing Party is able to continue its operations, it shall do so.
However, nothing in the foregoing shall require the Party affected by such partial Force
Majeure to continue its operations if to do so would, in its sole discretion, place its
employees in any jeopardy or constitute a violation of Law.

     (d) In the event of a Force Majeure event at LEGS that prevents LEGS from utilizing
lignite or reduces LEGS’ ability or capacity to utilize lignite, such event shall excuse
NRG’s obligations to take delivery of lignite hereunder.

     13.2 Lignite Deliveries.

     (a) Deficiencies in shipments or deliveries that are due to Force Majeure shall not be
made up except as the Parties mutually agree.

     (b) Notwithstanding any provision in this LSA to the contrary, during any period when
Force Majeure claimed by TWCC results in a reduction of lignite deliveries under this LSA,
NRG shall have the right, in its sole discretion, to purchase lignite from other sources to
satisfy the operational requirements of LEGS.

14. WAIVERS AND REMEDIES.

     14.1 Non-Waiver. The failure of any Party to insist in any one or more instances upon strict
performance of any of the provisions of this LSA or take advantage of any right hereunder shall not
be construed as a waiver of any such provisions or their relinquishment of any such right, but the
same shall continue and remain in full force and effect.

     14.2 NO CONSEQUENTIAL DAMAGES. EXCEPT TO THE EXTENT INCLUDED WITHIN THE REMEDIES SET FORTH IN
SECTIONS 15.3, 15.5, OR 15.7, NEITHER PARTY SHALL BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL,
PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES, LOST REVENUES, LOST PROFITS OR OTHER BUSINESS INTERRUPTION
DAMAGES, BY STATUTE, IN TORT OR CONTRACT, UNDER ANY INDEMNITY PROVISION OR OTHERWISE; PROVIDED,
HOWEVER, THAT THIS SECTION SHALL NOT LIMIT AN INDEMNIFIED PARTY’S RIGHT TO INDEMNIFICATION FOR ANY
SUCH DAMAGES THAT THE INDEMNIFIED PARTY IS LEGALLY REQUIRED TO PAY TO A THIRD PARTY AS A RESULT OF
A CLAIM OR PROCEEDING.

15. DELIVERY FAILURE; EVENTS OF DEFAULT.

     15.1 Delivery Failure. Any of the following events shall constitute a “Delivery
Failure”:

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     (a) TWCC fails during any period of seven (7) consecutive Delivery Days to deliver
lignite with total weighted average lignite quality values for heat content and sulfur equal
to or greater than 6,000 Btus per pound or equal to or less than six (6) pounds
SO2 per MMBtu;

     (b) TWCC fails to deliver at least 80% of the then-current delivery schedule for any
rolling 30-day period, or 90% of the then-current delivery schedule for any Quarter, or 98%
of the then-current delivery schedule for any calendar year (with such figures calculated on
a Btu basis); or

     (c) TWCC gives notice to NRG of any potential or actual Delivery Failure.

     15.2 Notice of Delivery Failure. Whenever a Delivery Failure occurs, TWCC will provide NRG
with notification specifying the details of the cause and extent of the Delivery Failure, TWCC’s
mitigation plan to mitigate and remedy the Delivery Failure, and the expected duration of the
Delivery Failure.

     15.3 Remedies for Delivery Failure. In the event of a Delivery Failure NRG shall have the
right to exercise all rights and remedies to it in accordance with applicable law. Without
limiting the generality of the foregoing, if as a result of a Delivery Failure NRG either (a)
purchases replacement fuel to cover lignite not delivered or not conforming to quality
specifications or (b) curtails or reduces power deliveries from LEGS, TWCC shall be liable for
payment of compensatory damages to NRG in the amount of one or more of the following:

     (i) To the extent replacement fuel is purchased (including replacement fuel
consisting of inventories on hand acquired from other suppliers), the excess of the
cost (including purchase price and procurement and delivery costs) of such
replacement fuel on a heat content basis over the average per MMBtu cost for
lignite invoiced over the preceding twelve (12) calendar months (for the avoidance
of doubt, NRG shall have the right to cover any delivery shortfalls through the
purchase of replacement fuels at its sole discretion, but damages are payable only
when the NRG makes purchases to replace fuel that was not delivered (or outside
quality ranges) in a Delivery Failure);

     (ii) To the extent power deliveries from LEGS are curtailed or reduced and
such power sales are covered by purchases of power made by NRG, the excess of the
cost of such purchases of power over the variable cost of generation of a like
amount of power at LEGS; or

     (iii) To the extent power deliveries from LEGS are curtailed and such power
sales are not covered or replaced, the amount of all damages and penalties incurred
by NRG as a result of the failure to deliver such quantities of power plus the
amount of profits of NRG foregone as a result of such failure to deliver such
quantities of power.

Notwithstanding the foregoing, if, in accordance with prudent practices in the power industry and
reasonable management of its fuel stockpile NRG can use replacement fuel on hand instead

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of curtailing or reducing power deliveries from LEGS, NRG shall use all reasonable efforts to do
so.

     15.4 TWCC Events of Default. The following events shall each be a “TWCC Event of
Default”:

     (a) Any failure by TWCC to pay compensatory damages following a Delivery Failure in
accordance with Section 15.3 or any failure by TWCC to pay any other amounts it is required
to pay within thirty (30) days of when due to NRG under this LSA, and in either case such
failure is not cured by or on behalf of TWCC within fifteen (15) days of written notice from
NRG to TWCC demanding such cure;

     (b) Any failure by TWCC to comply with a mitigation plan required by Section 15.2
following a Delivery Failure;

     (c) Any Delivery Failure consisting of a failure to deliver lignite with total weighted
average lignite quality values for heat content and sulfur equal to or greater than 6,000
Btus per pound or equal to or less than six (6) pounds per SO2 per MMBtu over a
period of ten (10) consecutive days or a failure to deliver at least 75% of
1/12th of the then-current AOP Volumes over any rolling 30-day period

     (d) Any failure by TWCC to comply in any material respect with the AOP and the other
standards of performance set forth in Section 2.2 of this LSA, unless TWCC has cured such
failure on or before the 10th day after notice thereof by NRG;

     (e) Any material inaccuracy in any representation or warranty made by TWCC herein or in
the Mortgage and Security Agreement or in any representation or warranty made by
Westmoreland Coal Company or Westmoreland Mining LLC in either a Guaranty or the
Westmoreland Pledge Agreement;

     (f) Any failure by TWCC to perform any of its obligations hereunder (including
operating the Mine in material violation of permit requirements or applicable governmental
requirements) not specifically referred to in the other provisions of Section 15.1 or this
Section 15.4, any failure by Westmoreland Coal Company or Westmoreland Mining LLC to perform
any of its obligations under either a Guaranty or the Westmoreland Pledge, unless in any
such case such failure has been cured on or before the 20th day after notice
thereof by NRG or such cure has been initiated and is being diligently pursued; provided
that such cure is effected within forty-five (45) days from the receipt of such notice by
TWCC, Westmoreland Coal Company, or Westmoreland Mining LLC, as applicable (or,
notwithstanding the foregoing, such shorter period of time as may be necessary to avoid the
payment of penalties or the loss of any permit, authorization, license, or concession);

     (g) Failure of a Guaranty, the Mortgage and Security Agreements, or the Westmoreland
Pledge Agreement to be in full force and effect after the date executed, or Westmoreland
Coal Company or Westmoreland Mining LLC repudiates or denies liability under or seeks to
terminate any of a Guaranty, the Mortgage and Security

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Agreements, or the Westmoreland Pledge Agreement or seeks to have any thereof found to
be, or claims that any thereof is, void or of no force and effect;

     (h) Bankruptcy of TWCC, Westmoreland Mining LLC, or Westmoreland Coal Company;

     (i) TWCC, Westmoreland Mining LLC, or Westmoreland Coal Company fails to pay any
indebtedness for borrowed money owed by such Person in excess of fifty thousand dollars
($50,000) in aggregate principal amount or any interest or premium thereon when due or
within any applicable grace period specified in the agreement or instrument related to such
indebtedness (provided that, unless the failure to pay any such amount has the effect of
accelerating the maturity of such indebtedness, such failure to pay shall not be a TWCC
Event of Default if TWCC, Westmoreland Mining LLC, or Westmoreland Coal Company is disputing
in good faith its obligation to pay such amounts); or any other material default under any
agreement or instrument relating to any such indebtedness, or any other event, occurs and
continues after the applicable grace period, if any, specified in such agreement or
instrument, if the effect of such default or event is to accelerate the maturity of such
indebtedness; or any such indebtedness is declared to be due and payable, or required to be
prepaid (other than by a regularly scheduled required prepayment) prior to the stated
maturity thereof;

     (j) a final judgment or judgments shall be entered against TWCC, Westmoreland Mining
LLC, or Westmoreland Coal Company in the aggregate amount of five hundred thousand dollars
($500,000) or more individually and in the aggregate (net of insurance proceeds) (other than
(i) a judgment which is fully covered by insurance or discharged within thirty (30) days
after its entry, or (ii) a judgment, the execution of which is effectively stayed within
thirty (30) days after its entry but only for thirty (30) days after the date on which such
stay is terminated or expires) or that could reasonably be expected to constitute a material
adverse effect;

     (k) immediately, if the LSA (or any portion thereof) is repudiated by TWCC or shall for
any reason cease to be valid, binding and enforceable;

     (l) if TWCC fails to make prompt payment of undisputed invoices due to Subcontractors
or for materials or labor or otherwise repudiates or is in default with respect to any of
its obligations to any Subcontractor and such failure, repudiation, or default would
reasonably likely be expected to have a material adverse effect on (i) the ability of TWCC
to perform its obligations under the LSA, or (ii) the Mine and such failure is not cured on
or before the 20th day after the earlier to occur of notice by NRG to TWCC of
such failure or TWCC becoming aware of such failure.

     15.5 Remedies Following a TWCC Event of Default. Upon the occurrence of a TWCC Event of
Default, NRG shall have the right to exercise any and all rights available to it under applicable
law, including, but not limited to, the following:

     (a) Terminate the Lignite Supply Term (or the LSA as provided in Section 3.1);

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     (b) Make and pursue a claim for compensatory damages arising from such TWCC Event of
Default and any termination of the LSA or Lignite Supply Term arising therefrom;

     (c) Make and pursue a claim under a Guaranty;

     (d) Exercise remedies under the Mortgage and Security Agreement and/or the Westmoreland
Pledge Agreement;

     (e) The remedy of specific performance; and

     (f) Exercise step-in rights in accordance with Section 15.10.

     15.6 NRG Event of Default. The following events shall be “NRG Events of Default”:

     (a) the Bankruptcy of NRG;

     (b) the failure by NRG to pay within thirty (30) days of when due all amounts owed to
TWCC and not disputed in good faith by NRG, and such failure is not cured by or on behalf of
NRG within fifteen (15) days of written notice from TWCC to NRG demanding such cure;

     (c) if there is a material breach by NRG of any representation or warranty made by NRG
herein; or

     (d) if there is a material failure by NRG to perform its non-payment obligations
hereunder, unless NRG has cured such breach on or before 20th day after notice
thereof by TWCC or NRG has initiated and is diligently pursuing the cure of such breach and
thereafter continues to diligently pursue such cure; provided that such cure is effected
within forty-five (45) days from the receipt of such notice by NRG.

     15.7 Remedies Following an NRG Event of Default. Upon the occurrence of an NRG Event of
Default, TWCC shall have the right to exercise any and all rights available to it under applicable
law. Without limiting the generality of the foregoing, upon the occurrence of an NRG Event of
Default, TWCC may terminate this LSA and collect the following amounts from NRG: including, but
not limited to, the following

     (a) any amounts due and payable to TWCC under the LSA prior to the date of such
termination; and

     (b) the actual cost of completing Final Reclamation.

     15.8 Payment. Damages determined under this Section 15 shall be payable within thirty (30)
days after the terminating Party calculates and submits the calculations, including workpapers and
documentation, to the other Party.

     15.9 Specific Performance. TWCC acknowledges and agrees that because of the unique value to
NRG of and the special nature of the Mining Work TWCC is obligated to render

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to NRG hereunder, a TWCC Event of Default hereunder will cause irreparable harm to NRG that
cannot be calculated and remedied solely through the payment of monetary damages, and accordingly
TWCC agrees that the remedy of specific performance is an appropriate remedy for a TWCC Event of
Default.

     15.10 Step-In Rights. Without limiting the generality of any other provisions for remedies
for a TWCC Event of Default, TWCC hereby agrees that, upon the occurrence of a TWCC Event of
Default that could reasonably be expected to result in material loss or liability to NRG, NRG shall
have the right (but not the obligation) to retain a qualified contractor (“Independent
Contractor”) (which could be an affiliate of NRG) to take possession of the Mine to operate the
Mine at NRG’s cost and to resume or continue deliveries of lignite from the Mine to LEGS. If NRG
chooses to retain an Independent Contractor, TWCC will fully cooperate in connection with retaining
such Independent Contractor. The Independent Contractor would operate the Mine and perform the
obligations of TWCC under this LSA for the remainder of the Term, or for such period of time as NRG
believes is appropriate, provided however, that:

     (a) NRG may not seek damages from TWCC as a result of any breach by the Independent
Contractor of any term of this LSA;

     (b) NRG shall continue to have the obligation to pay all current reclamation and Final
Reclamation associated with the Mine (until such time, if any, as a Special TWCC Default
Termination occurs);

     (c) The Independent Contractor will conduct its operations as a “contract operator”
under and in compliance with TWCC’s applicable mining permits and licenses or under an
alternative permitting arrangement that is consistent with Law and, if necessary, approved
by the Texas Railroad Commission, and TWCC shall cooperate with NRG and the Independent
Contractor to obtain any regulatory approvals required;

     (d) TWCC shall make available to the Independent Contractor for its use in performing
the Mining Work the vehicles, machinery, and other mining equipment owned by TWCC and
previously used in connection with performing the Mining Work;

     (e) TWCC and NRG will cooperate to ensure proper transition of the Mine and of TWCC’s
vehicles, machinery, and equipment to the use of the Independent Contractor, and to that end
will cooperate with TWCC’s lenders (if any), lessors (including mineral lessors),
regulators, and/or any other party claiming a right in TWCC assets, or the power to direct
the use or disposition of TWCC’s assets;

     (f) TWCC shall cooperate with NRG or the Independent Contractor regarding the provision
of employees, and NRG and the Independent Contractor shall conduct all operations in
accordance with all applicable regulatory permits and laws, including labor laws and (if
applicable) collective bargaining agreements; and

     (g) NRG’s obligation to make payments of any kind under this LSA shall cease upon the
retention of the Independent Contractor, except for any amounts properly

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due and owing and any claims pending as of the date of retention of the Independent
Contractor, and except as otherwise provided in this Section 15.10.

     15.11 Mitigation. Each Party shall act reasonably to mitigate its damages in the event of a
breach of this LSA by the other Party, including a Delivery Failure, TWCC Event of Default, and NRG
Event of Default. When calculating compensatory damages, if the remedy described in Section 15.10
is exercised by NRG, the following factors shall be taken into account, (i) the reasonableness of
the fee payable to the Independent Contractor, taking into consideration the fee paid to TWCC at
the time of exercise of the remedy and the bids received from other contractors, (ii) the market
value of any royalties payable to TWCC in connection with any reserves in the Mine owned by TWCC at
the time of the Event of Default which are expected to be mined during the period covered by the
exercise of the remedy described in Section 15.10, (iii) the value of any supplies owned by TWCC
that are transferred to the Independent Contractor, and (iv) such other factors as may be equitable
under the circumstances.

     15.12 Effect of Termination. Sections 2.2, 5.9, 6, 8.4, 12, 14, 17, 19 and 27.7 shall survive
any termination of this LSA, notwithstanding that such termination may have arisen from an Event of
Default; provided, however, that the obligations of NRG under Section 12.2 shall not survive a
Special TWCC Default Termination, unless a Security Document Delivery has been previously
completed.

16. REPRESENTATIONS AND WARRANTIES.

     16.1 TWCC Representations and Warranties. TWCC represents and warrants to NRG that:

     (a) it is duly organized, validly existing and in good standing under the Laws of the
jurisdiction of its formation and is qualified to conduct its business in those
jurisdictions necessary to perform this LSA;

     (b) it has or reasonably expects to have all material Permits necessary for it to
perform its obligations under this LSA;

     (c) the execution, delivery and performance of this LSA are within its powers, have
been duly authorized by all necessary action and do not violate any of the terms or
conditions in its certificate of incorporation, bylaws or other governing documents or any
contract to which it is a party or by which any of its properties is bound or any law, rule,
regulation, order, writ, judgment, decree or other legal or regulatory determination of any
Governmental Authority applicable to it;

     (d) this LSA constitutes the legal, valid and binding obligation of TWCC, enforceable
against it in accordance with its terms, subject to bankruptcy, insolvency, bankruptcy
reorganization, receivership and other Laws affecting creditors’ rights generally, and with
regard to equitable remedies, to the discretion of the court before which proceedings to
obtain same may be pending;

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     (e) no bankruptcy, insolvency, bankruptcy reorganization, receivership or other similar
arrangement proceedings are pending or being contemplated by it or, to its knowledge,
threatened against it;

     (f) no suits, proceedings, judgments, rulings or orders by or before any Governmental
Authority that could reasonably be expected to materially adversely affect the ability of
such Party to perform this LSA are pending or, to its knowledge, threatened or contemplated;

     (g) TWCC has or, immediately prior to delivery to NRG, will have, good title to all
lignite delivered to NRG, free and clear of all liens, adverse claims and encumbrances,
including all royalties, taxes, black lung fees, and pension reserves; and

     (h) TWCC is in material compliance with all laws and regulations regarding the mining,
transportation and sale of lignite.

     16.2 NRG Representations and Warranties. NRG represents and warrants to TWCC that:

     (a) it is duly organized, validly existing and in good standing under the Laws of the
jurisdiction of its formation and is qualified to conduct its business in those
jurisdictions necessary to perform this LSA;

     (b) it has all material Permits necessary for it to perform its obligations under this
LSA;

     (c) the execution, delivery and performance of this LSA are within its powers, have
been duly authorized by all necessary action and do not violate any of the terms or
conditions in its limited partnership agreement or other governing documents or any contract
to which it is a party or by which any of its properties is bound or any law, rule,
regulation, order, writ, judgment, decree or other legal or regulatory determination of any
Governmental Authority applicable to it;

     (d) this LSA constitutes the legal, valid and binding obligation of NRG, enforceable
against it in accordance with its terms, subject to bankruptcy, insolvency, bankruptcy
reorganization, receivership and other Laws affecting creditors’ rights generally, and with
regard to equitable remedies, to the discretion of the court before which proceedings to
obtain same may be pending;

     (e) no bankruptcy, insolvency, bankruptcy reorganization, receivership or other similar
arrangement proceedings are pending or being contemplated by it or, to its knowledge,
threatened against it; and

     (f) no suits, proceedings, judgments, rulings or orders by or before any Governmental
Authority that could reasonably be expected to materially adversely affect the ability of
such Party to perform this LSA are pending or, to its knowledge, threatened or contemplated.

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     16.3 Reliance. Each of the Parties acknowledges that it has entered into this LSA and is
contracting for the lignite to be supplied by TWCC and purchased by NRG in reliance upon the
express representations and warranties set forth in this LSA and not upon any other representations
or warranties of the other Party hereto.

17. INDEMNITIES.

     17.1 TWCC Indemnity. TWCC shall indemnify and hold harmless NRG Group from any Claim
resulting from or attributable to (a) TWCC’s breach of any representation or warranty contained or
failure to perform any obligation herein, or (b) TWCC’s negligence or willful acts or omissions or
such acts or omissions of its employees or agents.

     17.2 NRG Indemnity. NRG shall indemnify and hold harmless TWCC Group from any Claim resulting
from or attributable to (a) NRG’s breach of any representation or warranty contained herein or
failure to perform an obligation, or (b) NRG’s negligence or willful acts or omissions or such acts
or omissions of its employees or agents.

18. ASSIGNMENT.

     Neither Party may assign or otherwise transfer (collectively, an “Assignment”) this
LSA or any of its rights or obligations hereunder, in whole or in part, without the prior written
consent of the other Party, and any purported Assignment made without such prior written consent
shall be void. Notwithstanding the foregoing, no such consent shall be required where the
Assignment is (a) to a successor in interest of all or substantially all of the assets of such
Party by way of merger, consolidation, sale of substantially all of its assets, divestiture
pursuant to an order or decree of a court, or similar corporate reorganization; (b) to an
affiliated corporate entity; or (c) to a purchaser of LEGS. No such Assignment shall be effective
unless and until such assignee shall assume in writing all of the obligations of the assignor
hereunder and under any related agreements.

19. GOVERNING LAW.

     This LSA shall be governed by, and construed and enforced in accordance with, the laws of the
State of Texas.

20. NOTICES AND REPORTS.

     Any notice or other communication required or permitted under this LSA shall be in writing and
effective upon receipt if hand-delivered or sent by certified mail, postage pre-paid, return
receipt requested, by commercial overnight delivery service, or by facsimile transmission (provided
a conforming copy is mailed the same day and any facsimile copy sent after 5:00 p.m. central time
on a Business Day, or on a day that is not a Business Day, shall not be effective until the next
Business Day).

     If directed to NRG, notices and other communications shall be sent to the following:

NRG Texas Power LLC

Attn: Lignite Manager, Limestone Station

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Route 1, Box 85

Jewett, TX 75846

Fax: (903) 626-1098

     With a copy to:

NRG Texas Power LLC

Attn: General Counsel

1301 McKinney, Suite 2300

Houston, TX 77010

Fax: (713) 795-7444

     If directed to TWCC, notices and other communications shall be sent to the President of TWCC
at:

Texas Westmoreland Coal Co.

4336 FM 39 South

P.O. Box 915

Jewett, Texas 75846

Attn: President/General Manager

Fax: (903) 626-5701

With a copy to:

Westmoreland Coal Company

2 North Cascade Avenue

Colorado Springs, Colorado 80903

Attn: General Counsel

Fax: (719) 448-5824

     The Parties shall further designate to each other, in writing at the earliest time practicable
after the Effective Date, the names and contact information for emergency representatives in the
event of non-availability of the representatives named above. Either Party may change its contact
information by giving notice of such change to the other Party as above.

21. RECORDS.

     NRG shall have the right at all reasonable times to examine the records kept by TWCC
concerning this LSA. NRG shall have the right to assign accounting personnel in a supervisory
capacity to review the accounting policies and procedures followed by TWCC and to perform general
audit functions in a commercially reasonable manner.

22. EXISTING EQUIPMENT AND ASSETS; OPERATIONS THROUGH DECEMBER 31, 2007.

     22.1 Existing Equipment and Assets. NRG agrees to make available to TWCC for use in
the performance of the Mining Work the vehicles, machinery and other equipment owned by

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NRG that is currently being used at the Mine and such other items of equipment as are acquired
by NRG in accordance with this LSA for use in the Mining Work. TWCC shall maintain such vehicles,
machinery, and equipment in reasonable condition and in accordance with Prudent Mining Practices.
When TWCC and NRG together determine that any such vehicles, machinery, or equipment is no longer
needed at the Mine, TWCC shall return or make available to NRG such equipment, vehicles, or
equipment. NRG shall have a reasonable right to inspect and monitor the use and maintenance of the
vehicles, machinery, and equipment made available by NRG to TWCC.

     22.2 Operations through December 31, 2007. To assure that the Mine is properly
maintained through the remainder of 2007, TWCC agrees to (i) operate the Mine and to maintain all
vehicles, machinery, and equipment utilized at the Mine in a manner that is consistent with the
Prior LSA, Prudent Mining Practices, the preliminary 2008 AOP, and the Approved AOP for 2008, and
(ii) conduct and complete all reclamation obligations in accordance with the Prior LSA, Prudent
Mining Practices, and all applicable Permits and Laws. Additionally, TWCC agrees that all
maintenance of vehicles, machinery, and equipment utilized at the Mine, whether owned by TWCC,
owned by NRG, or leased, will be conducted in accordance with the maintenance schedule attached to
this LSA as Exhibit 19. NRG shall have the right to conduct an audit of the Mine and such
vehicles, machinery, and equipment at any and all reasonable times to determine TWCC’s compliance
with the foregoing obligations, provided that such audit does not unreasonably interfere with the
operation of the Mine and is in compliance with all safety Laws and requirements.

23. UNION PACIFIC RAIL SPUR.

     TWCC agrees to cooperate with and accommodate NRG’s activities, including siting, land
acquisition, permitting, design and construction activities, in connection with the siting, design,
construction, operation and maintenance of a rail spur routed generally southward from LEGS to the
Union Pacific Railroad mainline through lands forming a part of the Mine that are not suitable for
future lignite mining by TWCC. Such cooperation and accommodation shall include taking reasonable
steps to help make or secure any necessary filings with or approvals of the RCT with respect to a
post-mining land use of any such impacted properties that is compatible with the existence,
operation and maintenance of such rail spur. NRG agrees that it shall reimburse TWCC as Mine Costs
for all direct out-of-pocket costs and expenses reasonably incurred by TWCC in providing the
cooperation and accommodation required under this Section 23, provided that TWCC shall have, to the
extent possible, first notified NRG of the need to incur such costs and NRG shall have approved in
writing such costs prior to their incurrence, such approval not to be unreasonably withheld.

24. EMPLOYMENT; SUBCONTRACTORS.

     24.1 Nondiscrimination. NRG and TWCC warrant and represent that they are Equal Opportunity
Employers, and in the performance of this LSA, they shall not engage in any conduct or practice
that violates any applicable law, order or regulation prohibiting discrimination against any person
by reason of his or her race, color, religion, national origin, sex or age.

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     24.2 TWCC Personnel; Subcontractors.

     (a) TWCC shall appoint an individual representative who shall have general supervisory
authority over the Mine and the Mining Work (the “Mine Manager”). NRG shall be
entitled to rely upon the authority of the Mine Manager to act on behalf of, and to commit,
TWCC with regard to all matters under this LSA (other than modification of this LSA). Any
orders, notices, or instructions given to the Mine Manager shall be deemed to have been
given to TWCC. The Mine Manager shall act on behalf of TWCC as the principal interface with
the LEGS Representative with respect to day-to-day operational matters.

     (b) Within ten (10) days after TWCC selects any replacement of the Mine Manager, TWCC
shall notify NRG and provide the replacement Mine Manager’s qualifications to NRG. NRG
shall within ten (10) days after receipt of the replacement Mine Manager’s qualifications
submit in writing to TWCC any objections as to the qualifications of the replacement Mine
Manager. The NRG Representative and the TWCC Representative shall meet to attempt to
resolve the concerns raised by NRG. If the representatives are unable to reach agreement,
then the issue of whether the replacement Mine Manager is qualified shall be resolved as a
Minor Dispute pursuant to Section 6.2(a).

     (c) TWCC shall provide and make available the Mine Manager and all professional,
supervisory and managerial personnel as are required to carry out the Mining Work. Such
personnel shall be qualified and experienced in the duties to which they are assigned and
shall be capable of carrying out the Mining Work in accordance with Prudent Mining
Practices. All individuals employed by TWCC in the performance of the Mining Work shall be
the employees of TWCC or its Subcontractor. TWCC shall retain sole responsibility with
respect to labor matters in connection with carrying out the Mining Work. With respect to
hiring of personnel and its employment policy, TWCC shall comply with all applicable labor
and employment Laws and shall exercise control over labor relations in a reasonable manner
consistent with the intent and purpose of this LSA.

     (d) TWCC may have any part of the Mining Work carried out by Subcontractors pursuant to
written subcontracts between TWCC and such Subcontractors. TWCC shall be solely responsible
for the engagement, supervision, and management of such Subcontractors. The creation of any
Subcontractor relationship shall not (i) relieve TWCC of any of its obligations under this
LSA, (ii) relieve TWCC of its responsibility for Mining Work carried out by any such
Subcontractor, or (iii) create any relationship between NRG and any Subcontractor. Insofar
as reasonably practicable, NRG shall communicate with any Subcontractor only through TWCC.
In no event shall any Subcontractor be an Affiliate of TWCC, nor shall any Subcontractor
make any payment or provide any other thing of value (other than the services to be provided
under the subcontract or pursuant to arms-length unrelated transactions) to TWCC or any
Affiliate thereof unless such amount is deducted from Mine Costs.

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     (e) No Subcontractor is intended to be, nor shall any Subcontractor be deemed to be, a
third-party beneficiary of this LSA. As a condition of any subcontract and to the extent
permitted by applicable Law, TWCC shall require any Subcontractor to waive any claim it
might have, in law or equity or otherwise, directly or indirectly, against NRG, including
any right of such Subcontractor to place a lien or similar encumbrance upon the Mine or
other property of NRG. TWCC shall in all of its contracts pertaining to operations require
all Subcontractors to perform their services in connection with operations of the Mine in
accordance with Prudent Mining Practices.

     24.3 Reimbursement. Notwithstanding anything to the contrary in this LSA, in no event shall
NRG be liable to reimburse TWCC for costs related to liability to its current or former employees
or contractors for employer liability (e.g., wrongful termination, sexual harassment, failure to
supervise, etc.) or failure to pay or otherwise honor contractual or statutory commitments.

25. RESTRICTIONS ON TRANSACTIONS WITH AFFILIATES.

     NRG shall not be liable for and TWCC shall not seek reimbursement for any expenditure related
to a transaction between TWCC and any affiliate of TWCC unless (a) such proposed transaction
(including the material terms thereof) was disclosed to NRG in writing and (b) NRG approved such
transaction in writing.

26. WARRANTY DISCLAIMER.

     TWCC MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, AS TO THE FITNESS OF THE
LIGNITE SUPPLIED HEREUNDER FOR A PARTICULAR PURPOSE AND DISCLAIMS ALL WARRANTIES AND
REPRESENTATIONS OTHER THAN THOSE EXPRESSLY SET FORTH IN THIS LSA.

27. MISCELLANEOUS PROVISIONS

     27.1 Entire Agreement. This LSA, the Surface Use Agreement, and the Subleases constitute the
entire understanding and agreement between the Parties with respect to the subject matter hereof,
and, except as provided below, all prior agreements, understandings, or representations with
respect to its subject matter are hereby canceled in their entirety and are of no further force and
effect, except that the Prior LSA has been amended and restated in its entirety as this LSA. From
and after 11:59 p.m. on December 31, 2007, the provisions of the Prior LSA shall be of no further
force and effect and neither Party shall be liable under the provisions thereof, except (i) for
defaults arising prior thereto, and (ii) for the provisions thereof that are amended and restated
as obligations hereunder, which provisions include the provisions of Article G, Reclamation,
subsections 1 and 2, of the Settlement Agreement that are restated in Exhibit 20 (“Subsections
G1 and G2”). TWCC and NRG (and their respective predecessors in interest under the Prior LSA)
shall continue (as part of this LSA) to have the same rights and obligations as existed under the
Prior LSA with respect to Subsections G1 and G2, except as such rights and obligations of TWCC and
NRG are modified as provided in Article 12 (which modifications shall benefit their respective
predecessors in interest under the Prior LSA but shall

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not be construed to impose greater obligations thereon) and except that the process for the
determination and payment of Final Reclamation costs shall be as provided in Section 12 and the
other relevant provisions hereof (including the AOP process).

     27.2 Amendments or Modifications. No amendment, modification, or change of this LSA shall be
binding upon the Parties unless and until such amendment, modification, or change is in writing and
executed by the Parties.

     27.3 Severability. If any provision of this LSA shall be adjudicated to be invalid, illegal,
or unenforceable, then such provision shall be considered severed from the rest of this LSA, and
the remaining provisions shall continue in full force and effect as if the invalid provision had
not been included.

     27.4 Construction. No understandings or agreements not expressly stated herein shall be
binding on the Parties in the construction or fulfillment hereof unless such understandings or
agreements are reduced to writing and signed by the respective parties. The rule of construction
that ambiguous provisions shall be interpreted against the drafter shall not apply to this LSA.

     27.5 No Third-Party Beneficiaries. This LSA shall inure to the benefit of and be binding upon
the Parties and their respective successors and permitted assigns. This LSA is not intended to,
and shall not, create rights, remedies, or any benefits of any character whatsoever in favor of any
Person other than the Parties.

     27.6 Remedies Cumulative. Except as otherwise specifically provided herein, each remedy
provided for under this LSA shall be taken and construed as cumulative and in addition to every
other remedy provided for herein or available at law or in equity.

     27.7 Confidentiality. Each Party shall maintain the terms of this LSA in confidence and shall
not disclose any information concerning the terms, performance or administration of this LSA to any
other Person; provided that (a) either Party may disclose such information: (i) to any of such
Party’s Group, (ii) to any prospective member of such Party’s Group, and (iii) to any Person
providing or evaluating a proposal to provide financing to the recipient Party or any direct or
indirect owner of such Party and (b) NRG or TWCC may provide copies of this LSA, with pricing
information redacted, to purchasers or potential purchasers of LEGS or the Mine, as the case may
be, or all or any portion of the electric output from LEGS; provided in each case that the
recipient Party shall provide to each Person to which disclosure is made a copy of this Section
27.7 and direct such Person to treat such information confidentially, and the recipient Party shall
be liable for any breach of the terms of this Section 27.7 by such Persons to which it makes any
such disclosure. The foregoing restrictions will not apply (A) to information that is or becomes
generally available to the public otherwise than as a result of disclosure by the recipient Party,
(B) to information that is already in, or subsequently comes into, the recipient Party’s
possession, provided that the source of such information was not, to the recipient Party’s
knowledge, obligated to keep such information confidential, or (C) to information that is required
to be disclosed pursuant to Law or stock exchange rules and regulations or is otherwise subject to
legal, judicial, regulatory or self-regulatory requests for information or documents. If either
Party is required to disclose any information required by this Section 27.7 to be maintained as
confidential in a judicial, administrative or governmental proceeding, such Party shall give the

-52-

 

other Party at least ten (10) Business Days’ prior written notice (unless less time is
permitted by the applicable proceeding) before disclosing any such information in any said
proceeding and, in making such disclosure, the Party required to disclose the information shall
disclose only that portion thereof required to be disclosed and shall take all commercially
reasonable efforts to preserve the confidentiality thereof, including obtaining protective orders
and supporting the other Party in intervention. Nothing contained herein shall obligate either
Party to disclose to the other Party any information that would be prohibited from disclosure under
confidentiality agreements with third parties, including licenses; and any such information shall
only be disclosed to the other Party after appropriate confidentiality agreements have been entered
into or appropriate consents obtained.

     27.8 Policies and Procedures. The Parties shall cooperate in good faith and use reasonable
efforts to agree on, within one hundred eighty (180) days of the Effective Date, a detailed
policies and procedures manual for the activities and operations contemplated by this LSA (provided
that any failure to so agree shall not affect the rights or obligations of either Party hereunder,
and that this LSA shall control over any contrary provisions in such policies and procedures).

     27.9 Captions. The captions to the Sections of this LSA are for convenience of reference only
and shall not be taken or construed to define or limit any of the terms or provisions of this LSA.

     27.10 Counterparts. This LSA may be executed in counterparts, each of which will be deemed an
original, but all of which together will constitute one and the same instrument. Delivery of the
executed signature pages by facsimile transaction will constitute effective and binding execution
and delivery of this LSA.

     27.11 Binding Signatures. This LSA shall not be binding on either Party hereto unless
executed by both Parties hereto. NRG’s signature shall no longer be valid and binding on NRG if on
or before September 28, 2007: (i) this LSA is not executed by TWCC, (ii) the Guaranty and related
letter agreement are not executed by Westmoreland Coal Company and (iii) each of (i) and (ii) are
not delivered to NRG by October 1, 2007.

[Remainder of Page Intentionally Left Blank. Signature Pages Begin on Next Page.]

-53-

 

     IN WITNESS WHEREOF, the Parties, through their duly authorized representatives, have executed
this LSA effective as of the date first written above.

	 	 	 	 	 
	 	 	TEXAS WESTMORELAND COAL CO.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Joseph E. Micheletti
	 

	 	 	 	 
	 

	 	Name:	 	Joseph E. Micheletti 
	 

	 	 	 	 
	 

	 	Title:	 	President 
	 

	 	 	 	 

[Signature Page to Lignite Supply Agreement]

 

 

	 	 	 	 	 
	 	 	NRG TEXAS POWER LLC
	 
	 	 	 	 
	 

	 	By:	 	/s/ Thad Hill
	 

	 	 	 	 
	 

	 	Name:	 	Thad Hill 
	 

	 	 	 	 
	 

	 	Title:	 	President 
	 

	 	 	 	 

[Signature Page to Lignite Supply Agreement]

 

 

EXHIBIT 1

Mine

[Exhibit 1 consists of a two-page graphic depiction of the Mine.]

Exhibit 1 — Page 1

 

Exhibit 2

Mine Plan Insert

While this Mine Plan is specific with regard to qualities and quantities of lignite available,
annual quantities of lignite to be mined and sold, the mining sequence by and in each area, the
projected mining costs and the equipment and staffing resources to be employed, the Parties
recognize this information is based on projections and that details herein may be subject to
adjustment in an Approved AOP.

 

 

WESTMORELAND COAL COMPANY

14th Floor, 2 North Cascade Avenue, Colorado Springs, CO 80903

Phone: [719] 442-2600 • Fax: [719] 448-5894 or 5825

June 1, 2007

Thad Hill, President

NRG Texas

1301 McKinney, Suite 2300

Houston, Texas 77010

Dear Thad,

As promised, I have enclosed the life of mine projections for the Jewett Mine. This report was
prepared by Mark Seglem and his staff and they can certainly provide additional detail should your
people need it.

This projection was prepared on the basis of maximum efficiency and, as such, actually scales down
production over the remaining life of the mine to maximize use of the draglines. It is my
understanding that this approach is consistent with the recommendations of consultants who were
engaged to study this matter. Also, this projection assumes that approximately five million tons of
reserves are not mined as they lay beneath power towers that would have to be relocated. Given the
current market for coal, this is not economically feasible, but future market conditions might
change that. Finally, this mine plan pushes final reclamation out to its further point possible.

The capital requirements for the mine are also detailed. Tub work on the draglines is the major
expenditure listed.

Feel free to contact me if you have any questions. Mark and his staff would probably be more
helpful.

I look forward to hearing your thoughts on the long term options that we might pursue.

Sincerely,

/s/

Keith E. Alessi

Chief Executive Officer

 

 

Life of Mine Cost Projection: 2008-2018

Strictly Confidential

Report Date: May 2007

 

 

Scope:

The purpose of this report is to provide an economic review and mining details for the Life
of Deposit Plan (LOD) of the Jewett Mine. This mine plan and cost forecast will be presented
to NRG for review in the context of negotiating a long term “cost plus” lignite supply
agreement. The mine plan and costing presented herein was compiled utilizing historical
costs of equipment, maintenance, and the operational experience of the Jewett Mine coupled
with best engineering practices.

Executive Summary:

Operationally this study reflects an ascending strip ratio sequence, maximizing the use of
the three 8200 and the 8750 series Marion draglines. Use of mobile stripping equipment is
minimized in the LOD mine plan, which leads to a step down of annual lignite sales beginning
in 2012. 89.0 TBtu is scheduled for delivery for all years 2008 through 2011; deliveries
reduce to 67 TBtu in years 2012 through 2014, and further reduce to 46 TBtu for years 2015
through 2018 (The option to continue mining 89 TBtu through 2015, rather than the step down
delivery schedule of the LOD remains viable; however, mining costs will increase
incrementally with a larger portion of stripping being completed with mobile
mining equipment. Depending on the market at the time, NRG could very well have the option
to incur those additional costs and purchase larger volumes of lignite). A table of
projected deliveries and mining costs (without capital dollars) are included in Table 1
below.

Table 1. Production and Operating Expense Summary

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015	 	2016	 	2017	 	2018
	Strip Ratio
	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 
	Tons Sold (Mton)
	 	 	6.808	 	 	 	6.854	 	 	 	6.947	 	 	 	6.961	 	 	 	5.152	 	 	 	5.113	 	 	 	5.111	 	 	 	3.567	 	 	 	3.52	 	 	 	3.517	 	 	 	3.441	 
	TBtu Sold
	 	 	89.0	 	 	 	89.0	 	 	 	89.0	 	 	 	89.0	 	 	 	67.0	 	 	 	67.0	 	 	 	67.0	 	 	 	46.2	 	 	 	46.2	 	 	 	46.2	 	 	 	46.1	 
	Cost ($MM)
	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 
	$/Ton
	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 
	$/mmbtu
	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 

 

			
	Note:	 	All values in constant 2007 dollars.

Capital Expense:

Major civil projects for this study are primarily related to Area BX development and include
the construction of haulroads, construction of one major sediment control pond, relocation
of highway FM 39, along with other associated drainage projects. A table of all forecasted
capital expenditures is shown in Table 2 below:

 

 

Table 2. Forecasted Capital Expenditures

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	($ MM)	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015	 	2016	 	2017	 	2018
	Sediment Control
	 	 	[****]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Haulroads
	 	 	 	 	 	 	[****]	 	 	 	 	 	 	 	[****]	 	 	 	[****]	 	 	 	 	 	 	 	[****]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Relocations
	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 
	Major
Support Equipment
	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 
	Office /
Equip.
	 	 	[****]	 	 	 	 	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	 	 
	Land
	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Capital
	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 

 

			
	Note:	 	All values in constant 2007 dollars.

Table 3. Projected Depreciation Schedule for Forecasted Capital

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	($ MM)	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015	 	2016	 	2017	 	2018	 	2019	 	2020
	NRG
DD&A
	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 

 

			
	Note:	 	Approximately [******] of non-depreciated NRG assets
remain after 2020, primarily due to assumed dragline component
life of 25-years.

Key Assumptions:

     The following key engineering assumptions were made for this mine plan.

Bonding

Current bond held for Permit 32F includes $50M secured by NRG (CenterPoint Energy) and $7.5M by
TWCC. For Permit 47F, TWCC currently holds bonding of $17.5M and TWCC will acquire an additional
$1M in bonding for Area F (Permit 47F) in 2007. Future bonding requirements are projected at [****]
in 2008 and [****] in 2009. With a [***] collateralization required for bonding, restricted cash
requirements are [****] and [****] in years 2008 and 2009 respectively.

Dragline
Operations

DL25

	 	•	 	87% availability
	 
	 	•	 	14-days of downtime per year except in 2012 when 60-days are allowed for tub
replacement
	 
	 	•	 	Maximum digging depth = 180 feet
	 
	 	•	 	2,480 BCY per operating hour

 

 

DL26

	 	•	 	87% availability
	 
	 	•	 	14-days of downtime per year except in 2010 when 60-days are allowed for tub
replacement
	 
	 	•	 	Maximum digging depth = 180 feet
	 
	 	•	 	2,510 BCY per operating hour

DL27

	 	•	 	87% availability
	 
	 	•	 	14-days of downtime per year except in 2011 when 60-days are allowed for tub
replacement
	 
	 	•	 	Maximum digging depth = 180 feet
	 
	 	•	 	2,510 BCY per operating hour

DL28

	 	•	 	80% availability
	 
	 	•	 	14-days of downtime per year plus 20-days in 2008 for drum hardening
	 
	 	•	 	Maximum digging depth = 165 feet
	 
	 	•	 	2,700 BCY per operating hour

Dragline
Walks/Delays

	 	•	 	28-days allowed for DL 25 to reopen Area B-South pit, 2009
	 
	 	•	 	45-days allowed for DL 26 to walk from Area F-North to Area BX, 2010

Mining
Limits & Utility Relocations

Expanded limits within Areas BX and Area E are included. Previously planned limits for Area F-North
and Area F-South are unchanged. Gas wells (3 in total) located in Area BX are removed due to
depletion. Relocation of a 16” aviation fuel pipeline and 138kV power line in Area E is planned and
included in the capital forecast.

Miscellaneous
Assumptions

	 	•	 	Quality, recovery and dilution assumptions are consistent with 2007 AMP, and
historical values.
	 
	 	•	 	All mining sequences are scheduled with dragline positions as of May 1, 2007.
	 
	 	•	 	Water rights requirements are assumed to be granted as planned from the TCEQ.
	 
	 	•	 	Royalties payable to NRG are not included in this cost plus projection, and those
projected royalties are listed in Table 4.

 

 

Table 4. Projected NRG Royalties

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	($ 1000’s)	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015	 	2016	 	2017	 	2018
	NRG
Royalties
	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 	 	 	[****]	 

Dragline Sequence:

The mining sequence for each dragline is shown graphically in the mine progression maps found in
Appendix B. A general description of the dragline movements are described below:

	 	•	 	Dragline 25 (DL 25) is shown to move to Area B-South in 2009 from its current
location in Area B-North. A 28-day delay has been assumed to allow for the required
walk as well as to allow DL 25 time to clean the abandoned pit in B-South. Mining
continues in B-South until 2012 when DL 25 moves to Area BX to work in tandem with DL
26. This arrangement continues until 2017 when DL 25 moves back to B-South and mines
until the end of 2018.
	 
	 	•	 	Dragline 26 is currently located in Area F-North and continues to mine this area
until 2009. From Area F-North, DL 26 walks to Area BX and mines until 2018. The walk
from F-North to BX is planned to take 45-days, and is included as a capital project.
	 
	 	•	 	Dragline 27 continues to mine the Area F-South until it is mined out in 2014. At the
completion of mining in F-South, DL 27 walks to Area E replacing DL-28. DL27 continues
mining in Area E through the term of the LOD, 2018.
	 
	 	•	 	Dragline 28 continues mining in Area E through 2014, at which time DL27 takes over
mining in Area E and DL-28 is retired.

Final Pit Schedule:

Reclamation of final pits generally occurs in phases, with, one or more newly created ponds, and
with at least 2-years of added time to allow for water rights issues to be resolved. The following
table lists the years in which final pit reclamation is forecasted.

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015	 	2016	 	2017	 	2018	 	2019	 	2020
	C Area Phase I of II
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	D/DX Area
	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	C Area Phase II of II
	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	B-North Area Phase I of III
	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	B-North Area Phase II of III
	 	 	 	 	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	F-North Area
	 	 	 	 	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	F-South Area
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	E-North Area
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 
	E-Mid Area
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	X	 
	E-South Area
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	X	 
	B-North Area Phase III of III
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	X	 
	BX Area
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	X	 
	B-South Area
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	X	 

Detailed Cost Report:

A detailed operating expense forecast and a detailed capital scheduled is provided in Appendix A.
All costs are in constant 2007 dollars.

Mine Plan Sequence Maps:

LOD Mine Plan sequence maps are provided in Appendix B.

Appendix A: Operating Expense and Capital Forecast

Appendix B: Mine Plan Sequence Maps

 

 

Texas Westmoreland Coal Co.

2007 Life of Deposit Capital Forecast

Detail Report for Years 2008 — 2018

			
	2007 Constant Dollars

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015	 	2016	 	2017	 	2018	 	Total
	 	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	 	 	 
	 	 	 	 	 	 	 
	SEDIMENT CONTROL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Construct Pond 36
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	BX1 Diversion
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 	 	 
	Total Sediment Control
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HAUL ROADS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	BX-1 Haul Road
	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	BX-2 Haul Road
	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	DL27 Walkway (F-South to E)
	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	B-3 Haul Road
	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	DL26 Walkway (B-BX)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	DL26 Walkway (F-BX)
	 	 	 	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 	 	 
	Total Haul Roads
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	RELOCATIONS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Magellan 16” Pipeline
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	FM 39 Relocation:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Construction
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	SWB Telephone Reloc
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	NAV Elec 12.5 Kv Reloc
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	SWB Fiber Optic Reloc
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Brazos Valley 138Kv Reloc
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Enbridge:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	6” Pipeline (abandon)
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	8” Pipeline (lowering)
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	12” Pipeline (lowering)
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	20” Pipeline (lowering)
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	4” Pipeline (low)-North end
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	FM39 Surety Bond
	 	 	 	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	TXU 138kV Reloc
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Substation connect to TXU 138kv
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 	 	 
	Total Relocations
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 	 	 

Page 1

 

Texas Westmoreland Coal Co.

2007 Life of Deposit Capital Forecast

Detail Report for Years 2008 — 2018

2007 Constant Dollars

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015	 	2016	 	2017	 	2018	 	 
	 	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	Total
	 	 	 	 	 	 	 
	MAJOR/SUPPORT EQUIPMENT
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Engine Replacements
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Light Vehicles
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Swing Bearing 5130
	 	 	 	 	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	[******]	 
	Tools & Small Equipment
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	(2) Barge Pumps-6” Diesel
	 	 	[******]	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	DL Bucket 8200
	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Cable Tractor
	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	DL Bucket-8760
	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Replace Boom/Weld Truck
	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Replace Motor Grader
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Replace D-10’s (2)
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Replace D-9
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Replace 992/5130 Backhoe
	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Replace 5130 Backhoe Boom
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	DL Repairs (Contingency) Mechanic
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Boom Support Ropes – 8200
	 	 	[******]	 	 	 	 	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	[******]	 	 	 	[******]	 
	Boom Support Ropes – 8750
	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Dragline Tub Replace – 8200
	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	DL Production Monitor
	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Crusher Belt Replacement
	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	*New Flt-785 E Dumps (4)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 	 	 
	Total Major Equip  
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 	 	 
	
 

	(Note: * = Capital lease equip.)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	OFFICE & COMPUTER EQUIP.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Imaging Server
	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Data File Server
	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	DNS/DHCP Server
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Plotter Replacement
	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	[******]	 
	Replace Color Laser
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	[******]	 
	Replace GPS Data Collector
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	[******]	 
	Replace GPS Equipment
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 	 	 
	Total Office
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 	 	 

Page 2

 

Texas Westmoreland Coal Co.

2007 Life of Deposit Capital Forecast

Detail Report for Years 2008 — 2018

2007 Constant Dollars

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015	 	2016	 	2017	 	2018	 	 
	 	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	Total
	 	 	 	 	 	 	 
	LANDS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Refurbish Adm., Eng., & Shop
roofs
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Tract Purchases/Bonus-BX
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 	 	 
	Total Lands  
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Capital
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Additional Bond Collateralization
	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 

Note: Civil Projects are based on flight topography and survey is pending

LOD Cost Report Cap Detail.xls

Page 3

 

Texas Westmoreland Coal Co.

Cost Report for Life Of Deposit

Costs Billed Thru to NRG

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015	 	2016	 	2017	 	2018
	Stripping
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dragline — Cost Center 514
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Equipment Operating
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Equipment Maintenance
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Dragline Stripping
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Yard
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Mobile — Cost Center 515
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Equipment Operating
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Mobile Stripping
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Yard
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Stripping
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Yard
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Lignite Handling
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lignite Loading — Cost Center 536
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Equipment Operating
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Lignite Loading
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lignite Hauling — Cost Center 537
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Equipment Operating
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total Lignite Hauling
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Lignite Crushing — Cost Center 539
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Equipment Operating
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Equipment Maintenance
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total Lignite Crushing
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 

Page 1

 

Texas Westmoreland Coal Co.

Cost Report for Life Of Deposit

Costs Billed Thru to NRG

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015	 	2016	 	2017	 	2018
	 
	Total Lignite Handling
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Roads
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Road Maintenance – Cost Centers 551
& 552
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Electricity
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Equipment Operating
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Road Maintenance
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total roads
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Dewatering
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Surface Dewatering – Cost Center 571
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Equipment Operating
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Surface Dewatering
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Overburden Dewatering – Cost Centers
575 & 576
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Surface Dewatering
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total Dewatering
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Maintenance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Support Equipment – Cost Center 675
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pickups/Trucks
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Rental Equipment
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Cranes
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	KV Systems
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Light Plants
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Pumps & Barges
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Equipment Maintenance
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 

LOD Cost Report Cap Detail.xls/Cost Plus Cost Report

Page 2

 

Texas Westmoreland Coal Co.

Cost Report for Life Of Deposit

Costs Billed Thru to NRG

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015	 	2016	 	2017	 	2018
	Total Support Equipment
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Other Maintenance – Cost Centers 679 &
690
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Travel & Auto
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Electricity
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Rents
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Other Maintenance
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Maintenance
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	General/Production
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Clearing – Cost Centers 596 & 597
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total Clearing
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Warehouse – Cost Center 595
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Travel & Auto
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Freight
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Hotshot Fees
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Rent
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Equipment Purchases
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Inventory Adjustment
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Restocking Fees
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Education & Training
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total Warehouse
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Production Taxes
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	State Sales & Use Tax
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Federal Reclamation Tax
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Real Estate & Personal Property T
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total Production Taxes
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Relocations – Cost Center 598
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

Page 3

 

Texas Westmoreland Coal Co.

Cost Report for Life Of Deposit

Costs Billed Thru to NRG

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015	 	2016	 	2017	 	2018
	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Relocations
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	General – Other-Cost Centers 592 & 590
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Travel & Auto
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Electricity
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Rental
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total General – Other
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total General Production
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	TOTAL PRODUCTION
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Current Reclamation
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Regarding – Cost Center 715
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Rental Equipment
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Equipment Operating
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Equipment Maintenance
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Regrading
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Revegetation – Cost Center 717
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total Revegetation
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Current Reclamation
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Post Mine Reclamation
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Final Pit – Cost Center 431
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Rental Equipment
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Equipment Operating
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Final Pit
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 

Page 4

 

Texas Westmoreland Coal Co.

Cost Report for Life Of Deposit

Costs Billed Thru to NRG

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015	 	2016	 	2017	 	2018
	Facility Removal – Cost Center 432
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total Facility Removal
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Post Mine Management – Cost Center 439
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total Post Mine Management
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Post Mine Reclamation
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Compliance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Permitting – Cost Center 748
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Permitting
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Acre
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Monitoring-General – Cost Center 742
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Monitoring – Engineering
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Acre
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Monitoring – Haz Mat – Cost Center 743
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total Monitoring – Haz Mat
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Acre
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Sediment Control – Pond Treatment –
Cost Center 741
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Sediment Control – Pond
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Acre
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Sediment Control – Engineering-Cost
Center 745
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Sediment Control – Engin
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Acre
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Sediment Control – Erosion Control
Cost Center 746
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total Sediment Control
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 

Page 5

 

Texas Westmoreland Coal Co.

Cost Report for Life Of Deposit

Costs Billed Thru to NRG

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015	 	2016	 	2017	 	2018
	$/Acre
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Sediment Control – Hay – Cost Center 747
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Sediment Control
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Acre
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Other – Cost Center 749
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total Other
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Compliance
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	TOTAL RECLAMATION
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Administrative & Engineering
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Engineering – Cost Center 580
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Engineering
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Safety – Cost Center 952
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Awards
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Travel & Auto
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Other
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Safety
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Facilities – Cost Center 953
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Utilities
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Education & Training
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Association Dues/Fees
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Travel & Auto
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Small Equipment
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total Facilities
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 

Page 6

 

Texas Westmoreland Coal Co.

Cost Report for Life Of Deposit

Costs Billed Thru to NRG

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015	 	2016	 	2017	 	2018
	Security – Cost Center 955
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Security
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Business/Administration – Cost Centers
951 & 959
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Gainsharing
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Travel & Auto
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Communications
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Rental Equipment/Building
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Discounts
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Industry/Association Dues
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Education & Training
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Parent Company Allocated Overhe
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Other
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Business
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	D,D, & A
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Deprec. Depl. Amort
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total D, D, & A
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Purchasing – Cost Center 954
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Travel & Auto
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Education & Training
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Other
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Purchasing
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Employee Relations – Cost Center 957
plus 959160
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Personal Issue Allowance
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Post Employment Benefits
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Awards
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Travel & Auto
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 

Page 7

 

Texas Westmoreland Coal Co.

Cost Report for Life Of Deposit

Costs Billed Thru to NRG

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015	 	2016	 	2017	 	2018
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Industry/Association Dues
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Education & Training
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Other
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total Employee Relations
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Information Systems – Cost Center 956
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Travel & Auto
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Telephone
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Small Equipment
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Education & Training
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Information Systems
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Lands – Cost Center 956
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Travel & Auto
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Industry/Association Dues
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Education & Training
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Surface Leases
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Other
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total Lands
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Insurance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Insurance
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Insurance
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	TOTAL ADMIN. & ENGINEERING
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Royalties & Damages
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Surface Damages
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Delay Rentals
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Minimum Royalties
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Mineral Royalties
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Overriding Royalties
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Royalties & Damages
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 

Page 8

 

Texas Westmoreland Coal Co.

Cost Report for Life Of Deposit

Costs Billed Thru to NRG

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015	 	2016	 	2017	 	2018
	Non-operating Income/Deductions
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Donations
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Interest Expense
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Non-operating
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Grand Total
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	TWCC Tons
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	NRG Tons
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Tons
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/MMBTU
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Yards:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dragline
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	BWE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Mobile
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Reclamation Acres
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 

Page 9

 

[The last two pages of Exhibit 2 consist of a two-page graphic depiction of the Mine.]

 

 

EXHIBIT 3

2008 Preliminary AOP

See attached. Note that although the attached preliminary form contains a line for D.D. &A
(Depreciation, depletion and amortization), such amounts are not included in Mine Costs.

Exhibit 3 — Page 1

 

 

Exhibit 3

Texas Westmoreland Coal Co.

2008 Preliminary AOP — Mine Costs

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Final 8/22/07	 	Jan	 	Feb	 	Mar	 	Apr	 	May	 	Jun	 	Jul	 	Aug	 	Sept	 	Oct	 	Nov	 	Dec	 	Total
	 
	Stripping
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dragline — Cost Center 514
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Equipment Operating
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Equipment Maintenance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Total Dragline Stripping
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Yard
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Mobile — Cost Center 515
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Materials & Supplies
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Rent Equipment
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Additional Equipment Costs
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Equipment Operating
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Mobile Stripping
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Yard
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Stripping
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Yard
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Lignite Handling
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lignite Loading — Cost Center 536
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Materials & Supplies
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Rent Equipment
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Equipment Operating
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total Lignite Loading
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lignite Hauling — Cost Center 537
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Materials & Supplies
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Additional Equipment Costs
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Equipment Operating
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Equipment Maintenance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Total Lignite Hauling
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lignite Crushing — Cost Center 539
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 

Page 1

 

Texas Westmoreland Coal Co.

2008 Preliminary AOP — Mine Costs

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Final 8/22/07	 	Jan	 	Feb	 	Mar	 	Apr	 	May	 	Jun	 	Jul	 	Aug	 	Sept	 	Oct	 	Nov	 	Dec	 	Total
	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Contract
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Equipment Rental
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Equipment Operating
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Equipment Maintenance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Total Lignite Crushing
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Lignite Handling
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Roads
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Road Maintenance — Cost Center 551 & 552
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Rent
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Electricity
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Equipment Operating
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Road Maintenance
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total Roads
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Dewatering
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Surface Dewatering — Cost center 571
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Rental Equipment
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Electricity
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Equipment Operating
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Surface Dewatering
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Overburden Dewatering — Cost Centers 575 & 576
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Travel & Auto
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Electricity
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Rental Equipment
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Equipment Operating
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Equipment Maintenance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 

Page 2

 

Texas Westmoreland Coal Co.

2008 Preliminary AOP — Mine Costs

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Final 8/22/07	 	Jan	 	Feb	 	Mar	 	Apr	 	May	 	Jun	 	Jul	 	Aug	 	Sept	 	Oct	 	Nov	 	Dec	 	Total
	 
	Total Overburden Dewatering
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Dewatering
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Maintenance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Support Equipment — Cost Center 675
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Labor (including fringe & tax)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Pickup/Trucks
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Travel
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Materials & Supplies/Equip Operating
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Contract
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Rental Equipment
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Cranes
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	KV Systems
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Reclamation Equipment
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Light Plants
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Pumps & Barges
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Equipment Maintenance
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Support Equipment
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Other Maintenance — Cost Centers 679 & 690
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Gainsharing
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Travel & Auto
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Materials & Supplies
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Contract
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Electricity
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Rents
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Total Other Maintenance
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Maintenance
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	General Production
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Clearing-Cost Centers 596 & 597
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Labor (including fringe & tax)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Materials & Supplies
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Clearing
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Warehouse- Cost Center 595
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 

Page 3

 

Texas Westmoreland Coal Co.

2008 Preliminary AOP — Mine Costs

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Final 8/22/07	 	Jan	 	Feb	 	Mar	 	Apr	 	May	 	Jun	 	Jul	 	Aug	 	Sept	 	Oct	 	Nov	 	Dec	 	Total
	 
	Freight
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Hotshot Fees
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Rent
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Equipment Purchases
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Restocking Fees
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Other
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Warehouse
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Production Taxes
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	State Sales & Use Tax
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Federal Reclamation Tax
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Real Estate & Personal Property Tax
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Production Taxes
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Relocations- Cost/Center 598
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Materials & Supplies
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Contract
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Total Relocations
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	General — Other- Cost Centers 592 & 590
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Electricity
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Other
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total General — Other
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total General Production
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	TOTAL PRODUCTION
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Current Reclamation
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Regrading- Cost Center 715
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Rental Equipment
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Equipment Operating
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Regrading
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Revegetation- Cost Center 717
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Page 4

 

Texas Westmoreland Coal Co.

2008 Preliminary AOP — Mine Costs

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Final 8/22/07	 	Jan	 	Feb	 	Mar	 	Apr	 	May	 	Jun	 	Jul	 	Aug	 	Sept	 	Oct	 	Nov	 	Dec	 	Total
	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Revegetation
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Current Reclamation
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Post Mine Reclamation
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Final Pit- Cost Center 431
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Materials & Supplies
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Rental Equipment
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Equipment Operating
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Final Pit
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Facility Removal- Cost Center 432
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Materials & Supplies
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Facility Removal
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Post Mine Management- Cost Center 439
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Labor (including fringe & tax)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Post Mine Management
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Post Mine Reclamation
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Compliance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Permitting- Cost Center 748
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Travel & Auto
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Bond & Insurance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Total Permitting
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Acre
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Monitoring- General- Cost Center 742
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Labor (including fringe & tax)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 

Page 5

 

Texas Westmoreland Coal Co.

2008 Preliminary AOP — Mine Costs

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Final 8/22/07	 	Jan	 	Feb	 	Mar	 	Apr	 	May	 	Jun	 	Jul	 	Aug	 	Sept	 	Oct	 	Nov	 	Dec	 	Total
	 
	Small Equipment
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Electricity
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Other
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Total Monitoring- Engineering
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Acre
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Monitoring- HazMat- Cost Center 743
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Electricity
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Monitoring- Haz Mat
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Acre
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Sed Control- Pond Treatment- CC 741
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Electricity
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Total Sediment Control- Pont Treatment
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Acre
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Sediment Control-Engineering- Cost Center 745
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Electricity
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Equipment Operating
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Equipment Maintenance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Total Sediment Control- Engineering
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Acre
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Sediment Control- Erosion Control- Cost Center
746
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Materials & Supplies
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Sediment Control
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Acre
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Sediment Control- Hay- Cost Center 747
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Sediment Control
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Acre
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Other- Cost Center 749
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 

Page 6

 

Texas Westmoreland Coal Co.

2008 Preliminary AOP — Mine Costs

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Final 8/22/07	 	Jan	 	Feb	 	Mar	 	Apr	 	May	 	Jun	 	Jul	 	Aug	 	Sept	 	Oct	 	Nov	 	Dec	 	Total
	 
	Gainsharing
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Awards
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Travel & Auto
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Industry/Association Dues
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Education & Training
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Other
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Other
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total Compliance
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	TOTAL RECLAMATION
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Administrative & Engineering
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Engineering- Cost Center 580
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract Services
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Other
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Engineering
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Safety- Cost Center 952
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Gainsharing
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Awards
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Travel & Auto
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Small Equipment
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Other
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Safety
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Facilities- Cost Center 953
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Gainsharing
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Utilities
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Small Equipment
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Other
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Facilities
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 

Page 7

 

Texas Westmoreland Coal Co.

2008 Preliminary AOP — Mine Costs

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Final 8/22/07	 	Jan	 	Feb	 	Mar	 	Apr	 	May	 	Jun	 	Jul	 	Aug	 	Sept	 	Oct	 	Nov	 	Dec	 	Total
	 
	Security- Cost Center 955
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Security
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Business/Administration- Cost Centers 951 & 959
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Gainsharing
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Travel & Auto
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Electricity
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Communications
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Rental Equipment/Building
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Parent Company Allocated Overhead
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Other
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total Business
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	D.D.&A-TWCC Existing Assets Only
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Deprec, Depl, Amort.
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total D, D, & A
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Purchasing- Cost Center 954
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Gainsharing
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Travel & Auto
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Other
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Total Purchasing
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Employee Relations- Cost Center 957 plus 959160
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Labor (including fringe & tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Other
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Employee Relations
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Information Systems-Cost Center 956
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Labor (including fringe
& tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Gainsharing
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Travel & Auto
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 

Page 8

 

Texas Westmoreland Coal Co.

2008 Preliminary AOP — Mine Costs

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Final 8/22/07	 	Jan	 	Feb	 	Mar	 	Apr	 	May	 	Jun	 	Jul	 	Aug	 	Sept	 	Oct	 	Nov	 	Dec	 	Total
	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Rental Equipment
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Telephone
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Small Equipment
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Other
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Information
Systems
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Lands-Cost Center 958
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Labor (including fringe
& tax)
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Gainsharing
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Travel & Auto
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Materials & Supplies
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Contract
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Industry/Association Dues
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Education & Training
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Surface Leases
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Other
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Lands
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Insurance & Workers
Compensation
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Insurance
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Ins. & Workers
Comp.
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	TOTAL ADMIN. &
ENGINEERING
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Royalties & Damages
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Writeoff of
nonrecoupable adv roy
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Drilling Damages
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Surface Damages
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Delay Rentals
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Minimum Royalties
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Credit for Recoup of
A/R Pd by REI
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Mineral Royalties
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Overriding Royalties
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Budget Adjustment
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Total Royalties & Damages
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 

Page 9

 

Texas Westmoreland Coal Co.

2008 Preliminary AOP — Mine Costs

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Final 8/22/07	 	Jan	 	Feb	 	Mar	 	Apr	 	May	 	Jun	 	Jul	 	Aug	 	Sept	 	Oct	 	Nov	 	Dec	 	Total
	 
	Non-operating
income/Deductions
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other Non-operating
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	Donations
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Interest Expense
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Interest Income
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Non-operating
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grand Total
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	$/Ton
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TWCC Tons
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	NRG Tons
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total Tons
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	S/MMBTU
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Yards:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Dragline
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	BWE
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Mobile
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Total
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Reclamation
Acres
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MMBTU
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	Avg Btu
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Page 10

 

Texas Westmoreland Coal Co.

2008 Preliminary AOP Capital Budget

2008 Constant Dollars

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Jan	 	Feb	 	March	 	April	 	May	 	June	 	July	 	Aug	 	Sept	 	Oct	 	Nov	 	Dec	 	TOTAL
	SEDIMENT CONTROL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pond 36
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	[******]	 
	BX1 Diversion
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HAUL ROADS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(None)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	RELOCATIONS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Magellan 16” Pipeline
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	FM39 Relocation Construction
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	FM39 SW Bell
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	FM39 Navasota Electric
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	FM39 SW Bell Fiber Optic
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	FM39 Brazos 138 kV
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Enbridge 6” Pipeline
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Enbridge 8” Pipeline
	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Enbridge 12” Pipeline
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Pinnacle 20” Pipeline
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Enbridge 4”
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	FM39 Surety Bond
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 

Page 1

 

Texas Westmoreland Coal Co.

2008 Preliminary AOP Capital Budget

2008 Constant Dollars

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Jan	 	Feb	 	March	 	April	 	May	 	June	 	July	 	Aug	 	Sept	 	Oct	 	Nov	 	Dec	 	TOTAL
	MAJOR/SUPPORT EQUIP
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Engine Replacements
	 	 	[******]	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Light Vehicles
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Tools & Small Equipment
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	(2) Barge Pumps-6” Diesel
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	(2) Cable Tractors
	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Replace Motor Grader
	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	DL Repairs (Contingency)
	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	[******]	 
	Boom Support Ropes — 8200
	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	DL Production Monitor
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SAFETY EQUIPMENT
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	20’ Enclosed Trailer
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Safety Rescue Equipment
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	OFFICE & COMPUTER EQUIP.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DNS/DHCP Server
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	LANDS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	FM 39 ROW
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	[******]	 
	Tract Purcases/Bonus
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Admin Roof Restoration
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Admin A/C Unit Replace
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Grand Total
	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Additional Bond Collateralization
	 	 	[******]	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 

Note: Civil Projects are based on flight topography and survey is pending. Sales Tax has not been
included.

Page 2

 

EXHIBIT 4

AOP Components

Each AOP shall include details of the lignite reserve quantities and quality, mining and
reclamation plans, the maximum capacity of the Mine for the relevant Year, operations, assumptions
and estimated costs required to produce and deliver AOP Volumes proposed by NRG, and to perform
agreed reclamation and other work during a suspension of production or after production ceases.
The AOP shall contain initial capital estimates and justification, including development and
construction plans and budget quotations. Without limiting the generality of the foregoing, each
AOP shall contain the components set forth in the attachment hereto titled “Exhibit – AOP and Other
Information Requirements” and shall be of a scope and level of detail similar to the attachment
hereto entitled “Northwestern Resources Co. 1999 Annual Mine Plan”.

Exhibit 4
— Page 1

 

 

EXHIBIT 4

AOP and OTHER INFORMATION REQUIREMENTS

In the course of developing an Annual Operating Plan (AOP), NRG requests TWCC use, maintain, and
make available for review by NRG the following information, provided such information is readily
available:

I. Life of Mine Plan Information Requirements

The information provided each year for the updated Life of Mine Plan should include the following
items plus any other information required to substantiate Seller assumptions or any other Buyer
inquiries. The Life of Mine Plan shall be based on engineered estimates of annual quantities and
work effort and shall provide reasonable details of assumptions, annual production and operations
statistics, and annual production and capital cost estimates as follows.

	1)	 	The updated Life of Mine Plan should be based on an updated geological model that reflects
all available geological and lignite quality data. The updated geological model should be
provided including drill hole collar surveys, drill hole logs, sample quality analyses and all
other information collected from drilling and sampling programs. The geological model should
be provided in electronic form in a format convenient for use by Buyer.
	 
	2)	 	Mapping in Mincom, Vulcan, SurvCadd, Microstation, Auto Cad or some other useable electronic
format including the current:

	 	a)	 	most recent topographic mapping and digital terrain model and updated aerial
photography, if any; mining limits and mined out areas;
	 
	 	b)	 	boundaries including subcrop, burn, oxidized, washout, and other geologic limits;
	 
	 	c)	 	property, lease and other relevant boundaries;
	 
	 	d)	 	drainage;
	 
	 	e)	 	land use and final reclamation status;
	 
	 	f)	 	current and planned mine infrastructure (i.e. access and haul roads, surface
facilities, sediment ponds, soil storage areas, coal loadouts, etc.);
	 
	 	g)	 	dragline and other mining cut layouts; and other areas of mine disturbance planned
during the Life of Mine Plan period.

	3)	 	Schedule of production volumes and lignite tonnages showing all major quantities and other
relevant data including:

	 	a)	 	Dragline virgin stripping and rehandle volumes (bcy) by machine and by dig method;
	 
	 	b)	 	Haulback and topsoil removal volumes (bcy) by fleet (wheel loader or easi-miner);
	 
	 	c)	 	Parting removal volumes (bcy) by fleet (loader or easi-miner) & % direct cast;
	 
	 	d)	 	Pre-stripping volumes (bcy) by fleet (shovel/truck or dozer);
	 
	 	e)	 	Lignite tonnage by mining area and by fleet (loader or easi-miner);
	 
	 	f)	 	Clearing and grubbing acres
	 
	 	g)	 	Land grading and shaping acres

 

 

	4)	 	Summary of operating costs by mining function (e.g. dragline stripping, lignite hauling,
current reclamation,, supervision, etc.) or cost center and also by major cost component
(e.g., wages, salaries, payroll burdens, diesel fuel, parts, tires, etc.).
	 
	5)	 	Summary of operating costs by Seller object account (e.g. hourly labor, salaried labor,
maintenance, G&A, production taxes and royalties, and etc.
	 
	6)	 	Mine plan layout and design parameters including:

	 	a)	 	Mine plan design parameters including wall angles, spoil angle of repose, densities
of lignite, overburden and parting materials, waste material swell factors, lignite swell
factor, parting/dilution quality
	 
	 	b)	 	Lignite recovery assumptions including methodology for estimating delivered
recovered tonnages and quality from modeled in situ reserves (i.e. minimum recoverable
lignite thickness, minimum separable parting thickness, lignite roof and floor loss
thickness, roof and floor dilution thickness)
	 
	 	c)	 	Pit designs including geotechnical and slope stability work, range diagrams, mining
conditions and unit operations
	 
	 	d)	 	Mine plan pit widths
	 
	 	e)	 	Plan method of boxcut development (dragline, shovel/truck, other)
	 
	 	f)	 	Boxcut design parameters (pit width, low wall angle, high wall angle), boxcut range
diagrams, and boxcut spoil placement location
	 
	 	g)	 	Dragline specifications and operating parameters
	 
	 	h)	 	Dragline operational range diagrams and rehandle curves
	 
	 	i)	 	Maximum dragline stripping depth
	 
	 	j)	 	Pre-stripping fleet waste allocation methodology
	 
	 	k)	 	Topsoil storage locations
	 
	 	l)	 	Metered hour to scheduled hour conversion

	7)	 	Equipment productivities including:

	 	a)	 	Dragline stripping rates (bcy/hour) by mode (e.g., side-casting, extended benching,
chop-cutting, spoil-side)
	 
	 	b)	 	Parting and haulback removal rates (bcy/hour)
	 
	 	c)	 	Wheel loader parting, haulback, and topsoil removal rates (bcy/hour)
	 
	 	d)	 	Hydraulic excavator pre-stripping rate (bcy/hour)
	 
	 	e)	 	Lignite loading rate (tons/hour)
	 
	 	f)	 	Wheel loader lignite and sludge loading rates (tons/hour)
	 
	 	g)	 	Dozer push stripping (bcy/hr) and land grading rates (acre/hour)

	8)	 	Availabilities and operational efficiency by equipment fleet. Include definitions of
availability, utilization and distance.
	 
	9)	 	Lignite haulage efficiency from each area and haul distances.
	 
	10)	 	Scheduled and meter hours by equipment type.
	 
	11)	 	Summary of hourly operating costs for major production equipment detailing the cost per meter
hour of diesel fuel, parts, major components, tracks/tires/wire rope and vendor labor.

 

 

	12)	 	Life-of-mine capital schedule showing planned mine development, equipment descriptions,
additions, replacements and costs.
	 
	13)	 	Schedule of planned major component replacement costs by fleet and component documented with
equipment and major component life reports showing accumulated frame hours for each piece of
major production equipment and component lives, exchange intervals, and other relevant
information.
	 
	14)	 	Depreciation lives (years) for the different equipment and asset classes.
	 
	15)	 	Life-of-mine depreciation and lease cost schedule for existing assets.
	 
	16)	 	Schedule and description of other fixed costs.
	 
	17)	 	Summary of salaried and hourly Mine labor requirements by grade/job description and equipment
type showing operations and maintenance personnel separately.

II. Annual Operating Plan/Annual Mine Plan and Budget Information Requirements

The Annual Mine Plan should be a more detailed plan and budget for the first year of the Life of
Mine Plan. In the Annual Mine Plan, the mining sequence, production statistics and budget operating
and capital cost estimates shown in Item 1 above should be provided on a monthly basis. In
addition, major capital requests should be reasonably justified each year and accompanied by full
details on the budgeted item and its proposed service and life. Additional information to be
included in the Annual Mine Plan is as follows.

	1)	 	Mine operating schedule — scheduled operating days per month, shifts per day, number of paid
holidays, etc.
	 
	2)	 	Labor

	 	a)	 	Labor costing parameters including total paid hours per year, paid non-working
hours, overtime hours and rates, etc.
	 
	 	b)	 	Shift schedules (12-hour shifts, 8-hour shifts, other).
	 
	 	c)	 	Description of workers included in each pay grade.
	 
	 	d)	 	Hourly wage rates by pay grade ($/hour).
	 
	 	e)	 	Shift differentials ($/hour).
	 
	 	f)	 	Site-specific labor conventions or assumptions; i.e., number of dragline crew
members, maintenance requirements (i.e., mechanics/welders per dragline shift, field
maintenance workforce scheduling parameters, etc.), warehouse, etc.
	 
	 	g)	 	Salary cost for salaried positions i.e., superintendent, foreman, engineer,
technician, etc.
	 
	 	h)	 	Organization chart

	3)	 	Benefits

	 	a)	 	Variable payroll tax/fringe benefits factors (%) for hourly and salaried personnel
as a percentage of total base pay (with base pay defined as total paid hours x rate per
hour + shift differential).

 

 

	 	b)	 	Fixed payroll tax/fringe benefits factors ($/person/year) for hourly and salaried
personnel.

	4)	 	Supplies

	 	a)	 	Assumed delivered unit consumables prices for diesel fuel ($/gallon) including only
applicable off-road taxes.
	 
	 	b)	 	Tire costs.
	 
	 	c)	 	Any other major consumables items.

	5)	 	Equipment

	 	a)	 	Current equipment list detailing the manufacturer and model number for all
production equipment, service vehicles, and support equipment.
	 
	 	b)	 	Rated bucket capacity (cubic yards) for draglines, hydraulic excavators, and
front-end loaders.
	 
	 	c)	 	Diesel fuel consumption rates for major production equipment (gallon/hour).
	 
	 	d)	 	Typical truck payloads in bcy and tons and number of loading machine passes to fill
truck.
	 
	 	e)	 	Typical truck dumping times, queuing delays, and other operating parameters.
	 
	 	f)	 	Mine haulroad speed limits (mph) and typical ramp grades.

	6)	 	Mine Overheads

	 	a)	 	Property tax — basis for calculation or monthly amount
	 
	 	b)	 	Insurance — basis for calculation or monthly amount
	 
	 	c)	 	Permitting Fees — monthly cost
	 
	 	d)	 	Legal and auditing expenses — monthly cost or $/ton
	 
	 	e)	 	Outside services expenses — monthly cost or $/ton
	 
	 	f)	 	Exploration Drilling — monthly cost or $/ton
	 
	 	g)	 	Employee related expenses — monthly cost or $/ton
	 
	 	h)	 	Governmental/environmental relations — monthly cost or $/ton
	 
	 	i)	 	Publications, memberships, and dues — monthly cost or $/ton
	 
	 	j)	 	Freight and postage — monthly cost or $/ton
	 
	 	k)	 	Other expenses — monthly cost or $/ton

	7)	 	Production taxes and royalties — for each provide basis and cost.
	 
	8)	 	Production Plans and Statistics

	 	a)	 	Annual mine progress map for dragline mining areas and overall disturbed area.
	 
	 	b)	 	Annual rough grading, final grading, SPGM removal/stockpiling/replacement, initial
and permanent vegetation, and bond release plans including maps and production
statistics.
	 
	 	c)	 	Summary of current and planned equipment quantities and assignments (e.g., one D375
dozer with dragline).

	9)	 	Cost and Cash Flow Estimates

 

 

	 	a)	 	Capital schedule including budgeted prices for equipment replacements and
additions; infrastructure additions and other development expenses. Major capital
requests should include reasonable justification by item as may be requested by Buyer.
	 
	 	b)	 	Loan and Lease Obligations list showing all equipment under lease, the lease
payment, the remaining lease term and lease buyout amount.

	10)	 	Beginning and end of year capital assets listing showing cost, life, depreciation,
accumulated depreciation, remaining life, and remaining net book value.
	 
	11)	 	Variance analysis — a comparison of key production statistics, major equipment production
rates, labor productivity, and major costs for the Annual Mine Plan with actual statistics and
costs from the previous year.

NRG also request this information, all or in part along with any other information requested by NRG
be included in the following three reports to be produced by TWCC:

	 	A)	 	Annual Mine Plan: Five Year Mine Plan with the 1st year by the
month, 2nd year by the quarter and the 3rd, 4th, and
5th years on an annual basis.
	 
	 	B)	 	Annual Capital and Operating Budgets: Five Year Budgets with the 1st
year by the month, 2nd year by the quarter and the 3rd,
4th, and 5th years on an annual basis.
	 
	 	C)	 	Life of Mine Plan: On an annual basis as determined by NRG.

TWCC is to follow a similar format used in the 1999 Jewett Mine AMP and Budget Reports for Items A
& B and the 2008 — 2018 LOMP for future LOMP.

 

 

Northwestern Resources Co.

1999

ANNUAL MINE

PLAN

October 1998

[LOGO]

HL&P Limestone

 

 

Jewett Mine

1999 Annual Mine Plan

TABLE OF CONTENTS

	 	 	 	 	 
	I. OVERVIEW 
	 	 	1-1	 
	II. ASSUMPTIONS
	 	 	 	 
	 
	 	 	 	 
	2.1 Lignite Delivery Schedule 
	 	 	2-1	 
	2.2 General 
	 	 	2-2	 
	2.3 Lignite Recover & Quality 
	 	 	2-2	 
	2.4 Equipment Operation 
	 	 	2-3	 
	2.5 Equipment Hours and Availability 
	 	 	2-5	 
	2.6 Planned Equipment Downtime 
	 	 	2-5	 
	2.7 Geotechnical Parameters 
	 	 	2-6	 
	 
	 	 	 	 
	III. GEOLOGY 
	 	 	3-1	 
	 
	 	 	 	 
	IV. MINE DESIGN
	 	 	 	 
	4.1 Stripping 
	 	 	4-1	 
	4.2 Clearing 
	 	 	4-3	 
	4.3 Lignite and Overburden Quantities 
	 	 	4-3	 
	 
	 	 	 	 
	V. DEVELOPMENT
	 	 	 	 
	5.1 Overburden Dewatering 
	 	 	5-1	 
	5.2 Mine Electrical System 
	 	 	5-3	 
	5.3 Civil Development Activities 
	 	 	5-4	 
	5.4 Development Projects 
	 	 	5-5	 
	 
	 	 	 	 
	VI. COMPLIANCE
	 	 	 	 
	 
	 	 	 	 
	6.1 Regrade / Reclamation Cover 
	 	 	6-1	 
	6.2 Final Surface Preparation 
	 	 	6-1	 
	6.3 Drainage Control 
	 	 	6-3	 
	6.4 1999 Current Revegetation Schedule 
	 	 	6-4	 
	6.5 Extended Responsibility Period 
	 	 	6-4	 
	 
	 	 	 	 
	VII. LAND 
	 	 	7-1	 
	 
	 	 	 	 
	VIII. EQUIPMENT/MANPOWER 
	 	 	8-1	 
	 
	 	 	 	 
	IX.-X. EXHIBITS
	 	 	 	 

i 

 

Jewett Mine

1999 Annual Mine Plan

LIST OF TABLES

	 	 	 	 	 
	Table 2.1 Lignite Delivery Schedule 
	 	 	2-1	 
	 
	 	 	 	 
	Table 2.2 Dragline Rates 
	 	 	2-3	 
	 
	 	 	 	 
	Table 2.3 Equipment Availability 
	 	 	2-5	 
	 
	 	 	 	 
	Table 3.1 Production Drilling Program 
	 	 	3-3	 
	 
	 	 	 	 
	Table 4.1 DL25 - Area B Quantities 
	 	 	4-4	 
	 
	 	 	 	 
	Table 4.2 DL26 - Area C & BX Quantities 
	 	 	4-5	 
	 
	 	 	 	 
	Table 4.3 DL27 Quantities 
	 	 	4-6	 
	 
	 	 	 	 
	Table 4.4 DL28 Quantities 
	 	 	4-7	 
	 
	 	 	 	 
	Table 4.5 Combined Mining Area Quantities 
	 	 	4-8	 
	 
	 	 	 	 
	Table 4.6 Inventory Schedule 
	 	 	4-9	 
	 
	 	 	 	 
	Table 4.7 Lignite Quality 
	 	 	4-10	 
	 
	 	 	 	 
	Table 5.1 Dewatering Installation Table 
	 	 	5-1	 
	 
	 	 	 	 
	Table 6.1 Acres Regraded And Reclaimed 
	 	 	6-2	 
	 
	 	 	 	 
	Table 7.1 Projected Deliveries by Lease for 1999 
	 	 	7-3	 
	 
	 	 	 	 
	Table 7.2 Sales Tonnage Projections 
	 	 	7-4	 
	 
	 	 	 	 
	Table 8.1 Jewett Mine Staffing Plan 
	 	 	8-1	 
	 
	 	 	 	 
	Table 8.2 Major Equipment Requirements 
	 	 	8-2	 
	 
	 	 	 	 
	Table 8.3 Major Equipment Replacement Schedule 
	 	 	8-3	 
	 
	 	 	 	 
	Table 8.4 Equipment Hours 
	 	 	8-4	 
	 
	 	 	 	 
	Table 8.5 Equipment Hours — Fleet Summary 
	 	 	8-6	 

 

 

I. OVERVIEW

     The 1999 Annual Mine Plan (99 AMP) was prepared to address mining and support issues in
sufficient detail, to enable preparation of the 1999 Capital and Expense Budgets for the Jewett
Mine.

     There has been a significant increase in delivery requirements since the publication of the
1998 Annual Mine Plan (98 AMP). This increase is being made up in several ways.

     One of the changes is the application of the BWE in tandem with a dragline. This is expected
to raise the annual BWE production from 10.5 to 14 million bcy/yr. A geotechnical evaluation of
this operation currently is being performed. Blasting is also being tried, on a limited basis, to
increase dragline productivity. Finally, our truck fleet will begin using larger trucks and
eventually more of them.

     Reserve calculations are based on the latest geologic models, 1999 East and 1998 West. In some
parts of Area C the lower seams (5 and 6) have been combined due to minimal parting thickness and
acceptable quality. Mining sequences follow those contained in Plan K quite closely.

     A permit renewal / revision was approved on June 30, 1998 and the order became final on July
23, 1998. This renewal extended the permit term for another five years and allows for mining in
Area DX. All stripping advances conform to the existing disturbance boundaries.

 1-1 

 

 

II. ASSUMPTIONS

2.1 DELIVERY SCHEDULE

TABLE 2.1

LIGNITE DELIVERY SCHEDULE

HL&P Delivery Schedule (Jones to Embry, April 2, 1998)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Period	 	Tons	 	BTU/Ib.	 	TBTUs
	January
	 	 	754	 	 	 	6508	 	 	 	9.81	 
	February
	 	 	668	 	 	 	6428	 	 	 	8.59	 
	March
	 	 	471	 	 	 	6662	 	 	 	6.28	 
	April
	 	 	587	 	 	 	6694	 	 	 	7.86	 
	May
	 	 	820	 	 	 	6694	 	 	 	10.98	 
	June
	 	 	800	 	 	 	6694	 	 	 	10.71	 
	July
	 	 	830	 	 	 	6694	 	 	 	11.11	 
	August
	 	 	830	 	 	 	6694	 	 	 	11.11	 
	September
	 	 	800	 	 	 	6694	 	 	 	10.71	 
	October
	 	 	820	 	 	 	6694	 	 	 	10.98	 
	November
	 	 	800	 	 	 	6694	 	 	 	10.71	 
	December
	 	 	820	 	 	 	6694	 	 	 	10.98	 
	1998 Total
	 	 	9,000	 	 	 	6657	 	 	 	119.83	 
	 
	January
	 	 	840	 	 	 	6579	 	 	 	11.05	 
	February
	 	 	760	 	 	 	6579	 	 	 	10.00	 
	March
	 	 	590	 	 	 	6579	 	 	 	7.76	 
	April
	 	 	420	 	 	 	6579	 	 	 	5.53	 
	May
	 	 	570	 	 	 	6579	 	 	 	7.50	 
	June
	 	 	830	 	 	 	6579	 	 	 	10.92	 
	July
	 	 	860	 	 	 	6579	 	 	 	11.32	 
	August
	 	 	860	 	 	 	6579	 	 	 	11.32	 
	September
	 	 	830	 	 	 	6579	 	 	 	10.92	 
	October
	 	 	860	 	 	 	6579	 	 	 	11.32	 
	November
	 	 	830	 	 	 	6579	 	 	 	10.92	 
	December
	 	 	850	 	 	 	6579	 	 	 	11.18	 
	1999 Total
	 	 	9,100	 	 	 	6579	 	 	 	119.74	 
	 
	1st Qtr
	 	 	2,500	 	 	 	6590	 	 	 	32.95	 
	2nd Qtr
	 	 	2,100	 	 	 	6590	 	 	 	27.68	 
	3rd Qtr
	 	 	2,500	 	 	 	6590	 	 	 	32.95	 
	4th Qtr
	 	 	2,600	 	 	 	6590	 	 	 	34.27	 
	2000 Total
	 	 	9,700	 	 	 	6590	 	 	 	127.85	 
	 
	1st Qtr
	 	 	2,400	 	 	 	6563	 	 	 	31.50	 
	2nd Qtr
	 	 	2,400	 	 	 	6563	 	 	 	31.50	 
	3rd Qtr
	 	 	2,500	 	 	 	6563	 	 	 	32.82	 
	4th Qtr
	 	 	2,600	 	 	 	6563	 	 	 	34.13	 
	2001 Total
	 	 	9,900	 	 	 	6563	 	 	 	129.95	 
	 
	2002
	 	 	10,000	 	 	 	6473	 	 	 	129.46	 
	2003
	 	 	9,700	 	 	 	6411	 	 	 	124.37	 
	2004
	 	 	9,800	 	 	 	6493	 	 	 	127.26	 
	2005
	 	 	10,200	 	 	 	6399	 	 	 	130.54	 
	2006
	 	 	9,900	 	 	 	6544	 	 	 	129.57	 
	2007
	 	 	9,600	 	 	 	6520	 	 	 	125.18	 
	2008
	 	 	9,900	 	 	 	6428	 	 	 	327.27	 

 2-1 

 

 

2.2 GENERAL

     Draglines are given highest priority, they are scheduled at 100% of available hours. The BWE
is always scheduled in tandem with a dragline so the BWE is not sequenced as a separate unit. The
mobile fleet size is levelized to meet capacity needed after using all DL/BWE hours.

     Working inventory capacities are assumed to be approximately 110,000 tons per dragline pit.
Lignite Handling Facility & mine area stockpile capacities are assumed to be limited to 1,150,000
tons. Minimum total inventory is targeted at 700,000 tons.

     Interburden with a maximum thickness of 10 feet is assigned to mobile equipment for removal.
Interburden with thickness greater than 10 feet is assigned to the draglines for removal.

2.3 EQUIPMENT OPERATION

Dragline Rates

The dragline targets were the following annualized rates:

	 	 	 	 	 
	Rate for the 8200

	 	20,000,000 cy/yr	 	 
	 
	Rate for the 8750

	 	28,000,000 cy/yr	 	 
	 
	Tandem rate for 8750 & BWE

	 	42,000,000 bcy/yr
	 	(80% for the first 6 months)
	 
	Tandem rate for 8200 & BWE

	 	32,000,000 bcy/yr	 	 

The Table 2.2 represents the dragline rates used in the equipment scheduling process.

TABLE 2.2

1999 ANNUAL MINE PLAN

DRAGLINE RATES

BCY/YR x 1000

	 	 	 	 	 	 	 	 	 
	Mode	 	Marion 8200	 	Marion 8750
	Normal
	 	 	24,900	 	 	 	37,100	 
	Top Pass
	 	 	19,500	 	 	 	28,600	 
	Chop
	 	 	20,100	 	 	 	28,600	 
	Spoilside
	 	 	18,800	 	 	 	28,600	 
	Rehandle
	 	 	18,800	 	 	 	28,600	 
	Key
	 	 	20,100	 	 	 	30;400	 
	Tandem
	 	 	18,000	 	 	 	28,000	 

     Marion 8200 rates assume either hi-pro or modified hi-pro buckets ore in service on all
machines. Marion 8750 rates assume a 128 cyd bucket is in use.

 2-2 

 

 

     Dragline rehandle will vary by seam structure, depth & digging mode. The volume of rehandle
(cy/ft of pit) was calculated for various cases using Pitplan/Pitboss. For depths up to 150 ft.,
rehandle is assumed to be included in DL rates. For depths from 150 ft. to 180 ft. as much as an
additional 19% rehandle is added. Dragline boxcut volumes were calculated based on profile volumes
from Pitplan/Pitboss.

Dragline Operating Parameters

	•	 	Draglines 25, 26 & 27 will strip overburden to a maximum depth of 180 feet
	 
	•	 	Dragline 28 will strip overburden to a maximum depth of 165 feet
	 
	•	 	In tandem with the BWE, Dragline 28 will strip overburden to a maximum depth of 185 feet
	 
	•	 	Dragline pit widths are assumed to be 100 ft. minimum; 140 ft. normal; 200 ft. maximum

Dragline Scheduling Parameters

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Oper. Delay	 	Mech./Elec	 	 	 	 	 	 	Dig	 	Mech./Elec
	Machine	 	Dig Hrs	 	Hrs	 	Hrs	 	Holiday	 	Total	 	 	Avail.	 	Avail.
	 	 	 	 
	8200
	 	6,080
	 	1,520
	 	1,136
	 	24
	 	8,760
	 	 	80%
	 	87%
	8750
	 	5,941
	 	1,485
	 	1,310
	 	24
	 	8,760
	 	 	80%
	 	85%

Dragline Moving Delays

	 	1.	 	From Area DX to Area E     1 week
	 
	 	2.	 	From Area E to Area F      1 week
	 
	 	3.	 	From Area C to Area BX     1 week

BWE

     The BWE works in tandem with draglines for the 10 years covered in this mineplan, except for
the first eight months of 2008. The BWE is assumed to produce 14 million bcy/yr except the first
six months when it produces at 80%. When the BWE digs it is always in tandem with a dragline, no
sequence was done for the BWE alone. The BWE move from Area DX to B causes a production delay of
two weeks.

Mobile Fleet

     Mining areas with overburden depths averaging 50 feet or less were reserved in separate blocks
to create mobile pits. In the event of low inventory release by the draglines, supplemental release
will come from the mobile pits using the following assumptions:

	•	 	Dozers: 40% of total overburden (topsoil is removed by trucks; dozers then push burden into
open pit).
	 
	•	 	Trucks: 60% of total overburden (topsoil and remaining burden down to coal)

 2-3 

 

 

	•	 	100 ton end dump trucks are sized with an average annual capacity of 1,200,000
bcy/yr/truck.
	 
	•	 	150 ton end dump trucks are sized with an average annual capacity of 1,700,000
bcy/yr/truck.
	 
	•	 	Overburden in excess of 180 or 185 feet will be removed by mobile equipment.

2.4 LIGNITE RECOVERY & QUALITY

Lignite Recovery Parameters

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Minimum Seam Thickness
	 	 	 	 	 	 	1.5 ft.	 	 	 	 
	Coal Loss Per Seam
	 	 	 	 	 	 	 	 	 	 	 	 
	Seams
	 	1.5 - 2.0 ft.	 	 	50	%	 	(3 & 4 seam)
	Seams
	 	 	 	 	 	 	25	%	 	(5 & 6 seam)
	Seams
	 	2.0 - 4.0 ft.	 	 	10	%	 	 	 	 
	Seams
	 	4.0 - 7.0 ft.	 	 	7.5 	%	 	 	 	 
	Seams
	 	> 7.0 ft.
	 	 	5.0 	%	 	 	 	 

			
	Underground Mines:
	 	6 seam only: 50 % of in-place modeled reserves loaded into Minestar; plus normal mining recovery
losses based on seam thickness listed above to calculate ROM tonnage.
Other seams: Normal recovery adjustments.

     50% of C51 seam in Areas D & DX is wasted (assumed to be poor quality)

Lignite Quality Parameters

	 	 	 	 	 
	Coal Loss Per Seam
	 	0.5 feet
	Maximum Allowable In-Seam Parting
	 	6 inches
	Moisture Adjustment
	 	 	-1.5 	%
	Dilution Added Per Seam
	 	3 inches

2.5 EQUIPMENT HOURS AND AVAILABILITY

     A detailed listing of the equipment operating hours used to determine the equipment
requirements and replacement schedule for the 1999 Budget is shown in Tables 8.4 & 8.5. Equipment
availability is shown in the following table.

 2-4 

 

 

TABLE 2.3

1999 ANNUAL MINE PLAN

EQUIPMENT AVAILABILITY

	 	 	 	 	 	 	 	 	 
	EQUIPMENT	 	1997 ACTUAL	 	1999-2008 PROJECTED
	8200 Dragline
	 	 	89.1	 	 	 	87	 
	8750 Dragline
	 	 	92.3	 	 	 	85	 
	BWE
	 	 	84.1	 	 	 	80	 
	Cat 5130 Backhoe
	 	 	88.9	 	 	 	87	 
	EX1100 Backhoe
	 	 	90.5	 	 	 	87	 
	Cat 992C FEL
	 	 	86.9	 	 	 	85	 
	330M End Dump Truck
	 	 	84.8	 	 	 	85	 
	325M Water Track
	 	 	91.3	 	 	 	90	 
	CH120 Hauler
	 	 	85.8	 	 	 	85	 
	16G Grader
	 	 	92.8	 	 	 	90	 
	D9/RT Dozer
	 	 	89.3	 	 	 	88	 
	D10 / Komatsu Dozer
	 	 	88.9	 	 	 	88	 
	D11 Dozer
	 	 	88.0	 	 	 	88	 
	657E Scraper
	 	 	85.2	 	 	 	83	 

2.6 PLANNED EQUIPMENT DOWNTIME

	 	DL25	–	Nov. 1999 for rail/roller repairs (estimated downtime = 21 days)

Dec. 1999 for Hoist drum ends (estimated downtime = 20 days)
	 
	 	DL26	–	Nov. 1998 for rail/roller repairs & boomfeet (estimated downtime = 21 days)
	 
	 	DL27	–	Mar. 1999 swing rack repairs (estimated downtime = 25 days)

Nov. 2000 for rail/roller repairs (estimated downtime = 21 days)

Dec. 2000 for Hoist drum ends (estimated downtime = 20 days)
	 
	 	DL28	–	Aug. 1999 for Point Sheaves (estimated downtime = 9 days)

2.7 GEOTECHNICAL PARAMETERS

     Figures 2.1 through 2.3 illustrate typical highwall and spoil angles and bench heights used in
the 1999 Annual Mine Plan. These criteria were developed based on the several reports on highwall
and slope stability prepared by Law Engineering in 1990. The areal extent of each highwall
configuration may be seen in the Law Study, Phase III, Fig. 5-1. A summary of general assumptions
follows.

 2-5 

 

 

Single Seam Areas

	 	Spoil:	 	50’ safety bench at 40’ to 80’ height

Individual slope angles of 35° with safety bench

Steepened slope angle of 38° when lower slope is excavated
	 
	 	Highwall:	 	Maximum chop height of 90’

Lower slope angle 45° to max. 90’ height with 50’ wide safety bench

Intermediate slope angle 50° to max. 90’ height with 50’ wide safety bench

Upper slope angle 50° to maximum 90’ height

Multiple Seam Areas

	 	Spoil:	 	50’ safety bench at 40’ to 80’ height

Individual slope angles of 35° with safety bench

Steepened slope angle of 38° when lower slope is excavated
	 
	 	Highwall:	 	Slope angle above 6 seam 55° not to exceed 90’ height

50’ wide safety bench at 4 seam level

Slope angle 60° for 3-4 interburden

Slope angle 55° above 3 seam not to exceed 90’ without safety bench

	 	 	Impediments/Highwalls & Endwalls
	 
	 	 	Slopes 45° with 50’ safety bench at 4 seam or maximum of 90’ from pit floor

			
	NOTE: Dragline setback:	 	15’ from tub to highwall crest
20’ from tub to spoilside crest

     An additional geotechnical evaluation is underway to develop criteria for future mining areas
and new equipment utilization such as the BWE/dragline tandem system.

 2-6 

 

 

JEWETT ANNUAL MINE PLAN

GEOTECHNICAL PARAMETERS

FIGURE 2.1

Area B

	 	 	 	 	 
	Highwall

	 	-
	 	all slope angles 45o (Area I), 50o (Area II)
	 

	 	 	 	50’ safety bench at max 120’ height above 6 seam
	 

	 	 	 	50’ safety bench at max 180’ height above 6 seam
	 

	 	 	 	maximum total overburden depth 180’ (maximum 90’ chop)
	 

	 	 	 	maximum dragline operating bench height 120’
	 

	 	 	 	dragline setback 15’ minimum
	 
	 	 	 	 
	Spoil

	 	-
	 	normal slope angles 35o, modified spoilside slope angles 38o
	 

	 	 	 	50’ safety bench at 65’ to 85’ height when operating spoilside
	 

	 	 	 	dragline setback 30’ minimum

TYPICAL TWO PASS MINING WITH ADVANCE CHOP

SINGLE SEAM MULTIPLE SEAM

[GRAPHIC MATERIAL]

TYPICAL THREE PASS MINING WITH ADVANCE CHOP

MULTIPLE SEAM

[GRAPHIC MATERIAL]

 2-7 

 

 

JEWETT ANNUAL MINE PLAN

GEOTECHNICAL PARAMETERS

FIGURE 2.2

Area C

	 	 	 	 	 
	Highwall

	 	-
	 	all slope angles 45o (Area I), 50o (Area II), 55o (Area III)
	 

	 	 	 	30’ safety bench at 4 seam bench level
	 

	 	 	 	30’ safety bench at min 3 seam bench or 120’ height above 6
seam
	 

	 	 	 	50’ safety bench at max 180’ height above 8 seam
	 

	 	 	 	maximum total overburden depth 180’ (maximum 90’ chop)
	 

	 	 	 	maximum dragline operating bench height 120’
	 

	 	 	 	dragline setback 15’ minimum
	 
	 	 	 	 
	Spoil

	 	-
	 	normal slope angles 35o, modified spoilside slope angles 38o
	 

	 	 	 	50’ safety bench at 65’ to 80’ height when operating spoilside
	 

	 	 	 	dragline setback 30’ minimum

TYPICAL THREE PASS MULTIPLE SEAM WITH CHOP

[GRAPHIC MATERIAL]

 2-8 

 

 

JEWETT ANNUAL MINE PLAN

GEOTECHNICAL PARAMETERS

FIGURE 2.3

Area D

	 	 	 	 	 
	Highwall

	 	-
	 	all slope angles 45o (Area I), 50o (Area II), 55o (Area III)
	 

	 	 	 	All BWE slope angles 65o
	 

	 	 	 	50’ safety bench at 4 seam bench level
	 

	 	 	 	dragline setback 15’ minimum
	 
	 	 	 	 
	Spoil

	 	-
	 	normal slope angles 35o, modified spoilside slope angles 38o
	 

	 	 	 	50’ safety bench at 65’ to 85’ height when operating spoilside
	 

	 	 	 	dragline setback 30’ minimum

TYPICAL BOTTOM PASS WITH CHOPCUT

[GRAPHIC MATERIAL]

TYPICAL 5/6 INTERBURDEN SPOILSIDE REMOVAL

[GRAPHIC MATERIAL]

 2-9 

 

 

III. GEOLOGY

PRODUCTION DRILLING PROGRAM

 3-1 

 

 

IV. MINE DESIGN

4.1 STRIPPING

DL25 (Area B)

     DL25 starts in the southwestern end of Area B and works to the northeast. Areas where depths
are less than 100 feet will be mined using a simple sidecast method. Areas that contain a single
lignite seam and overburden in excess of 100 feet will be mined using a two-pass method of chopcut,
keyway and spoilside modes of digging. Multiple seam areas will utilize a three-pass method
incorporating a top pass into the sequence. DL25 productivity is based on actual historical rates
adjusted to reflect the full-time use of high-pro buckets.

     The abandoned underground mines will be mined by dragline during the 1999 — 2008 time frame. A
ground control plan has been approved by MSHA. Exhibit 9.1 shows the DL25 sequence.

DL 26 (Areas C & BX)

     DL26 will remain in the northern C pits through 1999 and move to the south pits in 2000.
Overburden will be mined using a three-pass method; including chopcut, top pass and spoilside modes
of digging. In the far eastern portion of Area C, only the 3 and 4 seams will be mined and a
chopcut/bottom pass mode of operation will be used. In early 2005, DL26 finishes Area C and moves
to the north end of Area BX where it continues mining to the south. Exhibit 9.2 shows the DL26
sequence.

DL27 (Areas D & DX & E & F)

     DL27 starts the sequence working half pits in Area D with DL28. These Area D pits have been
designed with changing widths, to realign them to a straight pit as soon as possible. In the third
quarter of 1998, DL27 moves to the east-west pits before beginning in Area DX in mid-1999.

     DL27 begins mining the 4 and 5 seam area on the western end of the DX block, with pits that
run generally north-south. It will continue on this alignment through pit 22 and then boxcut in on
the southwestern corner of DX and mine down to 6 seam heading east. After Pit 14, DL27 moves to
Area E.

     The move to Area E is in the second quarter of 2001. The boxcut is in the southwestern comer
along the cropline and under the current alignment of SH164. Mining will proceed to the northeast
until Demney is reached. The dragline then moves to the north end of Area F.

     DL27 arrives in Area F in the 2nd quarter of 2004. The pits run east-west and progress from
the north end of Area F to the south. Exhibits 9.2 and 9.3 show the sequence for DL27.

DL28 (Areas D & DX & E & DX & E)

 4-1 

 

 

     DL28 continues mining to the east in Area D, following the BWE. The BWE has been leaving 20 to
40 feet of its material for DL28 to remove in a chop mode. This was done to give the dragline as
much overburden as possible while still maintaining proper lignite inventories. In mid-1998 the BWE
leaves its prebench working face and begins working in tandem with DL28. A typical range diagram
for the tandem operation may be seen in Figure 4.1. Once the eastern edge of mining is reached in
Area D, the dragline boxcuts the east-west pit to the south and mines south into Area DX. When the
dragline reaches the shorter pits, in the 2nd quarter 2003, it makes the first of its three moves.

     The first move is up to the middle of Area E. The pits run northeast-southwest and the mobile
fleet is scheduled to take the first 12 pits. The trucks will have prepared a boxcut for the
dragline as it starts digging pit 13. DL28 digs 23 more pits to the southeast and in the 1st
quarter of 2005 makes its second move.

     DL28 goes back to the southwestern end of DX and resumes mining where DL27 stopped. Mining
continues to the northeast in DX until it is finished in late 2006. At that point the dragline
moves back to Area E.

     This third move gets the dragline to the north pits in Area E. The dragline starts at the
north end and works to the south. Once this part of Area E is exhausted the machine goes back to
the pit that it left in 2005 and resumes mining to the east in Area E. Exhibit 9.2 shows the
sequence for DL28.

BWE (Areas D & DX & E & DX & B & BX)

     The BWE will always be operating in tandem with a dragline. It is scheduled to produce 14
million bcy/yr. In “tandem” means that those components of the BWE system which are working will be
in the same pit as the dragline. Usually, the BWE, and the spreader will be in use and possibly the
beltwagon if extra reach is needed.

     The BWE works with DL28 until mid-2006 when it moves to DL25 in Area B. At the end of 2007,
the BWE moves to Area BX. It is idle until the 3rd quarter, 2008 when it begins working with DL26.

4.2 CLEARING

1999 ANNUAL MINE PLAN

ESTIMATED CLEARING ACRES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Year	 	1999	 	2000	 	2001	 	2002	 	2003	 	2004	 	2005	 	2006	 	2007	 	2008
	Acres
	 	 	250	 	 	 	280	 	 	 	280	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 

4-2

 

4.3 LIGNITE AND OVERBURDEN QUANTITIES

     From the sequences discussed in Section 4.1, the lignite and levelized overburden quantities
were calculated and categorized by dragline as shown in Tables 4.2 through 4.5. Table 4.6
summarizes these quantities for all of the areas combined.

     A summary of tons uncovered by dragline and delivered to HL&P, along with expected inventory
fluctuations is shown in Table 4.6. Lignite quality is summarized in Table 4.7.

4-3

 

TABLE 4.1

JEWETT MINE — 1999 ANNUAL MINE PLAN

AREA B QUANTITIES — DL25 & MOBB (1000 C.Y.)

LEVELIZED

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	1000	 	 	 	 	 	 	DL	 	TOTAL	 	 	 	 	 	 	TRUCK	 	DOZER	 	TRUCK	 	DOZER	 	 	 	 	 	TOTAL	 	CONTRACT	 	 	TOTAL	 	TOTAL
	 	 	TONS	 	 	DL BCY	 	REHANDLE	 	DL	 	 	PRE-BENCH	 	IN-PIT	 	IN-PIT	 	5/6 LB	 	5/6 LB	 	SPGM	 	MOBILE	 	MOBILE	 	 	BANK	 	YARDS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mar.
	 	 	—	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	Apr.
	 	 	209	 	 	 	 	1,995	 	 	 	—	 	 	 	1,995	 	 	 	 	68	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	129	 	 	 	197	 	 	 	 	 	 	 	 	2,192	 	 	 	2,192	 
	May
	 	 	181	 	 	 	 	1,984	 	 	 	—	 	 	 	1,984	 	 	 	 	99	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	84	 	 	 	183	 	 	 	 	 	 	 	 	2,167	 	 	 	2,167	 
	Jun.
	 	 	70	 	 	 	 	1,625	 	 	 	12	 	 	 	1,637	 	 	 	 	44	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	63	 	 	 	107	 	 	 	 	 	 	 	 	1,732	 	 	 	1,744	 
	Jul.
	 	 	49	 	 	 	 	1,684	 	 	 	13	 	 	 	1,697	 	 	 	 	38	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	3	 	 	 	41	 	 	 	 	 	 	 	 	1,725	 	 	 	1,738	 
	Aug.
	 	 	87	 	 	 	 	1,608	 	 	 	79	 	 	 	1,687	 	 	 	 	130	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	30	 	 	 	160	 	 	 	 	 	 	 	 	1,768	 	 	 	1,847	 
	Sep.
	 	 	83	 	 	 	 	1,557	 	 	 	76	 	 	 	1,633	 	 	 	 	52	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	14	 	 	 	66	 	 	 	 	 	 	 	 	1,623	 	 	 	1,699	 
	Oct.
	 	 	122	 	 	 	 	1,631	 	 	 	54	 	 	 	1,685	 	 	 	 	129	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	56	 	 	 	185	 	 	 	 	 	 	 	 	1,816	 	 	 	1,870	 
	Nov.
	 	 	96	 	 	 	 	1,517	 	 	 	110	 	 	 	1,627	 	 	 	 	51	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	41	 	 	 	92	 	 	 	 	 	 	 	 	1,609	 	 	 	1,719	 
	Dec.
	 	 	109	 	 	 	 	1,547	 	 	 	81	 	 	 	1,628	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	1,547	 	 	 	1,628	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1998
	 	 	1,006	 	 	 	 	15,148	 	 	 	425	 	 	 	15,573	 	 	 	 	611	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	420	 	 	 	1,031	 	 	 	—	 	 	 	 	16,179	 	 	 	16,604	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Jan.
	 	 	89	 	 	 	 	1,595	 	 	 	93	 	 	 	1,688	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	1,595	 	 	 	1,688	 
	Feb.
	 	 	98	 	 	 	 	1,448	 	 	 	74	 	 	 	1,522	 	 	 	 	42	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	49	 	 	 	91	 	 	 	 	 	 	 	 	1,539	 	 	 	1,613	 
	Mar.
	 	 	105	 	 	 	 	1,614	 	 	 	72	 	 	 	1,636	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	1,614	 	 	 	1,686	 
	Apr.
	 	 	114	 	 	 	 	1,576	 	 	 	54	 	 	 	1,630	 	 	 	 	9	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	50	 	 	 	59	 	 	 	 	 	 	 	 	1,635	 	 	 	1,689	 
	May
	 	 	92	 	 	 	 	1,570	 	 	 	113	 	 	 	1,683	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	6	 	 	 	6	 	 	 	 	 	 	 	 	1,576	 	 	 	1,689	 
	Jun.
	 	 	88	 	 	 	 	1,514	 	 	 	113	 	 	 	1,627	 	 	 	 	15	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	17	 	 	 	32	 	 	 	 	 	 	 	 	1,546	 	 	 	1,659	 
	Jul.
	 	 	136	 	 	 	 	1,613	 	 	 	67	 	 	 	1,680	 	 	 	 	1	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	11	 	 	 	12	 	 	 	 	 	 	 	 	1,625	 	 	 	1,692	 
	Aug.
	 	 	40	 	 	 	 	1,647	 	 	 	50	 	 	 	1,697	 	 	 	 	9	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	40	 	 	 	49	 	 	 	 	 	 	 	 	1,696	 	 	 	1,746	 
	Sep.
	 	 	108	 	 	 	 	1,497	 	 	 	126	 	 	 	1,623	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	1,497	 	 	 	1,623	 
	Oct.
	 	 	141	 	 	 	 	1,619	 	 	 	63	 	 	 	1,682	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	1,619	 	 	 	1,682	 
	Nov.
	 	 	50	 	 	 	 	437	 	 	 	63	 	 	 	500	 	 	 	 	7	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	50	 	 	 	57	 	 	 	 	 	 	 	 	494	 	 	 	557	 
	Dec.
	 	 	61	 	 	 	 	652	 	 	 	—	 	 	 	652	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	652	 	 	 	652	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1999
	 	 	1,122	 	 	 	 	16,782	 	 	 	888	 	 	 	17,670	 	 	 	 	83	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	223	 	 	 	306	 	 	 	—	 	 	 	 	17,088	 	 	 	17,976	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1st Qtr.
	 	 	447	 	 	 	 	5,033	 	 	 	—	 	 	 	5,033	 	 	 	 	8	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	107	 	 	 	115	 	 	 	 	 	 	 	 	5,148	 	 	 	5,148	 
	2nd Qtr.
	 	 	630	 	 	 	 	4,925	 	 	 	—	 	 	 	4,925	 	 	 	 	22	 	 	 	900	 	 	 	600	 	 	 	—	 	 	 	—	 	 	 	382	 	 	 	1,904	 	 	 	 	 	 	 	 	6,829	 	 	 	6,829	 
	3rd Qtr.
	 	 	554	 	 	 	 	4,978	 	 	 	—	 	 	 	4,978	 	 	 	 	17	 	 	 	550	 	 	 	367	 	 	 	—	 	 	 	—	 	 	 	228	 	 	 	1,162	 	 	 	 	 	 	 	 	6,140	 	 	 	6,140	 
	4th Qtr.
	 	 	1,005	 	 	 	 	4,784	 	 	 	134	 	 	 	4,918	 	 	 	 	150	 	 	 	2,008	 	 	 	1,339	 	 	 	—	 	 	 	—	 	 	 	338	 	 	 	3,835	 	 	 	 	 	 	 	 	8,619	 	 	 	8,753	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2000
	 	 	2,636	 	 	 	 	19,720	 	 	 	134	 	 	 	19,854	 	 	 	 	197	 	 	 	3,458	 	 	 	2,306	 	 	 	—	 	 	 	—	 	 	 	1,055	 	 	 	7,016	 	 	 	—	 	 	 	 	26,736	 	 	 	26,870	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1st Qtr.
	 	 	814	 	 	 	 	4,703	 	 	 	151	 	 	 	4,854	 	 	 	 	55	 	 	 	968	 	 	 	645	 	 	 	—	 	 	 	—	 	 	 	319	 	 	 	1,987	 	 	 	 	 	 	 	 	6,690	 	 	 	6,841	 
	2nd Qtr.
	 	 	356	 	 	 	 	4,685	 	 	 	244	 	 	 	4,929	 	 	 	 	13	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	120	 	 	 	133	 	 	 	 	 	 	 	 	4,818	 	 	 	5,062	 
	3rd Qtr.
	 	 	380	 	 	 	 	4,737	 	 	 	252	 	 	 	4,989	 	 	 	 	46	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	116	 	 	 	162	 	 	 	 	 	 	 	 	4,899	 	 	 	5,151	 
	4th Qtr.
	 	 	315	 	 	 	 	4,723	 	 	 	210	 	 	 	4,933	 	 	 	 	170	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	151	 	 	 	321	 	 	 	 	 	 	 	 	5,044	 	 	 	5,254	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2001
	 	 	1,865	 	 	 	 	18,848	 	 	 	857	 	 	 	19,705	 	 	 	 	284	 	 	 	968	 	 	 	645	 	 	 	—	 	 	 	—	 	 	 	706	 	 	 	2,603	 	 	 	—	 	 	 	 	21,451	 	 	 	22,308	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2002
	 	 	1,787	 	 	 	 	19,102	 	 	 	588	 	 	 	19,690	 	 	 	 	430	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	603	 	 	 	1,033	 	 	 	 	 	 	 	 	20,135	 	 	 	20,723	 
	2003
	 	 	1,482	 	 	 	 	19,281	 	 	 	395	 	 	 	19,676	 	 	 	 	731	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	597	 	 	 	1,328	 	 	 	 	 	 	 	 	28,609	 	 	 	21,044	 
	2004
	 	 	1,670	 	 	 	 	18,829	 	 	 	855	 	 	 	19,684	 	 	 	 	4,290	 	 	 	632	 	 	 	421	 	 	 	—	 	 	 	—	 	 	 	768	 	 	 	6,111	 	 	 	 	 	 	 	 	24,940	 	 	 	25,795	 
	2005
	 	 	1,655	 	 	 	 	18,301	 	 	 	1,427	 	 	 	19,728	 	 	 	 	493	 	 	 	1,469	 	 	 	979	 	 	 	—	 	 	 	—	 	 	 	835	 	 	 	3,776	 	 	 	 	 	 	 	 	22,077	 	 	 	23,504	 
	2006
	 	 	1,557	 	 	 	 	25,373	 	 	 	957	 	 	 	26,330	 	 	 	 	388	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	674	 	 	 	1,062	 	 	 	 	 	 	 	 	26,435	 	 	 	27,392	 
	2007
	 	 	2,224	 	 	 	 	31,981	 	 	 	—	 	 	 	31,981	 	 	 	 	424	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	941	 	 	 	1,365	 	 	 	 	 	 	 	 	33,346	 	 	 	33,346	 
	2008
	 	 	1,546	 	 	 	 	19,605	 	 	 	445	 	 	 	20,050	 	 	 	 	421	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	653	 	 	 	1,074	 	 	 	 	 	 	 	 	20,679	 	 	 	21,124	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	 	18,550	 	 	 	 	222,970	 	 	 	6,971	 	 	 	229,941	 	 	 	 	8,352	 	 	 	6,527	 	 	 	4,351	 	 	 	—	 	 	 	—	 	 	 	7,475	 	 	 	26,705	 	 	 	—	 	 	 	 	249,675	 	 	 	256,646	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 

     Note: The BWE produces 14 million bcy/yr in tandem with the dragline. It works with DL25 from
mid-2006 through the end of 2007.

4-4

 

TABLE 4.2

JEWETT MINE — 1999 ANNUAL MINE PLAN

AREA B QUANTITIES — DL25 & MOBB (1000 C.Y.)

LEVELIZED

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	1000	 	 	 	 	 	 	DL	 	TOTAL	 	 	 	 	 	 	TRUCK	 	DOZER	 	TRUCK	 	DOZER	 	 	 	 	 	TOTAL	 	CONTRACT	 	 	TOTAL	 	TOTAL
	 	 	TONS	 	 	DL BCY	 	REHANDLE	 	DL	 	 	PRE-BENCH	 	IN-PIT	 	IN-PIT	 	5/6 LB	 	5/6 LB	 	SPGM	 	MOBILE	 	MOBILE	 	 	BANK	 	YARDS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mar.
	 	 	—	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	Apr.
	 	 	88	 	 	 	 	1,647	 	 	 	—	 	 	 	1,647	 	 	 	 	20	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	9	 	 	 	29	 	 	 	 	 	 	 	 	1,676	 	 	 	1,676	 
	May
	 	 	200	 	 	 	 	1,383	 	 	 	238	 	 	 	1,621	 	 	 	 	7	 	 	 	—	 	 	 	—	 	 	 	14	 	 	 	5	 	 	 	—	 	 	 	25	 	 	 	 	 	 	 	 	1,408	 	 	 	1,646	 
	Jun.
	 	 	206	 	 	 	 	1,503	 	 	 	95	 	 	 	1,598	 	 	 	 	137	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	0	 	 	 	26	 	 	 	164	 	 	 	 	 	 	 	 	1,667	 	 	 	1,762	 
	Jul.
	 	 	203	 	 	 	 	1,453	 	 	 	190	 	 	 	1,643	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	15	 	 	 	5	 	 	 	—	 	 	 	20	 	 	 	 	 	 	 	 	1,473	 	 	 	1,663	 
	Aug.
	 	 	195	 	 	 	 	1,508	 	 	 	143	 	 	 	1,651	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	0	 	 	 	—	 	 	 	1	 	 	 	 	 	 	 	 	1,509	 	 	 	1,652	 
	Sep.
	 	 	122	 	 	 	 	1,530	 	 	 	89	 	 	 	1,619	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	15	 	 	 	5	 	 	 	—	 	 	 	20	 	 	 	 	 	 	 	 	1,550	 	 	 	1,639	 
	Oct.
	 	 	226	 	 	 	 	1,359	 	 	 	266	 	 	 	1,625	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	4	 	 	 	1	 	 	 	—	 	 	 	5	 	 	 	 	 	 	 	 	1,364	 	 	 	1,630	 
	Nov.
	 	 	32	 	 	 	 	496	 	 	 	—	 	 	 	496	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	496	 	 	 	496	 
	Dec.
	 	 	206	 	 	 	 	1,355	 	 	 	222	 	 	 	1,577	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	20	 	 	 	7	 	 	 	—	 	 	 	27	 	 	 	 	 	 	 	 	1,382	 	 	 	1,604	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1998
	 	 	1,478	 	 	 	 	12,234	 	 	 	1,243	 	 	 	13,477	 	 	 	 	164	 	 	 	—	 	 	 	—	 	 	 	69	 	 	 	23	 	 	 	35	 	 	 	291	 	 	 	—	 	 	 	 	12,525	 	 	 	13,768	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Jan.
	 	 	155	 	 	 	 	1,537	 	 	 	133	 	 	 	1,670	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	7	 	 	 	2	 	 	 	—	 	 	 	9	 	 	 	 	 	 	 	 	1,546	 	 	 	1,679	 
	Feb.
	 	 	220	 	 	 	 	1,158	 	 	 	293	 	 	 	1,451	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	25	 	 	 	8	 	 	 	—	 	 	 	33	 	 	 	 	 	 	 	 	1,191	 	 	 	1,484	 
	Mar.
	 	 	116	 	 	 	 	1,588	 	 	 	94	 	 	 	1,682	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	11	 	 	 	4	 	 	 	9	 	 	 	24	 	 	 	 	 	 	 	 	1,612	 	 	 	1,706	 
	Apr.
	 	 	176	 	 	 	 	1,370	 	 	 	215	 	 	 	1,585	 	 	 	 	71	 	 	 	—	 	 	 	—	 	 	 	10	 	 	 	3	 	 	 	51	 	 	 	135	 	 	 	 	 	 	 	 	1,505	 	 	 	1,720	 
	May
	 	 	159	 	 	 	 	1,420	 	 	 	225	 	 	 	1,645	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	18	 	 	 	6	 	 	 	—	 	 	 	24	 	 	 	 	 	 	 	 	1,444	 	 	 	1,669	 
	Jun.
	 	 	106	 	 	 	 	1,587	 	 	 	45	 	 	 	1,632	 	 	 	 	105	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	51	 	 	 	156	 	 	 	 	 	 	 	 	1,743	 	 	 	1,788	 
	Jul.
	 	 	189	 	 	 	 	1,412	 	 	 	225	 	 	 	1,637	 	 	 	 	105	 	 	 	—	 	 	 	—	 	 	 	24	 	 	 	8	 	 	 	48	 	 	 	185	 	 	 	 	 	 	 	 	1,597	 	 	 	1,822	 
	Aug.
	 	 	152	 	 	 	 	1,484	 	 	 	172	 	 	 	1,656	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	32	 	 	 	11	 	 	 	—	 	 	 	43	 	 	 	 	 	 	 	 	1,527	 	 	 	1,699	 
	Sep.
	 	 	104	 	 	 	 	1,591	 	 	 	43	 	 	 	1,634	 	 	 	 	77	 	 	 	—	 	 	 	—	 	 	 	4	 	 	 	1	 	 	 	49	 	 	 	131	 	 	 	 	 	 	 	 	1,722	 	 	 	1,765	 
	Oct.
	 	 	150	 	 	 	 	1,479	 	 	 	172	 	 	 	1,651	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	28	 	 	 	9	 	 	 	—	 	 	 	37	 	 	 	 	 	 	 	 	1,516	 	 	 	1,688	 
	Nov.
	 	 	139	 	 	 	 	1,472	 	 	 	130	 	 	 	1,602	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	21	 	 	 	7	 	 	 	—	 	 	 	28	 	 	 	 	 	 	 	 	1,500	 	 	 	1,630	 
	Dec.
	 	 	72	 	 	 	 	1,627	 	 	 	21	 	 	 	1,648	 	 	 	 	90	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	121	 	 	 	211	 	 	 	 	 	 	 	 	1,838	 	 	 	1,859	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1999
	 	 	1,738	 	 	 	 	17,725	 	 	 	1,768	 	 	 	19,493	 	 	 	 	448	 	 	 	—	 	 	 	—	 	 	 	180	 	 	 	60	 	 	 	329	 	 	 	1,017	 	 	 	—	 	 	 	 	18,742	 	 	 	20,210	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1st Qtr.
	 	 	759	 	 	 	 	4,098	 	 	 	151	 	 	 	4,249	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	13	 	 	 	4	 	 	 	—	 	 	 	17	 	 	 	 	 	 	 	 	4,115	 	 	 	4,266	 
	2nd Qtr.
	 	 	689	 	 	 	 	3,861	 	 	 	—	 	 	 	3,861	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	3,861	 	 	 	3,861	 
	3rd Qtr.
	 	 	654	 	 	 	 	3,903	 	 	 	—	 	 	 	3,903	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	3,903	 	 	 	3,903	 
	4th Qtr.
	 	 	440	 	 	 	 	3,803	 	 	 	113	 	 	 	3,916	 	 	 	 	6	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	0	 	 	 	1	 	 	 	8	 	 	 	 	 	 	 	 	3,811	 	 	 	3,924	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2000
	 	 	2,542	 	 	 	 	15,665	 	 	 	264	 	 	 	15,929	 	 	 	 	6	 	 	 	—	 	 	 	—	 	 	 	14	 	 	 	5	 	 	 	1	 	 	 	26	 	 	 	—	 	 	 	 	15,691	 	 	 	15,955	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1st Qtr.
	 	 	467	 	 	 	 	3,503	 	 	 	339	 	 	 	3,842	 	 	 	 	48	 	 	 	—	 	 	 	—	 	 	 	6	 	 	 	2	 	 	 	4	 	 	 	60	 	 	 	 	 	 	 	 	3,563	 	 	 	3,902	 
	2nd Qtr.
	 	 	506	 	 	 	 	3,611	 	 	 	258	 	 	 	3,869	 	 	 	 	83	 	 	 	—	 	 	 	—	 	 	 	4	 	 	 	1	 	 	 	6	 	 	 	94	 	 	 	 	 	 	 	 	3,705	 	 	 	3,963	 
	3rd Qtr.
	 	 	532	 	 	 	 	3,855	 	 	 	400	 	 	 	4,255	 	 	 	 	129	 	 	 	—	 	 	 	—	 	 	 	8	 	 	 	3	 	 	 	6	 	 	 	146	 	 	 	 	 	 	 	 	4,001	 	 	 	4,401	 
	4th Qtr.
	 	 	418	 	 	 	 	4,440	 	 	 	418	 	 	 	4,858	 	 	 	 	338	 	 	 	—	 	 	 	—	 	 	 	18	 	 	 	6	 	 	 	47	 	 	 	409	 	 	 	 	 	 	 	 	4,849	 	 	 	5,267	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2001
	 	 	1,923	 	 	 	 	15,409	 	 	 	1,415	 	 	 	16,824	 	 	 	 	598	 	 	 	—	 	 	 	—	 	 	 	36	 	 	 	12	 	 	 	63	 	 	 	709	 	 	 	—	 	 	 	 	16,118	 	 	 	17,533	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2002
	 	 	2,065	 	 	 	 	18,237	 	 	 	1,226	 	 	 	19,463	 	 	 	 	2,970	 	 	 	—	 	 	 	—	 	 	 	126	 	 	 	42	 	 	 	536	 	 	 	3,674	 	 	 	 	 	 	 	 	21,911	 	 	 	23,137	 
	2003
	 	 	1,768	 	 	 	 	17,186	 	 	 	2,269	 	 	 	19,455	 	 	 	 	5,082	 	 	 	—	 	 	 	—	 	 	 	225	 	 	 	75	 	 	 	1,296	 	 	 	6,678	 	 	 	 	 	 	 	 	23,864	 	 	 	26,133	 
	2004
	 	 	1,589	 	 	 	 	17,753	 	 	 	1,742	 	 	 	19,495	 	 	 	 	3,509	 	 	 	—	 	 	 	—	 	 	 	192	 	 	 	64	 	 	 	1,052	 	 	 	4,817	 	 	 	 	 	 	 	 	22,570	 	 	 	24,312	 
	2005
	 	 	1,481	 	 	 	 	18,700	 	 	 	860	 	 	 	19,560	 	 	 	 	4,250	 	 	 	—	 	 	 	—	 	 	 	72	 	 	 	24	 	 	 	726	 	 	 	5,072	 	 	 	 	 	 	 	 	23,772	 	 	 	24,632	 
	2006
	 	 	2,417	 	 	 	 	18,352	 	 	 	857	 	 	 	19,209	 	 	 	 	1,545	 	 	 	—	 	 	 	—	 	 	 	171	 	 	 	57	 	 	 	1,133	 	 	 	2,906	 	 	 	 	 	 	 	 	21,258	 	 	 	22,115	 
	2007
	 	 	2,729	 	 	 	 	18,693	 	 	 	597	 	 	 	19,290	 	 	 	 	1,235	 	 	 	—	 	 	 	—	 	 	 	246	 	 	 	82	 	 	 	1,269	 	 	 	2,832	 	 	 	 	 	 	 	 	21,525	 	 	 	22,122	 
	2008
	 	 	3,318	 	 	 	 	22,663	 	 	 	290	 	 	 	22,953	 	 	 	 	5,251	 	 	 	—	 	 	 	—	 	 	 	241	 	 	 	80	 	 	 	3,898	 	 	 	9,470	 	 	 	 	 	 	 	 	32,133	 	 	 	33,423	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	 	23,048	 	 	 	 	192,617	 	 	 	12,531	 	 	 	205,148	 	 	 	 	25,058	 	 	 	—	 	 	 	—	 	 	 	1,572	 	 	 	524	 	 	 	10,338	 	 	 	37,492	 	 	 	—	 	 	 	 	230,109	 	 	 	242,640	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 

			
	 
	Note:	 	The BWE produces 14 million bcy/yr in tandem with the dragline. It starts with DL26 in 3rd quarter, 2004.
DL26 moves to the south C pits in Jan. 2000 and then to Area BX in late 2005.

4-5

 

TABLE 4.3

JEWETT MINE — 1999 ANNUAL MINE PLAN

QUANTITIES — DL27 & MOBE & MOBF (1000 C.Y.)

LEVELIZED

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	1000	 	 	 	 	 	 	DL	 	TOTAL	 	 	 	 	 	 	TRUCK	 	DOZER	 	TRUCK	 	DOZER	 	 	 	 	 	TOTAL	 	CONTRACT	 	 	TOTAL	 	TOTAL
	 	 	TONS	 	 	DL BCY	 	REHANDLE	 	DL	 	 	PRE-BENCH	 	IN-PIT	 	IN-PIT	 	5/6 LB	 	5/6 LB	 	SPGM	 	MOBILE	 	MOBILE	 	 	BANK	 	YARDS
	 	 	 	 	 	 	 	 	 	 
	Mar.
	 	 	—	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	Apr.
	 	 	203	 	 	 	 	1,830	 	 	 	—	 	 	 	1,830	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	106	 	 	 	106	 	 	 	 	 	 	 	 	1,936	 	 	 	1,936	 
	May
	 	 	260	 	 	 	 	1,810	 	 	 	—	 	 	 	1,810	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	35	 	 	 	35	 	 	 	 	 	 	 	 	1,845	 	 	 	1,845	 
	Jun.
	 	 	244	 	 	 	 	1,739	 	 	 	—	 	 	 	1,739	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	229	 	 	 	229	 	 	 	 	 	 	 	 	1,968	 	 	 	1,968	 
	Jul.
	 	 	229	 	 	 	 	1,697	 	 	 	—	 	 	 	1,697	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	443	 	 	 	443	 	 	 	 	 	 	 	 	2,140	 	 	 	2,140	 
	Aug.
	 	 	133	 	 	 	 	1,661	 	 	 	—	 	 	 	1,661	 	 	 	 	150	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	167	 	 	 	317	 	 	 	 	 	 	 	 	1,978	 	 	 	1,978	 
	Sep.
	 	 	125	 	 	 	 	1,634	 	 	 	—	 	 	 	1,634	 	 	 	 	152	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	237	 	 	 	389	 	 	 	 	 	 	 	 	2,023	 	 	 	2,023	 
	Oct.
	 	 	168	 	 	 	 	1,670	 	 	 	—	 	 	 	1,670	 	 	 	 	200	 	 	 	—	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	106	 	 	 	306	 	 	 	 	 	 	 	 	1,976	 	 	 	1,976	 
	Nov.
	 	 	226	 	 	 	 	1,598	 	 	 	141	 	 	 	1,739	 	 	 	 	—	 	 	 	347	 	 	 	231	 	 	 	8	 	 	 	3	 	 	 	—	 	 	 	589	 	 	 	 	 	 	 	 	2,187	 	 	 	2,328	 
	Dec.
	 	 	220	 	 	 	 	1,619	 	 	 	—	 	 	 	1,619	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	454	 	 	 	454	 	 	 	 	 	 	 	 	2,073	 	 	 	2,073	 
	 	 	 	 	 	 	 	 	 	 	 
	1998
	 	 	1,808	 	 	 	 	15,258	 	 	 	141	 	 	 	15,399	 	 	 	 	502	 	 	 	347	 	 	 	231	 	 	 	8	 	 	 	3	 	 	 	1,772	 	 	 	2,868	 	 	 	—	 	 	 	 	18,126	 	 	 	18,267	 
	 	 	 	 	 	 	 	 	 	 	 
	Jan.
	 	 	263	 	 	 	 	1,650	 	 	 	—	 	 	 	1,650	 	 	 	 	400	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	41	 	 	 	441	 	 	 	 	 	 	 	 	2,091	 	 	 	2,091	 
	Feb.
	 	 	244	 	 	 	 	1,519	 	 	 	—	 	 	 	1,519	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	416	 	 	 	416	 	 	 	 	 	 	 	 	1,935	 	 	 	1,935	 
	Mar.
	 	 	60	 	 	 	 	304	 	 	 	—	 	 	 	304	 	 	 	 	300	 	 	 	—	 	 	 	—	 	 	 	5	 	 	 	2	 	 	 	200	 	 	 	506	 	 	 	 	 	 	 	 	810	 	 	 	810	 
	Apr.
	 	 	225	 	 	 	 	1,597	 	 	 	—	 	 	 	1,597	 	 	 	 	200	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	166	 	 	 	366	 	 	 	 	 	 	 	 	1,963	 	 	 	1,963	 
	May
	 	 	125	 	 	 	 	1,831	 	 	 	—	 	 	 	1,831	 	 	 	 	100	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	153	 	 	 	253	 	 	 	 	 	 	 	 	2,084	 	 	 	2,084	 
	Jun.
	 	 	141	 	 	 	 	1,743	 	 	 	—	 	 	 	1,743	 	 	 	 	200	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	152	 	 	 	352	 	 	 	 	 	 	 	 	2,095	 	 	 	2,095	 
	Jul.
	 	 	149	 	 	 	 	1,809	 	 	 	—	 	 	 	1,809	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	140	 	 	 	140	 	 	 	 	 	 	 	 	1,949	 	 	 	1,949	 
	Aug.
	 	 	183	 	 	 	 	1,852	 	 	 	—	 	 	 	1,852	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	74	 	 	 	74	 	 	 	 	 	 	 	 	1,926	 	 	 	1,926	 
	Sep.
	 	 	162	 	 	 	 	1,752	 	 	 	—	 	 	 	1,752	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	55	 	 	 	55	 	 	 	 	 	 	 	 	1,807	 	 	 	1,807	 
	Oct.
	 	 	149	 	 	 	 	1,855	 	 	 	—	 	 	 	1,855	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	69	 	 	 	69	 	 	 	 	 	 	 	 	1,924	 	 	 	1,924	 
	Nov.
	 	 	186	 	 	 	 	1,742	 	 	 	—	 	 	 	1,742	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	71	 	 	 	71	 	 	 	 	 	 	 	 	1,813	 	 	 	1,813	 
	Dec.
	 	 	165	 	 	 	 	1,807	 	 	 	—	 	 	 	1,807	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	5	 	 	 	2	 	 	 	86	 	 	 	93	 	 	 	 	 	 	 	 	1,900	 	 	 	1,900	 
	 	 	 	 	 	 	 	 	 	 	 
	1999
	 	 	2,052	 	 	 	 	19,461	 	 	 	—	 	 	 	19,461	 	 	 	 	1,200	 	 	 	—	 	 	 	—	 	 	 	10	 	 	 	3	 	 	 	1,623	 	 	 	2,836	 	 	 	—	 	 	 	 	22,297	 	 	 	22,297	 
	 	 	 	 	 	 	 	 	 	 	 
	1st Qtr.
	 	 	420	 	 	 	 	4,620	 	 	 	201	 	 	 	4,821	 	 	 	 	450	 	 	 	—	 	 	 	—	 	 	 	206	 	 	 	69	 	 	 	4	 	 	 	729	 	 	 	 	 	 	 	 	5.349	 	 	 	5,550	 
	2nd Qtr.
	 	 	211	 	 	 	 	4,491	 	 	 	337	 	 	 	4,828	 	 	 	 	160	 	 	 	—	 	 	 	—	 	 	 	312	 	 	 	104	 	 	 	120	 	 	 	696	 	 	 	 	 	 	 	 	5,187	 	 	 	5,524	 
	3rd Qtr.
	 	 	350	 	 	 	 	4,578	 	 	 	281	 	 	 	4,859	 	 	 	 	827	 	 	 	—	 	 	 	—	 	 	 	538	 	 	 	179	 	 	 	204	 	 	 	1,748	 	 	 	 	 	 	 	 	6,326	 	 	 	6,607	 
	4th Qtr.
	 	 	139	 	 	 	 	2,352	 	 	 	288	 	 	 	2,640	 	 	 	 	150	 	 	 	—	 	 	 	—	 	 	 	200	 	 	 	67	 	 	 	71	 	 	 	487	 	 	 	 	 	 	 	 	2,839	 	 	 	3,127	 
	 	 	 	 	 	 	 	 	 	 	 
	2000
	 	 	1,120	 	 	 	 	16,041	 	 	 	1,107	 	 	 	17,148	 	 	 	 	1,587	 	 	 	—	 	 	 	—	 	 	 	1,256	 	 	 	419	 	 	 	399	 	 	 	3,660	 	 	 	—	 	 	 	 	19,701	 	 	 	20,808	 
	 	 	 	 	 	 	 	 	 	 	 
	1st Qtr.
	 	 	346	 	 	 	 	4,366	 	 	 	394	 	 	 	4,760	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	412	 	 	 	137	 	 	 	230	 	 	 	779	 	 	 	 	 	 	 	 	5,145	 	 	 	5,539	 
	2nd Qtr.
	 	 	817	 	 	 	 	5,360	 	 	 	106	 	 	 	5,466	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	234	 	 	 	234	 	 	 	 	 	 	 	 	5,594	 	 	 	5,700	 
	3rd Qtr.
	 	 	991	 	 	 	 	5,654	 	 	 	—	 	 	 	5,654	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	37	 	 	 	12	 	 	 	388	 	 	 	437	 	 	 	 	 	 	 	 	6,091	 	 	 	6,091	 
	4th Qtr.
	 	 	1,117	 	 	 	 	5,749	 	 	 	—	 	 	 	5,749	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	77	 	 	 	26	 	 	 	270	 	 	 	372	 	 	 	 	 	 	 	 	6,121	 	 	 	6,121	 
	 	 	 	 	 	 	 	 	 	 	 
	2001
	 	 	3,271	 	 	 	 	21,129	 	 	 	500	 	 	 	21,629	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	525	 	 	 	175	 	 	 	1,122	 	 	 	1,822	 	 	 	—	 	 	 	 	22,951	 	 	 	23,451	 
	 	 	 	 	 	 	 	 	 	 	 
	2002
	 	 	3,714	 	 	 	 	22,212	 	 	 	14	 	 	 	22,226	 	 	 	 	3,000	 	 	 	—	 	 	 	—	 	 	 	148	 	 	 	49	 	 	 	1,715	 	 	 	4,912	 	 	 	 	 	 	 	 	27,124	 	 	 	27,138	 
	2003
	 	 	3,316	 	 	 	 	21,150	 	 	 	100	 	 	 	21,250	 	 	 	 	—	 	 	 	4,226	 	 	 	2,817	 	 	 	—	 	 	 	—	 	 	 	1,500	 	 	 	8,543	 	 	 	 	 	 	 	 	29,693	 	 	 	29,793	 
	2004
	 	 	2,403	 	 	 	 	20,213	 	 	 	150	 	 	 	20,363	 	 	 	 	2,743	 	 	 	950	 	 	 	634	 	 	 	29	 	 	 	10	 	 	 	1,596	 	 	 	5,962	 	 	 	 	 	 	 	 	26,175	 	 	 	26,325	 
	2005
	 	 	3,023	 	 	 	 	20,589	 	 	 	473	 	 	 	21,062	 	 	 	 	2,250	 	 	 	1,584	 	 	 	1,056	 	 	 	190	 	 	 	63	 	 	 	490	 	 	 	5,633	 	 	 	 	 	 	 	 	26,222	 	 	 	26,695	 
	2006
	 	 	4,120	 	 	 	 	20,358	 	 	 	803	 	 	 	21,161	 	 	 	 	6,487	 	 	 	4,751	 	 	 	3,168	 	 	 	150	 	 	 	50	 	 	 	2,007	 	 	 	16,613	 	 	 	 	 	 	 	 	36,971	 	 	 	37,774	 
	2007
	 	 	3,402	 	 	 	 	19,825	 	 	 	1,254	 	 	 	21,079	 	 	 	 	9,436	 	 	 	2,176	 	 	 	1,451	 	 	 	108	 	 	 	36	 	 	 	1,561	 	 	 	14,768	 	 	 	 	 	 	 	 	34,593	 	 	 	35,847	 
	2008
	 	 	2,755	 	 	 	 	20,859	 	 	 	473	 	 	 	21,332	 	 	 	 	5,720	 	 	 	—	 	 	 	—	 	 	 	157	 	 	 	52	 	 	 	965	 	 	 	6,894	 	 	 	 	 	 	 	 	27,753	 	 	 	28,226	 
	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	 	30,984	 	 	 	 	117,095	 	 	 	5,015	 	 	 	222,110	 	 	 	 	32,925	 	 	 	14,035	 	 	 	9,356	 	 	 	2,580	 	 	 	860	 	 	 	14,755	 	 	 	74,511	 	 	 	0	 	 	 	 	291,606	 	 	 	296,621	 
	 	 	 	 	 	 	 	 	 	 	 

 

			
	Note:	 	DL27 moves to Area DX in April 99, the west end of Area E in April 2001 and the north end of
Area F in Mid-2004.

4-6

 

TABLE 4.4

JEWETT MINE — 1999 ANNUAL MINE PLAN

AREA B QUANTITIES — DL28 (1000 C.Y.)

LEVELIZED

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	1000	 	 	 	 	 	 	DL	 	TOTAL	 	 	 	 	 	 	TRUCK	 	DOZER	 	TRUCK	 	DOZER	 	 	 	 	 	TOTAL	 	CONTRACT	 	 	TOTAL	 	TOTAL
	 	 	TONS	 	 	DL BCY	 	REHANDLE	 	DL	 	 	PRE-BENCH	 	IN-PIT	 	IN-PIT	 	5/6 LB	 	5/6 LB	 	SPGM	 	MOBILE	 	MOBILE	 	 	BANK	 	YARDS
	 	 	 	 	 	 	 	 	 	 	 
	Mar.
	 	 	—	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	Apr.
	 	 	244	 	 	 	 	2,599	 	 	 	—	 	 	 	2,599	 	 	 	 	205	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	25	 	 	 	230	 	 	 	 	 	 	 	 	2,829	 	 	 	2,829	 
	May
	 	 	220	 	 	 	 	2,558	 	 	 	—	 	 	 	2,558	 	 	 	 	328	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	26	 	 	 	354	 	 	 	 	 	 	 	 	2,912	 	 	 	2,912	 
	Jun.
	 	 	234	 	 	 	 	2,489	 	 	 	—	 	 	 	2,489	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	2,489	 	 	 	2,489	 
	Jul.
	 	 	307	 	 	 	 	2,582	 	 	 	—	 	 	 	2,582	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	1	 	 	 	 	 	 	 	 	2,583	 	 	 	2,583	 
	Aug.
	 	 	418	 	 	 	 	2,862	 	 	 	—	 	 	 	2,862	 	 	 	 	22	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	22	 	 	 	 	 	 	 	 	2,884	 	 	 	2,884	 
	Sep.
	 	 	406	 	 	 	 	2,771	 	 	 	—	 	 	 	2,771	 	 	 	 	25	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	5	 	 	 	30	 	 	 	 	 	 	 	 	2,801	 	 	 	2,801	 
	Oct.
	 	 	378	 	 	 	 	2,862	 	 	 	—	 	 	 	2,862	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	5	 	 	 	5	 	 	 	 	 	 	 	 	2,867	 	 	 	2,867	 
	Nov.
	 	 	342	 	 	 	 	2,771	 	 	 	—	 	 	 	2,771	 	 	 	 	50	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	3	 	 	 	53	 	 	 	 	 	 	 	 	2,824	 	 	 	2,824	 
	Dec.
	 	 	349	 	 	 	 	2,771	 	 	 	—	 	 	 	2,771	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	26	 	 	 	26	 	 	 	 	 	 	 	 	2,797	 	 	 	2,797	 
	 	 	 	 	 	 	 	 	 	 	 
	1998
	 	 	2,898	 	 	 	 	24,265	 	 	 	—	 	 	 	24,265	 	 	 	 	630	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	91	 	 	 	721	 	 	 	—	 	 	 	 	24,986	 	 	 	24,986	 
	 	 	 	 	 	 	 	 	 	 	 
	Jan.
	 	 	437	 	 	 	 	3,551	 	 	 	—	 	 	 	3,551	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	155	 	 	 	155	 	 	 	 	 	 	 	 	3,706	 	 	 	3,706	 
	Feb.
	 	 	394	 	 	 	 	3,231	 	 	 	—	 	 	 	3,231	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	12	 	 	 	12	 	 	 	 	 	 	 	 	3,243	 	 	 	3,243	 
	Mar.
	 	 	425	 	 	 	 	3,577	 	 	 	—	 	 	 	3,577	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	78	 	 	 	78	 	 	 	 	 	 	 	 	3,655	 	 	 	3,655	 
	Apr.
	 	 	392	 	 	 	 	3,464	 	 	 	—	 	 	 	3,464	 	 	 	 	10	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	10	 	 	 	20	 	 	 	 	 	 	 	 	3,484	 	 	 	3,484	 
	May
	 	 	278	 	 	 	 	3,577	 	 	 	—	 	 	 	3,577	 	 	 	 	273	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	46	 	 	 	319	 	 	 	 	 	 	 	 	3,896	 	 	 	3,896	 
	Jun.
	 	 	435	 	 	 	 	3,464	 	 	 	—	 	 	 	3,464	 	 	 	 	1	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	36	 	 	 	37	 	 	 	 	 	 	 	 	3,501	 	 	 	3,501	 
	Jul.
	 	 	465	 	 	 	 	3,577	 	 	 	—	 	 	 	3,577	 	 	 	 	109	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	139	 	 	 	248	 	 	 	 	 	 	 	 	3,825	 	 	 	3,825	 
	Aug.
	 	 	319	 	 	 	 	2,538	 	 	 	—	 	 	 	2,538	 	 	 	 	258	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	183	 	 	 	441	 	 	 	 	 	 	 	 	2,979	 	 	 	2,979	 
	Sep.
	 	 	306	 	 	 	 	3,464	 	 	 	—	 	 	 	3,464	 	 	 	 	213	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	179	 	 	 	392	 	 	 	 	 	 	 	 	3,856	 	 	 	3,856	 
	Oct.
	 	 	287	 	 	 	 	3,577	 	 	 	—	 	 	 	3,577	 	 	 	 	281	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	218	 	 	 	499	 	 	 	 	 	 	 	 	4,076	 	 	 	4,076	 
	Nov.
	 	 	301	 	 	 	 	3,464	 	 	 	—	 	 	 	3,464	 	 	 	 	182	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	246	 	 	 	428	 	 	 	 	 	 	 	 	3,892	 	 	 	3,892	 
	Dec.
	 	 	227	 	 	 	 	3,464	 	 	 	—	 	 	 	3,464	 	 	 	 	79	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	196	 	 	 	275	 	 	 	 	 	 	 	 	3,739	 	 	 	3,739	 
	 	 	 	 	 	 	 	 	 	 	 
	1999
	 	 	4,266	 	 	 	 	40,948	 	 	 	—	 	 	 	40,948	 	 	 	 	1,406	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1,498	 	 	 	2,904	 	 	 	—	 	 	 	 	43,852	 	 	 	43,852	 
	 	 	 	 	 	 	 	 	 	 	 
	1st Qtr.
	 	 	892	 	 	 	 	10,386	 	 	 	—	 	 	 	10,386	 	 	 	 	2,200	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	462	 	 	 	2,662	 	 	 	 	 	 	 	 	13,048	 	 	 	13,048	 
	2nd Qtr.
	 	 	898	 	 	 	 	10,499	 	 	 	—	 	 	 	10,499	 	 	 	 	588	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	366	 	 	 	954	 	 	 	 	 	 	 	 	11,453	 	 	 	11,453	 
	3rd Qtr.
	 	 	828	 	 	 	 	10,619	 	 	 	—	 	 	 	10,619	 	 	 	 	336	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	383	 	 	 	719	 	 	 	 	 	 	 	 	11,338	 	 	 	11,338	 
	4th Qtr.
	 	 	1,000	 	 	 	 	10,499	 	 	 	—	 	 	 	10,499	 	 	 	 	1,209	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	283	 	 	 	1,492	 	 	 	 	 	 	 	 	11,991	 	 	 	11,991	 
	 	 	 	 	 	 	 	 	 	 	 
	2000
	 	 	3,618	 	 	 	 	42,003	 	 	 	—	 	 	 	42,003	 	 	 	 	4,333	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1,494	 	 	 	5,827	 	 	 	—	 	 	 	 	47,830	 	 	 	47,830	 
	 	 	 	 	 	 	 	 	 	 	 
	1st Qtr.
	 	 	755	 	 	 	 	10,386	 	 	 	—	 	 	 	10,386	 	 	 	 	1,391	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	17	 	 	 	1,408	 	 	 	 	 	 	 	 	11,794	 	 	 	11,794	 
	2nd Qtr.
	 	 	774	 	 	 	 	10,499	 	 	 	—	 	 	 	10,499	 	 	 	 	2,498	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	492	 	 	 	2,990	 	 	 	 	 	 	 	 	13,489	 	 	 	13,489	 
	3rd Qtr.
	 	 	691	 	 	 	 	10,619	 	 	 	—	 	 	 	10,619	 	 	 	 	2,088	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	632	 	 	 	2,720	 	 	 	 	 	 	 	 	13,339	 	 	 	13,339	 
	4th Qtr.
	 	 	664	 	 	 	 	10,499	 	 	 	—	 	 	 	10,499	 	 	 	 	1,679	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	701	 	 	 	2,380	 	 	 	 	 	 	 	 	12,879	 	 	 	12,879	 
	 	 	 	 	 	 	 	 	 	 	 
	2001
	 	 	2,884	 	 	 	 	42,003	 	 	 	—	 	 	 	42,003	 	 	 	 	7,656	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1,842	 	 	 	9,498	 	 	 	—	 	 	 	 	51,501	 	 	 	51,501	 
	 	 	 	 	 	 	 	 	 	 	 
	2002
	 	 	2,883	 	 	 	 	42,003	 	 	 	—	 	 	 	42,003	 	 	 	 	2,503	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1,769	 	 	 	4,272	 	 	 	 	 	 	 	 	46,275	 	 	 	46,275	 
	2003
	 	 	3,539	 	 	 	 	42,003	 	 	 	—	 	 	 	42,003	 	 	 	 	37	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	2,306	 	 	 	2,343	 	 	 	 	 	 	 	 	44,346	 	 	 	44,346	 
	2004
	 	 	4,300	 	 	 	 	42,003	 	 	 	—	 	 	 	42,003	 	 	 	 	515	 	 	 	—	 	 	 	—	 	 	 	146	 	 	 	49	 	 	 	1,278	 	 	 	1,987	 	 	 	 	 	 	 	 	43,990	 	 	 	43,990	 
	2005
	 	 	3,802	 	 	 	 	42,003	 	 	 	—	 	 	 	42,003	 	 	 	 	2,986	 	 	 	—	 	 	 	—	 	 	 	2,815	 	 	 	938	 	 	 	541	 	 	 	7,280	 	 	 	 	 	 	 	 	49,283	 	 	 	49,283	 
	2006
	 	 	1,804	 	 	 	 	30,011	 	 	 	776	 	 	 	30,787	 	 	 	 	479	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	915	 	 	 	1,394	 	 	 	 	 	 	 	 	31,405	 	 	 	32,181	 
	2007
	 	 	1,668	 	 	 	 	25,429	 	 	 	46	 	 	 	28,475	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1,304	 	 	 	1,304	 	 	 	 	 	 	 	 	29,733	 	 	 	29,779	 
	2008
	 	 	2,319	 	 	 	 	28,058	 	 	 	634	 	 	 	28,692	 	 	 	 	620	 	 	 	—	 	 	 	—	 	 	 	13	 	 	 	4	 	 	 	762	 	 	 	1,399	 	 	 	 	 	 	 	 	29,457	 	 	 	30,091	 
	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	 	33,981	 	 	 	 	403,729	 	 	 	1,456	 	 	 	405,185	 	 	 	 	21,165	 	 	 	—	 	 	 	—	 	 	 	2,973	 	 	 	991	 	 	 	13,800	 	 	 	38,929	 	 	 	—	 	 	 	 	442,658	 	 	 	444,114	 
	 	 	 	 	 	 	 	 	 	 	 

 

			
	Note:	 	The BWE produces 14 million bcy/yr in tandem with the dragline. It works with DL28 to DL25 in mid-2006.

DL28 moves to Area E in 2nd Qtr. 2003, back to DX in 1st Qtr. 2005, and to north Area E pits in late 2006.

4-7

 

TABLE 4.5

JEWETT MINE — 1999 ANNUAL MINE PLAN

COMBINED MINING AREA QUANTITIES (1000 C.Y.)

LEVELIZED

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	1000	 	 	 	 	 	 	DL	 	TOTAL	 	 	 	 	 	 	TRUCK	 	DOZER	 	TRUCK	 	DOZER	 	 	 	 	 	TOTAL	 	CONTRACT	 	 	TOTAL	 	TOTAL
	 	 	TONS	 	 	DL BCY	 	REHANDLE	 	DL	 	 	PRE-BENCH	 	IN-PIT	 	IN-PIT	 	5/6 LB	 	5/6 LB	 	SPGM	 	MOBILE	 	MOBILE	 	 	BANK	 	YARDS
	 	 	 	 	 	 	 	 	 	 
	Mar.
	 	 	—	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	—	 	 	 	—	 
	Apr.
	 	 	744	 	 	 	 	8,071	 	 	 	—	 	 	 	8,071	 	 	 	 	293	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	269	 	 	 	562	 	 	 	—	 	 	 	 	8,633	 	 	 	8,633	 
	May
	 	 	861	 	 	 	 	7,735	 	 	 	238	 	 	 	7,973	 	 	 	 	434	 	 	 	—	 	 	 	—	 	 	 	14	 	 	 	5	 	 	 	145	 	 	 	597	 	 	 	—	 	 	 	 	8,332	 	 	 	8,570	 
	Jun.
	 	 	754	 	 	 	 	7,356	 	 	 	107	 	 	 	7,463	 	 	 	 	181	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	0	 	 	 	318	 	 	 	500	 	 	 	—	 	 	 	 	7,856	 	 	 	7,963	 
	Jul.
	 	 	788	 	 	 	 	7,416	 	 	 	203	 	 	 	7,619	 	 	 	 	38	 	 	 	—	 	 	 	—	 	 	 	15	 	 	 	5	 	 	 	447	 	 	 	505	 	 	 	—	 	 	 	 	7,921	 	 	 	8,124	 
	Aug.
	 	 	833	 	 	 	 	7,639	 	 	 	222	 	 	 	7,861	 	 	 	 	302	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	0	 	 	 	197	 	 	 	500	 	 	 	—	 	 	 	 	8,139	 	 	 	8,361	 
	Sep.
	 	 	736	 	 	 	 	7,492	 	 	 	165	 	 	 	7,657	 	 	 	 	229	 	 	 	—	 	 	 	—	 	 	 	15	 	 	 	5	 	 	 	256	 	 	 	505	 	 	 	—	 	 	 	 	7,997	 	 	 	8,162	 
	Oct.
	 	 	894	 	 	 	 	7,522	 	 	 	320	 	 	 	7,842	 	 	 	 	329	 	 	 	—	 	 	 	—	 	 	 	4	 	 	 	1	 	 	 	167	 	 	 	501	 	 	 	—	 	 	 	 	8,023	 	 	 	8,343	 
	Nov.
	 	 	696	 	 	 	 	6,382	 	 	 	251	 	 	 	6,633	 	 	 	 	101	 	 	 	347	 	 	 	231	 	 	 	8	 	 	 	3	 	 	 	44	 	 	 	734	 	 	 	—	 	 	 	 	7,116	 	 	 	7,367	 
	Dec.
	 	 	884	 	 	 	 	7,292	 	 	 	303	 	 	 	7,995	 	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	20	 	 	 	7	 	 	 	480	 	 	 	507	 	 	 	—	 	 	 	 	7,799	 	 	 	8,102	 
	 	 	 	 	 	 	 	 	 	 	 	 
	1998
	 	 	7,190	 	 	 	 	66,905	 	 	 	1,809	 	 	 	48,714	 	 	 	 	1,907	 	 	 	347	 	 	 	231	 	 	 	77	 	 	 	26	 	 	 	2,323	 	 	 	4,911	 	 	 	—	 	 	 	 	71,816	 	 	 	73,625	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Jan.
	 	 	944	 	 	 	 	8,333	 	 	 	226	 	 	 	8,559	 	 	 	 	400	 	 	 	—	 	 	 	—	 	 	 	7	 	 	 	2	 	 	 	196	 	 	 	605	 	 	 	—	 	 	 	 	8,938	 	 	 	9,164	 
	Feb.
	 	 	956	 	 	 	 	7,356	 	 	 	367	 	 	 	7,723	 	 	 	 	42	 	 	 	—	 	 	 	—	 	 	 	25	 	 	 	8	 	 	 	477	 	 	 	552	 	 	 	—	 	 	 	 	7,908	 	 	 	8,275	 
	Mar.
	 	 	706	 	 	 	 	7,083	 	 	 	166	 	 	 	7,249	 	 	 	 	300	 	 	 	—	 	 	 	—	 	 	 	16	 	 	 	5	 	 	 	287	 	 	 	608	 	 	 	—	 	 	 	 	7,691	 	 	 	7,857	 
	Apr.
	 	 	907	 	 	 	 	8,007	 	 	 	269	 	 	 	8,276	 	 	 	 	290	 	 	 	—	 	 	 	—	 	 	 	10	 	 	 	3	 	 	 	277	 	 	 	580	 	 	 	—	 	 	 	 	8,587	 	 	 	8,856	 
	May
	 	 	654	 	 	 	 	8,398	 	 	 	338	 	 	 	8,736	 	 	 	 	373	 	 	 	—	 	 	 	—	 	 	 	18	 	 	 	6	 	 	 	205	 	 	 	602	 	 	 	—	 	 	 	 	9,000	 	 	 	9,338	 
	Jun.
	 	 	770	 	 	 	 	8,308	 	 	 	158	 	 	 	8,466	 	 	 	 	321	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	256	 	 	 	577	 	 	 	—	 	 	 	 	8,885	 	 	 	9,043	 
	Jul.
	 	 	939	 	 	 	 	8,411	 	 	 	292	 	 	 	8,703	 	 	 	 	215	 	 	 	—	 	 	 	—	 	 	 	24	 	 	 	8	 	 	 	338	 	 	 	585	 	 	 	—	 	 	 	 	8,996	 	 	 	9,288	 
	Aug.
	 	 	694	 	 	 	 	7,521	 	 	 	222	 	 	 	7,743	 	 	 	 	267	 	 	 	—	 	 	 	—	 	 	 	32	 	 	 	11	 	 	 	297	 	 	 	607	 	 	 	—	 	 	 	 	8,128	 	 	 	8,350	 
	Sep.
	 	 	680	 	 	 	 	8,304	 	 	 	169	 	 	 	8,473	 	 	 	 	290	 	 	 	—	 	 	 	—	 	 	 	4	 	 	 	1	 	 	 	283	 	 	 	578	 	 	 	—	 	 	 	 	8,882	 	 	 	9,051	 
	Oct.
	 	 	727	 	 	 	 	8,530	 	 	 	235	 	 	 	8,765	 	 	 	 	281	 	 	 	—	 	 	 	—	 	 	 	28	 	 	 	9	 	 	 	287	 	 	 	605	 	 	 	—	 	 	 	 	9,135	 	 	 	9,370	 
	Nov.
	 	 	676	 	 	 	 	7,115	 	 	 	193	 	 	 	7,308	 	 	 	 	189	 	 	 	—	 	 	 	—	 	 	 	21	 	 	 	7	 	 	 	367	 	 	 	584	 	 	 	—	 	 	 	 	7,699	 	 	 	7,892	 
	Dec.
	 	 	525	 	 	 	 	7,550	 	 	 	21	 	 	 	7,571	 	 	 	 	169	 	 	 	—	 	 	 	—	 	 	 	5	 	 	 	2	 	 	 	403	 	 	 	579	 	 	 	—	 	 	 	 	8,129	 	 	 	8,150	 
	 	 	 	 	 	 	 	 	 	 	 	 
	1999
	 	 	9,178	 	 	 	 	94,916	 	 	 	2,656	 	 	 	97,572	 	 	 	 	3,137	 	 	 	—	 	 	 	—	 	 	 	190	 	 	 	63	 	 	 	3,673	 	 	 	7,963	 	 	 	—	 	 	 	 	101,979	 	 	 	104,635	 
	 	 	 	 	 	 	 	 	 	 	 	 
	1st Qtr.
	 	 	2,518	 	 	 	 	24,137	 	 	 	352	 	 	 	24,489	 	 	 	 	2,658	 	 	 	—	 	 	 	—	 	 	 	219	 	 	 	73	 	 	 	575	 	 	 	3,523	 	 	 	—	 	 	 	 	27,660	 	 	 	28,012	 
	2nd Qtr.
	 	 	2,428	 	 	 	 	23,776	 	 	 	337	 	 	 	24,113	 	 	 	 	770	 	 	 	900	 	 	 	600	 	 	 	312	 	 	 	104	 	 	 	868	 	 	 	3,354	 	 	 	—	 	 	 	 	27,330	 	 	 	27,667	 
	3rd Qtr.
	 	 	2,386	 	 	 	 	24,078	 	 	 	281	 	 	 	24,359	 	 	 	 	1,180	 	 	 	550	 	 	 	367	 	 	 	538	 	 	 	179	 	 	 	815	 	 	 	3,629	 	 	 	—	 	 	 	 	27,707	 	 	 	27,988	 
	4th Qtr.
	 	 	2,584	 	 	 	 	21,438	 	 	 	535	 	 	 	21,973	 	 	 	 	1,515	 	 	 	2,008	 	 	 	1,339	 	 	 	201	 	 	 	67	 	 	 	693	 	 	 	5,823	 	 	 	—	 	 	 	 	27,261	 	 	 	27,796	 
	 	 	 	 	 	 	 	 	 	 	 	 
	2000
	 	 	9,916	 	 	 	 	93,429	 	 	 	1,505	 	 	 	94,934	 	 	 	 	6,123	 	 	 	3,458	 	 	 	2,306	 	 	 	1,270	 	 	 	423	 	 	 	2,949	 	 	 	16,529	 	 	 	—	 	 	 	 	109,958	 	 	 	111,463	 
	 	 	 	 	 	 	 	 	 	 	 	 
	1st Qtr.
	 	 	2,382	 	 	 	 	22,958	 	 	 	884	 	 	 	23,842	 	 	 	 	1,494	 	 	 	968	 	 	 	645	 	 	 	418	 	 	 	139	 	 	 	570	 	 	 	4,234	 	 	 	—	 	 	 	 	27,192	 	 	 	28,076	 
	2nd Qtr.
	 	 	2,453	 	 	 	 	24,155	 	 	 	608	 	 	 	24,763	 	 	 	 	2,594	 	 	 	—	 	 	 	—	 	 	 	4	 	 	 	1	 	 	 	852	 	 	 	3,451	 	 	 	—	 	 	 	 	27,606	 	 	 	28,214	 
	3rd Qtr.
	 	 	2,594	 	 	 	 	24,865	 	 	 	652	 	 	 	25,517	 	 	 	 	2,263	 	 	 	—	 	 	 	—	 	 	 	45	 	 	 	15	 	 	 	1,142	 	 	 	3,465	 	 	 	—	 	 	 	 	28,330	 	 	 	28,982	 
	4th Qtr.
	 	 	2,514	 	 	 	 	25,411	 	 	 	628	 	 	 	26,039	 	 	 	 	2,187	 	 	 	—	 	 	 	—	 	 	 	95	 	 	 	32	 	 	 	1,169	 	 	 	3,432	 	 	 	—	 	 	 	 	28,893	 	 	 	29,521	 
	 	 	 	 	 	 	 	 	 	 	 	 
	2001
	 	 	9,943	 	 	 	 	97,389	 	 	 	2,772	 	 	 	109,161	 	 	 	 	8,538	 	 	 	968	 	 	 	645	 	 	 	561	 	 	 	187	 	 	 	3,733	 	 	 	14,632	 	 	 	—	 	 	 	 	112,021	 	 	 	114,793	 
	 	 	 	 	 	 	 	 	 	 	 	 
	2002
	 	 	10,449	 	 	 	 	101,554	 	 	 	1,828	 	 	 	103,382	 	 	 	 	8,903	 	 	 	—	 	 	 	—	 	 	 	274	 	 	 	91	 	 	 	4,623	 	 	 	13,891	 	 	 	—	 	 	 	 	115,445	 	 	 	117,273	 
	2003
	 	 	10,105	 	 	 	 	99,620	 	 	 	2,764	 	 	 	102,384	 	 	 	 	5,850	 	 	 	4,226	 	 	 	2,817	 	 	 	225	 	 	 	75	 	 	 	5,699	 	 	 	18,892	 	 	 	—	 	 	 	 	118,512	 	 	 	121,276	 
	2004
	 	 	9,962	 	 	 	 	98,798	 	 	 	2,747	 	 	 	101,545	 	 	 	 	11,057	 	 	 	1,582	 	 	 	1,055	 	 	 	367	 	 	 	122	 	 	 	4,694	 	 	 	18,877	 	 	 	—	 	 	 	 	117,675	 	 	 	120,422	 
	2005
	 	 	9,961	 	 	 	 	99,593	 	 	 	2,760	 	 	 	102,353	 	 	 	 	9,979	 	 	 	3,053	 	 	 	2,035	 	 	 	3,077	 	 	 	1,026	 	 	 	2,592	 	 	 	21,761	 	 	 	—	 	 	 	 	121,354	 	 	 	124,114	 
	2006
	 	 	9,898	 	 	 	 	94,094	 	 	 	3,393	 	 	 	97,487	 	 	 	 	8,899	 	 	 	4,751	 	 	 	3,168	 	 	 	321	 	 	 	107	 	 	 	4,729	 	 	 	21,975	 	 	 	—	 	 	 	 	116,069	 	 	 	119,462	 
	2007
	 	 	10,023	 	 	 	 	93,928	 	 	 	1,897	 	 	 	100,825	 	 	 	 	11,095	 	 	 	2,176	 	 	 	1,451	 	 	 	354	 	 	 	118	 	 	 	5,075	 	 	 	20,269	 	 	 	—	 	 	 	 	119,197	 	 	 	121,094	 
	2008
	 	 	9,938	 	 	 	 	91,185	 	 	 	1,842	 	 	 	93,027	 	 	 	 	12,012	 	 	 	—	 	 	 	—	 	 	 	411	 	 	 	137	 	 	 	6,278	 	 	 	18,837	 	 	 	—	 	 	 	 	110,022	 	 	 	111,864	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	 	186,563	 	 	 	 	1,036,411	 	 	 	25,973	 	 	 	1,062,384	 	 	 	 	87,500	 	 	 	20,561	 	 	 	13,708	 	 	 	7,125	 	 	 	2,378	 	 	 	46,368	 	 	 	177,637	 	 	 	—	 	 	 	 	1,214,048	 	 	 	1,240,021	 
	 	 	 	 	 	 	 	 	 	 	 	 

4-8

 

TABLE 4.6

JEWETT MINE — 1999 ANNUAL MINE PLAN

INVENTORY SCHEDULE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	TBtu	 	TBtu	 	TBtu
	 	 	UNCOVERED TONS (1000’s)	 	Delivered	 	Inventory	 	 	ROM	 	Uncovered	 	Delivered	 	Inventory
	 	 	DL 25	 	DL 26	 	DL 27	 	DL 28	 	Mobile	 	Total	 	Total	 	Total	 	 	Quality	 	Total	 	Total	 	Total
	 	 	 	 
	MAR.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	358	 	 	 	 	6,673	 	 	 	 	 	 	 	 	 	 	 	4.78	 
	APR.
	 	 	209	 	 	 	88	 	 	 	203	 	 	 	244	 	 	 	0	 	 	 	744	 	 	 	619	 	 	 	483	 	 	 	 	6,351	 	 	 	9.45	 	 	 	7.86	 	 	 	6.37	 
	MAY
	 	 	181	 	 	 	200	 	 	 	260	 	 	 	220	 	 	 	0	 	 	 	861	 	 	 	834	 	 	 	510	 	 	 	 	6,585	 	 	 	11.34	 	 	 	10.98	 	 	 	6.73	 
	JUNE
	 	 	70	 	 	 	206	 	 	 	244	 	 	 	234	 	 	 	0	 	 	 	754	 	 	 	804	 	 	 	461	 	 	 	 	6,664	 	 	 	10.05	 	 	 	10.71	 	 	 	6.07	 
	JULY
	 	 	49	 	 	 	203	 	 	 	229	 	 	 	307	 	 	 	0	 	 	 	788	 	 	 	800	 	 	 	449	 	 	 	 	6,942	 	 	 	10.94	 	 	 	11.11	 	 	 	5.90	 
	AUG.
	 	 	87	 	 	 	195	 	 	 	133	 	 	 	418	 	 	 	0	 	 	 	833	 	 	 	818	 	 	 	464	 	 	 	 	6,795	 	 	 	11.32	 	 	 	11.11	 	 	 	6.11	 
	SEPT.
	 	 	83	 	 	 	122	 	 	 	125	 	 	 	406	 	 	 	0	 	 	 	736	 	 	 	797	 	 	 	403	 	 	 	 	6,719	 	 	 	9.89	 	 	 	10.71	 	 	 	5.29	 
	OCT.
	 	 	122	 	 	 	226	 	 	 	368	 	 	 	378	 	 	 	0	 	 	 	894	 	 	 	815	 	 	 	482	 	 	 	 	6,739	 	 	 	12.05	 	 	 	10.98	 	 	 	6.36	 
	NOV.
	 	 	96	 	 	 	32	 	 	 	119	 	 	 	342	 	 	 	107	 	 	 	696	 	 	 	806	 	 	 	372	 	 	 	 	6,643	 	 	 	9.25	 	 	 	10.71	 	 	 	4.90	 
	DEC.
	 	 	109	 	 	 	206	 	 	 	220	 	 	 	349	 	 	 	0	 	 	 	884	 	 	 	824	 	 	 	432	 	 	 	 	6,663	 	 	 	11.78	 	 	 	10.98	 	 	 	5.70	 
	 	 	 	 
	1998 Tot.
	 	 	1,006	 	 	 	1,478	 	 	 	1,701	 	 	 	2,898	 	 	 	107	 	 	 	7,190	 	 	 	7,116	 	 	 	432	 	 	 	 	6,681	 	 	 	96.07	 	 	 	95.15	 	 	 	5.70	 
	 	 	 	 
	JAN.
	 	 	89	 	 	 	155	 	 	 	263	 	 	 	437	 	 	 	0	 	 	 	944	 	 	 	823	 	 	 	553	 	 	 	 	6,711	 	 	 	12.67	 	 	 	11.05	 	 	 	7.32	 
	FEB.
	 	 	95	 	 	 	220	 	 	 	244	 	 	 	394	 	 	 	0	 	 	 	956	 	 	 	745	 	 	 	764	 	 	 	 	6,715	 	 	 	12.84	 	 	 	10.00	 	 	 	10.16	 
	MAR.
	 	 	105	 	 	 	116	 	 	 	60	 	 	 	425	 	 	 	0	 	 	 	706	 	 	 	576	 	 	 	894	 	 	 	 	6,735	 	 	 	9.51	 	 	 	7.76	 	 	 	11.91	 
	APR.
	 	 	114	 	 	 	176	 	 	 	225	 	 	 	392	 	 	 	0	 	 	 	907	 	 	 	410	 	 	 	1,391	 	 	 	 	6,742	 	 	 	12.23	 	 	 	5.53	 	 	 	18.61	 
	MAY
	 	 	92	 	 	 	159	 	 	 	125	 	 	 	278	 	 	 	0	 	 	 	654	 	 	 	566	 	 	 	1,480	 	 	 	 	6,628	 	 	 	8.67	 	 	 	7.50	 	 	 	19.78	 
	JUNE
	 	 	88	 	 	 	106	 	 	 	141	 	 	 	435	 	 	 	0	 	 	 	770	 	 	 	816	 	 	 	1,433	 	 	 	 	6,688	 	 	 	10.30	 	 	 	10.92	 	 	 	19.16	 
	JULY
	 	 	136	 	 	 	189	 	 	 	149	 	 	 	465	 	 	 	0	 	 	 	939	 	 	 	844	 	 	 	1,528	 	 	 	 	6,704	 	 	 	12.59	 	 	 	11.32	 	 	 	20.43	 
	AUG.
	 	 	40	 	 	 	152	 	 	 	183	 	 	 	319	 	 	 	0	 	 	 	694	 	 	 	866	 	 	 	1,356	 	 	 	 	6,535	 	 	 	9.07	 	 	 	11.32	 	 	 	18.18	 
	SEPT.
	 	 	108	 	 	 	104	 	 	 	162	 	 	 	306	 	 	 	0	 	 	 	680	 	 	 	834	 	 	 	1,201	 	 	 	 	6,544	 	 	 	8.90	 	 	 	10.92	 	 	 	16.16	 
	OCT.
	 	 	141	 	 	 	150	 	 	 	149	 	 	 	287	 	 	 	0	 	 	 	727	 	 	 	853	 	 	 	1,076	 	 	 	 	6,637	 	 	 	9.65	 	 	 	11.32	 	 	 	14.49	 
	NOV.
	 	 	50	 	 	 	139	 	 	 	186	 	 	 	301	 	 	 	0	 	 	 	676	 	 	 	818	 	 	 	933	 	 	 	 	6,672	 	 	 	9.02	 	 	 	10.92	 	 	 	12.59	 
	DEC.
	 	 	61	 	 	 	72	 	 	 	165	 	 	 	227	 	 	 	0	 	 	 	525	 	 	 	868	 	 	 	590	 	 	 	 	6,438	 	 	 	6.76	 	 	 	11.18	 	 	 	8.17	 
	 	 	 	 
	1999 Tot.
	 	 	1,122	 	 	 	1,738	 	 	 	2,052	 	 	 	4,266	 	 	 	0	 	 	 	9,178	 	 	 	9,019	 	 	 	590	 	 	 	 	6,658	 	 	 	122.21	 	 	 	119.74	 	 	 	8.17	 
	 	 	 	 
	1st Qtr.
	 	 	447	 	 	 	759	 	 	 	420	 	 	 	892	 	 	 	0	 	 	 	2,518	 	 	 	2,502	 	 	 	606	 	 	 	 	6,585	 	 	 	33.16	 	 	 	32.95	 	 	 	8.38	 
	2nd Qtr.
	 	 	393	 	 	 	689	 	 	 	211	 	 	 	898	 	 	 	237	 	 	 	2,428	 	 	 	2,102	 	 	 	932	 	 	 	 	6,586	 	 	 	31.98	 	 	 	27.68	 	 	 	12.68	 
	3rd Qtr.
	 	 	408	 	 	 	654	 	 	 	350	 	 	 	828	 	 	 	146	 	 	 	2,386	 	 	 	2,524	 	 	 	794	 	 	 	 	6,526	 	 	 	31.14	 	 	 	32.95	 	 	 	10.87	 
	4th Qtr.
	 	 	475	 	 	 	440	 	 	 	139	 	 	 	1,000	 	 	 	530	 	 	 	2,584	 	 	 	2,616	 	 	 	762	 	 	 	 	6,550	 	 	 	33.85	 	 	 	34.27	 	 	 	10.45	 
	 	 	 	 
	2000 Tot.
	 	 	1,723	 	 	 	2,542	 	 	 	1,120	 	 	 	3,618	 	 	 	913	 	 	 	9,916	 	 	 	9,744	 	 	 	762	 	 	 	 	6,562	 	 	 	130.13	 	 	 	127.85	 	 	 	10.45	 
	 	 	 	 
	1st Qtr.
	 	 	437	 	 	 	467	 	 	 	346	 	 	 	755	 	 	 	377	 	 	 	2,382	 	 	 	2,414	 	 	 	729	 	 	 	 	6,524	 	 	 	31.08	 	 	 	31.50	 	 	 	10.03	 
	2nd Qtr.
	 	 	356	 	 	 	506	 	 	 	817	 	 	 	774	 	 	 	0	 	 	 	2,453	 	 	 	2,415	 	 	 	768	 	 	 	 	6,523	 	 	 	32.00	 	 	 	31.50	 	 	 	10.53	 
	3rd Qtr.
	 	 	380	 	 	 	532	 	 	 	991	 	 	 	691	 	 	 	0	 	 	 	2,594	 	 	 	2,545	 	 	 	817	 	 	 	 	6,448	 	 	 	33.45	 	 	 	32.82	 	 	 	11.16	 
	4th Qtr.
	 	 	315	 	 	 	418	 	 	 	1,117	 	 	 	664	 	 	 	0	 	 	 	2,514	 	 	 	2,688	 	 	 	643	 	 	 	 	6,348	 	 	 	31.92	 	 	 	34.13	 	 	 	8.95	 
	 	 	 	 
	2001 Tot.
	 	 	1,488	 	 	 	1,923	 	 	 	3,271	 	 	 	2,884	 	 	 	377	 	 	 	9,943	 	 	 	10,062	 	 	 	643	 	 	 	 	6,459	 	 	 	128.45	 	 	 	129.95	 	 	 	8.95	 
	 	 	 	 
	2002
	 	 	1,787	 	 	 	2,065	 	 	 	3,714	 	 	 	2,883	 	 	 	0	 	 	 	10,449	 	 	 	9,971	 	 	 	1,120	 	 	 	 	6,492	 	 	 	135.66	 	 	 	129.46	 	 	 	15.15	 
	2003
	 	 	1,482	 	 	 	1,768	 	 	 	2,481	 	 	 	3,539	 	 	 	835	 	 	 	10,105	 	 	 	9,826	 	 	 	1,399	 	 	 	 	6,329	 	 	 	127.90	 	 	 	124.37	 	 	 	18.68	 
	2004
	 	 	1,396	 	 	 	1,589	 	 	 	2,103	 	 	 	4,300	 	 	 	574	 	 	 	9,962	 	 	 	10,042	 	 	 	1,319	 	 	 	 	6,337	 	 	 	126.25	 	 	 	127.26	 	 	 	17.67	 
	2005
	 	 	1,247	 	 	 	1,481	 	 	 	2,523	 	 	 	3,802	 	 	 	908	 	 	 	9,961	 	 	 	10,090	 	 	 	1,191	 	 	 	 	6,469	 	 	 	128.87	 	 	 	130.54	 	 	 	16.00	 
	2006
	 	 	1,557	 	 	 	2,417	 	 	 	2,620	 	 	 	1,804	 	 	 	1,500	 	 	 	9,898	 	 	 	10,080	 	 	 	1,008	 	 	 	 	6,427	 	 	 	127.23	 	 	 	129.57	 	 	 	13.66	 
	2007
	 	 	2,224	 	 	 	2,729	 	 	 	2,712	 	 	 	1,668	 	 	 	690	 	 	 	10,023	 	 	 	9,931	 	 	 	1,101	 	 	 	 	6,303	 	 	 	126.34	 	 	 	125.18	 	 	 	14.82	 
	2008
	 	 	1,546	 	 	 	3,318	 	 	 	2,755	 	 	 	2,319	 	 	 	0	 	 	 	9,938	 	 	 	9,944	 	 	 	1,094	 	 	 	 	6,399	 	 	 	127.19	 	 	 	127.27	 	 	 	14.74	 
	 	 	 	 
	TOTAL
	 	 	16,578	 	 	 	23,048	 	 	 	27,052	 	 	 	33,981	 	 	 	5,904	 	 	 	106,653	 	 	 	105,825	 	 	 	1,094	 	 	 	 	6,458	 	 	 	1,376.30	 	 	 	1,366.34	 	 	 	14.74	 
	 	 	 	 

4-9

 

TABLE 4.7

JEWETT MINE — 1999 ANNUAL MINE PLAN

LIGNITE QUALITY

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	IN-PLACE	 	 	RUN OF MINE
	 	 	TONS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PERIOD	 	(1000)	 	BTU/LB	 	SULFUR	 	ASH	 	MOISTURE	 	 	TONS (1000)	 	BTU/LB	 	SULFUR	 	ASH	 	MOISURE	 	TBTU
	 	 	 	 
	Mar.
	 	 	0	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	0	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Apr.
	 	 	828	 	 	 	6,709	 	 	 	1.33	 	 	 	15.10	 	 	 	32.40	 	 	 	 	744	 	 	 	6,351	 	 	 	1.24	 	 	 	20.33	 	 	 	29.86	 	 	 	9.45	 
	May
	 	 	942	 	 	 	6,878	 	 	 	1.22	 	 	 	14.10	 	 	 	32.40	 	 	 	 	861	 	 	 	6,585	 	 	 	1.16	 	 	 	18.59	 	 	 	30.02	 	 	 	11.34	 
	June
	 	 	819	 	 	 	6,908	 	 	 	1.26	 	 	 	14.40	 	 	 	31.90	 	 	 	 	754	 	 	 	6,664	 	 	 	1.20	 	 	 	18.46	 	 	 	29.67	 	 	 	10.05	 
	July
	 	 	844	 	 	 	7,173	 	 	 	1.20	 	 	 	12.10	 	 	 	32.60	 	 	 	 	788	 	 	 	6,942	 	 	 	1.16	 	 	 	15.88	 	 	 	30.33	 	 	 	10.94	 
	Aug.
	 	 	902	 	 	 	7,029	 	 	 	1.23	 	 	 	13.30	 	 	 	32.20	 	 	 	 	833	 	 	 	6,795	 	 	 	1.18	 	 	 	17.23	 	 	 	30.01	 	 	 	11.32	 
	Sept.
	 	 	804	 	 	 	6,999	 	 	 	1.28	 	 	 	13.20	 	 	 	32.40	 	 	 	 	736	 	 	 	6,719	 	 	 	1.22	 	 	 	17.53	 	 	 	30.11	 	 	 	9.89	 
	Oct.
	 	 	966	 	 	 	6,987	 	 	 	1.18	 	 	 	13.40	 	 	 	32.30	 	 	 	 	894	 	 	 	6,739	 	 	 	1.14	 	 	 	17.53	 	 	 	30.06	 	 	 	12.05	 
	Nov.
	 	 	760	 	 	 	6,968	 	 	 	1.24	 	 	 	13.40	 	 	 	32.10	 	 	 	 	696	 	 	 	6,643	 	 	 	1.19	 	 	 	18.11	 	 	 	29.75	 	 	 	9.25	 
	Dec.
	 	 	957	 	 	 	6,930	 	 	 	1.14	 	 	 	13.20	 	 	 	32.70	 	 	 	 	884	 	 	 	6,663	 	 	 	1.10	 	 	 	17.42	 	 	 	30.39	 	 	 	11.78	 
	 	 	 	 
	1998
	 	 	7,822	 	 	 	6,953	 	 	 	1.23	 	 	 	13.60	 	 	 	32.30	 	 	 	 	7,190	 	 	 	6,681	 	 	 	1.17	 	 	 	17.87	 	 	 	30.03	 	 	 	96.07	 
	 	 	 	 
	Jan.
	 	 	1,025	 	 	 	7,001	 	 	 	1.18	 	 	 	12.70	 	 	 	32.80	 	 	 	 	944	 	 	 	6,711	 	 	 	1.13	 	 	 	17.13	 	 	 	30.40	 	 	 	12.67	 
	Feb.
	 	 	1,044	 	 	 	6,944	 	 	 	1.14	 	 	 	13.10	 	 	 	32.90	 	 	 	 	956	 	 	 	6,715	 	 	 	1.10	 	 	 	17.14	 	 	 	30.51	 	 	 	12.84	 
	Mar.
	 	 	769	 	 	 	7,025	 	 	 	1.31	 	 	 	13.00	 	 	 	32.50	 	 	 	 	706	 	 	 	6,735	 	 	 	1.25	 	 	 	17.37	 	 	 	30.16	 	 	 	9.51	 
	Apr.
	 	 	985	 	 	 	7,013	 	 	 	1.18	 	 	 	12.50	 	 	 	32.90	 	 	 	 	907	 	 	 	6,742	 	 	 	1.14	 	 	 	16.71	 	 	 	30.57	 	 	 	12.23	 
	May
	 	 	717	 	 	 	6,940	 	 	 	1.40	 	 	 	13.60	 	 	 	32.20	 	 	 	 	654	 	 	 	6,628	 	 	 	1.33	 	 	 	18.14	 	 	 	29.84	 	 	 	8.67	 
	June
	 	 	838	 	 	 	6,996	 	 	 	1.37	 	 	 	13.30	 	 	 	32.20	 	 	 	 	770	 	 	 	6,688	 	 	 	1.30	 	 	 	18.73	 	 	 	29.22	 	 	 	10.30	 
	July
	 	 	1,015	 	 	 	6,952	 	 	 	1.27	 	 	 	12.90	 	 	 	32.80	 	 	 	 	939	 	 	 	6,704	 	 	 	1.22	 	 	 	17.02	 	 	 	30.48	 	 	 	12.59	 
	Aug.
	 	 	755	 	 	 	6,828	 	 	 	1.24	 	 	 	13.30	 	 	 	33.20	 	 	 	 	694	 	 	 	6,535	 	 	 	1.20	 	 	 	17.89	 	 	 	30.72	 	 	 	9.07	 
	Sept.
	 	 	738	 	 	 	6,854	 	 	 	1.28	 	 	 	13.30	 	 	 	33.10	 	 	 	 	680	 	 	 	6,544	 	 	 	1.23	 	 	 	17.94	 	 	 	30.62	 	 	 	8.90	 
	Oct.
	 	 	791	 	 	 	6,912	 	 	 	1.21	 	 	 	13.50	 	 	 	32.50	 	 	 	 	727	 	 	 	6,637	 	 	 	1.16	 	 	 	17.84	 	 	 	30.08	 	 	 	9.65	 
	Nov.
	 	 	739	 	 	 	6,961	 	 	 	1.22	 	 	 	13.00	 	 	 	32.50	 	 	 	 	676	 	 	 	6,672	 	 	 	1.18	 	 	 	17.57	 	 	 	30.11	 	 	 	9.02	 
	Dec.
	 	 	585	 	 	 	6,838	 	 	 	1.28	 	 	 	14.10	 	 	 	32.30	 	 	 	 	525	 	 	 	6,438	 	 	 	1.21	 	 	 	19.89	 	 	 	29.67	 	 	 	6.76	 
	 	 	 	 
	1999
	 	 	10,001	 	 	 	6,945	 	 	 	1.25	 	 	 	13.10	 	 	 	32.70	 	 	 	 	9,178	 	 	 	6,658	 	 	 	1.20	 	 	 	17.67	 	 	 	30.23	 	 	 	122.21	 
	 	 	 	 
	1st Qtr.
	 	 	2,753	 	 	 	6,885	 	 	 	1.15	 	 	 	13.90	 	 	 	32.60	 	 	 	 	2,518	 	 	 	6,585	 	 	 	1.10	 	 	 	18.69	 	 	 	30.21	 	 	 	33.16	 
	2nd Qtr.
	 	 	2,406	 	 	 	6,925	 	 	 	1.23	 	 	 	13.90	 	 	 	32.60	 	 	 	 	2,428	 	 	 	6,586	 	 	 	1.19	 	 	 	18.68	 	 	 	30.02	 	 	 	31.98	 
	3rd Qtr.
	 	 	2,469	 	 	 	6,888	 	 	 	1.25	 	 	 	14.10	 	 	 	32.60	 	 	 	 	2,386	 	 	 	6,526	 	 	 	1.19	 	 	 	19.88	 	 	 	29.88	 	 	 	31.14	 
	4th Qtr.
	 	 	3,232	 	 	 	6,736	 	 	 	1.23	 	 	 	14.00	 	 	 	33.20	 	 	 	 	2,584	 	 	 	6,550	 	 	 	1.19	 	 	 	18.94	 	 	 	30.60	 	 	 	33.85	 
	 	 	 	 
	2000
	 	 	10,860	 	 	 	6,850	 	 	 	1.21	 	 	 	14.00	 	 	 	32.80	 	 	 	 	9,916	 	 	 	6,562	 	 	 	1.17	 	 	 	19.04	 	 	 	36.19	 	 	 	130.13	 
	 	 	 	 
	1st Qtr.
	 	 	2,635	 	 	 	6,882	 	 	 	1.15	 	 	 	13.10	 	 	 	33.20	 	 	 	 	2,382	 	 	 	6,524	 	 	 	1.09	 	 	 	19.63	 	 	 	30.32	 	 	 	31.08	 
	2nd Qtr.
	 	 	2,686	 	 	 	6,806	 	 	 	1.05	 	 	 	14.10	 	 	 	32.80	 	 	 	 	2,453	 	 	 	6,523	 	 	 	1.00	 	 	 	17.64	 	 	 	30.58	 	 	 	32.00	 
	3rd Qtr.
	 	 	2,880	 	 	 	6,740	 	 	 	0.96	 	 	 	14.40	 	 	 	32.80	 	 	 	 	2,594	 	 	 	6,448	 	 	 	0.94	 	 	 	19.38	 	 	 	30.28	 	 	 	33.45	 
	4th Qtr.
	 	 	2,785	 	 	 	6,701	 	 	 	1.00	 	 	 	14.70	 	 	 	32.70	 	 	 	 	2,514	 	 	 	6,348	 	 	 	0.96	 	 	 	20.01	 	 	 	30.17	 	 	 	31.92	 
	 	 	 	 
	2001
	 	 	10,986	 	 	 	6,780	 	 	 	1.04	 	 	 	14.10	 	 	 	32.90	 	 	 	 	9,943	 	 	 	6,459	 	 	 	1.00	 	 	 	19.17	 	 	 	30.34	 	 	 	128.45	 
	 	 	 	 
	2002
	 	 	11,527	 	 	 	6,897	 	 	 	0.94	 	 	 	13.40	 	 	 	32.70	 	 	 	 	10,449	 	 	 	6,492	 	 	 	0.91	 	 	 	18.82	 	 	 	30.11	 	 	 	135.66	 
	2003
	 	 	11,414	 	 	 	6,567	 	 	 	0.81	 	 	 	15.10	 	 	 	33.00	 	 	 	 	10,105	 	 	 	6,329	 	 	 	0.79	 	 	 	20,73	 	 	 	30.25	 	 	 	127.90	 
	2004
	 	 	11,178	 	 	 	6,735	 	 	 	0.87	 	 	 	14.10	 	 	 	32.90	 	 	 	 	9,962	 	 	 	6,337	 	 	 	0.84	 	 	 	19.82	 	 	 	30.05	 	 	 	126.25	 
	2005
	 	 	11,239	 	 	 	6,814	 	 	 	1.00	 	 	 	13.80	 	 	 	32.50	 	 	 	 	9,961	 	 	 	6,469	 	 	 	0.95	 	 	 	19.05	 	 	 	30.03	 	 	 	128.87	 
	2006
	 	 	11,092	 	 	 	6,717	 	 	 	1.02	 	 	 	14.80	 	 	 	32.40	 	 	 	 	9,898	 	 	 	6,427	 	 	 	0.97	 	 	 	21.07	 	 	 	29.00	 	 	 	127.23	 
	2007
	 	 	11,290	 	 	 	6,648	 	 	 	1.00	 	 	 	15.80	 	 	 	31.80	 	 	 	 	10,023	 	 	 	6,303	 	 	 	0.98	 	 	 	21.29	 	 	 	29.20	 	 	 	126.34	 
	2008
	 	 	11,398	 	 	 	6,719	 	 	 	1.01	 	 	 	15.40	 	 	 	31.70	 	 	 	 	9,938	 	 	 	6,399	 	 	 	0.98	 	 	 	20.43	 	 	 	29.16	 	 	 	127.19	 
	 	 	 	 
	TOTAL
	 	 	118,806	 	 	 	6,779	 	 	 	1.03	 	 	 	14.32	 	 	 	32.52	 	 	 	 	106,563	 	 	 	6,458	 	 	 	0.99	 	 	 	19.60	 	 	 	29.87	 	 	 	1,376.30	 
	 	 	 	 

4-10

 

[GRAPHIC MATERIAL]

4-11

 

V. DEVELOPMENT

5.1 OVERBURDEN DEWATERING

General

     All wells to be drilled will have dewatering targets of 10 to 20 feet above 6 seam depending
on material type encountered. These targets were developed from previous slope stability studies.
Well spacing requirements will vary and are driven by subsurface structures, material thickness,
relative quality of material and potentiometric levels. At selected sites, 4” monitoring wells will
be installed to conduct mini-pump tests for determination of localized aquifer characteristics. The
mini-pump test data will be used with piezometric data for well field planning activities. The
dewatering depressurization wells scheduled for 1999 typically have an operational life of 12
months, but vary based on well field conditions, dewatering programs, etc. Table 5.1 lists the
total number of wells to be installed

Table 5.1

1999 ANNUAL MINE PLAN

6 “ DEWATERING WELL INSTALLATION TABLE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Year	 	1999	 	2000	 	2001	 	2002	 	2003	 	2004	 	2005	 	2006	 	2007	 	2008
	# of wells
	 	 	450	 	 	 	375	 	 	 	425	 	 	 	450	 	 	 	400	 	 	 	475	 	 	 	475	 	 	 	300	 	 	 	350	 	 	 	400	 

Area B

     The initial overburden saturated thickness for the 1999 drilling area ranges from 30 to 100
feet. Overburden dewatering wells installed will be placed on 200 feet centers well to well and 150
feet row to row. All wells are designed to dewater the material above the 6 seam and in some cases
4/5 IB. The Area B dewatering well installation area is shown on Exhibit 9.1.

Area C

     In multiple seam areas, the designed well field will provide depressurization and ultimately,
dewatering of the overburden material between the 4 seam and 5 seam. Well spacing is 300 feet well
to well and 150 feet row to row. Typically, the sand unit is confined and thickness rarely exceeds
40 feet, with approximately 20 to 40 feet of excess head. The 1999 Area C dewatering well
installation area is delineated on Exhibit 9.1. In the eastern portion of Area C where the 4 seam
is the deepest seam to be mined, underburden wells to depressurize the material below the 6 seam
are no longer necessary.

5-1

 

Area D Dragline

     Wells shown on the 1999 dewatering plan are spaced 300 feet well to well and 150 feet row to
row. The well spacing has decreased (density has increased) due to underburden pressure and the 5/6
seam split. The dragline is progressing down dip and into an area of significant underburden
pressure. The interburden between the 5 and 6 seam is becoming thinner and developing into a
significant water bearing sand that will require more dewatering than in the past. The wells should
be designed to dewater the material between the 4 and 5 seams and the 5 and 6 seams. The sand above
the 3 seam where there is a perched layer may require dewatering. The Area D 1999 dewatering well
installation area is shown on Exhibit 9.2.

Area DX

     The 1999 dewatering well installation area for mine area DX is delineated on Exhibit 9.2. The
well-spacing shown is 250 from well to well and 300 feet from row to row. Underburden wells are
shown only in areas of deeper cover. A pump test will be performed in Area DX before well
installation to determine if the well spacing should be changed.

Underburden Depressurization

     Pit floor depressurization will be maintained by the installation of wells installed on 800 to
1000 feet centers. Specific site selection for underburden wells is based on material quality and
structural conditions. Depressurization targets for underburden control are based upon clay
thickness at the base of the 6 seam. The excess head within the areas to be mined ranges from 30 to
120 feet.

Piezometers

     Piezometers may be installed in all mining areas to monitor aquifer response. Generally,
piezometer locations will have two to three two-inch wells per site. Piezometers are planned to
facilitate future mine planning activities and groundwater modeling efforts.

5.2 MINE ELECTRICAL SYSTEM

     Three main systems make up the mine electrical requirement. The first is the 12.5 KV system
for the mine facilities. High voltage (12.5 KV) is distributed underground to the three primary
buildings. Pad mounted transformers reduce the voltage to 480 volts for use in the buildings and
miscellaneous structures.

5-2

 

     The second provides power for the crushing facility and is provided by HL&P. A 35 KV overhead
line parallels the HL&P conveyor belt and is used to supply power to both HL&P’s surge bin and
NWR’s facility.

     The third serves the draglines, BWE and pit areas. This system consists of nineteen miles of
overhead 138 KV radial line running both east and west from a central switch yard. Three miles of
line serve Area B and five miles serve Area C. Two 10 MVA skid mounted
substations (one in Area B and one in Area C) reduce the voltage to 22.9 KV for the draglines.
Secondary pad mounted transformers are required to further reduce the voltage from 22.9 KV to 480
volts to serve auxiliary loads such as dewatering wells. Power for Area D is supplied by an eleven
mile overhead 138 KV radial line from the Beargrass switch yard. A 15 MVA, a 12.5 MVA and a 10 MVA
skid mounted substations reduce the voltage to 22.9 KV for the BWE and two draglines. Additional
feeds to dewatering wells consist of secondary pad mounted transformers required to reduce voltage
to 480 KV.

     Additionally, two 12.5 KV lines (one in Area B and one in Area D) from Navasota Valley
Electric Cooperative supply 480 volt power for dewatering wells and a dust control water tank pump.

5.3 CIVIL DEVELOPMENT ACTIVITIES

SH 164 Grade Separator/Road Relocation (1997/2000)

     Preliminary planning and design for this relocation began in 1996 with a contract agreement
between TxDOT and NWR finalized on October 3, 1996. Due to the grade separator part of this
relocation, NWR will allow twenty months for design, public comment, TxDOT approval and bidding,
with construction to begin in 1999. NWR has contracted with an outside consulting firm to design
the roadway and grade separator. Right-of-way maps and documents will be prepared by NWR.
Construction is anticipated to begin in the third quarter of 1999 with completion prior to the end
of 2000.

D-E Haulroad (2000)

     In conjunction with the construction of the SH 164 Grade Separator, we will also begin
construction on the approximate 1.5 miles of haulroad and dragline walkway to Area E.

5-3

 

NWR Regrade Equipment / Civil Construction

     The following construction projects will be planned and budgeted to be built by the NWR
regrade operation:

	 	 	 
	Relocations
	 	 
	(99-01) Mine Creek Permanent Channel
	 	 
	 
	 	 
	Reclamation Ponds
	 	 
	1999 B-1 Reclamation Pond
	 	1999 D4 Reclamation Pond
	2000 B-2 Reclamation Pond
	 	2000 D-5 Reclamation Pond
	2000 C-10 Reclamation Pond
	 	2001 D-6 Reclamation Pond
	2002 B-3 Reclamation Pond
	 	 

5-4

 

5.4  DEVELOPMENT PROJECTS

     Following is a list and brief description of the development projects scheduled between 1999 -
2008:

1999 ANNUAL MINE PLAN CIVIL DEVELOPMENT PROJECTS

	 	 	 	 	 	 	 	 	 	 	 
	MINE ROADS	 	 	 	 	 	 	 	 	 	 
	YEAR	 	 	 	PROJECT	 	LENGTH	 	UNITS	 	LIFE
	Area B
	 	 	 	 	 	 	 	 	 	 
	2001
	 	C	 	B-2 Haulroad	 	1.19	 	Mi.	 	4
	2004
	 	C	 	B-3 Haulroad	 	1.02	 	Mi.	 	7
	2005
	 	E	 	B-3 Extension [Ramp]	 	0.15	 	Mi.	 	6
	2006
	 	E	 	B-3 Extension [Ramp]	 	0.15	 	Mi.	 	5
	2007
	 	E	 	B-3 Extension [Ramp]	 	0.19	 	Mi.	 	4
	2008
	 	E	 	B-3 Extension [Ramp]	 	0.15	 	Mi.	 	3
	Area BX
	 	 	 	 	 	 	 	 	 	 
	2005
	 	C	 	BX-1 Haulroad	 	2.96	 	Mi.	 	8
	2008
	 	E	 	BX-2 Haulroad [Ramp]	 	0.12	 	Mi.	 	5
	Area C
	 	 	 	 	 	 	 	 	 	 
	2003
	 	E	 	C South Haulroad Extension	 	0.57	 	Mi.	 	3
	Area D
	 	 	 	 	 	 	 	 	 	 
	2000
	 	C	 	D-E Haulroad [Spoilside]	 	1.46	 	Mi.	 	LOM
	Area DX
	 	 	 	 	 	 	 	 	 	 
	1999
	 	E	 	DX Haulroad	 	0.41	 	Mi.	 	9
	2000
	 	E	 	DX-1 Extension [Ramp]	 	0.42	 	Mi.	 	8
	2006
	 	E	 	DX-2 Extension [Ramp]	 	0.40	 	Mi.	 	2
	2007
	 	E	 	DX-2 Extension [Ramp]	 	0.51	 	Mi.	 	2
	Area B-F
	 	 	 	 	 	 	 	 	 	 
	2003
	 	C	 	E-F Haulroad	 	5.40	 	Mi.	 	10
	2004
	 	E	 	E-F Extension	 	0.67	 	Mi.	 	2
	Area E
	 	 	 	 	 	 	 	 	 	 
	2003
	 	E	 	E-1 Haulroad [Ramp]	 	0.57	 	Mi.	 	9
	2004
	 	E	 	E-1 Haulroad [Ramp]	 	0.38	 	Mi.	 	8
	2005
	 	E	 	E-1 Haulroad [Ramp]	 	0.38	 	Mi.	 	7
	2008
	 	E	 	E-1 Haulroad [Ramp]	 	0.20	 	Mi.	 	5
	2003
	 	E	 	E-2 Haulroad [Ramp]	 	0.57	 	Mi.	 	7
	2004
	 	E	 	E-2 Haulroad [Ramp]	 	0.27	 	Mi.	 	6
	2005
	 	E	 	E-2 Haulroad [Ramp]	 	0.27	 	Mi.	 	5
	2008
	 	E	 	E-2 Haulroad [Ramp]	 	0.10	 	Mi.	 	3
	Area F
	 	 	 	 	 	 	 	 	 	 
	2004
	 	E	 	F-1 Haulroad	 	0.50	 	Mi.	 	2
	2005
	 	E	 	F-2 Haulroad	 	0.80	 	Mi.	 	2
	2006
	 	E	 	F-3 Haulroad	 	0.81	 	Mi.	 	2
	2007
	 	E	 	F-4 Haulroad	 	0.85	 	Mi.	 	2

5-5

 

	 	 	 	 	 	 	 	 	 	 	 
	SEDIMENT PONDS	 	 	 	 	 	 	 	 	 	 
	YEAR	 	 	 	PROJECT	 	SIZE	 	UNITS	 	LIFE
	Area C
	 	 	 	 	 	 	 	 	 	 
	2004
	 	C	 	Sediment Pond P01-C	 	800	 	Ac-Ft	 	LOM
	Area D
	 	 	 	 	 	 	 	 	 	 
	1999
	 	E	 	Sediment Pond P01-D	 	250	 	Ac-Ft	 	LOM
	1999
	 	E	 	Sediment Pond P02-D	 	850	 	Ac-Ft	 	LOM
	2001
	 	C	 	Sediment Pond 026 Mod.	 	500	 	Ac-Ft	 	LOM
	2004
	 	C	 	Sediment Pond 024 Mod	 	950	 	Ac-Ft	 	LOM
	Area E
	 	 	 	 	 	 	 	 	 	 
	2000
	 	E	 	Sediment Pond P01-E	 	150	 	Ac-Ft	 	LOM
	2001
	 	E	 	Sediment Pond P02-E	 	60	 	Ac-Ft	 	LOM
	2006
	 	E	 	Sediment Pond P03-E	 	155	 	Ac-Ft	 	LOM
	2002
	 	C	 	Sediment Pond P04-E	 	600	 	Ac-Ft	 	LOM
	2006
	 	C	 	Sediment Pond P05-E	 	250	 	Ac-Ft	 	LOM
	Area F
	 	 	 	 	 	 	 	 	 	 
	2003
	 	C	 	Sediment Pond P01-F	 	700	 	Ac-Ft	 	LOM
	2005
	 	C	 	Sediment Pond P02-F(incised)	 	500	 	Ac-Ft	 	LOM

	 	 	 	 	 	 	 	 	 	 	 
	RECLAMATION PONDS	 	 	 	 	 	 	 	 	 	 
	YEAR	 	 	 	PROJECT	 	SIZE	 	UNITS	 	LIFE
	1999
	 	E	 	RP-B1 Reclamation Pond	 	10	 	ac-ft	 	perm
	2000
	 	E	 	RP-B2 Reclamation Pond	 	10	 	ac-ft	 	perm
	2002
	 	E	 	RP-B3 Reclamation Pond	 	10	 	ac-ft	 	perm
	2004
	 	E	 	RP-B4 Reclamation Pond	 	10	 	ac-ft	 	perm
	2006
	 	E	 	RP-B5 Reclamation Pond	 	10	 	ac-ft	 	perm
	2008
	 	E	 	RP-B6 Reclamation Pond	 	10	 	ac-ft	 	perm
	1999
	 	E	 	RP-C9 Reclamation Pond	 	10	 	ac-ft	 	perm
	2000
	 	E	 	RP-C10 Reclamation Pond	 	10	 	ac-ft	 	perm
	2004
	 	E	 	RP-C11 Reclamation Pond	 	10	 	ac-ft	 	perm
	2005
	 	E	 	RP-C12 End Lake	 	100	 	ac-ft	 	perm
	1999
	 	E	 	RP-D4 Reclamation Pond	 	10	 	ac-ft	 	perm
	2000
	 	E	 	RP-D5 Reclamation Pond	 	10	 	ac-ft	 	perm
	2001
	 	E	 	RP-D6 Reclamation Pond	 	10	 	ac-ft	 	perm
	2003
	 	E	 	RP-D7 Reclamation Pond	 	10	 	ac-ft	 	perm
	2005
	 	E	 	RP-D8 Reclamation Pond	 	10	 	ac-ft	 	perm
	2007
	 	E	 	RP-D9 Reclamation Pond	 	10	 	ac-ft	 	perm
	2004
	 	E	 	RP-E1 Reclamation Pond	 	10	 	ac-ft	 	perm
	2006
	 	E	 	RP-E2 Reclamation Pond	 	10	 	ac-ft	 	perm
	2008
	 	E	 	RP-E3 Reclamation Pond	 	10	 	ac-ft	 	perm
	2004
	 	E	 	RP-F1 Reclamation Pond	 	10	 	ac-ft	 	perm
	2006
	 	E	 	RP-F2 Reclamation Pond	 	10	 	ac-ft	 	perm
	2008
	 	E	 	RP-F3 Reclamation Pond	 	10	 	ac-ft	 	perm

5-6

 

	 	 	 	 	 	 	 	 	 	 	 
	DIVERSIONS	 	 	 	 	 	 	 	 	 	 
	YEAR	 	 	 	PROJECT	 	LENGTH	 	UNITS	 	LIFE
	Area A
	 	 	 	 	 	 	 	 	 	 
	99/2001
	 	E	 	Mine Creek Permanent Channel	 	5,600	 	ft	 	perm
	Area B/BX
	 	 	 	 	 	 	 	 	 	 
	2003
	 	E	 	B-2 Diversion	 	8,000	 	ft	 	10
	2006
	 	E	 	BX-1 Clean Water Diversion	 	9,500	 	ft	 	2
	Area C
	 	 	 	 	 	 	 	 	 	 
	2004
	 	E	 	C-3 Clean Water Diversion	 	7,000	 	ft	 	perm
	Area D
	 	 	 	 	 	 	 	 	 	 
	1999
	 	E	 	D02-D Permanent Diversion	 	2,500	 	ft	 	perm
	1999
	 	E	 	D03-D Diversion	 	3,800	 	ft	 	4
	1999
	 	E	 	D04-D Clean Water Diversion	 	7,300	 	ft	 	LOM
	2000
	 	E	 	D05-D Diversion	 	3,000	 	ft	 	1.5
	2001
	 	E	 	D06-D Diversion	 	3,000	 	ft	 	2
	2006
	 	E	 	D07-D Diversion Clean Water	 	2,000	 	ft	 	6
	2006
	 	E	 	D08-D Diversion	 	3,500	 	ft	 	LOM
	Area E
	 	 	 	 	 	 	 	 	 	 
	2000
	 	E	 	D01-E Diversion	 	2,500	 	ft	 	10
	2001
	 	E	 	D02-E Diversion	 	1,500	 	ft	 	10
	2006
	 	E	 	D03-E Diversion / Embankment	 	5,000	 	ft	 	LOM
	Area F
	 	 	 	 	 	 	 	 	 	 
	2003
	 	E	 	D01-F Diversion / Embankment	 	4,000	 	ft	 	LOM
	2003
	 	E	 	D02-F Diversion / Embankment	 	7,400	 	ft	 	LOM
	2005
	 	E	 	D03-F Diversion / Embankment	 	5,500	 	ft	 	LOM
	2005
	 	E	 	D04-F Diversion / Embankment	 	6,500	 	ft	 	LOM

	 	 	 	 	 	 	 	 	 	 	 
	FACILITIES	 	 	 	 	 	 	 	 	 	 
	YEAR	 	 	 	PROJECT	 	SIZE	 	UNITS	 	LIFE
	2004
	 	C	 	Area F Maint Fac w/Water Tank	 	1	 	Ea.	 	perm

	 	 	 	 	 	 	 	 	 	 	 
	DRAGLINE WALKWAYS	 	 	 	 	 	 	 	 	 	 
	YEAR	 	 	 	PROJECT	 	LENGTH	 	UNITS	 	LIFE
	1999
	 	E	 	D-DX Dragline Walkway - DL27	 	2,000	 	ft	 	 
	2001
	 	E	 	DX-E Dragline Walkway - DL27*	 	11,300	 	ft	 	 
	2003
	 	E	 	D-E Dragline Walkway - DL28*	 	13,400	 	ft	 	 
	2004
	 	C	 	E-F Dragline Walkway - DL27	 	22,700	 	ft	 	 
	2005
	 	E	 	C-BX Dragline Walkway - DL26*	 	6,800	 	ft	 	 
	2005
	 	E	 	E-DX Dragline Walkway - DL28*	 	6,500	 	ft	 	 
	2007
	 	E	 	DX-E Dragline Walkway - DL28*	 	8,800	 	ft	 	 
	 
	 	 	 	     Note: * = highway crossing	 	 	 	 	 	 
	 
	 	 	 	required	 	 	 	 	 	 

5-7

 

POWERLINE/TELEPHONE RELOCATIONS

	 	 	 	 	 	 	 	 	 	 	 
	YEAR	 	 	 	PROJECT	 	LENGTH	 	UNITS	 	LIFE
	Area BX
	 	 	 	 	 	 	 	 	 	 
	2005
	 	E	 	SWB Relocation (FM 39)	 	3.70	 	Mi.	 	Perm
	2005
	 	E	 	Navasota Elect Relocation (FM 39)	 	3.70	 	Mi.	 	Perm
	Area C
	 	 	 	 	 	 	 	 	 	 
	2002
	 	E	 	TP&L 69KV Relocation	 	1.30	 	Mi.	 	Perm
	Area D/DX
	 	 	 	 	 	 	 	 	 	 
	2000
	 	C*	 	GTE Tele. Relocation (SH 164-1)	 	3.60	 	Mi.	 	Perm
	2000
	 	C*	 	Navasota Elec. 15KV (SH 164-1)	 	3.60	 	Mi.	 	Perm
	2002
	 	E	 	GTE Tele Reloc (Bergstrom)	 	0.60	 	Mi.	 	Perm
	2005
	 	C*	 	GTE Tele Relocation (SH 164-2)	 	2.50	 	Mi.	 	Perm
	2005
	 	C*	 	Navasota Elec. 15KV (SH 164-2)	 	2.50	 	Mi.	 	Perm
	Area E
	 	 	 	 	 	 	 	 	 	 
	2003
	 	E	 	TU 138 KV Relocation	 	1.04	 	Mi.	 	Perm
	2006
	 	E	 	TU 138 KV Relocation	 	3.70	 	Mi.	 	Perm

PUBLIC ROAD RELOCATIONS

	 	 	 	 	 	 	 	 	 	 	 
	YEAR	 	 	 	PROJECT	 	LENGTH	 	UNITS	 	LIFE
	Area BX
	 	 	 	 	 	 	 	 	 	 
	01/03
	 	E	 	FM 39 Relocation	 	3.60	 	Mi.	 	Perm
	Area D/DX
	 	 	 	 	 	 	 	 	 	 
	97/00
	 	C*	 	SH164 Relocation - Phase I	 	3.50	 	Mi.	 	LOM
	1999
	 	E	 	FCR 780 (Old Zion)	 	0.41	 	Mi.	 	Perm
	2000
	 	E	 	Pond 024/Private Rd	 	0.45	 	Mi.	 	LOM
	2001
	 	E	 	FCR 310 Reconstruction	 	1.70	 	Mi.	 	Perm
	01/04
	 	C*	 	SH164 Relocation - Phase II	 	2.50	 	Mi.	 	LOM
	Area F
	 	 	 	 	 	 	 	 	 	 
	2006
	 	E	 	Varnell Cemetery Relocation	 	1	 	Ea.	 	LOM
	 
	 	 	 	Note: *=NWR Capital	 	 	 	 	 	 

OIL & GAS PIPELINE/GASWELL RELOCATIONS

	 	 	 	 	 	 	 	 	 	 	 
	YEAR	 	 	 	PROJECT	 	LENGTH	 	UNITS	 	LIFE
	Area B
	 	 	 	 	 	 	 	 	 	 
	2000
	 	E	 	Koch 4” Reloc (Lewis B) {100%}	 	5,000	 	ft	 	Perm
	Area D
	 	 	 	 	 	 	 	 	 	 
	2001
	 	E	 	Koch 4” Reloc (Laura Lee 1) {0%}	 	6,500	 	ft	 	Perm
	Area DX
	 	 	 	 	 	 	 	 	 	 
	2006
	 	E	 	Koch 4” Reloc (Blanton 1) {0%}	 	5,000	 	ft	 	Perm
	2006
	 	E	 	ARCO 20” Relocation {100%}	 	10,000	 	ft	 	Perm
	2006
	 	E	 	Phillips 30” Relocation {100%}	 	9,000	 	ft	 	Perm
	Area E
	 	 	 	 	 	 	 	 	 	 
	2000
	 	E	 	Phillips 30” (Pond P01-E) {100%}	 	2,000	 	ft	 	Perm
	2001
	 	E	 	Koch 8” Relocation {24%}	 	2,500	 	ft	 	Perm
	2002
	 	E	 	Texaco 16” Relocation {100%}	 	19,000	 	ft	 	Perm
	2006
	 	E	 	Koch 12” Relocation {0%}	 	10,500	 	ft	 	Perm
	Area F
	 	 	 	 	 	 	 	 	 	 
	2004
	 	E	 	Koch 8” Relocation {24%}	 	15,600	 	ft	 	Perm
	2004
	 	E	 	Koch Compressor Station {24%}	 	LS	 	ea	 	Perm

5-8

 

VI. COMPLIANCE

6.1 REGRADE/RECLAMATION COVER

     The direct haulback operation and the rough regrade operation are currently working together
to place SPGM on mined acres well within the time frame allowed by RCT permit. This situation is
not expected to change during the period addressed by this AMP. Occasionally, the Truck/Shovel
operation may be required to accomplish other tasks besides placing SPGM cover (i.e., rock removal,
pond cleanouts, haulroad construction, prebench).

     In addition, the regrade operation has been called on to work outside of normal rough regrade
activities. SPGM placement normally occurs within three months of rough regrade as opposed to the
permitted nine months.

     Table 6.1 shows acres and cubic yards estimated for regrade and reclamation cover by area for
the period (1999-2008) addressed by this mine plan.

6.2 FINAL SURFACE PREPARATION

     During final material placement operations, each area will be reconnaissance cored. The
reconnaissance coring will help to verify that an area has four feet of suitable topsoil material.
Once it is determined a cored area is suitable, final surface shaping, Rome disking, Towner plowing
and terrace and drop structure installation will occur as needed and as directed by the
Environmental Services department. Temporary terraces or diversions and drop structures will be
used extensively around boxcut areas, ramp areas and areas of long or steep slopes.

     Acres requiring final surface preparation correspond approximately to the projected acres of
reclamation cover as reported in Table 6.1.

6-1

 

TABLE 6.1

ACRES REGRADED AND RECLAIMED

ALL AREAS COMBINED

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Regrade	 	Reclamation Cover	 	Reclamation Cover
	Period	 	Acres	 	Acres	 	CY (x1000)
	Jan.
	 	 	20	 	 	 	20	 	 	 	145.2	 
	Feb.
	 	 	20	 	 	 	20	 	 	 	145.2	 
	Mar.
	 	 	20	 	 	 	20	 	 	 	145.2	 
	Apr.
	 	 	59	 	 	 	59	 	 	 	428.3	 
	May
	 	 	59	 	 	 	59	 	 	 	428.3	 
	June
	 	 	60	 	 	 	60	 	 	 	435.6	 
	July
	 	 	59	 	 	 	59	 	 	 	428.3	 
	Aug.
	 	 	59	 	 	 	59	 	 	 	428.3	 
	Sept.
	 	 	60	 	 	 	60	 	 	 	435.6	 
	Oct.
	 	 	20	 	 	 	20	 	 	 	145.2	 
	Nov.
	 	 	20	 	 	 	20	 	 	 	145.2	 
	Dec.
	 	 	20	 	 	 	20	 	 	 	145.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	1999 Total
	 	 	476	 	 	 	476	 	 	 	3,455.8	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	1st Qtr
	 	 	138	 	 	 	138	 	 	 	1,001.9	 
	2nd Qtr
	 	 	150	 	 	 	150	 	 	 	1,089.0	 
	3rd Qtr
	 	 	150	 	 	 	150	 	 	 	1,089.0	 
	4th Qtr
	 	 	137	 	 	 	137	 	 	 	994.6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	2000 Total
	 	 	575	 	 	 	575	 	 	 	4,174.5	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	1st Qtr
	 	 	102	 	 	 	102	 	 	 	740.5	 
	2nd Qtr
	 	 	125	 	 	 	125	 	 	 	907.5	 
	3rd Qtr
	 	 	125	 	 	 	125	 	 	 	907.5	 
	4th Qtr
	 	 	103	 	 	 	103	 	 	 	747.8	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	2001 Total
	 	 	455	 	 	 	455	 	 	 	3,303.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	2002
	 	 	532	 	 	 	532	 	 	 	3,862.3	 
	2003
	 	 	788	 	 	 	788	 	 	 	5,720.9	 
	2004
	 	 	711	 	 	 	711	 	 	 	5,161.9	 
	2005
	 	 	743	 	 	 	743	 	 	 	5,394.2	 
	2006
	 	 	591	 	 	 	591	 	 	 	4,290.7	 
	2007
	 	 	662	 	 	 	662	 	 	 	4,806.1	 
	2008
	 	 	503	 	 	 	503	 	 	 	3,651.8	 

6 - 2

 

6.3 DRAINAGE CONTROL

AREA A/B

     The FM 1512 relocation right-of-way is approximately the divider for the drainage in Area A.
Drainage to the south and east of the right-of-way flow into Pond 023. Drainage to the north and
west of the right-of-way and pit water flow into Mine Creek and Pond 009. Mine Creek permanent
channel is being built as the pit advances. A gap is being left in the spoils and shaped during
regrade. The diversion will channel run-off into Pond 009. Water will be controlled by pit
dewatering and pumped into Mine Creek diversion. A spoil ridge will protect the pit and the spoil
configuration will drain water away from the pit and regrade. Drainage in the reclaimed areas is
controlled by ponds. Reclamation Ponds RP-A2 and A9 flow into Pond 023. Reclamation Ponds RP-A1,
A3, A4, A5, A6 and A7 flow into Pond 009. Sediment Pond 027 was constructed in 1998 to allow for
emergency reserves in Area B to be mined. Sediment Pond 028 will he complete in the fall of 1998
and will contain the overland drainage as mining progresses in Area B.

Area C

     In Area C south, Lambs Creek Phase III channels pit water south into Pond 016 and Pond 018.
Phase III diverts Lambs Creek through the spoil ridges parallel to the pit. The runoff from the
regrade is channeled into this diversion and discharged into Pond 016 and Pond 018.

     During the next several years, inactive pits in the south half of the Area C pit will be left
open as needed for more than a year. A spoil ridge will be left to control run-off into these pits.

Area D

     As mining progresses to the east and begins to impact Pond 026 and Sediment Pond P01-D will be
constructed to reduce the drainage area of Pond 026. Sediment Pond P02-D will be located at the end
pit of the east-west pits and will be utilized in conjunction with P01-D to significantly reduce
the volume of drainage on Pond 026 and on Pond 024 as mining progresses to the south. A spoilside
diversion will be built to the north of the east-west pits. This diversion will channel surface
runoff to the south during the mining of the east-west pits.

6 - 3

 

6.4 1999 CURRENT REVEGETATION SCHEDULE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	A/B	 	C	 	D	 	Total
	Temporary
	 	warm season	 	 	42	 	 	 	42	 	 	 	41	 	 	 	125	 
	 
	 	cool season	 	 	41	 	 	 	42	 	 	 	42	 	 	 	125	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Total Temporary	 	 	 	 	 	 	 	 	 	 	 	 	 	 	250	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Permanent
	 	tame	 	 	108	 	 	 	108	 	 	 	119	 	 	 	335	 
	 
	 	native	 	 	83	 	 	 	83	 	 	 	134	 	 	 	300	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Total Permanent	 	 	 	 	 	 	 	 	 	 	 	 	 	 	635	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Replant

	 	tame	 	 	8	 	 	 	8	 	 	 	9	 	 	 	25	 
	 
	 	native	 	 	8	 	 	 	8	 	 	 	9	 	 	 	25	 
	 
	 	temporary	 	 	8	 	 	 	8	 	 	 	9	 	 	 	25	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Total Replant	 	 	 	 	 	 	 	 	 	 	 	 	 	 	75	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1999 Revegetation Summary

	 	temporary	 	 	 	 	 	 	 	 	 	 	 	 	 	 	250	 
	 
	 	permanent	 	 	 	 	 	 	 	 	 	 	 	 	 	 	635	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	885	 

6.5 EXTENDED RESPONSIBILITY PERIOD

     ERP Block A-lb has changed in acreage since the 1994 submittal due to vegetation cover in the
area which will allow for bond release consideration (Fig. 6.2). Pond 009 and it’s drainage are
excluded due to the runoff from mining activities. Adequate acreage has been included with the Pond
009 area to allow for additional cleanouts and downsizing of the pond when necessary. The areas
shown on Fig. 6.2 also show the acreage. The RCT requirements for the removal of all temporary
structures and downsizing of ponds have pushed these projected dates as shown on Fig. 6.2.

     Since the two year requirement for establishment of trees ended in 1997, NWR has experienced
extreme drought conditions during 1996 and 1998. These droughts have forced NWR to implement
irrigation practices to insure against a substantial death loss in those trees which were planted.
Water is very crucial to the success rate of these young trees during the first two years of
development, however with the extreme conditions experienced in 1998, a third year was necessary to
keep these trees alive. This practice has proven to be successful, however RCT rules does not allow
for “augmentation” practices to take place during bond release phases. Irrigation is one such
measure which is not approved.

     In discussions with RCT officials during the fall of 1997, NWR was informed that ERP
requirements were being changed to try and enhance acreages to be submitted for bond release.

6 - 4

 

One major change was the removal of all temporary structures (terraces, rock drops, wooden
drop structures) and downsizing of ponds. The 1994 submittal allowed up to the third year once
entered into ERP to have this work complete.

     Since this new ruling, NWR initiated the removal of these structures in the Spring of 1998. A
substantial amount of disturbance was created and the drought we have experienced in 1998 has
delayed the regrowth of grasses necessary to control erosion in theses areas. NWR is monitoring
these areas closely and if enough fall rain allow irrigation of trees to cease and repaired areas
are adequately covered to control erosion, a resubmitted package will he forwarded to RCT in the
fall of 1998. However, if weather conditions are not conducive for fall grass cover, then a Spring,
1999 submittal is necessary. NWR is currently looking at future mining activities which will impact
the release of land back to the original land owners in areas C and D.

6 - 5

 

[GRAPHIC MATERIAL]

6 - 6

 

[GRAPHIC MATERIAL]

6 - 7

 

Table 8.1

Jewett Mine — 1999 Annual Mine Plan

Staffing Summary

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	1998	 	 	1998	 	 	 	 	 	 	 
	 	 	1st Qtr	 	 	Year End	 	 	1999	 	 	Year End Estimates	 
	 	 	Actuals	 	 	Estimate	 	 	First	 	 	Second	 	 	Third	 	 	Fourth	 	 	2000	 	 	2001	 	 	2002	 
	 	 	 
	Operations Engineering
	 	 	4	 	 	 	4	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 
	Environmental Services
	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 
	Operators
	 	 	206	 	 	 	206	 	 	 	206	 	 	 	206	 	 	 	206	 	 	 	206	 	 	 	206	 	 	 	206	 	 	 	206	 
	Mechanics / Electricians
	 	 	97	 	 	 	97	 	 	 	97	 	 	 	97	 	 	 	97	 	 	 	97	 	 	 	97	 	 	 	97	 	 	 	97	 
	Warehouse
	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 
	 	 	 	 	 
	TOTAL HOURLY
	 	 	318	 	 	 	318	 	 	 	319	 	 	 	319	 	 	 	319	 	 	 	319	 	 	 	319	 	 	 	319	 	 	 	319	 
	Administration               (A)
	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 
	Lands                             (C)
	 	 	3	 	 	 	3	 	 	 	3	 	 	 	3	 	 	 	3	 	 	 	3	 	 	 	3	 	 	 	3	 	 	 	3	 
	Environmental Services
	 	 	16	 	 	 	17	 	 	 	17	 	 	 	17	 	 	 	17	 	 	 	17	 	 	 	17	 	 	 	17	 	 	 	17	 
	Operations Engineering
	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 
	Human Resources
	 	 	5	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 
	Business                       
(B)
	 	 	22	 	 	 	22	 	 	 	22	 	 	 	22	 	 	 	22	 	 	 	22	 	 	 	22	 	 	 	22	 	 	 	22	 
	Production/Maintenance
	 	 	27	 	 	 	27	 	 	 	27	 	 	 	27	 	 	 	27	 	 	 	27	 	 	 	27	 	 	 	27	 	 	 	27	 
	 	 	 	 	 
	TOTAL SALARY
	 	 	80	 	 	 	82	 	 	 	82	 	 	 	82	 	 	 	82	 	 	 	82	 	 	 	82	 	 	 	82	 	 	 	82	 
	 	 	 	 	 
	TOTAL JEWETT MINE
	 	 	398	 	 	 	400	 	 	 	401	 	 	 	401	 	 	 	401	 	 	 	401	 	 	 	401	 	 	 	401	 	 	 	401	 
	 	 	 	 	 

 

			
	(A)	 	Includes VP General Manager not billable
	 
	(B)	 	Includes one Accountant not billable
	 
	(C)	 	Includes 1/2 Senior Landman not billable
	 
	 	 	 

8-1

 

Table 8.2

Northwestern Resources Co.

Jewett Mine — 1999 Annual Mine Plan

Major Equipment Requirements

     

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Front End	 	Coal	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	Dozers	 	Scraper	 	Graders	 	Water	 	Loaders	 	Haulers	 	Backhoes	 	End Dumps
	 	 	 	 	 	Draglines	 	BWE	 	D9N	 	D10N	 	D11N	 	D7	 	834B	 	583K	 	657	 	16G	 	24H	 	Trucks	 	992D	 	Small	 	150 Ton	 	8.5	 	Lg	 	Sm	 	100 Ton	 	150 Ton
	 	 	 	 
	1998
	 	December	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	4	 	 	 	0	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	5	 	 	 	0	 
	 	 	 	 
	1999
	 	January	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	4	 	 	 	0	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	5	 	 	 	0	 
	 
	 	February	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	4	 	 	 	0	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	5	 	 	 	0	 
	 
	 	March	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	5	 	 	 	0	 
	 
	 	April	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	2	 
	 
	 	May	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	2	 
	 
	 	June	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	2	 
	 
	 	July	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	2	 
	 
	 	August	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	2	 
	 
	 	September	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	2	 
	 
	 	October	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	2	 
	 
	 	November	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	2	 
	 
	 	December	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	2	 
	 	 	 	 
	2000
	 	1st Quarter	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	6	 
	 
	 	2nd Quarter	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	3	 	 	 	6	 
	 
	 	3rd Quarter	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	3	 	 	 	6	 
	 
	 	4th Quarter	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	3	 	 	 	6	 
	 	 	 	 
	2001
	 	1st Quarter	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	3	 	 	 	6	 
	 
	 	2nd Quarter	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	3	 	 	 	6	 
	 
	 	3rd Quarter	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	3	 	 	 	6	 
	 
	 	4th Quarter	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	3	 	 	 	6	 
	 	 	 	 
	2002
	 	 	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	3	 	 	 	6	 
	 	 	 	 
	2003
	 	 	 	 	4	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	8	 
	 	 	 	 
	2004-2008	 	 	4	 	 	1	 	 	 	4	 	 	 	7	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	0	 	 	 	4	 	 	 	1	 	 	 	0	 	 	 	11	 
	 	 	 	 

8-2

 

Table 8.3

Jewett Mine — 1999 Annual Mine Plan

Major Equipment Replacements

     

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	End	 	 	 	 	 	 	 	 
	 	 	 	 	Backhoes	 	Coal	 	Dozers	 	Dump	 	Graders	 	Loaders	 	Scrapers	 	Water
	 	 	 	 	8.5	 	Large	 	Small	 	Haulers	 	834B	 	D7	 	D9N	 	D10N	 	D11N	 	85/150 Ton	 	16G	 	992C	 	657	 	Trucks
	 
	1999
	 	January	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	February	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	March	 	 	 	 	 	 	 	 	 	 	 	 	 	D904	 	D103/104	 	 	 	T003/004**	 	G003*	 	 	 	 	 	 	 	 
	 
	 	April	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	May	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	June	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	July	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	August	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	September	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	October	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	November	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	December	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	2000
	 	1st Quarter	 	 	 	 	 	 	 	 	 	 	 	 	 	D905/906	 	 	 	 	 	 	 	G004*	 	 	 	 	 	 	 	 
	 
	 	2nd Quarter	 	 	 	B007	 	 	 	 	 	 	 	D702	 	D907	 	D105/106	 	 	 	Add 4	 	 	 	L007	 	S503	 	 	 	 
	 
	 	3rd Quarter	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	4th Quarter	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	2001
	 	1st Quarter	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	2nd Quarter	 	 	 	 	 	 	 	 	 	 	 	D701	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	3rd Quarter	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	4th Quarter	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	2002
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	2003
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	T005/Add	 	 	 	 	 	 	 	 	 	 
	 
	2004
	 	 	 	 	 	B008/L501	 	 	 	 	 	 	 	 	 	 	 	Add	 	D111	 	Add	 	 	 	 	 	 	 	 	 	 
	 
	2005
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	D107	 	 	 	T006/T007	 	 	 	 	 	 	 	 	 	 
	 
	2006
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	D904/905	 	D108	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	2007
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	D908/104	 	 	 	 	 	G005/006	 	 	 	 	 	 	 	 
	 
	2008
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	*	 	Replace G003 and G004 with new 24H motorgraders.
	 
	**	 	Replace with 150 ton end dump trucks.

8-3

 

Table 8.4

1999 Annual Mine Plan — Equipment Operating Hours

     

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	JAN	 	FEB	 	MAR	 	APR	 	MAY	 	JUNE	 	JULY	 	AUG	 	SEPT	 	OCT	 	NOV	 	DEC	 	Total
	******STRIPPING******

STRIPPING DRAGLINE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DRAGLINES-8200
	 	 	1,942	 	 	 	1,754	 	 	 	1,414	 	 	 	1,879	 	 	 	1,942	 	 	 	1,879	 	 	 	1,942	 	 	 	1,942	 	 	 	1,879	 	 	 	1,942	 	 	 	1,434	 	 	 	1,942	 	 	 	21,891	 
	DRAGLINE - 8750
	 	 	632	 	 	 	571	 	 	 	632	 	 	 	612	 	 	 	632	 	 	 	612	 	 	 	632	 	 	 	442	 	 	 	612	 	 	 	632	 	 	 	612	 	 	 	632	 	 	 	7,256	 
	DOZER — D9
	 	 	400	 	 	 	220	 	 	 	400	 	 	 	400	 	 	 	400	 	 	 	400	 	 	 	400	 	 	 	400	 	 	 	400	 	 	 	400	 	 	 	400	 	 	 	400	 	 	 	4,620	 
	DOZER — D10
	 	 	2,832	 	 	 	2,558	 	 	 	2,251	 	 	 	2,740	 	 	 	2,832	 	 	 	2,740	 	 	 	2,832	 	 	 	2,623	 	 	 	2,740	 	 	 	2,832	 	 	 	2,251	 	 	 	2,832	 	 	 	32,061	 
	DOZER-834
	 	 	20	 	 	 	20	 	 	 	20	 	 	 	20	 	 	 	20	 	 	 	20	 	 	 	20	 	 	 	20	 	 	 	20	 	 	 	20	 	 	 	20	 	 	 	20	 	 	 	240	 
	DOZER-D11
	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	6,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	STRIPPING BWE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BWE
	 	 	595	 	 	 	538	 	 	 	595	 	 	 	576	 	 	 	595	 	 	 	576	 	 	 	595	 	 	 	595	 	 	 	576	 	 	 	595	 	 	 	576	 	 	 	595	 	 	 	7,008	 
	SCRAPER
	 	 	25	 	 	 	25	 	 	 	25	 	 	 	25	 	 	 	25	 	 	 	25	 	 	 	25	 	 	 	25	 	 	 	25	 	 	 	25	 	 	 	25	 	 	 	25	 	 	 	300	 
	DOZER-D7
	 	 	595	 	 	 	538	 	 	 	595	 	 	 	576	 	 	 	595	 	 	 	576	 	 	 	595	 	 	 	595	 	 	 	576	 	 	 	595	 	 	 	576	 	 	 	595	 	 	 	7,008	 
	DOZER-D9
	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	3,000	 
	DOZER-D10
	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	620	 	 	 	620	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	7,240	 
	SMALL BACKHOE
	 	 	10	 	 	 	10	 	 	 	10	 	 	 	10	 	 	 	10	 	 	 	10	 	 	 	10	 	 	 	10	 	 	 	10	 	 	 	10	 	 	 	10	 	 	 	10	 	 	 	120	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	STRIPPING MOBILE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SCRAPER
	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	600	 
	END DUMP
	 	 	2,530	 	 	 	2,285	 	 	 	2,530	 	 	 	2,448	 	 	 	2,530	 	 	 	2,448	 	 	 	2,530	 	 	 	2,530	 	 	 	2,448	 	 	 	2,530	 	 	 	2,448	 	 	 	2,530	 	 	 	29,787	 
	BACKHOE-8.5 cu. yd.
	 	 	932	 	 	 	842	 	 	 	932	 	 	 	902	 	 	 	932	 	 	 	902	 	 	 	932	 	 	 	932	 	 	 	902	 	 	 	932	 	 	 	902	 	 	 	932	 	 	 	10,975	 
	FEL
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	DOZER-D9
	 	 	655	 	 	 	591	 	 	 	655	 	 	 	634	 	 	 	655	 	 	 	634	 	 	 	655	 	 	 	655	 	 	 	634	 	 	 	655	 	 	 	634	 	 	 	655	 	 	 	7,712	 
	DOZER-D10
	 	 	300	 	 	 	300	 	 	 	300	 	 	 	300	 	 	 	300	 	 	 	300	 	 	 	300	 	 	 	300	 	 	 	300	 	 	 	300	 	 	 	300	 	 	 	300	 	 	 	3,600	 
	DOZER-D11
	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	600	 
	DOZER-834
	 	 	15	 	 	 	15	 	 	 	15	 	 	 	15	 	 	 	15	 	 	 	15	 	 	 	15	 	 	 	15	 	 	 	15	 	 	 	15	 	 	 	15	 	 	 	15	 	 	 	180	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	***LIGNITE LOADING***

LIGNITE LOADING
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5130 BACKHOE
	 	 	1,165	 	 	 	1,052	 	 	 	1,165	 	 	 	1,128	 	 	 	1,165	 	 	 	1,128	 	 	 	1,165	 	 	 	1,165	 	 	 	1,128	 	 	 	1,165	 	 	 	1,128	 	 	 	1,165	 	 	 	13,718	 
	BACKHOE-8.5 cu. yd.
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	FEL
	 	 	557	 	 	 	503	 	 	 	557	 	 	 	539	 	 	 	557	 	 	 	539	 	 	 	557	 	 	 	557	 	 	 	539	 	 	 	557	 	 	 	539	 	 	 	557	 	 	 	6,552	 
	DOZER-D10
	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	600	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	LIGNITE HAULING
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HAULER
	 	 	5,755	 	 	 	5,198	 	 	 	5,755	 	 	 	5,569	 	 	 	5,755	 	 	 	5,569	 	 	 	5,755	 	 	 	5,755	 	 	 	5,569	 	 	 	5,755	 	 	 	5,569	 	 	 	5,755	 	 	 	67,759	 
	DOZER —  D10
	 	 	100	 	 	 	100	 	 	 	100	 	 	 	100	 	 	 	100	 	 	 	100	 	 	 	100	 	 	 	100	 	 	 	100	 	 	 	100	 	 	 	100	 	 	 	100	 	 	 	1,200	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	LIGNITE CRUSHING
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DOZER — D9
	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	500	 	 	 	6,000	 
	DOZER-834
	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	250	 	 	 	3,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	********ROADS********

ROADS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	GRADER
	 	 	2,196	 	 	 	1,984	 	 	 	1,647	 	 	 	1,594	 	 	 	1,647	 	 	 	1,594	 	 	 	1,647	 	 	 	1,647	 	 	 	1,063	 	 	 	1,647	 	 	 	1,594	 	 	 	1,647	 	 	 	19,908	 
	WATER TRUCK
	 	 	700	 	 	 	700	 	 	 	700	 	 	 	700	 	 	 	700	 	 	 	700	 	 	 	700	 	 	 	700	 	 	 	700	 	 	 	700	 	 	 	700	 	 	 	700	 	 	 	8,400	 
	SCRAPER
	 	 	55	 	 	 	55	 	 	 	55	 	 	 	55	 	 	 	55	 	 	 	55	 	 	 	55	 	 	 	55	 	 	 	55	 	 	 	55	 	 	 	55	 	 	 	55	 	 	 	660	 
	DOZER-D9
	 	 	120	 	 	 	120	 	 	 	120	 	 	 	120	 	 	 	120	 	 	 	120	 	 	 	120	 	 	 	120	 	 	 	120	 	 	 	120	 	 	 	120	 	 	 	120	 	 	 	1,440	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	***WATER CONTROL***

WATER CONTROL PIT
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DOZER-D9
	 	 	100	 	 	 	100	 	 	 	100	 	 	 	90	 	 	 	90	 	 	 	90	 	 	 	90	 	 	 	90	 	 	 	90	 	 	 	100	 	 	 	100	 	 	 	100	 	 	 	1,140	 
	SMALL BACKHOE
	 	 	225	 	 	 	225	 	 	 	225	 	 	 	225	 	 	 	225	 	 	 	225	 	 	 	225	 	 	 	225	 	 	 	225	 	 	 	225	 	 	 	225	 	 	 	225	 	 	 	2,700	 
	DOZER-D7
	 	 	200	 	 	 	200	 	 	 	200	 	 	 	200	 	 	 	200	 	 	 	200	 	 	 	200	 	 	 	200	 	 	 	200	 	 	 	200	 	 	 	200	 	 	 	200	 	 	 	2,400	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	O.B. DEWATERING
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DOZER-D9
	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	600	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	****RECLAMATION****

RECLAIM CURRENT
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SCRAPER
	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	50	 	 	 	600	 
	DOZER-D11
	 	 	576	 	 	 	520	 	 	 	576	 	 	 	558	 	 	 	576	 	 	 	558	 	 	 	576	 	 	 	576	 	 	 	558	 	 	 	576	 	 	 	558	 	 	 	576	 	 	 	6,784	 
	DOZER-D10
	 	 	200	 	 	 	200	 	 	 	200	 	 	 	200	 	 	 	200	 	 	 	200	 	 	 	200	 	 	 	200	 	 	 	200	 	 	 	200	 	 	 	200	 	 	 	200	 	 	 	2,400	 
	DOZER-D9
	 	 	150	 	 	 	150	 	 	 	150	 	 	 	150	 	 	 	150	 	 	 	150	 	 	 	150	 	 	 	150	 	 	 	150	 	 	 	150	 	 	 	150	 	 	 	150	 	 	 	1,800	 
	DOZER-D7
	 	 	75	 	 	 	75	 	 	 	75	 	 	 	75	 	 	 	75	 	 	 	75	 	 	 	75	 	 	 	75	 	 	 	75	 	 	 	75	 	 	 	75	 	 	 	75	 	 	 	900	 

8-4

 

Table 8.4

1999 Annual Mine Plan — Equipment Operating Hours

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	1ST	 	2ND	 	3RD	 	4TH	 	2000	 	1ST	 	2ND	 	3RD	 	4TH	 	2001	 	2002	 	2003	 	2004	 	2005	 	2006	 	2007	 	2008
	****STRIPPING****	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	STRIPPING DRAGLINE	 	

	 	 	DRAGLINE - 8200
	 	 	5,638	 	 	 	5,700	 	 	 	5,763	 	 	 	5,318	 	 	 	22,419	 	 	 	5,638	 	 	 	5,700	 	 	 	5,763	 	 	 	5,318	 	 	 	22,419	 	 	 	22,419	 	 	 	22,419	 	 	 	22,419	 	 	 	22,419	 	 	 	22,419	 	 	 	22,419	 	 	 	22,419	 
	 	 	DRAGLINE - 8750
	 	 	1,620	 	 	 	1,856	 	 	 	1,877	 	 	 	1,856	 	 	 	7,210	 	 	 	1,620	 	 	 	1,856	 	 	 	1,877	 	 	 	1,856	 	 	 	7,210	 	 	 	7,210	 	 	 	7,210	 	 	 	7,210	 	 	 	7,210	 	 	 	7,210	 	 	 	7,210	 	 	 	7,210	 
	 	 	DOZER — D9
	 	 	1,020	 	 	 	1,200	 	 	 	1,200	 	 	 	1,200	 	 	 	4,620	 	 	 	1,020	 	 	 	1,200	 	 	 	1,200	 	 	 	1,200	 	 	 	4,620	 	 	 	4,620	 	 	 	4,620	 	 	 	4,620	 	 	 	4,620	 	 	 	4,620	 	 	 	4,620	 	 	 	4,620	 
	 	 	DOZER — D10
	 	 	7,640	 	 	 	8,312	 	 	 	8,195	 	 	 	7,914	 	 	 	32,061	 	 	 	7,640	 	 	 	8,312	 	 	 	8,195	 	 	 	7,914	 	 	 	32,061	 	 	 	32,061	 	 	 	32,061	 	 	 	32,061	 	 	 	32,061	 	 	 	32,061	 	 	 	32,061	 	 	 	32,061	 
	 	 	DOZER-834
	 	 	60	 	 	 	60	 	 	 	60	 	 	 	60	 	 	 	240	 	 	 	60	 	 	 	60	 	 	 	60	 	 	 	60	 	 	 	240	 	 	 	240	 	 	 	240	 	 	 	240	 	 	 	240	 	 	 	240	 	 	 	240	 	 	 	240	 
	 	 	DOZER-D11
	 	 	1,500	 	 	 	1,500	 	 	 	1,500	 	 	 	1,500	 	 	 	6,000	 	 	 	1,500	 	 	 	1,500	 	 	 	1,500	 	 	 	1,500	 	 	 	6,000	 	 	 	6,000	 	 	 	6,000	 	 	 	6,000	 	 	 	6,000	 	 	 	6,000	 	 	 	6,000	 	 	 	6,000	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SHIPPING BWE	 	 

	 	 	BWE
	 	 	1,728	 	 	 	1,747	 	 	 	1,766	 	 	 	1,766	 	 	 	7,008	 	 	 	1,728	 	 	 	1,747	 	 	 	1,766	 	 	 	1,766	 	 	 	7,008	 	 	 	7,008	 	 	 	7,008	 	 	 	7,008	 	 	 	7,008	 	 	 	7,008	 	 	 	7,008	 	 	 	7,008	 
	 	 	SCRAPER
	 	 	75	 	 	 	75	 	 	 	75	 	 	 	75	 	 	 	300	 	 	 	75	 	 	 	75	 	 	 	75	 	 	 	75	 	 	 	300	 	 	 	300	 	 	 	300	 	 	 	300	 	 	 	300	 	 	 	300	 	 	 	300	 	 	 	300	 
	 	 	DOZER-D7
	 	 	1,728	 	 	 	1,747	 	 	 	1,766	 	 	 	1,766	 	 	 	7,008	 	 	 	1,728	 	 	 	1,747	 	 	 	1,766	 	 	 	1,766	 	 	 	7,008	 	 	 	7,008	 	 	 	7,008	 	 	 	7,008	 	 	 	7,008	 	 	 	7,008	 	 	 	7,008	 	 	 	7,008	 
	 	 	DOZER-D9
	 	 	750	 	 	 	750	 	 	 	750	 	 	 	750	 	 	 	3,000	 	 	 	750	 	 	 	750	 	 	 	750	 	 	 	750	 	 	 	3,000	 	 	 	3,000	 	 	 	3,000	 	 	 	3,000	 	 	 	3,000	 	 	 	3,000	 	 	 	3,000	 	 	 	3,000	 
	 	 	DOZER-D10
	 	 	1,800	 	 	 	1,820	 	 	 	1,820	 	 	 	1,800	 	 	 	7,240	 	 	 	1,800	 	 	 	1,820	 	 	 	1,820	 	 	 	1,800	 	 	 	7,240	 	 	 	7,240	 	 	 	7,240	 	 	 	7,240	 	 	 	7,240	 	 	 	7,240	 	 	 	7,240	 	 	 	7,240	 
	 	 	SMALL BACKHOE
	 	 	30	 	 	 	30	 	 	 	30	 	 	 	30	 	 	 	120	 	 	 	30	 	 	 	30	 	 	 	30	 	 	 	30	 	 	 	120	 	 	 	120	 	 	 	120	 	 	 	120	 	 	 	120	 	 	 	120	 	 	 	120	 	 	 	120	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	STRIPPING MOBILE	 	

	 	 	SCRAPER
	 	 	150	 	 	 	150	 	 	 	150	 	 	 	150	 	 	 	600	 	 	 	150	 	 	 	150	 	 	 	150	 	 	 	150	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 
	 	 	END DUMP
	 	 	7,345	 	 	 	7,426	 	 	 	7,508	 	 	 	7,508	 	 	 	29,787	 	 	 	7,345	 	 	 	7,426	 	 	 	7,508	 	 	 	7,508	 	 	 	29,787	 	 	 	29,787	 	 	 	29,787	 	 	 	29,787	 	 	 	29,787	 	 	 	29,787	 	 	 	29,787	 	 	 	29,787	 
	 	 	BACKHOE-8.5 cu. yd.
	 	 	2,706	 	 	 	1,026	 	 	 	1,056	 	 	 	1,056	 	 	 	5,845	 	 	 	1,056	 	 	 	1,026	 	 	 	1,056	 	 	 	1,056	 	 	 	4,195	 	 	 	4,195	 	 	 	4,195	 	 	 	4,195	 	 	 	4,195	 	 	 	4,195	 	 	 	4,195	 	 	 	4,195	 
	 	 	BACKHOE-5130
	 	 	0	 	 	 	1,710	 	 	 	1,710	 	 	 	1,710	 	 	 	5,130	 	 	 	1,710	 	 	 	1,710	 	 	 	1,710	 	 	 	1,710	 	 	 	6,840	 	 	 	6,840	 	 	 	6,840	 	 	 	6,840	 	 	 	6,840	 	 	 	6,840	 	 	 	6,840	 	 	 	6,840	 
	 	 	DOZER-D9
	 	 	1,901	 	 	 	1,923	 	 	 	1,944	 	 	 	1,944	 	 	 	7,712	 	 	 	1901	 	 	 	1,923	 	 	 	1,944	 	 	 	1,944	 	 	 	7,712	 	 	 	7,712	 	 	 	7,712	 	 	 	7,712	 	 	 	7,712	 	 	 	7,712	 	 	 	7,712	 	 	 	7,712	 
	 	 	DOZER-D10
	 	 	900	 	 	 	900	 	 	 	900	 	 	 	900	 	 	 	3,600	 	 	 	900	 	 	 	900	 	 	 	900	 	 	 	900	 	 	 	3,600	 	 	 	3,600	 	 	 	3,600	 	 	 	3,600	 	 	 	3,600	 	 	 	3,600	 	 	 	3,600	 	 	 	3,600	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	DOZER-834
	 	 	45	 	 	 	45	 	 	 	45	 	 	 	45	 	 	 	180	 	 	 	45	 	 	 	45	 	 	 	45	 	 	 	45	 	 	 	180	 	 	 	180	 	 	 	180	 	 	 	180	 	 	 	180	 	 	 	180	 	 	 	180	 	 	 	180	 
	*LIGNITE LOADING*	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	LIGNITE LOADING	 	 

	 	 	5130 BACKHOE
	 	 	3,383	 	 	 	3,420	 	 	 	3,458	 	 	 	3,458	 	 	 	13,718	 	 	 	3,383	 	 	 	3,420	 	 	 	3,458	 	 	 	3,458	 	 	 	13,718	 	 	 	13,718	 	 	 	13,718	 	 	 	13,718	 	 	 	13,718	 	 	 	13,718	 	 	 	13,718	 	 	 	13,718	 
	 	 	BACKHOE-8.5 cu. yd.
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 	 	FEL
	 	 	1,616	 	 	 	1,634	 	 	 	1,652	 	 	 	1,652	 	 	 	6,552	 	 	 	1,616	 	 	 	1,634	 	 	 	1,652	 	 	 	1,652	 	 	 	6,552	 	 	 	6,552	 	 	 	6,552	 	 	 	6,552	 	 	 	6,552	 	 	 	6,552	 	 	 	6,552	 	 	 	6,552	 
	 	 	DOZER-D10
	 	 	150	 	 	 	150	 	 	 	150	 	 	 	150	 	 	 	600	 	 	 	150	 	 	 	150	 	 	 	150	 	 	 	150	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	LIGNITE HAULING	 	

	 	 	HAULER
	 	 	16,708	 	 	 	16,893	 	 	 	17,079	 	 	 	17,079	 	 	 	67,759	 	 	 	16,708	 	 	 	16,893	 	 	 	17,079	 	 	 	17,079	 	 	 	67,759	 	 	 	67,759	 	 	 	67,759	 	 	 	67,759	 	 	 	67,759	 	 	 	67,759	 	 	 	67,759	 	 	 	67,759	 
	 	 	DOZER — D10
	 	 	300	 	 	 	300	 	 	 	300	 	 	 	300	 	 	 	1,200	 	 	 	300	 	 	 	300	 	 	 	300	 	 	 	300	 	 	 	1,200	 	 	 	1,200	 	 	 	1,200	 	 	 	1,200	 	 	 	1,200	 	 	 	1,200	 	 	 	1,200	 	 	 	1,200	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	LIGNITE CRUSHING	 	 

	 	 	DOZER — D9
	 	 	1,500	 	 	 	1,500	 	 	 	1,500	 	 	 	1,500	 	 	 	6,000	 	 	 	1,500	 	 	 	1,500	 	 	 	1,500	 	 	 	1,500	 	 	 	6,000	 	 	 	6,000	 	 	 	6,000	 	 	 	6,000	 	 	 	6,000	 	 	 	6,000	 	 	 	6,000	 	 	 	6,000	 
	 	 	DOZER-834
	 	 	750	 	 	 	750	 	 	 	750	 	 	 	750	 	 	 	3,000	 	 	 	750	 	 	 	750	 	 	 	750	 	 	 	750	 	 	 	3,000	 	 	 	3,000	 	 	 	3,000	 	 	 	3,000	 	 	 	3,000	 	 	 	3,000	 	 	 	3,000	 	 	 	3,000	 
	*****ROADS*****	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ROADS	 	 

	 	 	GRADER
	 	 	5,827	 	 	 	4,835	 	 	 	4,357	 	 	 	4,889	 	 	 	19,908	 	 	 	5,827	 	 	 	4,835	 	 	 	4,357	 	 	 	4,889	 	 	 	19,908	 	 	 	19,908	 	 	 	19,908	 	 	 	19,908	 	 	 	19,908	 	 	 	19,908	 	 	 	19,908	 	 	 	19,908	 
	 	 	WATER TRUCK
	 	 	2,100	 	 	 	2,100	 	 	 	2,100	 	 	 	2,100	 	 	 	8,400	 	 	 	2,100	 	 	 	2,100	 	 	 	2,100	 	 	 	2,100	 	 	 	8,400	 	 	 	8,400	 	 	 	8,400	 	 	 	8,400	 	 	 	8,400	 	 	 	8,400	 	 	 	8,400	 	 	 	8,400	 
	 	 	SCRAPER
	 	 	165	 	 	 	165	 	 	 	165	 	 	 	165	 	 	 	660	 	 	 	165	 	 	 	165	 	 	 	165	 	 	 	165	 	 	 	660	 	 	 	660	 	 	 	660	 	 	 	660	 	 	 	660	 	 	 	660	 	 	 	660	 	 	 	660	 
	 	 	DOZER-D9
	 	 	360	 	 	 	360	 	 	 	360	 	 	 	360	 	 	 	1,440	 	 	 	360	 	 	 	360	 	 	 	360	 	 	 	360	 	 	 	1,440	 	 	 	1,440	 	 	 	1,440	 	 	 	1,440	 	 	 	1,440	 	 	 	1,440	 	 	 	1,440	 	 	 	1,440	 
	**WATER CONTROL**	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	WATER CONTROL PIT	 	

	 	 	DOZER-D9
	 	 	300	 	 	 	270	 	 	 	270	 	 	 	300	 	 	 	1,140	 	 	 	300	 	 	 	270	 	 	 	270	 	 	 	300	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 	 	 	1,140	 
	 	 	SMALL BACKHOE
	 	 	675	 	 	 	675	 	 	 	675	 	 	 	675	 	 	 	2,700	 	 	 	675	 	 	 	675	 	 	 	675	 	 	 	675	 	 	 	2,700	 	 	 	2,700	 	 	 	2,700	 	 	 	2,700	 	 	 	2,700	 	 	 	2,700	 	 	 	2,700	 	 	 	2,700	 
	 	 	DOZER-D7
	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	2,400	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	2,400	 	 	 	2,400	 	 	 	2,400	 	 	 	2,400	 	 	 	2,400	 	 	 	2,400	 	 	 	2,400	 	 	 	2,400	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	O.B. DEWATERING	 	 

	 	 	DOZER-D9
	 	 	150	 	 	 	150	 	 	 	150	 	 	 	150	 	 	 	600	 	 	 	150	 	 	 	150	 	 	 	150	 	 	 	150	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 
	***RECLAMATION***	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	RECLAIM CURRENT	 
	 	 	SCRAPER
	 	 	150	 	 	 	150	 	 	 	150	 	 	 	150	 	 	 	600	 	 	 	150	 	 	 	150	 	 	 	150	 	 	 	150	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 
	 	 	DOZER-D11
	 	 	1,673	 	 	 	1,691	 	 	 	1,710	 	 	 	1,710	 	 	 	6,784	 	 	 	1,673	 	 	 	1,691	 	 	 	1,710	 	 	 	1,710	 	 	 	6,784	 	 	 	6,784	 	 	 	6,784	 	 	 	6,784	 	 	 	6,784	 	 	 	6,784	 	 	 	6,784	 	 	 	6,784	 
	 	 	DOZER-D10
	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	2,400	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	600	 	 	 	2,400	 	 	 	2,400	 	 	 	2,400	 	 	 	2,400	 	 	 	2,400	 	 	 	2,400	 	 	 	2,400	 	 	 	2,400	 
	 	 	DOZER-D9
	 	 	450	 	 	 	450	 	 	 	450	 	 	 	450	 	 	 	1,800	 	 	 	450	 	 	 	450	 	 	 	450	 	 	 	450	 	 	 	1,800	 	 	 	1,800	 	 	 	1,800	 	 	 	1,800	 	 	 	1,800	 	 	 	1,800	 	 	 	1,800	 	 	 	1,800	 
	 	 	DOZER-D7
	 	 	225	 	 	 	225	 	 	 	225	 	 	 	225	 	 	 	900	 	 	 	225	 	 	 	225	 	 	 	225	 	 	 	225	 	 	 	900	 	 	 	900	 	 	 	900	 	 	 	900	 	 	 	900	 	 	 	900	 	 	 	900	 	 	 	900	 

8-5

 

TABLE 8.5

1999 ANNUAL MINE PLAN

EQUIPMENT OPERATING HOURS SUMMARY

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	JAN	 	FEB	 	MAR	 	APR	 	MAY	 	JUN	 	JUL	 	AUG	 	SEP	 	OCT	 	NOV	 	DEC	 	TOTAL
	DRAGLINES - 8200
	 	 	1,942	 	 	 	1,754	 	 	 	1,414	 	 	 	1,879	 	 	 	1,942	 	 	 	1,879	 	 	 	1,942	 	 	 	1,942	 	 	 	1,879	 	 	 	1,942	 	 	 	1,434	 	 	 	1,942	 	 	 	21,891	 
	DRAGLINE - 8750
	 	 	632	 	 	 	571	 	 	 	632	 	 	 	612	 	 	 	632	 	 	 	612	 	 	 	632	 	 	 	442	 	 	 	612	 	 	 	632	 	 	 	612	 	 	 	632	 	 	 	7,256	 
	BWE
	 	 	595	 	 	 	538	 	 	 	595	 	 	 	576	 	 	 	595	 	 	 	576	 	 	 	595	 	 	 	595	 	 	 	576	 	 	 	595	 	 	 	576	 	 	 	595	 	 	 	7,008	 
	SCRAPER
	 	 	180	 	 	 	180	 	 	 	180	 	 	 	180	 	 	 	180	 	 	 	180	 	 	 	180	 	 	 	180	 	 	 	180	 	 	 	180	 	 	 	180	 	 	 	180	 	 	 	2,160	 
	END DUMP
	 	 	2,530	 	 	 	2,285	 	 	 	2,530	 	 	 	2,448	 	 	 	2,530	 	 	 	2,448	 	 	 	2,530	 	 	 	2,530	 	 	 	2,448	 	 	 	2,530	 	 	 	2,448	 	 	 	2,530	 	 	 	29,787	 
	5130 BACKHOE
	 	 	1,165	 	 	 	1,052	 	 	 	1,165	 	 	 	1,128	 	 	 	1,165	 	 	 	1,128	 	 	 	1,165	 	 	 	1,165	 	 	 	1,128	 	 	 	1,165	 	 	 	1,128	 	 	 	1,165	 	 	 	13,718	 
	BACKHOE - 8.5 cu. Yd.
	 	 	932	 	 	 	842	 	 	 	932	 	 	 	902	 	 	 	932	 	 	 	902	 	 	 	932	 	 	 	932	 	 	 	902	 	 	 	932	 	 	 	902	 	 	 	932	 	 	 	10.975	 
	FEL
	 	 	557	 	 	 	503	 	 	 	557	 	 	 	539	 	 	 	557	 	 	 	539	 	 	 	557	 	 	 	557	 	 	 	539	 	 	 	557	 	 	 	539	 	 	 	557	 	 	 	6,552	 
	DOZER D11
	 	 	1,076	 	 	 	1,020	 	 	 	1,076	 	 	 	1,058	 	 	 	1,076	 	 	 	1,058	 	 	 	1,076	 	 	 	1,076	 	 	 	1,058	 	 	 	1,076	 	 	 	1,058	 	 	 	1,076	 	 	 	12,784	 
	DOZER D10
	 	 	4,082	 	 	 	3,808	 	 	 	3,501	 	 	 	3,990	 	 	 	4,082	 	 	 	4,010	 	 	 	4,102	 	 	 	3,873	 	 	 	3,990	 	 	 	4,082	 	 	 	3,501	 	 	 	4,082	 	 	 	47,101	 
	DOZER D9
	 	 	2,075	 	 	 	1,831	 	 	 	2,075	 	 	 	2,044	 	 	 	2,065	 	 	 	2,044	 	 	 	2,065	 	 	 	2,065	 	 	 	2,044	 	 	 	2,075	 	 	 	2,054	 	 	 	2,075	 	 	 	24,512	 
	DOZER D7
	 	 	870	 	 	 	813	 	 	 	870	 	 	 	851	 	 	 	870	 	 	 	851	 	 	 	870	 	 	 	870	 	 	 	851	 	 	 	870	 	 	 	851	 	 	 	870	 	 	 	10,308	 
	DOZER - 834
	 	 	285	 	 	 	285	 	 	 	285	 	 	 	285	 	 	 	285	 	 	 	285	 	 	 	285	 	 	 	285	 	 	 	285	 	 	 	285	 	 	 	285	 	 	 	285	 	 	 	3,420	 
	HAULER
	 	 	5,755	 	 	 	5,198	 	 	 	5,755	 	 	 	5,569	 	 	 	5,755	 	 	 	5,569	 	 	 	5,755	 	 	 	5,755	 	 	 	5,569	 	 	 	5,755	 	 	 	5,569	 	 	 	5,755	 	 	 	67,759	 
	GRADER
	 	 	2,196	 	 	 	1,984	 	 	 	1,647	 	 	 	1,594	 	 	 	1,647	 	 	 	1,594	 	 	 	1,647	 	 	 	1,647	 	 	 	1,063	 	 	 	1,647	 	 	 	1,594	 	 	 	1,647	 	 	 	19,808	 
	WATER TRUCK
	 	 	700	 	 	 	700	 	 	 	700	 	 	 	700	 	 	 	700	 	 	 	700	 	 	 	700	 	 	 	700	 	 	 	700	 	 	 	700	 	 	 	700	 	 	 	700	 	 	 	8,400	 
	SMALL BACKHOE
	 	 	235	 	 	 	235	 	 	 	235	 	 	 	235	 	 	 	235	 	 	 	235	 	 	 	235	 	 	 	235	 	 	 	235	 	 	 	235	 	 	 	235	 	 	 	235	 	 	 	2,820	 

8-6

 

TABLE 8.5

1999 ANNUAL MINE PLAN

EQUIPMENT OPERATING HOURS SUMMARY

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	1ST	 	2ND	 	3RD	 	4TH	 	2000	 	1ST	 	2ND	 	3RD	 	4TH	 	2001	 	2002	 	2003	 	2004	 	2005	 	2006	 	2007	 	2008
	DRAGLINES - 8200
	 	 	5,638	 	 	 	5,700	 	 	 	5,763	 	 	 	5,318	 	 	 	22,419	 	 	 	5,638	 	 	 	5,700	 	 	 	5,763	 	 	 	5,318	 	 	 	22,419	 	 	 	22,419	 	 	 	22,419	 	 	 	22,419	 	 	 	22,419	 	 	 	22,419	 	 	 	22,419	 	 	 	22,419	 
	DRAGLINE-8750
	 	 	1,620	 	 	 	1,856	 	 	 	1,877	 	 	 	1,856	 	 	 	7,210	 	 	 	1,620	 	 	 	1,856	 	 	 	1,877	 	 	 	1,856	 	 	 	7,210	 	 	 	7,210	 	 	 	7,210	 	 	 	7,210	 	 	 	7,210	 	 	 	7,210	 	 	 	7,210	 	 	 	7,210	 
	BWE
	 	 	1,728	 	 	 	1,747	 	 	 	1,766	 	 	 	1,766	 	 	 	7,008	 	 	 	1,728	 	 	 	1,747	 	 	 	1,766	 	 	 	1,766	 	 	 	7,008	 	 	 	7,008	 	 	 	7,008	 	 	 	7,008	 	 	 	7,008	 	 	 	7,008	 	 	 	7,008	 	 	 	7,008	 
	SCRAPER
	 	 	540	 	 	 	540	 	 	 	540	 	 	 	540	 	 	 	2,160	 	 	 	540	 	 	 	540	 	 	 	540	 	 	 	540	 	 	 	2,160	 	 	 	2,160	 	 	 	2,160	 	 	 	2,160	 	 	 	2,160	 	 	 	2,160	 	 	 	2,160	 	 	 	2,160	 
	END DUMP
	 	 	7,345	 	 	 	7,426	 	 	 	7,508	 	 	 	7,508	 	 	 	29,787	 	 	 	7,345	 	 	 	7,426	 	 	 	7,508	 	 	 	7,508	 	 	 	29,787	 	 	 	29,787	 	 	 	29,787	 	 	 	29,787	 	 	 	29,787	 	 	 	29,787	 	 	 	29,787	 	 	 	29,787	 
	5130 BACKHOE
	 	 	3,383	 	 	 	3,420	 	 	 	3,458	 	 	 	3,458	 	 	 	13,718	 	 	 	3,383	 	 	 	3,420	 	 	 	3,458	 	 	 	3,458	 	 	 	13,718	 	 	 	13,718	 	 	 	13,718	 	 	 	13,718	 	 	 	13,718	 	 	 	13,718	 	 	 	13,718	 	 	 	13,718	 
	BACKHOE-8.5 cu.yd.
	 	 	2,706	 	 	 	1,026	 	 	 	1,056	 	 	 	1,056	 	 	 	5,845	 	 	 	1,056	 	 	 	1,026	 	 	 	1,056	 	 	 	1,056	 	 	 	4,195	 	 	 	4,195	 	 	 	4,195	 	 	 	4,195	 	 	 	4,195	 	 	 	4,195	 	 	 	4,195	 	 	 	4,195	 
	FEL
	 	 	1,616	 	 	 	3,344	 	 	 	3,362	 	 	 	3,362	 	 	 	11,682	 	 	 	3,326	 	 	 	3,344	 	 	 	3,362	 	 	 	3,362	 	 	 	13,392	 	 	 	13,392	 	 	 	13,392	 	 	 	13,392	 	 	 	13,392	 	 	 	13,392	 	 	 	13,392	 	 	 	13,392	 
	DOZER D11
	 	 	3,173	 	 	 	3,191	 	 	 	3,210	 	 	 	3,210	 	 	 	12,784	 	 	 	3,173	 	 	 	3,191	 	 	 	3,210	 	 	 	3,210	 	 	 	12,784	 	 	 	12,784	 	 	 	12,784	 	 	 	12,784	 	 	 	12,784	 	 	 	12,784	 	 	 	12,784	 	 	 	12,784	 
	DOZER D10
	 	 	11,390	 	 	 	12,082	 	 	 	11,965	 	 	 	11,664	 	 	 	47,101	 	 	 	11,390	 	 	 	12,082	 	 	 	11,965	 	 	 	11,664	 	 	 	47,101	 	 	 	47,101	 	 	 	47,101	 	 	 	47,101	 	 	 	47,101	 	 	 	47,101	 	 	 	47,101	 	 	 	47,101	 
	DOZER D9
	 	 	5,981	 	 	 	4,653	 	 	 	4,674	 	 	 	4,704	 	 	 	18,512	 	 	 	4,481	 	 	 	4,653	 	 	 	4,674	 	 	 	4,704	 	 	 	18,512	 	 	 	18,512	 	 	 	18,512	 	 	 	18,512	 	 	 	18,512	 	 	 	18,512	 	 	 	18,512	 	 	 	18,512	 
	DOZER D7
	 	 	2,553	 	 	 	2,572	 	 	 	2,591	 	 	 	2,591	 	 	 	10,308	 	 	 	2,553	 	 	 	2,572	 	 	 	2,591	 	 	 	2,591	 	 	 	10,308	 	 	 	10,308	 	 	 	10,308	 	 	 	10,308	 	 	 	10,308	 	 	 	10,308	 	 	 	10,308	 	 	 	10,308	 
	DOZER-834
	 	 	855	 	 	 	855	 	 	 	855	 	 	 	855	 	 	 	3,420	 	 	 	855	 	 	 	855	 	 	 	855	 	 	 	855	 	 	 	3,420	 	 	 	3,420	 	 	 	3,420	 	 	 	3,420	 	 	 	3,420	 	 	 	3,420	 	 	 	3,420	 	 	 	3,420	 
	HAULER
	 	 	16,708	 	 	 	16,893	 	 	 	17,079	 	 	 	17,079	 	 	 	67,759	 	 	 	16,708	 	 	 	16,893	 	 	 	17,079	 	 	 	17,079	 	 	 	67,759	 	 	 	67,759	 	 	 	67.759	 	 	 	67,759	 	 	 	67,759	 	 	 	67.759	 	 	 	67,759	 	 	 	67,759	 
	GRADER
	 	 	5,827	 	 	 	4,835	 	 	 	4,357	 	 	 	4,889	 	 	 	19,908	 	 	 	5,827	 	 	 	4,835	 	 	 	4,357	 	 	 	4,889	 	 	 	19,908	 	 	 	19,908	 	 	 	19,908	 	 	 	19,908	 	 	 	19,908	 	 	 	19,908	 	 	 	19,908	 	 	 	19,908	 
	WATER TRUCK
	 	 	2,100	 	 	 	2,100	 	 	 	2,100	 	 	 	2,100	 	 	 	8,400	 	 	 	2,100	 	 	 	2,100	 	 	 	2,100	 	 	 	2,100	 	 	 	8,400	 	 	 	8,400	 	 	 	8,400	 	 	 	8,400	 	 	 	8,400	 	 	 	8,400	 	 	 	8,400	 	 	 	8,400	 
	SMALL BACKHOE
	 	 	705	 	 	 	705	 	 	 	705	 	 	 	705	 	 	 	2,820	 	 	 	705	 	 	 	705	 	 	 	705	 	 	 	705	 	 	 	2,820	 	 	 	2,820	 	 	 	2,820	 	 	 	2,820	 	 	 	2,820	 	 	 	2,820	 	 	 	2,820	 	 	 	2,820	 

8-7

 

Northwestern Resources Co.

Jewett Mine

Capital and Operations Budget

1999 — 2008

This document contains the Jewett Mine Capital and Operations Budget for the years
1999 through 2008 as approved by Houston Lighting & Power. Due to the confidential
nature of its contents, disclosure of information contained in the budget should be
restricted to employees of NWR or HL&P, and used only for purposes related to the
Jewett Mine.

Presented to

Houston Lighting & Power

December, 1998

Distribution List:

	 	 	 	 	 	 	 	 	 
	 	 	HL&P Houston	 	HL&P Jewett	 	NWR Jewett	 	 
	 

	 	J. Mitcham
	 	M. Berend
	 	J. Allred
	 	F. Walters
	 

	 	A. Harper
	 	A. Jones
	 	C. Hardy
	 	B. Armstrong
	 

	 	 	 	T. Tawney
	 	K. Keppner
	 	E. Abram
	 

	 	 	 	T. Underwood
	 	L. Morrison
	 	A. Barnes
	 

	 	 	 	Limestone Site File
	 	 	 	File

C-I

 

Northwestern Resources Co.

Jewett Mine

1999 — 2008 Capital and Operations Budget

Table of Contents

	 	 	 
	Overview 
	 	II
	Capital Budget
	 	 
	Overview 
	 	C - 1
	Budget:
	 	 
	Summary 
	 	C - 3
	Ten Year Spread 
	 	C - 4
	1999 By Month 
	 	C - 6
	2000 - 2003 
	 	C - 7
	Escalation:
	 	 
	Method 
	 	C - 8
	Applied Indices 
	 	C - 9
	1999 Capital Budget Items 
	 	CI - 1
	Operations Budget
	 	 
	Overview 
	 	O - 1
	Budget:
	 	 
	Summary 
	 	O - 7
	Lignite Supply Agreement Format 
	 	O - 9
	Categorical Format 
	 	O - 10
	Ten Year Spread 
	 	O - 11
	1999 By Month 
	 	O - 17
	2000 - 2003 
	 	O - 20
	Escalation:
	 	 
	Method 
	 	O - 23
	Applied Indices 
	 	O - 24
	Assumptions
	 	 
	Tonnage Projections: 
	 	A - 1
	Bank Cubic Yards 
	 	A - 2
	Major Equipment Requirements 
	 	A - 3
	Major Equipment Replacements 
	 	A - 4
	Average Equipment Lives 
	 	A - 5
	Major Hourly Equipment Rates 
	 	A - 6
	Support Equipment Rates 
	 	A - 8
	Wage Projection and Overtime Assumptions 
	 	A - 9
	Payroll Loading Factors 
	 	A - 10
	Staffing Summary 
	 	A - 12
	Constant Dollar Budgets
	 	 
	Capital 
	 	CD - 1
	Operations 
	 	CD - 5

I

 

Northwestern Resources Co.

Overview of the Jewett Mine

     This document contains the 1999 — 2008 Capital and Operations Budget for the Jewett Mine
located in Leon, Limestone, and Freestone Counties, Texas. This mine supplies fuel to Houston
Lighting and Power, the owner and operator of the Limestone Electric Generating Station (two 820 mw
generators).

     Mine construction began late in 1983, and initial overburden stripping commenced in June 1985.
Full production of approximately 8.1 million tons per year was reached in 1989 with an expected
mine life of thirty years. Production in 1999 will exceed 9.0 million tons. Three 78 cubic yard
capacity draglines, one 128 cubic yard capacity dragline, and one bucketwheel excavator system
(BWE) are the primary pieces of overburden stripping equipment. In deep overburden areas, end-dump
and truck prebenching are used to supplement dragline and BWE production capabilities.

     Reserves incorporated in the Jewett Mine Plan include over 240 million tons. Additional
reserves are available in the area to increase production or operate for a longer term. Five
lignite seams, varying from 2 to 15 feet thick, will be mined. The principle coal raining method
utilizes large backhoes and front-end loaders to load bottom dump trucks for extraction and haulage
of lignite to a central crushing facility.

     An extensive post-rnine reclamation program, including spoilpile grading and revegetation, is in
place to assure the mined out lands are restored to at least their premining productivity levels.
Post-mine land use will typically be for cattle grazing and wildlife habitat.

II

 

Northwestern Resources Co.

1999 Capital Budget Overview

     The 1999 — 2008 Capital Budget was prepared on the basis of costs to be incurred by NWR for
work performed in the same period. Escalation has been applied according to the schedule on page C
- 9. No contingency has been included, except where specifically identified. Salvage value for
replacement equipment is not included in the requested amount.

     The Capital Budget is assembled into three major categories for 1999:

6 Facility Modification & Addition

6 Equipment

6 Lands

C-1

 

Northwestern Resources Co.

1999 — 2008 Capital Budget

Major Categories

Facility Modification &Addition

	 	6	 	Haulroads & Ponds:
	 
	 	 	 	This item includes construction of haulroads and drainage control structures at the mine.
Included as haulroad construction are those roads used primarily for coal haulage. The
engineering cost for surveying, construction testing, and inspection of these activities are
not included. They are considered expense for the 1999 Budget. All service roads are
expensed.

Equipment

	 	6	 	Major Equipment — Additions and Replacements
	 
	 	 	 	The primary pieces of overburden stripping equipment are three Marion 8200 (78 cubic yard)
electric walking draglines, one Marion 8750 (128 cubic yard) electric walking dragline, and
a bucketwheel excavator system (BWE).
	 
	 	6	 	Mobile Equipment — Additions and Replacements
	 
	 	 	 	This category includes the cost of major mobile equipment required for clearing, stripping,
coal removal, coal hauling, and regrading. A listing of equipment replacements is shown on
page A — 4 of the Assumptions section. The useful life of the different types of mobile
equipment may be seen on page A — 5 of the Assumptions section.
	 
	 	6	 	Support Equipment — Additions
Items in this category include support equipment not directly used in production.
	 
	 	6	 	Support Equipment — Replacements and Other Equipment
	 
	 	 	 	In this category are the costs of maintenance and support equipment such as fuel/lube
trucks, welding trucks, service trucks, forklifts, light plants, reclamation implements,
in-pit and overburden dewatering equipment, and pickup trucks. Also included are the costs
of shop and service tools, and safety/training equipment as well as other miscellaneous
equipment.
	 
	 	6	 	Office Furniture and Equipment — Additions and Replacements
This category includes various types of furniture, office and computer equipment.

Lands

	 	6	 	Tract Purchases
	 
	 	 	 	This category includes funds for purchases of tracts needed for the Life of Mine operations.
Other leased properties will be recommended for purchase in order to provide for ancillary
operations.
	 
	 	6	 	Surface Improvements
	 
	 	 	 	Included here are payments to the respective landowner of the fair market value for
buildings, fences, tanks, and other improvements that will be destroyed or rendered useless
by the mining operations. These payments are required under the provisions of the respective
coal leases.

C-2

 

Northwestern Resources Co.

1999 Capital Budget Summary

Escalated Dollars

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	1999	 	 	2000	 	 	2001	 	 	2002	 	 	2003	 	 	2004	 	 	2005	 	 	2006	 	 	2007	 	 	2008	 	 	Total	 
	Mine Facilities
	 	$	—	 	 	$	788,214	 	 	$	1,467,798	 	 	$	1,616,897	 	 	$	7,203,497	 	 	$	4,664,866	 	 	$	4,160,182	 	 	$	—	 	 	$	918,212	 	 	$	—	 	 	$	20,819,666	 
	Mine Equipment
	 	 	646,000	 	 	 	6,554,309	 	 	 	569,194	 	 	 	326,805	 	 	 	919,088	 	 	 	5,525,787	 	 	 	1,567,065	 	 	 	2,468,026	 	 	 	4,833,533	 	 	 	130,725	 	 	 	23,540,532	 
	Land
	 	 	250,000	 	 	 	193,795	 	 	 	311,800	 	 	 	379,641	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1,135,236	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total
	 	$	896,000	 	 	$	7,536,318	 	 	$	2,348,792	 	 	$	2,323,343	 	 	$	8,122,585	 	 	$	10,190,653	 	 	$	5,727,247	 	 	$	2,468,026	 	 	$	5,751,745	 	 	$	130,725	 	 	$	45,495,434	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

C-3

 

JEWETT CAPITAL BUDGET ESCALATED DOLLARS

NORTHWESTERN RESOURCES CO.

BUDGET SUMMARY REPORT

1999 BUDGET

(000’S)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	5 YEAR
	 	 	1999	 	2000	 	2001	 	2002	 	2003	 	TOTAL
	* EQUIPMENT
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** MAJOR EQUIP 

DRAGLINE	 	 	520.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	133.5	 	 	 	653.5	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	520.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	133.5	 	 	 	653.5	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** MOBILE EQUIP
REPLACEMENT
	 	 	0.0	 	 	 	5,944.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	5,944.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	0.0	 	 	 	5,944.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	5,944.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** SHOP & SERV
SUPP EQUIP REP
	 	 	0.0	 	 	 	507.7	 	 	 	463.9	 	 	 	218.7	 	 	 	674.3	 	 	 	1,864.6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOOLS & EQUIP
	 	 	126.0	 	 	 	102.8	 	 	 	105.2	 	 	 	108.1	 	 	 	111.2	 	 	 	553.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	126.0	 	 	 	610.5	 	 	 	569.1	 	 	 	326.8	 	 	 	785.5	 	 	 	2,417.9	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	646.0	 	 	 	6,554.5	 	 	 	569.1	 	 	 	326.8	 	 	 	919.0	 	 	 	9,015.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* FACILITIES
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** ROAD & DRAIN

HAULROADS	 	 	0.0	 	 	 	788.2	 	 	 	677.5	 	 	 	0.0	 	 	 	5,285.0	 	 	 	6,750.7	 
	PONDS
	 	 	0.0	 	 	 	0.0	 	 	 	790.3	 	 	 	1,616.9	 	 	 	1,918.4	 	 	 	4,325.6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	0.0	 	 	 	788.2	 	 	 	1,467.8	 	 	 	1,616.9	 	 	 	7,203.4	 	 	 	11,076.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	0.0	 	 	 	788.2	 	 	 	1,467.8	 	 	 	1,616.9	 	 	 	7,203.4	 	 	 	11,076.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* LANDS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** ACQUISITION
TRACT PURCHASES
	 	 	200.0	 	 	 	193.8	 	 	 	311.8	 	 	 	379.6	 	 	 	0.0	 	 	 	1,085.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	200.0	 	 	 	193.8	 	 	 	311.8	 	 	 	379.6	 	 	 	0.0	 	 	 	1,085.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** SURFACE
IMPROVEMENT
	 	 	50.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	50.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	50.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	50.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	250.0	 	 	 	193.8	 	 	 	311.8	 	 	 	379.6	 	 	 	0.0	 	 	 	1,135.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grand Total
	 	 	896.0	 	 	 	7,536.5	 	 	 	2,348.7	 	 	 	2,323.3	 	 	 	8,122.4	 	 	 	21,226.9	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

C-4

 

JEWETT CAPITAL BUDGET ESCALATED DOLLARS

NORTHWESTERN RESOURCES CO.

BUDGET SUMMARY REPORT

1999 BUDGET

(000’S)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	5 YEAR
	 	 	2004	 	2005	 	2006	 	2007	 	2008	 	TOTAL
	* EQUIPMENT
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** MAJOR EQUIP 

DRAGLINE	 	 	0.0	 	 	 	71.1	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	71.1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	0.0	 	 	 	71.1	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	71.1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** MOBILE EQUIP 

REPLACEMENT	 	 	5,264.4	 	 	 	817.5	 	 	 	2,317.6	 	 	 	4,443.0	 	 	 	0.0	 	 	 	12,842.5	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	5,264.4	 	 	 	817.5	 	 	 	2,317.6	 	 	 	4,443.0	 	 	 	0.0	 	 	 	12,842.5	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** SHOP & SERV
SUPP EQUIP REP	 	 	146.7	 	 	 	560.0	 	 	 	27.8	 	 	 	263.7	 	 	 	0.0	 	 	 	998.2	 
	TOOLS & EQUIP
	 	 	114.7	 	 	 	118.5	 	 	 	122.6	 	 	 	126.8	 	 	 	130.7	 	 	 	613.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	261.4	 	 	 	678.5	 	 	 	150.4	 	 	 	390.5	 	 	 	130.7	 	 	 	1,611.5	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	5,525.8	 	 	 	1,567.1	 	 	 	2,468.0	 	 	 	4,833.5	 	 	 	130.7	 	 	 	14,525.1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* FACILITIES
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** MINE BLDGS
MODIF & ADDS
	 	 	780.4	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	780.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	780.4	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	780.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* ROAD & DRAIN
HAULROADS
	 	 	1,384.4	 	 	 	1,847.7	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	3,232.1	 
	PONDS
	 	 	2,500.1	 	 	 	2,312.5	 	 	 	0.0	 	 	 	918.2	 	 	 	0.0	 	 	 	5,730.8	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	3,884.5	 	 	 	4,160.2	 	 	 	0.0	 	 	 	918.2	 	 	 	0.0	 	 	 	8,962.9	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	4,664.9	 	 	 	4,160.2	 	 	 	0.0	 	 	 	918.2	 	 	 	0.0	 	 	 	9,743.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grand Total
	 	 	10,190.7	 	 	 	5,727.3	 	 	 	2,468.0	 	 	 	5,751.7	 	 	 	130.7	 	 	 	24,268.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

C-5

 

JEWETT
CAPITAL BUDGET ESCALATED DOLLARS

NORTHWESTERN
RESOURCES CO.

BUDGET SUMMARY REPORT 

1999 BUDGET

(000’S)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	1999	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1999
	 	 	JAN	 	FEB	 	MARCH	 	APRIL	 	MAY	 	JUNE	 	JULY	 	AUG	 	SEPT	 	OCT	 	NOV	 	DEC	 	TOTAL
	* EQUIPMENT
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** MAJOR EQUIP

DRAGLINE	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	520.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	520.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	520.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	520.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** SHOP & SERV

TOOLS & EQUIP	 	 	5.0	 	 	 	12.4	 	 	 	5.0	 	 	 	19.0	 	 	 	10.0	 	 	 	19.6	 	 	 	10.0	 	 	 	10.0	 	 	 	10.0	 	 	 	10.0	 	 	 	10.0	 	 	 	5.0	 	 	 	126.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	5.0	 	 	 	12.4	 	 	 	5.0	 	 	 	19.0	 	 	 	10.0	 	 	 	19.6	 	 	 	10.0	 	 	 	10.0	 	 	 	10.0	 	 	 	10.0	 	 	 	10.0	 	 	 	5.0	 	 	 	126.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	5.0	 	 	 	12.4	 	 	 	5.0	 	 	 	19.0	 	 	 	10.0	 	 	 	19.6	 	 	 	10.0	 	 	 	530.0	 	 	 	10.0	 	 	 	10.0	 	 	 	10.0	 	 	 	5.0	 	 	 	646.0	 
	* LANDS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** ACQUISITION 

TRACT PURCHASE	 	 	0.0	 	 	 	0.0	 	 	 	10.0	 	 	 	0.0	 	 	 	40.0	 	 	 	0.0	 	 	 	80.0	 	 	 	0.0	 	 	 	40.0	 	 	 	0.0	 	 	 	30.0	 	 	 	0.0	 	 	 	200.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	0.0	 	 	 	0.0	 	 	 	10.0	 	 	 	0.0	 	 	 	40.0	 	 	 	0.0	 	 	 	80.0	 	 	 	0.0	 	 	 	40.0	 	 	 	0.0	 	 	 	30.0	 	 	 	0.0	 	 	 	200.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** SURFACE 

IMPROVEMENT	 	 	0.0	 	 	 	0.0	 	 	 	20.0	 	 	 	0.0	 	 	 	0.0	 	 	 	20.0	 	 	 	0.0	 	 	 	0.0	 	 	 	10.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	50.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	0.0	 	 	 	0.0	 	 	 	20.0	 	 	 	0.0	 	 	 	0.0	 	 	 	20.0	 	 	 	0.0	 	 	 	0.0	 	 	 	10.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	50.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	0.0	 	 	 	0.0	 	 	 	30.0	 	 	 	0.0	 	 	 	40.0	 	 	 	20.0	 	 	 	80.0	 	 	 	0.0	 	 	 	50.0	 	 	 	0.0	 	 	 	30.0	 	 	 	0.0	 	 	 	250.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grand Total
	 	 	5.0	 	 	 	12.4	 	 	 	35.0	 	 	 	19.0	 	 	 	50.0	 	 	 	39.6	 	 	 	90.0	 	 	 	530.0	 	 	 	60.0	 	 	 	10.0	 	 	 	40.0	 	 	 	5.0	 	 	 	896.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

C-6

 

JEWETT CAPITAL BUDGET ESCALATED DOLLARS

NORTHWESTERN RESOURCES CO.

BUDGET SUMMARY REPORT

1999 BUDGET

(000’S)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2000	 	 	 	 	 	 	 	 	 	 	 	 	 	2000	 	2001	 	 	 	 	 	 	 	 	 	 	 	 	 	2001	 	2002	 	2003	 	5-YEAR
	 	 	QTR 1	 	QTR 2	 	QTR 3	 	QTR 4	 	TOTAL	 	QTR 1	 	QTR 2	 	QTR 3	 	QTR 4	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL
	* EQUIPMENT
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** MAJOR EQUIP
DRAGLINE	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	133.5	 	 	 	653.5	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	133.5	 	 	 	653.5	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** MOBILE EQUIP
REPLACEMENT	 	 	1226.7	 	 	 	4717.3	 	 	 	0.0	 	 	 	0.0	 	 	 	5944.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	5,944.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	1226.7	 	 	 	4717.3	 	 	 	0.0	 	 	 	0.0	 	 	 	5944.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	5,944.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** SHOP & SERV
SUPP EQUIP REP	 	 	121.1	 	 	 	355.8	 	 	 	12.3	 	 	 	18.5	 	 	 	507.7	 	 	 	162.3	 	 	 	182.5	 	 	 	100.1	 	 	 	19.0	 	 	 	463.9	 	 	 	218.7	 	 	 	674.3	 	 	 	1,864.6	 
	TOOLS & EQUIP	 	 	25.7	 	 	 	25.7	 	 	 	25.7	 	 	 	25.7	 	 	 	102.8	 	 	 	26.3	 	 	 	26.3	 	 	 	26.3	 	 	 	26.3	 	 	 	105.2	 	 	 	108.1	 	 	 	111.2	 	 	 	553.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	146.8	 	 	 	381.5	 	 	 	38.0	 	 	 	44.2	 	 	 	610.5	 	 	 	188.6	 	 	 	208.8	 	 	 	126.4	 	 	 	45.3	 	 	 	569.1	 	 	 	326.8	 	 	 	785.5	 	 	 	2,417.9	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	1373.5	 	 	 	5098.8	 	 	 	38.0	 	 	 	44.2	 	 	 	6554.5	 	 	 	188.6	 	 	 	208.8	 	 	 	126.4	 	 	 	45.3	 	 	 	569.1	 	 	 	326.8	 	 	 	919.0	 	 	 	9,015.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* FACILITIES
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** ROAD & DRAIN
HAULROADS	 	 	0.0	 	 	 	394.1	 	 	 	394.1	 	 	 	0.0	 	 	 	788.2	 	 	 	0.0	 	 	 	0.0	 	 	 	421.5	 	 	 	256.0	 	 	 	677.5	 	 	 	0.0	 	 	 	5285.0	 	 	 	6,750.7	 
	PONDS
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	474.2	 	 	 	316.1	 	 	 	0.0	 	 	 	0.0	 	 	 	790.3	 	 	 	1616.9	 	 	 	1918.4	 	 	 	4,325.6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	0.0	 	 	 	394.1	 	 	 	394.1	 	 	 	0.0	 	 	 	788.2	 	 	 	474.2	 	 	 	316.1	 	 	 	421.5	 	 	 	256.0	 	 	 	1467.8	 	 	 	1616.9	 	 	 	7203.4	 	 	 	11,076.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Total
	 	 	0.0	 	 	 	394.1	 	 	 	394.1	 	 	 	0.0	 	 	 	788.2	 	 	 	474.2	 	 	 	316.1	 	 	 	421.5	 	 	 	256.0	 	 	 	1467.8	 	 	 	1616.9	 	 	 	7203.4	 	 	 	11,076.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* LANDS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** ACQUISITION
TRACT PURCHASE	 	 	51.1	 	 	 	0.0	 	 	 	142.7	 	 	 	0.0	 	 	 	193.8	 	 	 	55.3	 	 	 	55.3	 	 	 	107.5	 	 	 	93.7	 	 	 	311.8	 	 	 	379.6	 	 	 	0.0	 	 	 	1,085.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	51.1	 	 	 	0.0	 	 	 	142.7	 	 	 	0.0	 	 	 	193.8	 	 	 	55.3	 	 	 	55.3	 	 	 	107.5	 	 	 	93.7	 	 	 	311.8	 	 	 	379.6	 	 	 	0.0	 	 	 	1,085.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** SURFACE
IMPROVEMENT	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	50.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	50.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	51.1	 	 	 	0.0	 	 	 	142.7	 	 	 	0.0	 	 	 	193.8	 	 	 	55.3	 	 	 	55.3	 	 	 	107.5	 	 	 	93.7	 	 	 	311.8	 	 	 	379.6	 	 	 	0.0	 	 	 	1,135.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grand Total
	 	 	1424.6	 	 	 	5492.9	 	 	 	574.8	 	 	 	44.2	 	 	 	7536.5	 	 	 	718.1	 	 	 	580.2	 	 	 	655.4	 	 	 	395.0	 	 	 	2348.7	 	 	 	2323.3	 	 	 	8322.4	 	 	 	21,226.9	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

C-7

 

Northwestern Resources Co.

1999 Capital Budget Escalation

     The escalation rates used in the Capital Budget were taken from the 1998 Houston Industries,
Inc. Cost Escalation Study, dated May, 1998. HL&P provided this study to NWR. NWR then determined
the appropriate indices to be used for each budget item. The following page shows the selected
indices for the 1999 Capital Budget.

     Capital dollars are based on 1999 dollars; consequently, no escalation was applied for 1999.
The budget is then escalated quarterly for 2000 and 2001, and annually for 2002 through 2008, to
derive the escalated dollar budget. The method used gives an effective annual rate after
compounding equal to the stated escalation rates.

C-8

 

Northwestern Resources Co.

1999 Capital Budget

Applied Indices

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	RATE APPLIED
	DESCRIPTION	 	1999 2008 INDEX	 	 	1999	 	 	2000	 	 	2001	 	 	2002	 	 	2003	 	 	2004	 	 	2005	 	 	2006	 	 	2007	 	 	2008
	Mine Buildings
	 	Warehouse Construction Costs	 	 	 	1.9	 	 	 	 	2.2	 	 	 	 	2.2	 	 	 	 	2.2	 	 	 	 	2.4	 	 	 	 	2.5	 	 	 	 	2.9	 	 	 	 	2.9	 	 	 	 	2.7	 	 	 	 	2.6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lignite Handling Facility
	 	Coal & Ash Handling Equipment	 	 	 	1.2	 	 	 	 	2.3	 	 	 	 	2.9	 	 	 	 	2.5	 	 	 	 	2.5	 	 	 	 	2.9	 	 	 	 	3.1	 	 	 	 	3.1	 	 	 	 	3.2	 	 	 	 	2.9	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Electrical Distribution
System
	 	Total Distribution Plant	 	 	 	1.4	 	 	 	 	1.6	 	 	 	 	1.8	 	 	 	 	1.8	 	 	 	 	2.3	 	 	 	 	2.5	 	 	 	 	2.9	 	 	 	 	3.0	 	 	 	 	2.4	 	 	 	 	2.1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Roads & Drainage
	 	Heavy Construction Trades	 	 	 	3.0	 	 	 	 	2.9	 	 	 	 	2.4	 	 	 	 	2.3	 	 	 	 	1.7	 	 	 	 	2.5	 	 	 	 	2.9	 	 	 	 	2.8	 	 	 	 	3.0	 	 	 	 	3.1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Draglines, Mobile
Equipment, Shop &
Service Inventory
	 	Mining (PPI 3532)	 	 	 	1.7	 	 	 	 	2.6	 	 	 	 	2.7	 	 	 	 	2.6	 	 	 	 	2.9	 	 	 	 	3.1	 	 	 	 	3.3	 	 	 	 	3.5	 	 	 	 	3.4	 	 	 	 	3.1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Land
	 	GDP Implicit Deflator	 	 	 	1.9	 	 	 	 	2.2	 	 	 	 	2.1	 	 	 	 	2.2	 	 	 	 	2.4	 	 	 	 	2.5	 	 	 	 	2.6	 	 	 	 	2.8	 	 	 	 	2.8	 	 	 	 	2.9	 

1999 costs are based on 1998 current dollars plus escalation. 1999 — 2008 are escalated from the basis by the indicated rate as taken from the HII Cost Escalation Study (May, 1998).

C-9

 

Northwestern Resources Co.

Jewett Mine

1999 Capital Budget

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Page	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	MAJOR EQUIPMENT
	 	 	 	 	 	 	 	 
	CI-2	 	 	99MJE001	 	 	Purchase Rails and rollers for DL25
	 	$	520,000	 	 	 	520,000	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	VEHICLE/SUPPORT EQUIPMENT — ADDITIONS
	 	 	 	 	 	 	 	 
	CI-4	 	 	99STE001	 	 	Tools & Small Equipment
	 	 	126,000	 	 	 	126,000	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	TRACT PURCHASES
	 	 	 	 	 	 	 	 
	CI-6	 	 	99TPS001	 	 	Tract Purchases
	 	 	200,000	 	 	 	200,000	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	SURFACE IMPROVEMENTS
	 	 	 	 	 	 	 	 
	CI-8	 	 	99SF1001	 	 	Surface Improvements
	 	 	50,000	 	 	 	50,000	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 	Total 1999 Capital
	 	 	 	 	$	896,000	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

CI-1

 

Houston Industries Power Generation

1999 Project Evaluation / Approval Form

	 	 	 	 	 	 	 	 	 
	Location:

	 	Jewett Mine
	 	 	 	Sponsor:
	 	Dean Gatzemeier
	Project Title:

	 	Purchase Rails and Rollers for DL25
	 	 	 	Phone No:
	 	903-626-6323
	 
	 	 	 	 	 	 	 	 
	Project ID:

	 	99MJE001               Prog Elem: HFCL01
	 	Year: 1999
	 	Submit Date: 6/29/98	 	 

PROJECT DESCRIPTION AND SCOPE:

Purchase new rails and rollers for 8200 dragline DL25.

PROJECT JUSTIFICATION AND ALIGNMENT TO HIPG STRATEGY:

     At present, there is one set of spare rails and rollers for a Marion 8200 dragline at the
Jewett Mine. In November 1998, this set will be used for DL26, and no spare set will be on site.

     DL25’s rails and rollers are 13 years old. The rails are showing signs of fatigue, and the
rollers have been replaced as needed. If the rails and rollers fail on this machine, the lead-time
on the parts is six months. Limestone Electric Generating Station fuel deliveries could be
severely impacted. This project supports the HIPG strategy of availability improvement.

	 	 	 	 	 
	Category: Rehabilitation-in-kind 

Start Date: January, 1999

	 	New or Carried Forward: 

New Completion Date:
June 1999
	 	Capital or O&M: Capital

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost or Project:	 	Prior Yrs.	 	Budget Yr.	 	Year +1	 	Future Yrs.	 	Budget	 	Actuals	 	Difference
	 
	HIPG Labor
	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 
	Material
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	Contracts
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	Other
	 	 	—	 	 	 	520,000	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	 	 	 
	Totals
	 	$	—	 	 	$	520,000	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	 	 	 

FINANCIAL DATA

	 	 	 	 	 
	Benefit/Cost Radio:

	 	NPV Selected:
	 	NPV Alternative 1:
	Payback Period:

	 	NPV Rejected:
	 	NPV Alternative 2:
	% Ret on Investment:

	 	NPV Deferred:
	 	NPV Alternative 3:

FINANCIAL SUMMARY:

CI-2

 

Houston Industries Power Generation

1999 Project Evaluation / Approval Form

	 	 	 	 	 	 	 	 	 
	Location:

	 	Jewett Mine
	 	 	 	Sponsor:
	 	Dean Gatzemeier
	Project Title:

	 	Purchase Rails and Rollers for DL25
	 	 	 	Phone No:
	 	903-626-6323
	 
	 	 	 	 	 	 	 	 
	Project ID:

	 	99MJE001               Prog Elem: HFCL01
	 	Year: 1999
	 	Submit Date: 6/29/98	 	 

SENSITIVITY ANALYSIS:

     If the rails and rollers fail on DL25 without the Jewett Mine having spares on site, the
fuel supply to the Limestone Electric Generating Station could be impacted. The
lead-time on this item is six months.

PROJECT SCHEDULE AND MILESTONES:

	 	 	 	 	 
	 

	 	Estimated Start Date: January, 1999
	 	Estimated Completion Date: June, 1999

Milestones:

DEFERRAL ANALYSIS:

     Deferral is not an option.

PCA PLAN:

     The purpose of this project is to ensure that the rails and rollers on DL25 do not cause
more than 21 days of downtime. By purchasing this item and having a spare set on site,
when the rollers are ready for change out, the dragline will be placed back into service
in 21 days or less.

PCA RESULTS:

 

APPROVALS:

	 	 	 	 	 	 	 	 	 
	Sponsor:

	 	 	 	Date:	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	Vice President:

	 	 	 	Date:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 

CI-3

 

Northwestern Resources Co.

1998 Operations Budget Overview

     The 1999 — 2008 Operations Budget was prepared on the basis of the cost incurred by NWR and
the work being in the same period.

     Costs were calculated using primarily historical information. Equipment rates used were
adjusted based on the age of the fleet. Costs were developed using tons and yards from the 1999
Annual Mine Plan.

     Escalation was then added according to the schedule on page O-24.

     No contingency has been included.

     The Operations Budget is assembled into six major categories:

	 	 	 	 	 
	 

	 	6
	 	Production
	 
	 	 	 	 
	 

	 	6

	 	Environmental
	 
	 	 	 	 
	 

	 	6

	 	Engineering
	 
	 	 	 	 
	 

	 	6

	 	Administration
	 
	 	 	 	 
	 

	 	6

	 	Lease Obligations
	 
	 	 	 	 
	 

	 	6

	 	Fees

O-1

 

Northwestern Resources Co.

1999 Operations Budget Summary

1999 – 2003

(Escalated $,000’s)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	1999	 	 	 	2000	 	 	 	2001	 	 	 	2002	 	 	 	2003	 
	Stripping Bank Yards
	 	 	 	 	 	 	101,979	 	 	 	 	 	 	 	 	109,958	 	 	 	 	 	 	 	 	112,021	 	 	 	 	 	 	 	 	115,445	 	 	 	 	 	 	 	 	118,512	 
	Tons Sold
	 	 	 	 	 	 	9,019	 	 	 	 	 	 	 	 	9,739	 	 	 	 	 	 	 	 	10,062	 	 	 	 	 	 	 	 	9,971	 	 	 	 	 	 	 	 	10,056	 
	Stripping – cost per yard
	 	 	 	 	 	$	0.26	 	 	 	 	 	 	 	$	0.24	 	 	 	 	 	 	 	$	0.24	 	 	 	 	 	 	 	$	0.24	 	 	 	 	 	 	 	$	0.24	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	$/Ton	 	 	 	 	 	 	$/Ton	 	 	 	 	 	 	$/Ton	 	 	 	 	 	 	$/Ton	 	 	 	 	 	 	$/Ton
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stripping
	 	$	26,169	 	 	 	2.90	 	 	 	$	26,746	 	 	 	2.75	 	 	 	$	27,381	 	 	 	2.72	 	 	 	$	27,995	 	 	 	2.81	 	 	 	$	28,480	 	 	 	2.83	 
	Lignite Handling
	 	 	10,925	 	 	 	1.21	 	 	 	 	10,946	 	 	 	1.12	 	 	 	 	11,067	 	 	 	1.10	 	 	 	 	11,211	 	 	 	1.12	 	 	 	 	11,376	 	 	 	1.13	 
	Roads
	 	 	2,720	 	 	 	0.30	 	 	 	 	2,838	 	 	 	0.29	 	 	 	 	2,764	 	 	 	0.27	 	 	 	 	2,800	 	 	 	0.28	 	 	 	 	3,509	 	 	 	0.35	 
	Water Control
	 	 	3,379	 	 	 	0.37	 	 	 	 	2,875	 	 	 	0.30	 	 	 	 	3,149	 	 	 	0.31	 	 	 	 	3,325	 	 	 	0.33	 	 	 	 	3,146	 	 	 	0.31	 
	Maintenance
	 	 	5,034	 	 	 	0.56	 	 	 	 	5,109	 	 	 	0.52	 	 	 	 	5,189	 	 	 	0.52	 	 	 	 	5,269	 	 	 	0.53	 	 	 	 	5,360	 	 	 	0.53	 
	General
	 	 	6,674	 	 	 	0.74	 	 	 	 	7,321	 	 	 	0.75	 	 	 	 	7,651	 	 	 	0.76	 	 	 	 	8,390	 	 	 	0.84	 	 	 	 	10,124	 	 	 	1.01	 
	Current Reclamation
	 	 	2,277	 	 	 	0.25	 	 	 	 	2,321	 	 	 	0.24	 	 	 	 	2,367	 	 	 	0.24	 	 	 	 	2,413	 	 	 	0.24	 	 	 	 	2,465	 	 	 	0.25	 
	Post Mine Reclamation
	 	 	978	 	 	 	0.11	 	 	 	 	985	 	 	 	0.10	 	 	 	 	960	 	 	 	0.10	 	 	 	 	1,020	 	 	 	0.10	 	 	 	 	1,074	 	 	 	0.11	 
	Compliance
	 	 	4,805	 	 	 	0.53	 	 	 	 	4,534	 	 	 	0.47	 	 	 	 	5,049	 	 	 	0.50	 	 	 	 	3,667	 	 	 	0.37	 	 	 	 	5,954	 	 	 	0.59	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total
	 	 	62,960	 	 	 	6.98	 	 	 	 	63,674	 	 	 	6.54	 	 	 	 	65,577	 	 	 	6.52	 	 	 	 	66,089	 	 	 	6.63	 	 	 	 	71,488	 	 	 	7.11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Engineering
	 	 	973	 	 	 	0.11	 	 	 	 	909	 	 	 	0.09	 	 	 	 	955	 	 	 	0.09	 	 	 	 	920	 	 	 	0.09	 	 	 	 	1,039	 	 	 	0.10	 
	Administration
	 	 	4,229	 	 	 	0.47	 	 	 	 	4,421	 	 	 	0.45	 	 	 	 	4,503	 	 	 	0.45	 	 	 	 	4,556	 	 	 	0.46	 	 	 	 	4,635	 	 	 	0.46	 
	Lease Obligations
	 	 	19,460	 	 	 	2.16	 	 	 	 	18,121	 	 	 	1.86	 	 	 	 	13,668	 	 	 	1.36	 	 	 	 	13,967	 	 	 	1.40	 	 	 	 	17,870	 	 	 	1.78	 
	Fees
	 	 	23,356	 	 	 	2.59	 	 	 	 	31,343	 	 	 	3.22	 	 	 	 	39,778	 	 	 	3.95	 	 	 	 	39,751	 	 	 	3.99	 	 	 	 	31,459	 	 	 	3.13	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grand Total
	 	$	110,977	 	 	$	12.30	 	 	 	$	118,468	 	 	$	12.16	 	 	 	$	124,481	 	 	$	12.37	 	 	 	$	125,282	 	 	$	12.56	 	 	 	$	126,491	 	 	$	12.58	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

O-7

 

Northwestern Resources Co.

1999 Operations Budget Summary

2004 – 2008

(Escalated $,000’s)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2004	 	 	 	2005	 	 	 	2006	 	 	 	2007	 	 	 	2008	 
	Stripping Bank Yards
	 	 	 	 	 	 	117,675	 	 	 	 	 	 	 	 	121,354	 	 	 	 	 	 	 	 	116,069	 	 	 	 	 	 	 	 	119,197	 	 	 	 	 	 	 	 	110,022	 
	Tons Sold
	 	 	 	 	 	 	10,042	 	 	 	 	 	 	 	 	10,090	 	 	 	 	 	 	 	 	10,080	 	 	 	 	 	 	 	 	9,931	 	 	 	 	 	 	 	 	9,944	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stripping – cost per yard
	 	 	 	 	 	$	0.25	 	 	 	 	 	 	 	$	0.25	 	 	 	 	 	 	 	$	0.26	 	 	 	 	 	 	 	$	0.26	 	 	 	 	 	 	 	$	0.29	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	$/Ton	 	 	 	 	 	 	$/Ton	 	 	 	 	 	 	$/Ton	 	 	 	 	 	 	$/Ton	 	 	 	 	 	 	$/Ton
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stripping
	 	$	29,053	 	 	$	2.89	 	 	 	$	29,740	 	 	$	2.95	 	 	 	$	30,261	 	 	$	3.00	 	 	 	$	31,166	 	 	$	3.14	 	 	 	$	31,547	 	 	$	3.17	 
	Lignite Handling
	 	 	11,558	 	 	 	1.15	 	 	 	 	11,758	 	 	 	1.17	 	 	 	 	11,977	 	 	 	1.19	 	 	 	 	12,197	 	 	 	1.23	 	 	 	 	12,405	 	 	 	1.25	 
	Roads
	 	 	3,803	 	 	 	0.38	 	 	 	 	3,692	 	 	 	0.37	 	 	 	 	3,701	 	 	 	0.37	 	 	 	 	3,856	 	 	 	0.39	 	 	 	 	3,290	 	 	 	0.33	 
	Water Control
	 	 	3,778	 	 	 	0.38	 	 	 	 	3,889	 	 	 	0.39	 	 	 	 	3,046	 	 	 	0.30	 	 	 	 	3,335	 	 	 	0.34	 	 	 	 	3,788	 	 	 	0.38	 
	Maintenance
	 	 	5,459	 	 	 	0.54	 	 	 	 	5,568	 	 	 	0.55	 	 	 	 	5,687	 	 	 	0.56	 	 	 	 	5,808	 	 	 	0.58	 	 	 	 	5,923	 	 	 	0.60	 
	General
	 	 	6,909	 	 	 	0.69	 	 	 	 	7,101	 	 	 	0.70	 	 	 	 	10,632	 	 	 	1.05	 	 	 	 	7,142	 	 	 	0.72	 	 	 	 	7,309	 	 	 	0.73	 
	Current Reclamation
	 	 	2,523	 	 	 	0.25	 	 	 	 	2,586	 	 	 	0.26	 	 	 	 	2,656	 	 	 	0.26	 	 	 	 	2,725	 	 	 	0.27	 	 	 	 	2,791	 	 	 	0.28	 
	Post Mine Reclamation
	 	 	1,257	 	 	 	0.13	 	 	 	 	1,598	 	 	 	0.16	 	 	 	 	1,412	 	 	 	0.14	 	 	 	 	1,326	 	 	 	0.13	 	 	 	 	1,480	 	 	 	0.15	 
	Compliance
	 	 	5,185	 	 	 	0.52	 	 	 	 	6,787	 	 	 	0.67	 	 	 	 	6,466	 	 	 	0.64	 	 	 	 	4,422	 	 	 	0.45	 	 	 	 	4,199	 	 	 	0.42	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total
	 	 	69,526	 	 	 	6.92	 	 	 	 	72,720	 	 	 	7.21	 	 	 	 	75,838	 	 	 	7.52	 	 	 	 	71,977	 	 	 	7.25	 	 	 	 	72,731	 	 	 	7.31	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Engineering
	 	 	1,188	 	 	 	0.12	 	 	 	 	974	 	 	 	0.10	 	 	 	 	991	 	 	 	0.10	 	 	 	 	890	 	 	 	0.09	 	 	 	 	903	 	 	 	0.09	 
	Administration
	 	 	4,571	 	 	 	0.46	 	 	 	 	4,657	 	 	 	0.46	 	 	 	 	4,752	 	 	 	0.47	 	 	 	 	4,850	 	 	 	0.49	 	 	 	 	4,947	 	 	 	0.50	 
	Lease Obligations
	 	 	19,152	 	 	 	1.91	 	 	 	 	17,381	 	 	 	1.72	 	 	 	 	22,160	 	 	 	2.20	 	 	 	 	18,095	 	 	 	1.82	 	 	 	 	19,700	 	 	 	1.98	 
	Fees
	 	 	28,546	 	 	 	2.84	 	 	 	 	30,685	 	 	 	3.04	 	 	 	 	25,168	 	 	 	2.50	 	 	 	 	30,368	 	 	 	3.06	 	 	 	 	27,920	 	 	 	2.81	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grand Total
	 	$	122,982	 	 	$	12.25	 	 	 	$	126,418	 	 	$	12.53	 	 	 	$	128,909	 	 	$	12.79	 	 	 	$	126,180	 	 	$	12.71	 	 	 	$	126,202	 	 	$	12.69	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

O-8

 

JEWETT MINE BUDGET BY LSA CATEGORY

NORTHWESTERN RESOURCES CO.

*** 1999 BUDGET ***

(000’s)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	JAN	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	TOTAL
	 	 	 	 	1999	 	FEB	 	MARCH	 	APRIL	 	MAY	 	JUNE	 	JULY	 	AUG	 	SEPT	 	OCT	 	NOV	 	DEC	 	1999
	**10.2
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	10.2a P
	 	PRODUCTION	 	 	2,196,103	 	 	 	2,068,438	 	 	 	2,358,135	 	 	 	2,427,664	 	 	 	2,487,299	 	 	 	2,413,542	 	 	 	2,340,284	 	 	 	2,438,864	 	 	 	2,275,583	 	 	 	2,227,269	 	 	 	2,289,933	 	 	 	2,088,310	 	 	 	27,611,824	 
	10.2a S
	 	STRIPPING	 	 	2,268,998	 	 	 	2,057,992	 	 	 	2,023,417	 	 	 	2,203,926	 	 	 	2,270,798	 	 	 	2,212,926	 	 	 	2,271,298	 	 	 	2,130,747	 	 	 	2,212,826	 	 	 	2,268,298	 	 	 	2,001,918	 	 	 	2,245,498	 	 	 	28,168,642	 
	10.2b
	 	ROYALTIES	 	 	1,610,500	 	 	 	1,782,580	 	 	 	1,198,320	 	 	 	926,260	 	 	 	1,182,350	 	 	 	1,673,250	 	 	 	1,740,750	 	 	 	1,784,000	 	 	 	1,770,880	 	 	 	1,764,120	 	 	 	1,694,040	 	 	 	1,722,420	 	 	 	18,849,500	 
	10.2c
	 	OP TAX	 	 	82,300	 	 	 	74,500	 	 	 	57,600	 	 	 	41,000	 	 	 	56,600	 	 	 	81,600	 	 	 	84,400	 	 	 	86,600	 	 	 	83,400	 	 	 	85,300	 	 	 	81,800	 	 	 	86,800	 	 	 	901,900	 
	10.2d
	 	GENERAL	 	 	487,751	 	 	 	466,015	 	 	 	532,127	 	 	 	465,804	 	 	 	538,349	 	 	 	589,589	 	 	 	584,517	 	 	 	521,234	 	 	 	498,587	 	 	 	495,172	 	 	 	426,169	 	 	 	484,900	 	 	 	6,090,214	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	 	 	6,645,652	 	 	 	6,449,525	 	 	 	6,169,599	 	 	 	6,064,654	 	 	 	6,535,426	 	 	 	6,971,307	 	 	 	7,021,249	 	 	 	6,961,445	 	 	 	6,841,276	 	 	 	6,840,159	 	 	 	6,493,860	 	 	 	6,627,928	 	 	 	79,622,080	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	**10.3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	10.3a
	 	POST MINE	 	 	34,162	 	 	 	36,862	 	 	 	72,863	 	 	 	110,651	 	 	 	123,060	 	 	 	125,050	 	 	 	121,856	 	 	 	118,210	 	 	 	99,641	 	 	 	51,645	 	 	 	44,153	 	 	 	39,370	 	 	 	977,523	 
	10.3b
	 	RENT & ADV	 	 	49,340	 	 	 	38,240	 	 	 	71,340	 	 	 	64,040	 	 	 	23,540	 	 	 	27,040	 	 	 	331,440	 	 	 	65,754	 	 	 	41,540	 	 	 	34,840	 	 	 	26,990	 	 	 	57,163	 	 	 	831,267	 
	10.3c
	 	RELOCATION	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	30,000	 	 	 	36,600	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	66,600	 
	10.3d
	 	AD VAL TAX	 	 	33,300	 	 	 	33,300	 	 	 	33,400	 	 	 	33,300	 	 	 	33,300	 	 	 	33,400	 	 	 	33,300	 	 	 	33,300	 	 	 	33,400	 	 	 	33,300	 	 	 	33,300	 	 	 	33,400	 	 	 	400,000	 
	10.3e
	 	COMPLIANCE	 	 	190,356	 	 	 	197,571	 	 	 	331,160	 	 	 	205,333	 	 	 	234,111	 	 	 	663,778	 	 	 	766,679	 	 	 	1,053,071	 	 	 	518,810	 	 	 	215,269	 	 	 	178,031	 	 	 	250,539	 	 	 	4,804,708	 
	10.3f
	 	INSURANCE	 	 	37,200	 	 	 	37,200	 	 	 	37,200	 	 	 	37,200	 	 	 	37,200	 	 	 	37,200	 	 	 	37,200	 	 	 	37,200	 	 	 	37,200	 	 	 	37,200	 	 	 	37,200	 	 	 	37,200	 	 	 	446,400	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	 	 	344,358	 	 	 	343,173	 	 	 	545,963	 	 	 	450,524	 	 	 	451,211	 	 	 	886,468	 	 	 	1,320,475	 	 	 	1,344,135	 	 	 	730,591	 	 	 	372,254	 	 	 	319,674	 	 	 	417,672	 	 	 	7,526,498	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	**10.4
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	10.4
	 	DED FEES	 	 	602,140	 	 	 	545,020	 	 	 	421,260	 	 	 	301,140	 	 	 	415,860	 	 	 	599,890	 	 	 	624,190	 	 	 	641,060	 	 	 	616,960	 	 	 	634,040	 	 	 	607,420	 	 	 	646,140	 	 	 	6,655,120	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	 	 	602,140	 	 	 	545,020	 	 	 	421,260	 	 	 	301,140	 	 	 	415,860	 	 	 	599,890	 	 	 	624,190	 	 	 	641,060	 	 	 	616,960	 	 	 	634,040	 	 	 	607,420	 	 	 	646,140	 	 	 	6,655,120	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	**10.5
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	10.5
	 	MGMT FEES	 	 	1,506,090	 	 	 	1,363,350	 	 	 	1,054,080	 	 	 	754,400	 	 	 	1,041,440	 	 	 	1,501,440	 	 	 	1,569,840	 	 	 	1,610,760	 	 	 	1,551,240	 	 	 	1,595,110	 	 	 	1,529,660	 	 	 	1,623,160	 	 	 	16,700,570	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	 	 	1,506,090	 	 	 	1,363,350	 	 	 	1,054,080	 	 	 	754,400	 	 	 	1,041,440	 	 	 	1,501,440	 	 	 	1,569,840	 	 	 	1,610,760	 	 	 	1,551,240	 	 	 	1,595,110	 	 	 	1,529,660	 	 	 	1,623,160	 	 	 	16,700,570	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	**99
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	99
	 	WK CAP	 	 	40,300	 	 	 	40,300	 	 	 	40,100	 	 	 	39,900	 	 	 	39,700	 	 	 	39,500	 	 	 	39,400	 	 	 	39,200	 	 	 	38,900	 	 	 	38,700	 	 	 	38,600	 	 	 	38,300	 	 	 	472,900	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	 	 	40,300	 	 	 	40,300	 	 	 	40,100	 	 	 	39,900	 	 	 	39,700	 	 	 	39,500	 	 	 	39,400	 	 	 	39,200	 	 	 	38,900	 	 	 	38,700	 	 	 	38,600	 	 	 	38,300	 	 	 	472,900	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grand Total
	 	 	 	 	9,138,540	 	 	 	8,741,368	 	 	 	8,231,002	 	 	 	7,610,618	 	 	 	8,483,637	 	 	 	9,998,605	 	 	 	10,375,154	 	 	 	10,596,600	 	 	 	9,778,967	 	 	 	9,480,263	 	 	 	8,989,214	 	 	 	9,353,200	 	 	 	110,977,168	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

O-9

 

Northwestern Resources Co.

1998 Operations Budget

Categorical Format

(000’s)

	 	 	 	 	 
	 	 	Budget	 
	Hourly Labor
	 	$	13,697	 
	Salary
	 	 	3,893	 
	Fringe & Tax
	 	 	6,478	 
	Materials & Supplies
	 	 	3,753	 
	Vehicles w/ Labor
	 	 	695	 
	Contract
	 	 	11,561	 
	Equipment Operation
	 	 	12,126	 
	Equipment Maintenance Parts
	 	 	10,074	 
	Taxes & Insurance
	 	 	3,304	 
	Royalties & Fees
	 	 	42,816	 
	Other
	 	 	2,580	 
	 
	 	 	 
	Total
	 	$	110,977	 
	 
	 	 	 

O-10

 

JEWETT OPERATIONS BUDGET ESCALATED DOLLARS

NORTHWESTERN RESOURCES CO.

BUDGET SUMMARY REPORT

1999 BUDGET

(000’S)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	5 YEAR
	 	 	1999	 	2000	 	2001	 	2002	 	2003	 	TOTAL
	* PRODUCTION
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** STRIPPING
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DRAGLINES
	 	 	15,044.4	 	 	 	15,436.8	 	 	 	15,715.0	 	 	 	15,993.4	 	 	 	16,308.9	 	 	 	78,498.5	 
	BLASTING
	 	 	2,843.4	 	 	 	2,878.3	 	 	 	3,081.5	 	 	 	3,296.3	 	 	 	3,327.3	 	 	 	15,426.8	 
	BWE
	 	 	3,742.0	 	 	 	3,818.0	 	 	 	3,881.6	 	 	 	3,945.3	 	 	 	4,017.6	 	 	 	19,404.5	 
	MOBILE
	 	 	4,538.8	 	 	 	4,612.3	 	 	 	4,703.4	 	 	 	4,760.4	 	 	 	4,825.6	 	 	 	23,440.5	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	29,168.6	 	 	 	26,745.4	 	 	 	27,381.5	 	 	 	27,995.4	 	 	 	28,479.4	 	 	 	136,770.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** LIGNITE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	LOADING
	 	 	2,116.2	 	 	 	2,023.3	 	 	 	2,025.5	 	 	 	2,051.8	 	 	 	2,082.2	 	 	 	10,299.0	 
	HAULING
	 	 	7,253.8	 	 	 	7,351.7	 	 	 	7,454.4	 	 	 	7,556.2	 	 	 	7,672.9	 	 	 	37,289.0	 
	CRUSHING
	 	 	1,555.2	 	 	 	1,570.4	 	 	 	1,586.8	 	 	 	1,602.8	 	 	 	1,621.2	 	 	 	7,936.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	10,925.2	 	 	 	10,945.4	 	 	 	11,066.7	 	 	 	11,210.8	 	 	 	11,376.3	 	 	 	55,524.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** ROADS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MAINT. OTHER
	 	 	133.9	 	 	 	129.8	 	 	 	133.3	 	 	 	136.7	 	 	 	140.6	 	 	 	674.3	 
	MAINT. ROADS
	 	 	2,464.7	 	 	 	2,598.5	 	 	 	2,631.1	 	 	 	2,663.7	 	 	 	2,701.0	 	 	 	13,059.0	 
	CONST. ROADS
	 	 	121.3	 	 	 	110.3	 	 	 	0.0	 	 	 	0.0	 	 	 	666.9	 	 	 	898.5	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	2,719.9	 	 	 	2,838.6	 	 	 	2,764.4	 	 	 	2,800.4	 	 	 	3,508.5	 	 	 	14,631.8	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** WATER CTRL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PIT – SURFACE
	 	 	599.6	 	 	 	606.9	 	 	 	614.9	 	 	 	622.8	 	 	 	631.9	 	 	 	3,076.1	 
	OVERBURDEN
	 	 	2,780.1	 	 	 	2,268.3	 	 	 	2,533.9	 	 	 	2,701.9	 	 	 	2,514.1	 	 	 	12,798.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	3,379.7	 	 	 	2,875.2	 	 	 	3,148.8	 	 	 	3,324.7	 	 	 	3,146.0	 	 	 	15,874.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** MAINTENANCE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SUPPORT
	 	 	1,381.2	 	 	 	1,410.8	 	 	 	1,442.4	 	 	 	1,473.4	 	 	 	1,508.9	 	 	 	7,216.7	 
	MAINT. OTHER
	 	 	3,652.5	 	 	 	3,697.5	 	 	 	3,746.3	 	 	 	3,795.2	 	 	 	3,850.8	 	 	 	18,742.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	5,033.7	 	 	 	5,108.3	 	 	 	5,188.7	 	 	 	5,268.6	 	 	 	5,359.7	 	 	 	25,959.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** GENERAL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CLEARING
	 	 	198.6	 	 	 	228.0	 	 	 	234.0	 	 	 	214.3	 	 	 	220.5	 	 	 	1,095.4	 
	DRILLING
	 	 	578.8	 	 	 	641.2	 	 	 	658.7	 	 	 	337.9	 	 	 	0.0	 	 	 	2,216.6	 
	WAREHOUSE
	 	 	1,238.0	 	 	 	1,264.2	 	 	 	1,293.7	 	 	 	1,324.1	 	 	 	1,358.3	 	 	 	6,478.3	 
	PROD. TAXES
	 	 	2,857.8	 	 	 	2,979.7	 	 	 	3,068.1	 	 	 	3,117.2	 	 	 	3,191.0	 	 	 	15,213.8	 
	RELOCATIONS
	 	 	66.6	 	 	 	457.8	 	 	 	629.0	 	 	 	1,611.9	 	 	 	3,551.6	 	 	 	6,316.9	 
	SUPV. OTHER
	 	 	1,734.3	 	 	 	1,750.3	 	 	 	1,768.0	 	 	 	1,784.3	 	 	 	1,802.5	 	 	 	8,839.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	6,674.1	 	 	 	7,321.2	 	 	 	7,651.5	 	 	 	8,389.7	 	 	 	10,123.9	 	 	 	40,160.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	54,901.2	 	 	 	55,834.1	 	 	 	57,201.6	 	 	 	58,989.6	 	 	 	61,993.8	 	 	 	288,920.3	 

O-11

 

JEWETT OPERATIONS BUDGET ESCALATED DOLLARS

NORTHWESTERN RESOURCES CO.

BUDGET SUMMARY REPORT

1999 BUDGET

(000’s)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	5 YEAR
	 	 	1999	 	2000	 	2001	 	2002	 	2003	 	TOTAL
	* ENVIRONMENT
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** CURRENT RECL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	REGRADE
	 	 	1,997.9	 	 	 	2,034.3	 	 	 	2,072.8	 	 	 	2,111.0	 	 	 	2,154.6	 	 	 	10,370.6	 
	REVEGETATION
	 	 	279.3	 	 	 	286.5	 	 	 	294.3	 	 	 	301.9	 	 	 	310.7	 	 	 	1,472.7	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	2,277.2	 	 	 	2,320.8	 	 	 	2,367.1	 	 	 	2,412.9	 	 	 	2,465.3	 	 	 	11,843.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** POST MINE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	FACIL REMOVAL
	 	 	74.6	 	 	 	6.3	 	 	 	5.2	 	 	 	18.5	 	 	 	22.0	 	 	 	126.6	 
	MINE MANGEMEN
	 	 	903.2	 	 	 	978.9	 	 	 	954.7	 	 	 	1,001.2	 	 	 	1,052.4	 	 	 	4,890.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	977.8	 	 	 	985.2	 	 	 	959.9	 	 	 	1,019.7	 	 	 	1,074.4	 	 	 	5,017.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** COMPLIANCE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PERMITS
	 	 	334.6	 	 	 	388.9	 	 	 	387.8	 	 	 	96.5	 	 	 	69.5	 	 	 	1,277.3	 
	MONITORING
	 	 	532.4	 	 	 	538.1	 	 	 	555.2	 	 	 	575.2	 	 	 	593.7	 	 	 	2,794.6	 
	SEDIMENT CTRL
	 	 	2,420.0	 	 	 	2,113.9	 	 	 	1,960.2	 	 	 	1,330.1	 	 	 	3,727.0	 	 	 	11,551.2	 
	COMPL. OTHER
	 	 	1,518.0	 	 	 	1,493.0	 	 	 	2,145.8	 	 	 	1,664.8	 	 	 	1,564.0	 	 	 	8,385.6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	4,805.0	 	 	 	4,533.9	 	 	 	5,049.0	 	 	 	3,666.6	 	 	 	5,954.2	 	 	 	24,008.7	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	8,060.0	 	 	 	7,839.9	 	 	 	8,376.0	 	 	 	7,099.2	 	 	 	9,493.9	 	 	 	40,869.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* ENGINEER
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** ENGINEERING
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	OPERATIONS ENG
	 	 	500.8	 	 	 	508.3	 	 	 	505.7	 	 	 	510.3	 	 	 	515.6	 	 	 	2,540.7	 
	CIVIL ENGINEER
	 	 	161.8	 	 	 	86.1	 	 	 	130.2	 	 	 	98.1	 	 	 	206.9	 	 	 	683.1	 
	SURVEYING
	 	 	310.0	 	 	 	314.8	 	 	 	318.9	 	 	 	311.9	 	 	 	316.3	 	 	 	1,571.9	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	972.6	 	 	 	909.2	 	 	 	954.8	 	 	 	920.3	 	 	 	1,038.8	 	 	 	4,795.7	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	972.6	 	 	 	909.2	 	 	 	954.8	 	 	 	920.3	 	 	 	1,038.8	 	 	 	4,795.7	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* ADMIN
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** ADMIN
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BUSINESS
	 	 	3,379.2	 	 	 	3,424.6	 	 	 	3,485.8	 	 	 	3,542.4	 	 	 	3,606.4	 	 	 	17,438.4	 
	LANDS
	 	 	220.6	 	 	 	192.8	 	 	 	201.2	 	 	 	185.0	 	 	 	185.7	 	 	 	985.3	 
	EMPLOYEE REL
	 	 	628.6	 	 	 	803.4	 	 	 	815.9	 	 	 	828.3	 	 	 	842.5	 	 	 	3,918.7	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	4,228.4	 	 	 	4,420.8	 	 	 	4,502.9	 	 	 	4,555.7	 	 	 	4,634.6	 	 	 	22,342.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	4,228.4	 	 	 	4,420.8	 	 	 	4,502.9	 	 	 	4,555.7	 	 	 	4,634.6	 	 	 	22,342.4	 

O-12

 

JEWETT OPERATIONS BUDGET ESCALATED DOLLARS

NORTHWESTERN RESOURCES CO.

BUDGET SUMMARY REPORT

1999 BUDGET

(000’s)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	5 YEAR
	 	 	1999	 	2000	 	2001	 	2002	 	2003	 	TOTAL
	* LEASE OBL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** LEASE OBL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DAMAGES
	 	 	807.1	 	 	 	578.1	 	 	 	807.7	 	 	 	666.6	 	 	 	6.8	 	 	 	2,866.3	 
	RENTALS
	 	 	312.1	 	 	 	272.1	 	 	 	272.1	 	 	 	272.1	 	 	 	72.1	 	 	 	1,200.5	 
	ROYALTIES
	 	 	18,340.8	 	 	 	17,270.9	 	 	 	12,588.2	 	 	 	13,028.0	 	 	 	17,791.5	 	 	 	79,019.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	19,460.0	 	 	 	18,121.1	 	 	 	13,668.0	 	 	 	13,966.7	 	 	 	17,870.4	 	 	 	83,086.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	19,460.0	 	 	 	18,121.1	 	 	 	13,668.0	 	 	 	13,966.7	 	 	 	17,870.4	 	 	 	83,086.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* FEES
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** FEES
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DEDICATION
	 	 	6,655.1	 	 	 	13,130.9	 	 	 	20,862.1	 	 	 	21,104.8	 	 	 	12,654.2	 	 	 	74,507.1	 
	MANAGEMENT
	 	 	16,700.6	 	 	 	18,211.9	 	 	 	18,816.1	 	 	 	18,645.8	 	 	 	18,804.7	 	 	 	91,179.1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	23,355.7	 	 	 	31,355.8	 	 	 	39,778.2	 	 	 	39,750.6	 	 	 	31,458.9	 	 	 	165,686.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	23,355.7	 	 	 	31,342.8	 	 	 	39,778.2	 	 	 	39,750.6	 	 	 	31,458.9	 	 	 	165,686.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grand Total
	 	 	110,977.9	 	 	 	118,467.9	 	 	 	124,481.5	 	 	 	125,282.1	 	 	 	126,490.4	 	 	 	605,699.8	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

O-13

 

JEWETT OPERATIONS BUDGET ESCALATED DOLLARS

NORTHWESTERN RESOURCES CO.

BUDGET SUMMARY REPORT

1999 BUDGET

(000’s)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTOAL	 	5 YEAR
	 	 	2004	 	2005	 	2006	 	2007	 	2008	 	TOTAL
	* PRODUCTION
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** STRIPPING
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DRAGLINES
	 	 	16,656.1	 	 	 	17,037.0	 	 	 	17,454.4	 	 	 	17,874.1	 	 	 	18,269.7	 	 	 	87,291.3	 
	BLASTING
	 	 	3,402.2	 	 	 	3,542.7	 	 	 	3,464.4	 	 	 	3,766.1	 	 	 	3,579.3	 	 	 	17,754.7	 
	BWE
	 	 	4,097.2	 	 	 	4,184.5	 	 	 	4,280.1	 	 	 	4,376.3	 	 	 	4,446.9	 	 	 	21,405.0	 
	MOBILE
	 	 	4,897.4	 	 	 	4,976.2	 	 	 	5,062.5	 	 	 	5,149.2	 	 	 	5,231.0	 	 	 	25,316.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	29,052.9	 	 	 	29,740.4	 	 	 	30,261.4	 	 	 	31,165.7	 	 	 	31,546.9	 	 	 	151,767.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** LIGNITE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	LOADING
	 	 	2,115.7	 	 	 	2,152.4	 	 	 	2,192.6	 	 	 	2,230.0	 	 	 	2,271.1	 	 	 	10,964.8	 
	HAULING
	 	 	7,801.3	 	 	 	7,942.1	 	 	 	8,096.4	 	 	 	8,251.6	 	 	 	8,397.9	 	 	 	40,489.3	 
	CRUSHING
	 	 	1,641.5	 	 	 	1,663.8	 	 	 	1,688.2	 	 	 	1,712.7	 	 	 	1,735.8	 	 	 	8,442.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	11,558.5	 	 	 	11,758.3	 	 	 	11,977.2	 	 	 	12,197.3	 	 	 	12,404.8	 	 	 	59,896.1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** ROADS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MAINT. OTHER
	 	 	145.0	 	 	 	149.8	 	 	 	155.0	 	 	 	160.3	 	 	 	165.2	 	 	 	775.3	 
	MAINT. ROADS
	 	 	2,742.7	 	 	 	2,787.7	 	 	 	2,837.1	 	 	 	2,886.8	 	 	 	2,933.6	 	 	 	14,187.9	 
	CONST. ROADS
	 	 	915.3	 	 	 	754.4	 	 	 	708.8	 	 	 	808.9	 	 	 	190.7	 	 	 	3,378.1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	3,803.0	 	 	 	3,691.9	 	 	 	3,700.9	 	 	 	3,856.0	 	 	 	3,289.5	 	 	 	18,341.3	 
	 
	** WATER CTRL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PIT – SURFACE
	 	 	642.0	 	 	 	653.0	 	 	 	665.1	 	 	 	677.2	 	 	 	688.6	 	 	 	3,325.9	 
	OVERBURDEN
	 	 	3,136.3	 	 	 	3,236.5	 	 	 	2,381.3	 	 	 	2,657.5	 	 	 	3,099.4	 	 	 	14,511.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	3,778.3	 	 	 	3,889.5	 	 	 	3,046.4	 	 	 	3,334.7	 	 	 	3,788.0	 	 	 	17,836.9	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** MAINTENANCE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SUPPORT
	 	 	1,547.9	 	 	 	1,590.8	 	 	 	1,637.7	 	 	 	1,684.9	 	 	 	1,729.4	 	 	 	8,190.7	 
	MAINT. OTHER
	 	 	3,911.6	 	 	 	3,977.5	 	 	 	4,049.6	 	 	 	4,123.1	 	 	 	4,193.9	 	 	 	20,255.7	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	5,459.5	 	 	 	5,568.3	 	 	 	5,687.3	 	 	 	5,808.0	 	 	 	5,923.3	 	 	 	28,446.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** GENERAL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CLEARING
	 	 	227.4	 	 	 	234.9	 	 	 	243.1	 	 	 	251.4	 	 	 	259.2	 	 	 	1,216.0	 
	WAREHOUSE
	 	 	1,394.8	 	 	 	1,432.7	 	 	 	1,474.1	 	 	 	1,518.2	 	 	 	1,564.2	 	 	 	7,384.0	 
	PROD. TAXES
	 	 	3,259.2	 	 	 	3,336.4	 	 	 	3,414.4	 	 	 	3,483.8	 	 	 	3,572.9	 	 	 	17,066.7	 
	RELOCATIONS
	 	 	205.3	 	 	 	254.3	 	 	 	3,635.8	 	 	 	0.0	 	 	 	0.0	 	 	 	4,095.4	 
	SUPV. OTHER
	 	 	1,821.9	 	 	 	1,842.3	 	 	 	1,864.6	 	 	 	1,888.2	 	 	 	1,912.4	 	 	 	9,329.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	6,908.6	 	 	 	7,100.6	 	 	 	10,632.0	 	 	 	7,141.6	 	 	 	7,308.7	 	 	 	39,091.5	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	60,560.8	 	 	 	61,749.0	 	 	 	65,305.2	 	 	 	63,503.3	 	 	 	64,261.2	 	 	 	315,379.5	 

O-14

 

JEWETT OPERATIONS BUDGET ESCALATED DOLLARS

NORTHWESTERN RESOURCES CO.

BUDGET SUMMARY REPORT

1999 BUDGET

(000’s)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTOAL	 	5 YEAR
	 	 	2004	 	2005	 	2006	 	2007	 	2008	 	TOTAL
	* ENVIRONMENT
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** CURRENT RECL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	REGRADE
	 	 	2,202.6	 	 	 	2,255.3	 	 	 	2,313.1	 	 	 	2,371.2	 	 	 	2,425.9	 	 	 	11,568.1	 
	REVEGETATION
	 	 	320.3	 	 	 	330.9	 	 	 	342.5	 	 	 	354.1	 	 	 	365.1	 	 	 	1,712.9	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	2,522.9	 	 	 	2,586.2	 	 	 	2,655.6	 	 	 	2,725.3	 	 	 	2,791.0	 	 	 	13,281.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** POST MINE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	FACIL REMOVAL
	 	 	32.2	 	 	 	26.7	 	 	 	94.5	 	 	 	25.4	 	 	 	26.1	 	 	 	204.9	 
	MINE MANGEMEN
	 	 	1,225.0	 	 	 	1,571.1	 	 	 	1,317.1	 	 	 	1,301.0	 	 	 	1,453.7	 	 	 	6,867.9	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	1,257.2	 	 	 	1,597.8	 	 	 	1,411.6	 	 	 	1,326.4	 	 	 	1,479.8	 	 	 	7,072.8	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** COMPLIANCE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PERMITS
	 	 	338.9	 	 	 	101.3	 	 	 	362.4	 	 	 	395.0	 	 	 	85.6	 	 	 	1,283.2	 
	MONITORING
	 	 	613.3	 	 	 	638.8	 	 	 	657.4	 	 	 	684.4	 	 	 	700.9	 	 	 	3,294.8	 
	SEDIMENT CTRL
	 	 	2,655.5	 	 	 	4,508.4	 	 	 	3,899.8	 	 	 	1,781.8	 	 	 	1,837.1	 	 	 	14,682.6	 
	COMPL. OTHER
	 	 	1,577.6	 	 	 	1,538.7	 	 	 	1,546.4	 	 	 	1,560.9	 	 	 	1,575.8	 	 	 	7,799.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	5,185.3	 	 	 	6,787.2	 	 	 	6,466.0	 	 	 	4,422.1	 	 	 	4,199.4	 	 	 	27,060.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	8,965.4	 	 	 	10,971.2	 	 	 	10,533.2	 	 	 	8,483.8	 	 	 	8,470.2	 	 	 	47,413.8	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* ENGINEER
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** ENGINEERING
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	OPERATIONS ENG
	 	 	521.2	 	 	 	527.2	 	 	 	533.7	 	 	 	540.5	 	 	 	547.5	 	 	 	2,670.1	 
	CIVIL ENGINEER
	 	 	345.6	 	 	 	120.6	 	 	 	124.8	 	 	 	11.8	 	 	 	12.2	 	 	 	615.0	 
	SURVEYING
	 	 	321.1	 	 	 	326.4	 	 	 	332.2	 	 	 	338.1	 	 	 	343.6	 	 	 	1,661.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	1,187.9	 	 	 	974.2	 	 	 	990.7	 	 	 	890.4	 	 	 	903.3	 	 	 	4,946.5	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	1,187.9	 	 	 	974.2	 	 	 	990.7	 	 	 	890.4	 	 	 	903.3	 	 	 	4,946.5	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* ADMIN
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** ADMIN
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BUSINESS
	 	 	3,675.7	 	 	 	3,749.4	 	 	 	3,830.2	 	 	 	3,913.9	 	 	 	3,997.5	 	 	 	19,166.7	 
	LANDS
	 	 	186.5	 	 	 	187.4	 	 	 	188.3	 	 	 	189.3	 	 	 	190.2	 	 	 	941.7	 
	EMPLOYEE REL
	 	 	708.8	 	 	 	720.5	 	 	 	733.2	 	 	 	746.4	 	 	 	759.6	 	 	 	3,668.5	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	4,571.0	 	 	 	4,657.3	 	 	 	4,751.7	 	 	 	4,849.6	 	 	 	4,947.3	 	 	 	23,776.9	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	4,571.0	 	 	 	4,657.3	 	 	 	4,751.7	 	 	 	4,849.6	 	 	 	4,947.3	 	 	 	23,776.9	 

O-15

 

JEWETT OPERATIONS BUDGET ESCALATED DOLLARS

NORTHWESTERN RESOURCES CO.

BUDGET SUMMARY REPORT

1999 BUDGET

(000’s)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTOAL	 	5 YEAR
	 	 	2004	 	2005	 	2006	 	2007	 	2008	 	TOTAL
	* LEASE OBL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** LEASE OBL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DAMAGES
	 	 	7.0	 	 	 	5.0	 	 	 	5.0	 	 	 	5.0	 	 	 	5.0	 	 	 	27.0	 
	RENTALS
	 	 	72.1	 	 	 	72.1	 	 	 	72.1	 	 	 	72.1	 	 	 	72.1	 	 	 	360.5	 
	ROYALTIES
	 	 	19,072.4	 	 	 	17,304.2	 	 	 	22,083.3	 	 	 	18,017.9	 	 	 	19,623.0	 	 	 	96,100.8	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	19,151.5	 	 	 	17,381.3	 	 	 	22,160.4	 	 	 	18,095.0	 	 	 	19,700.1	 	 	 	96,488.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	19,151.5	 	 	 	17,381.3	 	 	 	22,160.4	 	 	 	18,095.0	 	 	 	19,700.1	 	 	 	96,488.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* FEES
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** FEES
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DEDICATION
	 	 	9,767.1	 	 	 	11,816.9	 	 	 	6,318.6	 	 	 	11,797.5	 	 	 	9,324.3	 	 	 	49,024.4	 
	MANAGEMENT
	 	 	18,778.5	 	 	 	18,868.3	 	 	 	18,849.6	 	 	 	18,571.0	 	 	 	18,595.3	 	 	 	93,662.7	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	28,545.6	 	 	 	30,685.2	 	 	 	25,168.2	 	 	 	30,368.5	 	 	 	27,919.6	 	 	 	142,687.1	 
	* Total
	 	 	28,545.6	 	 	 	30,685.2	 	 	 	25,168.2	 	 	 	30,368.5	 	 	 	27,919.6	 	 	 	142,687.1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grand Total
	 	 	122,982.2	 	 	 	126,418.2	 	 	 	128,909.4	 	 	 	126,180.6	 	 	 	126,201.7	 	 	 	630,692.1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

O-16

 

JEWETT OPERATIONS BUDGET – ESCALATED DOLLARS

NORTHWESTERN RESOURCES CO.

BUDGET SUMMARY REPORT

1999 BUDGET

(000’s)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	1999	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1999
	 	 	JAN	 	FEB	 	MARCH	 	APRIL	 	MAY	 	JUNE	 	JULY	 	AUGUST	 	SEPT	 	OCT	 	NOV	 	DEC	 	TOTAL
	* PRODUCTION
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** STRIPPING
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DRAGLINES
	 	 	1,318.0	 	 	 	1,191.2	 	 	 	1,109.9	 	 	 	1,281.1	 	 	 	1,318.0	 	 	 	1,281.1	 	 	 	1,318.0	 	 	 	1,204.2	 	 	 	1,281.1	 	 	 	1,318.0	 	 	 	1,105.8	 	 	 	1,318.0	 	 	 	15,044.4	 
	BLASTING
	 	 	250.2	 	 	 	221.2	 	 	 	212.7	 	 	 	240.4	 	 	 	252.0	 	 	 	249.4	 	 	 	252.5	 	 	 	225.8	 	 	 	249.3	 	 	 	249.5	 	 	 	213.7	 	 	 	226.7	 	 	 	2,843.4	 
	BWE
	 	 	316.1	 	 	 	294.1	 	 	 	316.1	 	 	 	308.8	 	 	 	316.1	 	 	 	308.8	 	 	 	316.1	 	 	 	316.1	 	 	 	308.8	 	 	 	316.1	 	 	 	308.8	 	 	 	316.1	 	 	 	3,742.0	 
	MOBILE
	 	 	384.7	 	 	 	351.5	 	 	 	384.7	 	 	 	373.6	 	 	 	384.7	 	 	 	373.6	 	 	 	384.7	 	 	 	384.7	 	 	 	373.6	 	 	 	384.7	 	 	 	373.6	 	 	 	384.7	 	 	 	4,538.8	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	2,269.0	 	 	 	2,058.0	 	 	 	2,023.4	 	 	 	2,203.9	 	 	 	2,270.8	 	 	 	2,212.9	 	 	 	2,271.3	 	 	 	2,130.8	 	 	 	2.,212.8	 	 	 	2,268.3	 	 	 	2,001.9	 	 	 	2,245.5	 	 	 	26,168.6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** LIGNITE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	LOADING
	 	 	179.4	 	 	 	163.6	 	 	 	179.4	 	 	 	174.2	 	 	 	179.4	 	 	 	174.2	 	 	 	179.4	 	 	 	179.4	 	 	 	174.2	 	 	 	179.4	 	 	 	174.2	 	 	 	179.4	 	 	 	2,116.2	 
	HAULING
	 	 	615.9	 	 	 	557.3	 	 	 	615.9	 	 	 	596.3	 	 	 	615.9	 	 	 	596.3	 	 	 	615.9	 	 	 	615.9	 	 	 	596.3	 	 	 	615.9	 	 	 	596.3	 	 	 	615.9	 	 	 	7,253.8	 
	CRUSHING
	 	 	129.6	 	 	 	129.6	 	 	 	129.6	 	 	 	129.6	 	 	 	129.6	 	 	 	129.6	 	 	 	129.6	 	 	 	129.6	 	 	 	129.6	 	 	 	129.6	 	 	 	129.6	 	 	 	129.6	 	 	 	1,555.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	924.9	 	 	 	850.5	 	 	 	924.9	 	 	 	900.1	 	 	 	924.9	 	 	 	900.1	 	 	 	924.9	 	 	 	924.9	 	 	 	900.1	 	 	 	924.9	 	 	 	900.1	 	 	 	924.9	 	 	 	10,925.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** ROADS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MAINT. OTHER
	 	 	7.2	 	 	 	7.2	 	 	 	14.7	 	 	 	7.2	 	 	 	7.2	 	 	 	19.2	 	 	 	21.2	 	 	 	21.2	 	 	 	7.2	 	 	 	7.2	 	 	 	7.2	 	 	 	7.2	 	 	 	133.9	 
	MAINT. ROADS
	 	 	235.9	 	 	 	223.0	 	 	 	202.5	 	 	 	199.2	 	 	 	210.4	 	 	 	207.2	 	 	 	212.9	 	 	 	202.5	 	 	 	166.9	 	 	 	202.5	 	 	 	199.2	 	 	 	202.5	 	 	 	2,464.7	 
	CONST. ROADS
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	101.3	 	 	 	20.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	121.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	243.1	 	 	 	230.2	 	 	 	217.2	 	 	 	206.4	 	 	 	318.9	 	 	 	246.4	 	 	 	234.1	 	 	 	223.7	 	 	 	274.1	 	 	 	209.7	 	 	 	206.4	 	 	 	209.7	 	 	 	2,719.9	 
	** WATER CTRL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PIT – SURFACE
	 	 	50.0	 	 	 	50.0	 	 	 	50.0	 	 	 	49.1	 	 	 	56.1	 	 	 	47.1	 	 	 	49.1	 	 	 	49.1	 	 	 	49.1	 	 	 	50.0	 	 	 	50.0	 	 	 	50.0	 	 	 	599.6	 
	OVERBURDEN
	 	 	193.5	 	 	 	159.5	 	 	 	274.8	 	 	 	267.0	 	 	 	251.3	 	 	 	301.7	 	 	 	251.1	 	 	 	218.9	 	 	 	245.0	 	 	 	188.5	 	 	 	300.6	 	 	 	98.2	 	 	 	2,780.1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	243.5	 	 	 	209.5	 	 	 	324.8	 	 	 	316.1	 	 	 	307.4	 	 	 	348.8	 	 	 	300.2	 	 	 	298.0	 	 	 	294.1	 	 	 	238.5	 	 	 	350.6	 	 	 	148.2	 	 	 	3,379.7	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** MAINTENANCE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SUPPORT
	 	 	115.1	 	 	 	115.1	 	 	 	115.1	 	 	 	115.1	 	 	 	115.1	 	 	 	115.1	 	 	 	115.1	 	 	 	115.1	 	 	 	115.1	 	 	 	115.1	 	 	 	115.1	 	 	 	115.1	 	 	 	1,381.2	 
	MAINT. OTHER
	 	 	297.7	 	 	 	297.8	 	 	 	300.6	 	 	 	320.3	 	 	 	302.0	 	 	 	300.6	 	 	 	297.7	 	 	 	334.6	 	 	 	305.1	 	 	 	297.7	 	 	 	297.8	 	 	 	300.6	 	 	 	3,652.5	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	412.8	 	 	 	412.9	 	 	 	415.7	 	 	 	435.4	 	 	 	417.1	 	 	 	415.7	 	 	 	412.8	 	 	 	449.7	 	 	 	420.2	 	 	 	412.8	 	 	 	412.9	 	 	 	415.7	 	 	 	5,033.7	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	**GENERAL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CLEARING
	 	 	15.9	 	 	 	15.9	 	 	 	15.9	 	 	 	23.8	 	 	 	23.8	 	 	 	23.8	 	 	 	15.9	 	 	 	15.9	 	 	 	15.9	 	 	 	15.9	 	 	 	15.9	 	 	 	0.0	 	 	 	198.6	 
	DRILLING
	 	 	0.0	 	 	 	0.0	 	 	 	70.1	 	 	 	70.1	 	 	 	70.1	 	 	 	70.1	 	 	 	70.1	 	 	 	70.1	 	 	 	70.1	 	 	 	70.1	 	 	 	9.0	 	 	 	9.0	 	 	 	578.8	 
	WAREHOUSE
	 	 	104.6	 	 	 	102.7	 	 	 	105.3	 	 	 	104.7	 	 	 	102.1	 	 	 	103.3	 	 	 	102.3	 	 	 	104.2	 	 	 	104.1	 	 	 	103.0	 	 	 	101.0	 	 	 	100.7	 	 	 	1,238.0	 
	PROD. TAXES
	 	 	240.3	 	 	 	234.8	 	 	 	219.2	 	 	 	202.8	 	 	 	221.1	 	 	 	253.8	 	 	 	256.4	 	 	 	253.3	 	 	 	245.1	 	 	 	250.8	 	 	 	240.0	 	 	 	240.2	 	 	 	2,857.8	 
	RELOCATIONS
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	30.0	 	 	 	36.6	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	66.6	 
	SUPV. OTHER
	 	 	134.5	 	 	 	134.5	 	 	 	136.0	 	 	 	179.0	 	 	 	134.5	 	 	 	134.5	 	 	 	134.5	 	 	 	207.7	 	 	 	134.6	 	 	 	134.5	 	 	 	135.5	 	 	 	134.5	 	 	 	1,734.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	495.3	 	 	 	487.9	 	 	 	546.5	 	 	 	580.4	 	 	 	551.6	 	 	 	585.5	 	 	 	609.2	 	 	 	687.8	 	 	 	569.8	 	 	 	574.3	 	 	 	501.4	 	 	 	484.4	 	 	 	6,674.1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	4,588.6	 	 	 	4,249.0	 	 	 	4,452.5	 	 	 	4,642.3	 	 	 	4,790.7	 	 	 	4,709.4	 	 	 	4,752.5	 	 	 	4,714.9	 	 	 	4,571.1	 	 	 	4,628.5	 	 	 	4,373.3	 	 	 	4,428.4	 	 	 	54,901.2	 

O-17

 

JEWETT OPERATIONS BUDGET – ESCALATED DOLLARS

NORTHWESTERN RESOURCES CO.

BUDGET SUMMARY REPORT

1999 BUDGET

(000’s)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	1999	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1999
	 	 	JAN	 	FEB	 	MARCH	 	APRIL	 	MAY	 	JUNE	 	JULY	 	AUGUST	 	SEPT	 	OCT	 	NOV	 	DEC	 	TOTAL
	* ENVIRONMENT
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** CURRENT RECL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	REGRADE
	 	 	149.2	 	 	 	143.1	 	 	 	149.9	 	 	 	188.0	 	 	 	190.2	 	 	 	188.7	 	 	 	182.5	 	 	 	181.5	 	 	 	185.7	 	 	 	147.7	 	 	 	144.7	 	 	 	146.7	 	 	 	1,997.9	 
	REVEGETATION
	 	 	8.0	 	 	 	9.5	 	 	 	38.5	 	 	 	44.0	 	 	 	38.0	 	 	 	22.0	 	 	 	2.5	 	 	 	2.5	 	 	 	15.6	 	 	 	9.0	 	 	 	52.4	 	 	 	37.3	 	 	 	279.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	157.2	 	 	 	152.6	 	 	 	188.4	 	 	 	232.0	 	 	 	228.2	 	 	 	210.7	 	 	 	185.0	 	 	 	184.0	 	 	 	201.3	 	 	 	156.7	 	 	 	197.1	 	 	 	184.0	 	 	 	2,277.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** POST MINE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	FACIL REMOVAL
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	10.0	 	 	 	0.0	 	 	 	4.6	 	 	 	30.0	 	 	 	30.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	74.6	 
	MINE MANAGEMEN
	 	 	34.2	 	 	 	36.9	 	 	 	72.9	 	 	 	100.7	 	 	 	123.1	 	 	 	120.5	 	 	 	91.9	 	 	 	88.2	 	 	 	99.6	 	 	 	51.6	 	 	 	44.2	 	 	 	39.4	 	 	 	903.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	34.2	 	 	 	36.9	 	 	 	72.9	 	 	 	110.7	 	 	 	123.1	 	 	 	125.1	 	 	 	121.9	 	 	 	118.2	 	 	 	99.6	 	 	 	51.6	 	 	 	44.2	 	 	 	39.4	 	 	 	977.8	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** COMPLIANCE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PERMITS
	 	 	18.0	 	 	 	13.0	 	 	 	47.2	 	 	 	11.7	 	 	 	13.7	 	 	 	51.7	 	 	 	15.2	 	 	 	7.7	 	 	 	73.2	 	 	 	14.7	 	 	 	20.5	 	 	 	48.0	 	 	 	334.6	 
	MONITORING
	 	 	26.5	 	 	 	37.2	 	 	 	60.8	 	 	 	33.3	 	 	 	48.4	 	 	 	61.1	 	 	 	33.1	 	 	 	50.5	 	 	 	68.9	 	 	 	29.1	 	 	 	28.4	 	 	 	55.1	 	 	 	532.4	 
	SEDIMENT CTRL
	 	 	33.1	 	 	 	18.1	 	 	 	44.2	 	 	 	34.0	 	 	 	56.5	 	 	 	388.1	 	 	 	606.6	 	 	 	870.7	 	 	 	264.0	 	 	 	52.8	 	 	 	18.2	 	 	 	33.7	 	 	 	2,420.0	 
	COMPL. OTHER
	 	 	112.8	 	 	 	129.2	 	 	 	178.9	 	 	 	126.4	 	 	 	115.5	 	 	 	163.0	 	 	 	111.8	 	 	 	124.2	 	 	 	112.8	 	 	 	118.7	 	 	 	111.0	 	 	 	113.7	 	 	 	1,518.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	190.4	 	 	 	197.5	 	 	 	331.1	 	 	 	205.4	 	 	 	234.1	 	 	 	663.9	 	 	 	766.7	 	 	 	1,053.1	 	 	 	518.9	 	 	 	215.3	 	 	 	178.1	 	 	 	250.5	 	 	 	4,805.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	381.8	 	 	 	387.0	 	 	 	592.4	 	 	 	548.1	 	 	 	585.4	 	 	 	999.7	 	 	 	1,073.6	 	 	 	1,355.3	 	 	 	819.8	 	 	 	423.6	 	 	 	419.4	 	 	 	473.9	 	 	 	8,060.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* ENGINEER
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** ENGINEERING
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	OPERATIONS ENG
	 	 	36.3	 	 	 	48.3	 	 	 	46.4	 	 	 	42.9	 	 	 	36.3	 	 	 	53.4	 	 	 	41.8	 	 	 	49.9	 	 	 	36.4	 	 	 	36.4	 	 	 	36.3	 	 	 	36.4	 	 	 	500.8	 
	CIVIL ENGINEER
	 	 	17.0	 	 	 	17.0	 	 	 	7.5	 	 	 	7.5	 	 	 	20.0	 	 	 	25.0	 	 	 	28.8	 	 	 	20.0	 	 	 	7.5	 	 	 	7.5	 	 	 	2.0	 	 	 	2.0	 	 	 	161.8	 
	SURVEYING
	 	 	33.9	 	 	 	21.2	 	 	 	26.2	 	 	 	22.0	 	 	 	24.2	 	 	 	24.2	 	 	 	35.7	 	 	 	24.8	 	 	 	21.2	 	 	 	20.2	 	 	 	21.2	 	 	 	35.2	 	 	 	310.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	87.2	 	 	 	86.5	 	 	 	80.1	 	 	 	72.4	 	 	 	80.5	 	 	 	102.6	 	 	 	106.3	 	 	 	94.7	 	 	 	65.1	 	 	 	64.1	 	 	 	59.5	 	 	 	73.6	 	 	 	972.6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	87.2	 	 	 	86.5	 	 	 	80.1	 	 	 	72.4	 	 	 	80.5	 	 	 	102.6	 	 	 	106.3	 	 	 	94.7	 	 	 	65.1	 	 	 	64.1	 	 	 	59.5	 	 	 	73.6	 	 	 	972.6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* ADMIN
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** ADMIN
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BUSINESS
	 	 	257.1	 	 	 	244.4	 	 	 	316.0	 	 	 	251.5	 	 	 	321.6	 	 	 	344.4	 	 	 	300.7	 	 	 	241.9	 	 	 	299.7	 	 	 	286.3	 	 	 	236.1	 	 	 	279.5	 	 	 	3,379.2	 
	LANDS
	 	 	15.1	 	 	 	17.1	 	 	 	18.8	 	 	 	15.3	 	 	 	17.2	 	 	 	16.1	 	 	 	15.1	 	 	 	37.0	 	 	 	17.0	 	 	 	19.7	 	 	 	16.4	 	 	 	15.8	 	 	 	220.6	 
	EMPLOYEE REL
	 	 	55.8	 	 	 	45.3	 	 	 	45.0	 	 	 	50.6	 	 	 	42.2	 	 	 	41.0	 	 	 	76.0	 	 	 	88.4	 	 	 	42.7	 	 	 	49.7	 	 	 	42.9	 	 	 	49.0	 	 	 	628.6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	328.0	 	 	 	306.8	 	 	 	379.8	 	 	 	317.4	 	 	 	381.0	 	 	 	401.5	 	 	 	391.8	 	 	 	367.3	 	 	 	359.4	 	 	 	355.7	 	 	 	295.4	 	 	 	344.3	 	 	 	4,228.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	328.0	 	 	 	306.8	 	 	 	379.8	 	 	 	317.4	 	 	 	381.0	 	 	 	401.5	 	 	 	391.8	 	 	 	367.3	 	 	 	359.4	 	 	 	355.7	 	 	 	295.4	 	 	 	344.3	 	 	 	4,228.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* LEASE OBL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** LEASE OBL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DAMAGES
	 	 	0.0	 	 	 	69.9	 	 	 	70.9	 	 	 	121.0	 	 	 	70.9	 	 	 	70.9	 	 	 	70.9	 	 	 	70.9	 	 	 	120.9	 	 	 	70.9	 	 	 	69.9	 	 	 	0.0	 	 	 	807.1	 

O-18

 

JEWETT OPERATIONS BUDGET – ESCALATED DOLLARS

NORTHWESTERN RESOURCES CO.

BUDGET SUMMARY REPORT

1999 BUDGET

(000’s)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	1999	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1999
	 	 	JAN	 	FEB	 	MARCH	 	APRIL	 	MAY	 	JUNE	 	JULY	 	AUGUST	 	SEPT	 	OCT	 	NOV	 	DEC	 	TOTAL
	RENTALS
	 	 	13.8	 	 	 	6.2	 	 	 	43.5	 	 	 	14.2	 	 	 	4.8	 	 	 	3.2	 	 	 	212.6	 	 	 	0.8	 	 	 	2.0	 	 	 	8.1	 	 	 	2.9	 	 	 	0.0	 	 	 	312.1	 
	ROYALTIES
	 	 	1,630.9	 	 	 	1,727.6	 	 	 	1,136.4	 	 	 	839.8	 	 	 	1,113.0	 	 	 	1,610.1	 	 	 	1,773.6	 	 	 	1,741.1	 	 	 	1,672.5	 	 	 	1,700.2	 	 	 	1,631.8	 	 	 	1,763.8	 	 	 	18,340.8	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	1,644.7	 	 	 	1,803.7	 	 	 	1,250.8	 	 	 	975.0	 	 	 	1,188.7	 	 	 	1,684.2	 	 	 	2,057.1	 	 	 	1,812.8	 	 	 	1,795.4	 	 	 	1,779.2	 	 	 	1,704.6	 	 	 	1,763.8	 	 	 	19,460.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	1,644.7	 	 	 	1,803.7	 	 	 	1,250.8	 	 	 	975.0	 	 	 	1,188.7	 	 	 	1,684.2	 	 	 	2,057.1	 	 	 	1,812.8	 	 	 	1,795.4	 	 	 	1,779.2	 	 	 	1,704.6	 	 	 	1,763.8	 	 	 	19.460.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* FEES
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** FEES
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DEDICATION
	 	 	602.1	 	 	 	545.0	 	 	 	421.3	 	 	 	301.1	 	 	 	415.9	 	 	 	599.9	 	 	 	624.2	 	 	 	641.1	 	 	 	617.0	 	 	 	634.0	 	 	 	607.4	 	 	 	646.1	 	 	 	6,655.1	 
	MANAGEMENT
	 	 	1,506.1	 	 	 	1,363.4	 	 	 	1,054.1	 	 	 	754.4	 	 	 	1,041.4	 	 	 	1,501.4	 	 	 	1,569.8	 	 	 	1,610.8	 	 	 	1,551.2	 	 	 	1,595.1	 	 	 	1,529.7	 	 	 	1,623.2	 	 	 	16,700.6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	2,108.2	 	 	 	1,908.4	 	 	 	1,475.4	 	 	 	1,055.5	 	 	 	1,457.3	 	 	 	2,101.3	 	 	 	2,194.0	 	 	 	2,251.9	 	 	 	2,168.2	 	 	 	2,229.1	 	 	 	2,137.1	 	 	 	2,269.3	 	 	 	23,355.7	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	2,108.2	 	 	 	1,908.4	 	 	 	1,475.4	 	 	 	1,055.5	 	 	 	1,457.3	 	 	 	2,101.3	 	 	 	2,194.0	 	 	 	2,251.9	 	 	 	2,168.2	 	 	 	2,229.1	 	 	 	2,137.1	 	 	 	2,269.3	 	 	 	23,355.7	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grand Total
	 	 	9,138.5	 	 	 	8.741.4	 	 	 	8,231.0	 	 	 	7,610.7	 	 	 	8,483.6	 	 	 	9,998.7	 	 	 	10,575.3	 	 	 	10,596.9	 	 	 	9,779.0	 	 	 	9,480.2	 	 	 	8,889.3	 	 	 	9,353.3	 	 	 	110,977.9	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

O-19

 

JEWETT OPERATIONS BUDGET – ESCALATED 

DOLLARS

NORTHWESTERN RESOURCES CO.

BUDGET SUMMARY REPORT

1999 BUDGET

(000’s)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2000	 	 	 	 	 	 	 	 	 	 	 	 	 	2000	 	2001	 	 	 	 	 	 	 	 	 	 	 	 	 	2001	 	2002	 	2003	 	5-YEAR
	 	 	QTR 1	 	QTR 2	 	QTR 3	 	QTR 4	 	TOTAL	 	QTR 1	 	QTR 2	 	QTR 3	 	QTR 4	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL
	* PRODUCTION
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** STRIPPING
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DRAGLINES
	 	 	3728.3	 	 	 	3947.3	 	 	 	3964.8	 	 	 	3796.4	 	 	 	15436.8	 	 	 	3795.5	 	 	 	4018.4	 	 	 	4036.3	 	 	 	3864.8	 	 	 	15715.0	 	 	 	15993.4	 	 	 	16308.9	 	 	 	78,498.5	 
	BLASTING
	 	 	743.5	 	 	 	732.5	 	 	 	741.7	 	 	 	660.6	 	 	 	2878.3	 	 	 	726.3	 	 	 	764.3	 	 	 	787.0	 	 	 	803.9	 	 	 	3081.5	 	 	 	3296.3	 	 	 	3327.3	 	 	 	15,426.8	 
	BWE
	 	 	944.2	 	 	 	953.6	 	 	 	961.1	 	 	 	959.1	 	 	 	3818.0	 	 	 	959.9	 	 	 	969.5	 	 	 	977.1	 	 	 	975.1	 	 	 	3881.6	 	 	 	3945.3	 	 	 	4017.6	 	 	 	19,404.5	 
	MOBILE
	 	 	1117.4	 	 	 	1157.5	 	 	 	1168.7	 	 	 	1168.7	 	 	 	4612.3	 	 	 	1165.4	 	 	 	1171.8	 	 	 	1183.1	 	 	 	1183.1	 	 	 	4703.4	 	 	 	4760.4	 	 	 	4825.6	 	 	 	23,440.5	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	6533.4	 	 	 	6790.9	 	 	 	6836.3	 	 	 	6584.8	 	 	 	26745.4	 	 	 	6647.2	 	 	 	6924.0	 	 	 	6983.5	 	 	 	6826.9	 	 	 	27381.5	 	 	 	27995.4	 	 	 	28479.4	 	 	 	136,770.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** LIGNITE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	LOADING
	 	 	517.5	 	 	 	498.4	 	 	 	503.7	 	 	 	503.7	 	 	 	2023.3	 	 	 	499.7	 	 	 	505.0	 	 	 	510.4	 	 	 	510.4	 	 	 	2025.5	 	 	 	2051.8	 	 	 	2082.2	 	 	 	10,299.0	 
	HAULING
	 	 	1813.2	 	 	 	1832.9	 	 	 	1852.8	 	 	 	1852.8	 	 	 	7351.7	 	 	 	1838.5	 	 	 	1858.5	 	 	 	1878.7	 	 	 	1878.7	 	 	 	7454.4	 	 	 	7556.2	 	 	 	7672.9	 	 	 	37,289.0	 
	CRUSHING
	 	 	392.6	 	 	 	392.6	 	 	 	392.6	 	 	 	392.6	 	 	 	1570.4	 	 	 	396.7	 	 	 	396.7	 	 	 	396.7	 	 	 	396.7	 	 	 	1586.8	 	 	 	1602.8	 	 	 	1621.2	 	 	 	7,936.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	2723.3	 	 	 	2723.9	 	 	 	2749.1	 	 	 	2749.1	 	 	 	10945.4	 	 	 	2734.9	 	 	 	2760.2	 	 	 	2785.8	 	 	 	2785.8	 	 	 	11066.7	 	 	 	11210.8	 	 	 	11376.3	 	 	 	55,524.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** ROADS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MAINT. OTHER
	 	 	22.2	 	 	 	34.5	 	 	 	50.9	 	 	 	22.2	 	 	 	129.8	 	 	 	22.8	 	 	 	35.4	 	 	 	52.3	 	 	 	22.8	 	 	 	133.3	 	 	 	136.7	 	 	 	140.6	 	 	 	674.3	 
	MAINT. ROADS
	 	 	691.6	 	 	 	650.3	 	 	 	622.5	 	 	 	634.1	 	 	 	2598.5	 	 	 	699.9	 	 	 	658.6	 	 	 	630.7	 	 	 	641.9	 	 	 	2631.1	 	 	 	2663.7	 	 	 	2701.0	 	 	 	13,059.0	 
	CONST. ROADS
	 	 	0.0	 	 	 	110.3	 	 	 	0.0	 	 	 	0.0	 	 	 	110.3	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0.	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	666.9	 	 	 	898.5	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	713.8	 	 	 	795.1	 	 	 	673.4	 	 	 	656.3	 	 	 	2838.6	 	 	 	722.7	 	 	 	694.0	 	 	 	683.0	 	 	 	664.7	 	 	 	2764.4	 	 	 	2800.4	 	 	 	3508.5	 	 	 	14,631.8	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** WATER CTRL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PIT – SURFACE
	 	 	151.8	 	 	 	154.2	 	 	 	149.1	 	 	 	151.8	 	 	 	606.9	 	 	 	153.8	 	 	 	156.3	 	 	 	151.0	 	 	 	153.8	 	 	 	614.9	 	 	 	622.8	 	 	 	631.9	 	 	 	3,076.1	 
	OVERBURDEN
	 	 	590.3	 	 	 	662.9	 	 	 	580.9	 	 	 	434.2	 	 	 	2268.3	 	 	 	605.3	 	 	 	763.5	 	 	 	595.6	 	 	 	569.5	 	 	 	2533.9	 	 	 	2701.9	 	 	 	2514.1	 	 	 	12,798.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	742.1	 	 	 	817.1	 	 	 	730.0	 	 	 	586.0	 	 	 	2875.2	 	 	 	759.1	 	 	 	919.8	 	 	 	746.6	 	 	 	723.3	 	 	 	3148.8	 	 	 	3324.7	 	 	 	3146.0	 	 	 	15,874.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	**MAINTENANCE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SUPPORT
	 	 	352.7	 	 	 	352.7	 	 	 	352.7	 	 	 	352.7	 	 	 	1410.8	 	 	 	360.6	 	 	 	360.6	 	 	 	360.6	 	 	 	360.6	 	 	 	1442.4	 	 	 	1473.4	 	 	 	1508.9	 	 	 	7,216.7	 
	MAINT. OTHER
	 	 	907.3	 	 	 	934.2	 	 	 	948.7	 	 	 	907.3	 	 	 	3697.5	 	 	 	919.4	 	 	 	946.5	 	 	 	961.0	 	 	 	919.4	 	 	 	3746.3	 	 	 	3795.2	 	 	 	3850.8	 	 	 	18,742.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	1260.0	 	 	 	1286.9	 	 	 	1301.4	 	 	 	1260.0	 	 	 	5108.3	 	 	 	1280.0	 	 	 	1307.1	 	 	 	1321.6	 	 	 	1280.0	 	 	 	5188.7	 	 	 	5268.6	 	 	 	5359.7	 	 	 	25,959.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** GENERAL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CLEARING
	 	 	57.0	 	 	 	57.0	 	 	 	57.0	 	 	 	57.0	 	 	 	228.0	 	 	 	58.5	 	 	 	58.5	 	 	 	58.5	 	 	 	58.5	 	 	 	234.0	 	 	 	214.3	 	 	 	220.5	 	 	 	1,095.4	 
	DRILLING
	 	 	79.4	 	 	 	238.2	 	 	 	232.0	 	 	 	91.6	 	 	 	641.2	 	 	 	81.6	 	 	 	244.7	 	 	 	238.3	 	 	 	94.1	 	 	 	658.7	 	 	 	337.9	 	 	 	0.0	 	 	 	2,216.6	 
	WAREHOUSE
	 	 	319.3	 	 	 	316.7	 	 	 	317.1	 	 	 	311.1	 	 	 	1264.2	 	 	 	326.8	 	 	 	324.0	 	 	 	324.5	 	 	 	318.4	 	 	 	1293.7	 	 	 	1324.1	 	 	 	1358.3	 	 	 	6,478.3	 
	PROD. TAXES
	 	 	742.3	 	 	 	719.0	 	 	 	764.0	 	 	 	754.4	 	 	 	2979.7	 	 	 	747.2	 	 	 	767.1	 	 	 	782.2	 	 	 	771.6	 	 	 	3068.1	 	 	 	3117.2	 	 	 	3191.0	 	 	 	15,213.8	 
	RELOCATIONS
	 	 	266.8	 	 	 	128.3	 	 	 	62.7	 	 	 	0.0	 	 	 	457.8	 	 	 	22.1	 	 	 	316.1	 	 	 	290.8	 	 	 	0.0	 	 	 	629.0	 	 	 	1611.9	 	 	 	3551.6	 	 	 	6,316.9	 
	SUPV. OTHER
	 	 	408.6	 	 	 	452.4	 	 	 	480.2	 	 	 	409.1	 	 	 	1750.3	 	 	 	413.5	 	 	 	456.3	 	 	 	486.3	 	 	 	411.9	 	 	 	1768.0	 	 	 	1784.3	 	 	 	1802.5	 	 	 	8,839.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	1873.4	 	 	 	1911.6	 	 	 	1913.0	 	 	 	1623.2	 	 	 	7321.2	 	 	 	1649.7	 	 	 	2166.7	 	 	 	2180.6	 	 	 	1654.5	 	 	 	7651.5	 	 	 	8389.7	 	 	 	10123.9	 	 	 	40,160.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	13846.0	 	 	 	14325.5	 	 	 	14203.2	 	 	 	13459.4	 	 	 	55834.1	 	 	 	13793.5	 	 	 	14771.8	 	 	 	14701.1	 	 	 	13935.2	 	 	 	57201.6	 	 	 	58989.6	 	 	 	61993.8	 	 	 	288,920.3	 

O-20

 

JEWETT OPERATIONS BUDGET – ESCALATED 

DOLLARS

NORTHWESTERN RESOURCES CO.

BUDGET SUMMARY REPORT

1999 BUDGET

(000’s)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2000	 	 	 	 	 	 	 	 	 	 	 	 	 	2000	 	2001	 	 	 	 	 	 	 	 	 	 	 	 	 	2001	 	2002	 	2003	 	5-YEAR
	 	 	QTR 1	 	QTR 2	 	QTR 3	 	QTR 4	 	TOTAL	 	QTR 1	 	QTR 2	 	QTR 3	 	QTR 4	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL
	* ENVIRONMENT
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** CURRENT RECL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	REGRADE
	 	 	450.0	 	 	 	577.6	 	 	 	560.1	 	 	 	446.6	 	 	 	2034.3	 	 	 	458.1	 	 	 	589.1	 	 	 	571.1	 	 	 	454.5	 	 	 	2072.8	 	 	 	2111.0	 	 	 	2154.6	 	 	 	10,370.6	 
	REVEGETATION
	 	 	57.5	 	 	 	106.7	 	 	 	21.1	 	 	 	101.2	 	 	 	286.5	 	 	 	59.0	 	 	 	109.6	 	 	 	21.7	 	 	 	104.0	 	 	 	294.3	 	 	 	301.9	 	 	 	310.7	 	 	 	1,472.7	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	507.5	 	 	 	684.3	 	 	 	581.2	 	 	 	547.8	 	 	 	2320.8	 	 	 	517.1	 	 	 	698.7	 	 	 	592.8	 	 	 	558.5	 	 	 	2367.1	 	 	 	2412.9	 	 	 	2465.3	 	 	 	11,843.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** POST MINE

FACIL REMOVAL
	 	 	0.0	 	 	 	0.0	 	 	 	6.3	 	 	 	0.0	 	 	 	6.3	 	 	 	0.0	 	 	 	0.0	 	 	 	5.2	 	 	 	0.0	 	 	 	5.2	 	 	 	18.5	 	 	 	22.0	 	 	 	126.6	 
	MINE MANAGEMENT
	 	 	157.6	 	 	 	382.9	 	 	 	291.3	 	 	 	147.1	 	 	 	978.9	 	 	 	167.2	 	 	 	434.3	 	 	 	196.9	 	 	 	156.3	 	 	 	954.7	 	 	 	1001.2	 	 	 	1052.4	 	 	 	4,890.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	157.6	 	 	 	382.9	 	 	 	297.6	 	 	 	147.1	 	 	 	985.2	 	 	 	167.2	 	 	 	434.3	 	 	 	202.1	 	 	 	156.3	 	 	 	959.9	 	 	 	1019.7	 	 	 	1074.4	 	 	 	5,017.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** COMPLIANCE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PERMITS
	 	 	75.4	 	 	 	107.0	 	 	 	92.7	 	 	 	113.8	 	 	 	388.9	 	 	 	85.3	 	 	 	115.7	 	 	 	95.7	 	 	 	91.1	 	 	 	387.8	 	 	 	96.5	 	 	 	69.5	 	 	 	1,277.3	 
	MONITORING
	 	 	136.3	 	 	 	130.2	 	 	 	147.9	 	 	 	123.7	 	 	 	538.1	 	 	 	140.1	 	 	 	136.1	 	 	 	151.9	 	 	 	127.1	 	 	 	555.2	 	 	 	575.2	 	 	 	593.7	 	 	 	2,794.6	 
	SEDIMENT CTRL
	 	 	102.2	 	 	 	500.3	 	 	 	1398.6	 	 	 	112.8	 	 	 	2113.9	 	 	 	105.0	 	 	 	429.5	 	 	 	1309.9	 	 	 	115.8	 	 	 	1960.2	 	 	 	1330.1	 	 	 	3727.0	 	 	 	11,551.2	 
	COMPL. OTHER
	 	 	416.6	 	 	 	360.8	 	 	 	360.4	 	 	 	355.2	 	 	 	1493.0	 	 	 	420.8	 	 	 	362.9	 	 	 	604.6	 	 	 	757.5	 	 	 	2145.8	 	 	 	1664.8	 	 	 	1564.0	 	 	 	8,385.6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	730.5	 	 	 	1098.3	 	 	 	1999.6	 	 	 	705.5	 	 	 	4533.9	 	 	 	751.2	 	 	 	1044.2	 	 	 	2162.1	 	 	 	1091.5	 	 	 	5049.0	 	 	 	3666.5	 	 	 	5954.2	 	 	 	24,008.7	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	1395.6	 	 	 	2165.5	 	 	 	2878.4	 	 	 	1400.4	 	 	 	7839.9	 	 	 	1435.5	 	 	 	2177.2	 	 	 	2957.0	 	 	 	1806.3	 	 	 	8376.0	 	 	 	7099.2	 	 	 	9493.9	 	 	 	40,869.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* ENGINEER
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** ENGINEERING
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	OPERATIONS ENG
	 	 	132.4	 	 	 	116.3	 	 	 	149.9	 	 	 	109.7	 	 	 	508.3	 	 	 	133.8	 	 	 	117.2	 	 	 	144.3	 	 	 	110.4	 	 	 	505.7	 	 	 	510.3	 	 	 	515.6	 	 	 	2,540.7	 
	CIVIL ENGINEER
	 	 	10.3	 	 	 	32.7	 	 	 	32.8	 	 	 	10.3	 	 	 	86.1	 	 	 	12.6	 	 	 	50.2	 	 	 	54.8	 	 	 	12.6	 	 	 	130.2	 	 	 	98.1	 	 	 	206.9	 	 	 	683.1	 
	SURVEYING
	 	 	78.1	 	 	 	78.9	 	 	 	79.7	 	 	 	78.1	 	 	 	314.8	 	 	 	79.1	 	 	 	79.9	 	 	 	80.8	 	 	 	79.1	 	 	 	318.9	 	 	 	311.9	 	 	 	316.3	 	 	 	1,571.9	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	220.8	 	 	 	227.9	 	 	 	262.4	 	 	 	198.1	 	 	 	909.2	 	 	 	225.5	 	 	 	247.3	 	 	 	279.9	 	 	 	202.1	 	 	 	954.8	 	 	 	920.3	 	 	 	1038.8	 	 	 	4,795.7	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Total
	 	 	220.8	 	 	 	227.9	 	 	 	262.4	 	 	 	198.1	 	 	 	909.2	 	 	 	225.5	 	 	 	247.3	 	 	 	279.9	 	 	 	202.1	 	 	 	954.8	 	 	 	920.3	 	 	 	1038.8	 	 	 	4,795.7	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* ADMIN
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** ADMIN
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BUSINESS
	 	 	829.6	 	 	 	921.9	 	 	 	854.8	 	 	 	818.3	 	 	 	3424.6	 	 	 	842.8	 	 	 	947.7	 	 	 	868.5	 	 	 	826.8	 	 	 	3485.8	 	 	 	3542.4	 	 	 	3606.4	 	 	 	17,438.4	 
	LANDS
	 	 	47.2	 	 	 	47.3	 	 	 	47.7	 	 	 	50.6	 	 	 	192.8	 	 	 	46.4	 	 	 	58.1	 	 	 	46.9	 	 	 	49.8	 	 	 	201.2	 	 	 	185.0	 	 	 	185.7	 	 	 	985.3	 
	EMPLOYEE REL
	 	 	196.0	 	 	 	171.3	 	 	 	256.8	 	 	 	179.3	 	 	 	803.4	 	 	 	198.9	 	 	 	173.4	 	 	 	261.9	 	 	 	181.7	 	 	 	815.9	 	 	 	828.3	 	 	 	842.5	 	 	 	3,918.7	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	1072.8	 	 	 	1140.5	 	 	 	1159.3	 	 	 	1048.2	 	 	 	4420.8	 	 	 	1088.1	 	 	 	1179.2	 	 	 	1177.3	 	 	 	1058.3	 	 	 	4502.9	 	 	 	4555.7	 	 	 	4634.6	 	 	 	22,342.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	1072.8	 	 	 	1140.5	 	 	 	1159.3	 	 	 	1048.2	 	 	 	4420.8	 	 	 	1088.1	 	 	 	1179.2	 	 	 	1177.3	 	 	 	1058.3	 	 	 	4502.9	 	 	 	4555.7	 	 	 	4634.6	 	 	 	22,342.4	 

O-21

 

JEWETT OPERATIONS BUDGET – ESCALATED 

DOLLARS

NORTHWESTERN RESOURCES CO.

BUDGET SUMMARY REPORT

1999 BUDGET

(000’s)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2000	 	 	 	 	 	 	 	 	 	 	 	 	 	2000	 	2001	 	 	 	 	 	 	 	 	 	 	 	 	 	2001	 	2002	 	2003	 	5-YEAR
	 	 	QTR 1	 	QTR 2	 	QTR 3	 	QTR 4	 	TOTAL	 	QTR 1	 	QTR 2	 	QTR 3	 	QTR 4	 	TOTAL	 	TOTAL	 	TOTAL	 	TOTAL
	* LEASE OBL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** LEASE OBL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DAMAGES
	 	 	83.3	 	 	 	205.8	 	 	 	205.7	 	 	 	83.3	 	 	 	578.1	 	 	 	140.8	 	 	 	263.1	 	 	 	263.0	 	 	 	140.8	 	 	 	807.7	 	 	 	666.6	 	 	 	6.8	 	 	 	2,866.3	 
	RENTALS
	 	 	73.4	 	 	 	72.2	 	 	 	65.4	 	 	 	61.1	 	 	 	272.1	 	 	 	73.4	 	 	 	72.2	 	 	 	65.4	 	 	 	61.1	 	 	 	272.1	 	 	 	272.1	 	 	 	72.1	 	 	 	1,200.5	 
	ROYALTIES
	 	 	4530.8	 	 	 	3739.2	 	 	 	4450.0	 	 	 	4550.9	 	 	 	17270.9	 	 	 	3113.5	 	 	 	3013.5	 	 	 	3224.7	 	 	 	3236.5	 	 	 	12588.2	 	 	 	13028.0	 	 	 	17791.5	 	 	 	79,019.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	4687.5	 	 	 	4017.2	 	 	 	4721.1	 	 	 	4695.3	 	 	 	18121.1	 	 	 	3327.7	 	 	 	3348.8	 	 	 	3553.1	 	 	 	3438.4	 	 	 	13668.0	 	 	 	13966.7	 	 	 	17870.4	 	 	 	83,086.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	4687.5	 	 	 	4017.2	 	 	 	4721.1	 	 	 	4695.3	 	 	 	18121.1	 	 	 	3327.7	 	 	 	3348.8	 	 	 	3553.1	 	 	 	3438.4	 	 	 	13668.0	 	 	 	13966.7	 	 	 	17870.4	 	 	 	83,086.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* FEES
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** FEES
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DEDICATION
	 	 	3373.5	 	 	 	2799.9	 	 	 	3380.7	 	 	 	3576.8	 	 	 	13130.9	 	 	 	5028.8	 	 	 	5031.2	 	 	 	5302.2	 	 	 	5599.9	 	 	 	20962.1	 	 	 	21104.8	 	 	 	12654.2	 	 	 	74,507.1	 
	MANAGEMENT
	 	 	4678.7	 	 	 	3884.0	 	 	 	4690.0	 	 	 	4959.2	 	 	 	18211.9	 	 	 	4514.2	 	 	 	4516.1	 	 	 	4759.2	 	 	 	5026.6	 	 	 	18816.1	 	 	 	18645.8	 	 	 	18804.7	 	 	 	91,179.1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Subtotal
	 	 	8052.2	 	 	 	6683.9	 	 	 	8070.7	 	 	 	8536.0	 	 	 	31342.8	 	 	 	9543.0	 	 	 	9547.3	 	 	 	10061.4	 	 	 	10626.5	 	 	 	39778.2	 	 	 	39750.6	 	 	 	31458.9	 	 	 	165,686.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Total
	 	 	8052.2	 	 	 	6683.9	 	 	 	8070.7	 	 	 	8536.0	 	 	 	31342.8	 	 	 	9543.0	 	 	 	9547.3	 	 	 	10061.4	 	 	 	10626.5	 	 	 	39778.2	 	 	 	39750.6	 	 	 	31458.9	 	 	 	165,686.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grand Total
	 	 	29274.9	 	 	 	28560.5	 	 	 	31295.1	 	 	 	29337.4	 	 	 	118467.9	 	 	 	29413.3	 	 	 	31271.6	 	 	 	32729.8	 	 	 	31066.8	 	 	 	124481.5	 	 	 	125282.1	 	 	 	126490.4	 	 	 	605,699.8	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

O-22

 

Northwestern Resources Co.

1999 Operations Budget Escalation

     The escalation rates used in the Operations Budget were taken from the 1998 Houston
Industries, Inc. Cost Escalation Study, dated May 1998. This study was provided by HL&P to NWR.
NWR then determined the appropriate indices to be used for each budget item, and weighted them
based on the percentage of dollars in each item associated with a particular index. The following
page shows the selected indices for the 1999 Operations Budget.

     Budget dollars are calculated as of July 1998. The budget is then escalated quarterly for
2000 and 2001, and annually for 2002 through 2008, to derive the escalated dollar budget. The
method used gives an effective annual rate after compounding equal to the stated escalation rates.

O-23

 

Northwestern Resources Co.

1999 Operations Budget

Applied Indices

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	RATE APPLIED
	DESCRIPTION	 	 	1999 INDEX	 	 	2000 – 2008 INDEX	 	 	1999	 	 	2000	 	 	2001	 	 	2002	 	 	2003	 	 	2004	 	 	2005	 	 	2006	 	 	2007	 	 	2008
	Hourly Labor
	 	 	NWR Wage Study	 	 	Bituminous Coal & Lignite	 	 	 	2.6	 	 	 	 	2.1	 	 	 	 	2.7	 	 	 	 	2.7	 	 	 	 	2.7	 	 	 	 	2.8	 	 	 	 	2.9	 	 	 	 	2.9	 	 	 	 	3.0	 	 	 	 	3.0	 
	Salaried Labor
	 	 	NWR Wage Study	 	 	Bituminous Coal & Lignite	 	 	 	2.6	 	 	 	 	2.1	 	 	 	 	2.7	 	 	 	 	2.7	 	 	 	 	2.7	 	 	 	 	2.8	 	 	 	 	2.9	 	 	 	 	2.9	 	 	 	 	3.0	 	 	 	 	3.0	 
	Travel Expenses
	 	 	None	 	 	Total Admin & General (Materials)	 	 	 	3.2	 	 	 	 	3.2	 	 	 	 	3.5	 	 	 	 	3.5	 	 	 	 	3.8	 	 	 	 	3.9	 	 	 	 	3.9	 	 	 	 	4.1	 	 	 	 	4.2	 	 	 	 	4.2	 
	Equipment Costs
	 	 	Mining PPI 3532	 	 	Mining PPI 3532	 	 	 	1.7	 	 	 	 	2.6	 	 	 	 	2.7	 	 	 	 	2.6	 	 	 	 	2.9	 	 	 	 	3.1	 	 	 	 	3.3	 	 	 	 	3.5	 	 	 	 	3.4	 	 	 	 	3.1	 
	Permits, Fees, Bonds & Insurance
	 	 	None (Agency Survey)	 	 	GDP Deflator	 	 	 	1.9	 	 	 	 	2.2	 	 	 	 	2.1	 	 	 	 	2.2	 	 	 	 	2.4	 	 	 	 	2.5	 	 	 	 	2.6	 	 	 	 	2.8	 	 	 	 	2.8	 	 	 	 	2.9	 
	Contract Services, Tools & Supplies
	 	 	Mining PPI 3532	 	 	Mining PPI 3532	 	 	 	1.7	 	 	 	 	2.6	 	 	 	 	2.7	 	 	 	 	2.6	 	 	 	 	2.9	 	 	 	 	3.1	 	 	 	 	3.3	 	 	 	 	3.5	 	 	 	 	3.4	 	 	 	 	3.1	 
	Management & Dedication Fee
	 	 	GDP Deflator	 	 	GDP Deflator	 	 	 	1.9	 	 	 	 	2.2	 	 	 	 	2.1	 	 	 	 	2.2	 	 	 	 	2.4	 	 	 	 	2.5	 	 	 	 	2.6	 	 	 	 	2.8	 	 	 	 	2.8	 	 	 	 	2.9	 

1999 costs are based on 1998 current dollars plus escalation. 1999 – 2008 are escalated from the
basis by the indicated rate as taken from the HII Cost Escalation Study (May, 1998)

O-24

 

Northwestern Resources Co.

Jewett Mine

Sales Tonnage Projections

1999 Budget

(000’s)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	Sales Tons by Ownership	 	 	 
	Period	 	 	NWR	 	HL&P	 	Other	 	 	Total
	January
	 	 	 	253	 	 	 	570	 	 	 	0	 	 	 	 	823	 
	February
	 	 	 	229	 	 	 	516	 	 	 	0	 	 	 	 	745	 
	March
	 	 	 	177	 	 	 	399	 	 	 	0	 	 	 	 	576	 
	April
	 	 	 	126	 	 	 	284	 	 	 	0	 	 	 	 	410	 
	May
	 	 	 	174	 	 	 	392	 	 	 	0	 	 	 	 	566	 
	June
	 	 	 	251	 	 	 	565	 	 	 	0	 	 	 	 	816	 
	July
	 	 	 	259	 	 	 	585	 	 	 	0	 	 	 	 	844	 
	August
	 	 	 	266	 	 	 	600	 	 	 	0	 	 	 	 	866	 
	September
	 	 	 	256	 	 	 	578	 	 	 	0	 	 	 	 	834	 
	October
	 	 	 	262	 	 	 	591	 	 	 	0	 	 	 	 	853	 
	November
	 	 	 	251	 	 	 	567	 	 	 	0	 	 	 	 	818	 
	December
	 	 	 	267	 	 	 	601	 	 	 	0	 	 	 	 	868	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	1999 Total
	 	 	 	2,771	 	 	 	6,248	 	 	 	0	 	 	 	 	9,019	 
	 	 	 	 	 	 	 
	1st Quarter
	 	 	 	1,394	 	 	 	1,108	 	 	 	0	 	 	 	 	2,502	 
	2nd Quarter
	 	 	 	1,157	 	 	 	920	 	 	 	0	 	 	 	 	2,077	 
	3rd Quarter
	 	 	 	1,397	 	 	 	1,111	 	 	 	0	 	 	 	 	2,508	 
	4th Quarter
	 	 	 	1,478	 	 	 	1,174	 	 	 	0	 	 	 	 	2,652	 
	 	 	 	 	 	 	 
	2000 Total
	 	 	 	5,426	 	 	 	4,313	 	 	 	0	 	 	 	 	9,739	 
	 	 	 	 	 	 	 
	1st Quarter
	 	 	 	2,078	 	 	 	336	 	 	 	0	 	 	 	 	2,414	 
	2nd Quarter
	 	 	 	2,079	 	 	 	336	 	 	 	0	 	 	 	 	2,415	 
	3rd Quarter
	 	 	 	2,191	 	 	 	354	 	 	 	0	 	 	 	 	2,545	 
	4th Quarter
	 	 	 	2,314	 	 	 	374	 	 	 	0	 	 	 	 	2,688	 
	 	 	 	 	 	 	 
	2001 Total
	 	 	 	8,662	 	 	 	1,400	 	 	 	0	 	 	 	 	10,062	 
	 	 	 	 	 	 	 
	2002 Total
	 	 	 	8,721	 	 	 	1,250	 	 	 	0	 	 	 	 	9,971	 
	2003 Total
	 	 	 	5,229	 	 	 	4,827	 	 	 	0	 	 	 	 	10,056	 
	2004 Total
	 	 	 	4,036	 	 	 	6,006	 	 	 	0	 	 	 	 	10,042	 
	2005 Total
	 	 	 	4,883	 	 	 	4,405	 	 	 	802	 	 	 	 	10,090	 
	2006 Total
	 	 	 	2,611	 	 	 	7,302	 	 	 	167	 	 	 	 	10,080	 
	2007 Total
	 	 	 	4,875	 	 	 	5,049	 	 	 	7	 	 	 	 	9,931	 
	2008 Total
	 	 	 	3,853	 	 	 	6,091	 	 	 	0	 	 	 	 	9,944	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grand Total
	 	 	 	51,067	 	 	 	46,891	 	 	 	976	 	 	 	 	98,934	 

A-1

 

Northwestern Resources Co.

Jewett Mine

Bank Cubic Yards

1999 Budget

(000’s)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	Stripping Bank Cubic Yards	 	 	 
	Period	 	 	Dragline/BWE	 	Mobile	 	Contract	 	 	Total
	January
	 	 	 	8,333	 	 	 	605	 	 	 	0	 	 	 	 	8,938	 
	February
	 	 	 	7,356	 	 	 	552	 	 	 	0	 	 	 	 	7,908	 
	March
	 	 	 	7,083	 	 	 	609	 	 	 	0	 	 	 	 	7,692	 
	April
	 	 	 	8,007	 	 	 	580	 	 	 	0	 	 	 	 	8,587	 
	May
	 	 	 	8,398	 	 	 	602	 	 	 	0	 	 	 	 	9,000	 
	June
	 	 	 	8,308	 	 	 	577	 	 	 	0	 	 	 	 	8,885	 
	July
	 	 	 	8,411	 	 	 	585	 	 	 	0	 	 	 	 	8,996	 
	August
	 	 	 	7,521	 	 	 	607	 	 	 	0	 	 	 	 	8,128	 
	September
	 	 	 	8,304	 	 	 	578	 	 	 	0	 	 	 	 	8,882	 
	October
	 	 	 	8,530	 	 	 	605	 	 	 	0	 	 	 	 	9,135	 
	November
	 	 	 	7,115	 	 	 	584	 	 	 	0	 	 	 	 	7,699	 
	December
	 	 	 	7,550	 	 	 	579	 	 	 	0	 	 	 	 	8,129	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	1999 Total
	 	 	 	94,916	 	 	 	7,063	 	 	 	0	 	 	 	 	101,979	 
	 	 	 	 	 	 	 
	1st Quarter
	 	 	 	24,137	 	 	 	3,523	 	 	 	0	 	 	 	 	27,660	 
	2nd Quarter
	 	 	 	23,776	 	 	 	3,554	 	 	 	0	 	 	 	 	27,330	 
	3rd Quarter
	 	 	 	24,078	 	 	 	3,629	 	 	 	0	 	 	 	 	27,707	 
	4th Quarter
	 	 	 	21,438	 	 	 	5,823	 	 	 	0	 	 	 	 	27,261	 
	 	 	 	 	 	 	 
	2000 Total
	 	 	 	93,429	 	 	 	16,529	 	 	 	0	 	 	 	 	109,958	 
	 	 	 	 	 	 	 
	1st Quarter
	 	 	 	22,958	 	 	 	4,234	 	 	 	0	 	 	 	 	27,192	 
	2nd Quarter
	 	 	 	24,155	 	 	 	3,451	 	 	 	0	 	 	 	 	27,606	 
	3rd Quarter
	 	 	 	24,865	 	 	 	3,465	 	 	 	0	 	 	 	 	28,330	 
	4th Quarter
	 	 	 	25,411	 	 	 	3,482	 	 	 	0	 	 	 	 	28,893	 
	 	 	 	 	 	 	 
	2001 Total
	 	 	 	97,389	 	 	 	14,632	 	 	 	0	 	 	 	 	112,021	 
	 	 	 	 	 	 	 
	2002 Total
	 	 	 	101,554	 	 	 	13,891	 	 	 	0	 	 	 	 	115,445	 
	2003 Total
	 	 	 	99,620	 	 	 	18,892	 	 	 	0	 	 	 	 	118,512	 
	2004 Total
	 	 	 	98,798	 	 	 	18,877	 	 	 	0	 	 	 	 	117,675	 
	2005 Total
	 	 	 	99,593	 	 	 	21,761	 	 	 	0	 	 	 	 	121,354	 
	2006 Total
	 	 	 	94,094	 	 	 	21,975	 	 	 	0	 	 	 	 	116,069	 
	2007 Total
	 	 	 	98,928	 	 	 	20,269	 	 	 	0	 	 	 	 	119,197	 
	2008 Total
	 	 	 	91,185	 	 	 	18,837	 	 	 	0	 	 	 	 	110,022	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grand Total
	 	 	 	969,506	 	 	 	172,726	 	 	 	0	 	 	 	 	1,142,232	 

A-2

 

Northwestern Resources Co.

Jewett Mine

Major Equipment Requirements

1999 Budget

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Front End	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	End Dumps
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Dozers	 	Scraper	 	Graders	 	Water	 	Loaders	 	Coal	 	Backhoes	 	100	 	150
	 	 	 	 	 	 	Draglines	 	BWE	 	D9N	 	D10N	 	D11N	 	D7	 	834B	 	583K	 	657	 	16G	 	24H	 	Tracks	 	992D	 	Small	 	Haulers	 	8.5	 	Lg	 	Sm	 	Ton	 	Ton
	1998
	 	December	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	4	 	 	 	0	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	5	 	 	 	0	 
	 
	1999
	 	January	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	4	 	 	 	0	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	5	 	 	 	0	 
	 
	 	February	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	4	 	 	 	0	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	5	 	 	 	0	 
	 
	 	March	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	5	 	 	 	0	 
	 
	 	April	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	2	 
	 
	 	May	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	2	 
	 
	 	June	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	2	 
	 
	 	July	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	2	 
	 
	 	August	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	2	 
	 
	 	September	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	2	 
	 
	 	October	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	2	 
	 
	 	November	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	2	 
	 
	 	December	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	2	 
	 
	2000
	 	1st Qtr	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	3	 	 	 	6	 
	 
	 	2nd Qtr	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	3	 	 	 	6	 
	 
	 	3rd Qtr	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	3	 	 	 	6	 
	 
	 	4th Qtr	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	3	 	 	 	6	 
	 
	2001
	 	1st Qtr	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	3	 	 	 	6	 
	 
	 	2nd Qtr	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	3	 	 	 	6	 
	 
	 	3rd Qtr	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	3	 	 	 	6	 
	 
	 	4th Qtr	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	3	 	 	 	6	 
	 
	2002
	 	 	 	 	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	3	 	 	 	6	 
	 
	2003
	 	 	 	 	 	 	4	 	 	 	1	 	 	 	4	 	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	1	 	 	 	3	 	 	 	1	 	 	 	2	 	 	 	8	 
	 
	2004-2008
	 	 	 	 	 	 	4	 	 	 	1	 	 	 	4	 	 	 	7	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	14	 	 	 	0	 	 	 	4	 	 	 	1	 	 	 	0	 	 	 	11	 
	 

A-3

 

Northwestern Resources Co.

Jewett Mine

Major Equipment Replacements

1999 Budget

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Backhoes	 	Coal	 	Dozers	 	End	 	Graders	 	Loaders	 	Scrapers	 	Water
	 	 	 	 	8.5	 	Large	 	Small	 	Haulers	 	834B	 	D7	 	D9N	 	D10N	 	D11N	 	Dump	 	16G	 	992C	 	657	 	Trucks
	1999

	 	January	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	February	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	March	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	April	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	May	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	June	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	July	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	August	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	September	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	October	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	November	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	December	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	2000

	 	1st Quarter
	 	 	 	 	 	 	 	 	 	 	 	 	 	D905/906
	 	 	 	 	 	 	 	G004*	 	 	 	 	 	 
	 

	 	2nd Quarter
	 	 	 	B007
	 	 	 	 	 	 	 	D702
	 	D907
	 	D105/106
	 	 	 	 	 	 	 	L007
	 	S503	 	 
	 

	 	3rd Quarrter	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	4th Quarter	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	2001	 	1st Quarter	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	2nd Quarter
	 	 	 	 	 	 	 	 	 	 	 	D701	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	3rd Quarter	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	4th Quarter	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	2002
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	2003
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	2004

	 	 	 	 	 	B008/LS01
	 	 	 	 	 	 	 	 	 	 	 	Add
	 	D111	 	 	 	 	 	 	 	 	 	 
	 	 
	2005

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	D107	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	2006

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	D904/905
	 	D108	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	2007

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	D908/104
	 	 	 	 	 	G005/006	 	 	 	 	 	 
	 	 
	2008
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

 

			
	*	 	Replace G003 and G004 with new 24H motorgraders.

A-4

 

Northwestern Resources Co.

Jewett Mine

Average Equipment Lives

1999 Budget

	 	 	 	 	 
	Equipment	 	Life
	2 – 2 1/2 Ton Service Truck (2WD)
	 	7 Years
	2 – 2 1/2 Ton Service Truck (4WD)
	 	7 years
	Air Compressor
	 	10 Years
	Backhoe – 8.5 CY
	 	50,000 Hours
	Backhoe – Cat 5130
	 	60,000 Hours
	Backhoe – Small
	 	35,000 Hours
	Belting – BWE Overland Conveyor
	 	4 Years
	Belting – LHF Conveyor
	 	6 Years
	Cable Reeler
	 	15 Years
	Crane – Large (45 & 75 ton)
	 	15 Years
	Dozer
	 	55,000 Hours
	Dozer – D7
	 	55,000 Hours
	Dozer – Pipelayer
	 	LOM
	Dozer – Rubber Tire
	 	40,000 Hours
	End Dump
	 	55,000 Hours
	Forklift – 15 Ton
	 	15 Years
	Forklift – 4 Ton
	 	15 Years
	Front End Loader – 992C
	 	40,000 Hours
	Front End Loader – Small (2-5 Yard)
	 	7 Years
	Fuel / Lube Truck
	 	5 Years
	Fuel / Lube Truck – Bed
	 	10 Years
	Grader
	 	80,000 Hours
	Hauler
	 	100,000 Hours
	Light Plant
	 	10 Years
	Lowboy — Tractor
	 	10 Years
	Lowboy – Trailer
	 	LOM
	Pickup
	 	100,000 Miles
	Portable Welder
	 	10 Years
	Pump – Diesel
	 	10 Years
	Pump – Electric
	 	5 Years
	Pump Barge
	 	Rebuilt @ 5 & 15 Years
	Scraper
	 	40,000 Hours
	Suburban / Van
	 	100,000 Miles
	Water Truck
	 	LOM

A-5

 

     

Northwestern Resources Co.

Jewett Mine

Major Equipment Hourly Rates

1999 Budget

(in 1999 dollars)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Operating	 	Maintenance	 	 	 	 
	 	 	Fuel/	 	Lube/	 	Wear	 	Total	 	 	 	 	 	 	 	 	 	Total	 	Total Hourly	 	18 Months
	Fleet	 	Electricity	 	Other	 	Components	 	Operating	 	Parts	 	Labor (#)	 	Maintenance	 	Cost	 	Actual
	HOURLY RATES
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8200 Dragline
	 	$	93.20	 	 	$	7.39	 	 	$	44.62	 	 	$	145.21	 	 	$	58.13	 	 	$	45.43	 	 	$	103.56	 	 	$	248.77	 	 	$	243.21	 
	8750 Dragline
	 	 	162.78	 	 	 	16.30	 	 	 	120.60	 	 	 	299.68	 	 	 	68.65	 	 	 	86.39	 	 	 	155.04	 	 	 	454.72	 	 	 	493.84	 
	Backhoe — 8.5 CY
	 	 	6.00	 	 	 	2.50	 	 	 	12.00	 	 	 	20.50	 	 	 	12.50	 	 	 	8.00	 	 	 	20.50	 	 	 	41.00	 	 	 	29.83	 
	Backhoe — Cat 5130
	 	 	13.50	 	 	 	5.00	 	 	 	10.00	 	 	 	28.50	 	 	 	20.00	 	 	 	9.00	 	 	 	29.00	 	 	 	57.50	 	 	 	46.30	 
	Backhoe — Small
	 	 	6.00	 	 	 	1.50	 	 	 	10.00	 	 	 	17.50	 	 	 	25.75	 	 	 	12.85	 	 	 	38.60	 	 	 	56.10	 	 	 	73.17	 
	BWE
	 	 	40.20	 	 	 	6.77	 	 	 	22.26	 	 	 	69.23	 	 	 	157.07	 	 	 	48.56	 	 	 	205.63	 	 	 	274.86	 	 	 	389.33	 
	Dozer — 834B
	 	 	6.50	 	 	 	1.40	 	 	 	2.50	 	 	 	10.40	 	 	 	10.65	 	 	 	6.25	 	 	 	16.90	 	 	 	27.30	 	 	 	22.98	 
	Dozer — D7H
	 	 	5.00	 	 	 	1.00	 	 	 	7.95	 	 	 	13.95	 	 	 	11.50	 	 	 	7.45	 	 	 	18.95	 	 	 	32.90	 	 	 	38.22	 
	Dozer — D9N
	 	 	8.75	 	 	 	1.50	 	 	 	13.00	 	 	 	23.25	 	 	 	19.00	 	 	 	8.05	 	 	 	27.05	 	 	 	50.30	 	 	 	49.70	 
	Dozer — D9L, D10N, 375
	 	 	11.15	 	 	 	1.60	 	 	 	13.00	 	 	 	25.75	 	 	 	23.50	 	 	 	8.05	 	 	 	31.55	 	 	 	57.30	 	 	 	56.50	 
	Dozer — D11N
	 	 	13.25	 	 	 	1.65	 	 	 	20.45	 	 	 	35.35	 	 	 	24.50	 	 	 	8.95	 	 	 	33.45	 	 	 	68.80	 	 	 	57.00	 
	Dozer — Pipelayer
	 	 	6.25	 	 	 	1.50	 	 	 	10.00	 	 	 	17.75	 	 	 	16.75	 	 	 	20.25	 	 	 	37.00	 	 	 	54.75	 	 	 	52.31	 
	End Dump
	 	 	11.00	 	 	 	3.50	 	 	 	4.45	 	 	 	18.95	 	 	 	18.50	 	 	 	9.00	 	 	 	27.50	 	 	 	46.45	 	 	 	48.52	 
	End Dump — 150 ton
	 	 	20.00	 	 	 	4.00	 	 	 	3.50	 	 	 	27.50	 	 	 	5.00	 	 	 	5.00	 	 	 	10.00	 	 	 	37.50	 	 	 	—	 
	Front End Loader-992
	 	 	14.50	 	 	 	3.00	 	 	 	5.65	 	 	 	23.15	 	 	 	18.75	 	 	 	7.75	 	 	 	26.50	 	 	 	49.65	 	 	 	53.68	 
	Front End Loader-Small
	 	 	4.00	 	 	 	2.85	 	 	 	2.00	 	 	 	8.85	 	 	 	9.00	 	 	 	7.00	 	 	 	16.00	 	 	 	24.85	 	 	 	27.10	 
	Grader — 16G
	 	 	4.80	 	 	 	0.90	 	 	 	2.50	 	 	 	8.20	 	 	 	9.50	 	 	 	4.00	 	 	 	13.50	 	 	 	21.70	 	 	 	19.96	 
	Grader — 24H
	 	 	5.76	 	 	 	1.35	 	 	 	3.00	 	 	 	10.11	 	 	 	7.13	 	 	 	3.00	 	 	 	10.13	 	 	 	20.24	 	 	 	—	 
	Hauler
	 	 	9.20	 	 	 	3.22	 	 	 	12.42	 	 	 	24.84	 	 	 	29.21	 	 	 	11.85	 	 	 	41.06	 	 	 	65.90	 	 	 	78.54	 
	Scraper
	 	 	19.00	 	 	 	2.50	 	 	 	15.10	 	 	 	36.60	 	 	 	42.45	 	 	 	18.25	 	 	 	60.70	 	 	 	97.30	 	 	 	116.08	 
	Water Truck
	 	 	9.50	 	 	 	3.50	 	 	 	8.00	 	 	 	21.00	 	 	 	18.50	 	 	 	9.00	 	 	 	27.50	 	 	 	48.50	 	 	 	107.18	 
	Water Wagon
	 	 	8.50	 	 	 	2.50	 	 	 	6.25	 	 	 	17.25	 	 	 	15.00	 	 	 	9.50	 	 	 	24.50	 	 	 	41.75	 	 	 	80.21	 
	MONTHLY RATES
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8200 Bucket
	 	 	n/a	 	 	 	n/a	 	 	 	2,825.00	 	 	 	2,825.00	 	 	 	42,908.00	 	 	 	18,800.00	 	 	 	61,708.00	 	 	 	64,533.00	 	 	 	88,085.90	 
	8750 Bucket
	 	 	n/a	 	 	 	n/a	 	 	 	490.00	 	 	 	490.00	 	 	 	9,000.00	 	 	 	5,000.00	 	 	 	14,000.00	 	 	 	14,490.00	 	 	 	**	 
	Crusher
	 	 	n/a	 	 	 	800.00	 	 	 	1,025.00	 	 	 	1,825.00	 	 	 	20,050.00	 	 	 	15,475.00	 	 	 	35,525.00	 	 	 	37,350.00	 	 	 	36,831.30	 

 

			
	#	 	Maintenance labor rates include fringe and tax.
	 
	**	 	8750 buckets have only been in use since September 1997.

Note: These rates exclude any allowance for catastrophic failures or accidents.

Fuel costs per hour are based on $.52 per gallon for diesel, and $.0397 per KWH for electricity.

A-6

 

Northwestern Resources Co.

Jewett Mine

Major Equipment Hourly Rates

1999 Budget

(in 1999 dollars)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	2000	 	 	 	 	 	 	 	 	 	 	2001	 	 	 	 	 	 	 	 	 	 	2002	 	 	 	 	 	 	 	 	 	 	2003	 	 
	Fleet	 	Operating	 	Maintenance	 	Total	 	 	Operating	 	Maintenance	 	Total	 	 	Operating	 	Maintenance	 	Total	 	 	Operating	 	Maintenance	 	Total
	HOURLY RATES
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8200 Dragline
	 	$	145.21	 	 	$	103.56	 	 	$	248.77	 	 	 	$	145.21	 	 	$	103.56	 	 	$	248.77	 	 	 	$	145.21	 	 	$	103.56	 	 	$	248.77	 	 	 	$	145.21	 	 	$	103.56	 	 	$	248.77	 
	8750 Dragline
	 	 	299.68	 	 	 	155.04	 	 	 	454.72	 	 	 	 	299.68	 	 	 	155.04	 	 	 	454.72	 	 	 	 	299.68	 	 	 	155.04	 	 	 	454.72	 	 	 	 	299.68	 	 	 	155.04	 	 	 	454.72	 
	Backhoe — 8.5 CY
	 	 	20.50	 	 	 	20.50	 	 	 	41.00	 	 	 	 	20.50	 	 	 	20.50	 	 	 	41.00	 	 	 	 	20.50	 	 	 	20.50	 	 	 	41.00	 	 	 	 	20.50	 	 	 	20.50	 	 	 	41.00	 
	Backhoe — Cat. 5130
	 	 	28.50	 	 	 	29.00	 	 	 	57.50	 	 	 	 	28.50	 	 	 	29.00	 	 	 	57.50	 	 	 	 	28.50	 	 	 	29.00	 	 	 	57.50	 	 	 	 	28.50	 	 	 	29.00	 	 	 	57.50	 
	Backhoe — Small
	 	 	17.50	 	 	 	38.60	 	 	 	56.10	 	 	 	 	17.50	 	 	 	38.60	 	 	 	56.10	 	 	 	 	17.50	 	 	 	38.60	 	 	 	56.10	 	 	 	 	17.50	 	 	 	38.60	 	 	 	56.10	 
	BWE
	 	 	69.23	 	 	 	205.63	 	 	 	274.86	 	 	 	 	69.23	 	 	 	205.63	 	 	 	274.86	 	 	 	 	69.23	 	 	 	205.63	 	 	 	274.86	 	 	 	 	69.23	 	 	 	205.63	 	 	 	274.86	 
	Dozer — 834B
	 	 	10.40	 	 	 	16.90	 	 	 	27.30	 	 	 	 	10.40	 	 	 	16.90	 	 	 	27.30	 	 	 	 	10.40	 	 	 	16.90	 	 	 	27.30	 	 	 	 	10.40	 	 	 	16.90	 	 	 	27.30	 
	Dozer — D7H
	 	 	13.95	 	 	 	18.95	 	 	 	32.90	 	 	 	 	13.95	 	 	 	18.95	 	 	 	32.90	 	 	 	 	13.95	 	 	 	18.95	 	 	 	32.90	 	 	 	 	13.95	 	 	 	18.95	 	 	 	32.90	 
	Dozer — D9N
	 	 	23.25	 	 	 	27.05	 	 	 	50.30	 	 	 	 	23.25	 	 	 	27.05	 	 	 	50.30	 	 	 	 	23.25	 	 	 	27.05	 	 	 	50.30	 	 	 	 	23.25	 	 	 	27.05	 	 	 	50.30	 
	Dozer — D9L,D10N,375
	 	 	25.75	 	 	 	31.55	 	 	 	57.30	 	 	 	 	25.75	 	 	 	31.55	 	 	 	57.30	 	 	 	 	25.75	 	 	 	31.53	 	 	 	57.30	 	 	 	 	25.75	 	 	 	31.55	 	 	 	57.30	 
	Dozer — D11N
	 	 	35.35	 	 	 	33.45	 	 	 	68.80	 	 	 	 	35.35	 	 	 	33.45	 	 	 	68.80	 	 	 	 	35.35	 	 	 	33.45	 	 	 	68.80	 	 	 	 	35.35	 	 	 	33.45	 	 	 	68.80	 
	Dozer — Pipelayer
	 	 	17.75	 	 	 	37.00	 	 	 	54.75	 	 	 	 	17.75	 	 	 	37.00	 	 	 	54.75	 	 	 	 	17.75	 	 	 	37.00	 	 	 	54.75	 	 	 	 	17.75	 	 	 	37.00	 	 	 	54.75	 
	End Dump
	 	 	18.95	 	 	 	27.50	 	 	 	46.45	 	 	 	 	18.95	 	 	 	27.50	 	 	 	46.45	 	 	 	 	18.95	 	 	 	27.50	 	 	 	46.45	 	 	 	 	18.95	 	 	 	27.50	 	 	 	46.45	 
	End Dump — 150 ton
	 	 	27.50	 	 	 	10.00	 	 	 	37.50	 	 	 	 	27.50	 	 	 	10.00	 	 	 	37.50	 	 	 	 	27.50	 	 	 	10.00	 	 	 	37.50	 	 	 	 	27.50	 	 	 	10.00	 	 	 	37.50	 
	Front End Loader 992
	 	 	23.15	 	 	 	26.50	 	 	 	49.65	 	 	 	 	23.15	 	 	 	26.50	 	 	 	49.65	 	 	 	 	23.15	 	 	 	26.50	 	 	 	49.65	 	 	 	 	23.15	 	 	 	26.50	 	 	 	49.65	 
	Front End Loader Small
	 	 	8.85	 	 	 	16.00	 	 	 	24.85	 	 	 	 	8.85	 	 	 	16.00	 	 	 	24.85	 	 	 	 	8.85	 	 	 	16.00	 	 	 	24.85	 	 	 	 	8.85	 	 	 	16.00	 	 	 	24.85	 
	Grader — 16G
	 	 	8.20	 	 	 	13.50	 	 	 	21.70	 	 	 	 	8.20	 	 	 	13.50	 	 	 	21.70	 	 	 	 	8.20	 	 	 	13.50	 	 	 	21.70	 	 	 	 	8.20	 	 	 	13.50	 	 	 	21.70	 
	Grader — 24H
	 	 	10.11	 	 	 	10.13	 	 	 	20.24	 	 	 	 	10.11	 	 	 	10.13	 	 	 	20.24	 	 	 	 	10.11	 	 	 	10.13	 	 	 	20.24	 	 	 	 	10.11	 	 	 	10.13	 	 	 	20.24	 
	Hauler
	 	 	24.84	 	 	 	41.06	 	 	 	65.90	 	 	 	 	24.84	 	 	 	41.06	 	 	 	65.90	 	 	 	 	24.84	 	 	 	41.06	 	 	 	65.90	 	 	 	 	24.84	 	 	 	41.06	 	 	 	65.90	 
	Scraper
	 	 	36.60	 	 	 	60.70	 	 	 	97.30	 	 	 	 	36.60	 	 	 	60.70	 	 	 	97.30	 	 	 	 	36.60	 	 	 	60.70	 	 	 	97.30	 	 	 	 	36.60	 	 	 	60.70	 	 	 	97.30	 
	Water Truck
	 	 	21.00	 	 	 	27.50	 	 	 	48.50	 	 	 	 	21.00	 	 	 	27.50	 	 	 	48.50	 	 	 	 	21.00	 	 	 	27.50	 	 	 	48.50	 	 	 	 	21.00	 	 	 	27.50	 	 	 	48.50	 
	Water Wagon
	 	 	17.25	 	 	 	24.50	 	 	 	41.75	 	 	 	 	17.25	 	 	 	24.50	 	 	 	41.75	 	 	 	 	17.25	 	 	 	24.50	 	 	 	41.75	 	 	 	 	17.25	 	 	 	24.50	 	 	 	41.75	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MONTHLY RATES
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8200 Bucket
	 	 	2,825	 	 	 	61,708	 	 	 	64,533	 	 	 	 	2,825	 	 	 	61,708	 	 	 	64,533	 	 	 	 	2,825	 	 	 	61,708	 	 	 	64,533	 	 	 	 	2,825	 	 	 	61,708	 	 	 	64,533	 
	8750 bucket
	 	 	490	 	 	 	14,000	 	 	 	14,490	 	 	 	 	490	 	 	 	14,000	 	 	 	14,490	 	 	 	 	490	 	 	 	14,000	 	 	 	14,490	 	 	 	 	490	 	 	 	14,000	 	 	 	14,490	 
	Crusher
	 	 	1,825	 	 	 	35,525	 	 	 	37,350	 	 	 	 	1,825	 	 	 	35,525	 	 	 	37,350	 	 	 	 	1,825	 	 	 	35,525	 	 	 	37,350	 	 	 	 	1,825	 	 	 	35,525	 	 	 	37,350	 

 

			
	# Maintenance labor rates include fringe and tax.

	 	 	 
	Note:    These rates exclude any allowance for catastrophic failures or accidents.

 
Fuel costs per hour are based on $.52 per gallon for diesel, and $.0397 per KWH for
electricity. (Years 2004 — 2008 will utilize the 2003 rates.)

A-7

 

Northwestern Resources Co.

Jewett Mine

Support Equipment Rates

1999 Budget

The following is a summary, by fleet, of support equipment utilized at the Jewett Mine. Certain
fleets have been split into greater detail where quantities and costs of individual units
significantly influence the overall fleet cost.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Monthly	 	 
	Number of	 	 	 	O & M Cost	 	18 Month
	Units - 1999	 	 	 	Per Unit	 	Actuals
	 	 	 	 	 
	1
	 	Cable Reeler	 	$	2,290	 	 	$	1,872	 
	1
	 	Crane – 45 ton	 	 	3,135	 	 	 	3,390	 
	1
	 	Crane – 75 ton	 	 	2,080	 	 	 	1,296	 
	3
	 	Forklifts	 	 	490	 	 	 	684	 
	13
	 	Light Plants	 	 	1,135	 	 	 	1,030	 
	1
	 	Lowboy Tractor & Trailer	 	 	12,800	 	 	 	12,965	 
	48
	 	Pickups	 	 	1,185	 	 	 	1,295	 
	3
	 	Pump Buggies	 	 	1,005	 	 	 	1,008	 
	6
	 	Pumps – Diesel 4”	 	 	815	 	 	 	727	 
	11
	 	Pumps – Diesel 6”	 	 	1,285	 	 	 	1,212	 
	2
	 	Pumps – Electric 6”	 	 	420	 	 	 	438	 
	6
	 	Pumps – Electric 8”	 	 	655	 	 	 	647	 
	3
	 	Trucks – Mech/Elec (4wd, 2 1/2 ton)	 	 	2,375	 	 	 	2,142	 
	2
	 	Trucks – Fuel / Lube	 	 	5,760	 	 	 	5,452	 
	3
	 	Trucks – Mechanic’s Boom	 	 	2,240	 	 	 	2,027	 
	3
	 	Trucks – Pumpers (2 1/2 ton)	 	 	1,475	 	 	 	1,307	 
	3
	 	Vans (Crew Change)	 	 	680	 	 	 	631	 

A-8

 

Northwestern Resources Co.

Jewett Mine

Wage Projection and Overtime Assumptions

1999 Budget

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Number of
	 	 	Wage Rates ($ / Hour)	 	Employees
	Title	 	Step A	 	Step B	 	Step C	 	As of 7/1/99
	 
	Dragline Operator 

BWE System Operator

	 	$	21.52	 	 	$	21.84	 	 	$	22.22	 	 	 	24	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dragline/BWE Oiler 

Operator I 

Mechanic I 

Electrician I

	 	$	20.98	 	 	$	21.23	 	 	$	21.48	 	 	 	24

8

9

2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Operator II 

Mechanic II 

Electrician II

	 	$	20.25	 	 	$	20.48	 	 	$	20.75	 	 	 	115

63

14	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Operator III 

Mechanic III 

Electrician III 

Surveyor I

	 	$	17.96	 	 	$	18.46	 	 	$	18.94	 	 	 	19

5

0

1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Operator IV 

Mechanic IV 

Electrician IV 

Surveyor II 

Warehouse

	 	$	16.72	 	 	$	17.28	 	 	$	17.82	 	 	 	17

3

0

2

5	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Surveyor III 

Laborer I

	 	$	12.36	 	 	$	13.62	 	 	$	14.86	 	 	 	0

0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Surveyor IV 

Laborer II

	 	$	9.05	 	 	$	10.56	 	 	$	11.26	 	 	 	0

0	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Total Employees
	 	 	 	 	 	 	311	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Note: Wage rates are escalated, and do not include shift differential or loading. This is the
expected distribution as of July 1, 1999.

Overtime Assumptions:

The overtime rate used for budgeting in 1999 is 9.4%. The shifts cause a scheduled overtime
rate of 10%, however, not all hourly personnel work the 12 hour shifts. That fact, combined
with vacation and other absences, reduces the 10% rate to the 9.4% projected for 1999.

A-9

 

Northwestern Resources Co.

Jewett Mine

Payroll Loading Factors

(as of % of Payroll)

1999 Budget

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	BUDGET
	FRINGE BENEFITS	 	 	 	 	 	 	 	 	 	RATES
	Health & Life Insurance
	 	 	 	 	 	 	 	 	 	 	10.76	%
	Pension
	 	 	 	 	 	 	 	 	 	 	2.01	%
	Payroll Savings
	 	 	 	 	 	 	 	 	 	 	3.11	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Total Fringe Benefits
	 	 	 	 	 	 	 	 	 	 	15.88	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TAXES
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	1999*	 	 	 	 	 	 	 	 
	 
	 	Statutory	 	 	 	 	 	 	 	 
	 
	 	Rates	 	Limit	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	FICA
	 	 	7.65	%	 	$	68,400	 	 	 	8.50	%
	State Unemployment
	 	 	0.78	%	 	 	9,000	 	 	 	0.16	%
	Federal Unemployment
	 	 	0.80	%	 	 	7,000	 	 	 	0.13	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Total Payroll Taxes
	 	 	 	 	 	 	 	 	 	 	8.79	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Total Fringe & Tax
	 	 	 	 	 	 	 	 	 	 	24.67	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NON-WORKED COMPENSATION
	 	 	 	 	 	 	 	 	 	 	 	 
	Vacation
	 	 	 	 	 	 	 	 	 	 	5.67	%
	Sick Leave
	 	 	 	 	 	 	 	 	 	 	1.45	%
	Holidays
	 	 	 	 	 	 	 	 	 	 	3.87	%
	Other
	 	 	 	 	 	 	 	 	 	 	0.15	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Total Non-Worked Compensation
	 	 	 	 	 	 	 	 	 	 	11.14	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	TOTAL PAYROLL LOADING	 	 	35.81	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	OTHER BENEFITS NOT LOADED WITH PAYROLL	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Workers Compensation
	 	 	0.74	%	 	 	 	 	 	 	 	 
	Post Retirement Benefits
	 	 	2.07	%	 	 	 	 	 	 	 	 
	Post Employment Benefits
	 	 	0.16	%	 	 	 	 	 	 	 	 

 

			
	*	 	1999 Statutory rates are based on 1998 and subject to change.

A-10

 

Northwestern Resources Co.

Jewett Mine

Payroll Loading Factors

1999 Budget

Calculation

Fringe benefits, payroll taxes, and non-worked compensation rates are calculated based on total
payroll dollars. Payroll taxes are forecasted for future years based on 1998 statutory rates and on
1999 budgeted staffing and payroll.

Hospitalization is based on projected staffing and on projected premiums for 1999.

Pensions are based on staffing, payroll, and an actuarial study performed in June, 1998.

Payroll savings is based on historical costs and forecasted for the coming years using 1999
budgeted staffing levels.

Non-worked compensation is based on NWR policies and historical experience and forecasted for
future periods.

Application

For accounting purposes, payroll taxes are not expensed at the effective budget rate, but at the
statutory rates and limits. When non-worked compensation occurs, the charge is against the
liability recognized when payroll was originally loaded. Total costs are consistent between budget
and accounting methods.

Post Retirement/Post Employment benefits are calculated as a % of payroll for accrual, but billed
on an incurred basis.

A-11

 

Northwestern Resources Co.

Jewett Mine Staffing Summary

1999 Budget

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	1998	 	1998	 	 	 	 
	 	 	 	 	 	 	1st Qtr	 	Year End	 	1999	 	Year End Estimates
	 	 	 	 	 	 	Actuals	 	Estimate	 	First	 	Second	 	Third	 	Fourth	 	2000	 	2001	 	2002	 	2003
	 	 	 	 	 	 	 
	Operations Engineering
	 	 	 	 	 	 	4	 	 	 	4	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 
	Environmental Services
	 	 	 	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 
	Operators
	 	 	 	 	 	 	206	 	 	 	201	 	 	 	201	 	 	 	201	 	 	 	201	 	 	 	201	 	 	 	201	 	 	 	201	 	 	 	201	 	 	 	201	 
	Mechanics / Electricians
	 	 	 	 	 	 	97	 	 	 	95	 	 	 	94	 	 	 	94	 	 	 	94	 	 	 	94	 	 	 	94	 	 	 	94	 	 	 	94	 	 	 	94	 
	Warehouse
	 	 	 	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 
	 	 	 	 	 	 	 	 	 
	TOTAL HOURLY
	 	 	 	 	 	 	318	 	 	 	311	 	 	 	311	 	 	 	311	 	 	 	311	 	 	 	311	 	 	 	311	 	 	 	311	 	 	 	311	 	 	 	311	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Administration
	 	 	(A	)	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 
	Lands
	 	 	(C	)	 	 	3	 	 	 	3	 	 	 	3	 	 	 	3	 	 	 	3	 	 	 	3	 	 	 	3	 	 	 	3	 	 	 	3	 	 	 	3	 
	Environmental Services
	 	 	 	 	 	 	16	 	 	 	17	 	 	 	17	 	 	 	17	 	 	 	17	 	 	 	17	 	 	 	17	 	 	 	17	 	 	 	17	 	 	 	17	 
	Operations Engineering
	 	 	 	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 	 	 	5	 
	Human Resources
	 	 	 	 	 	 	5	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 	 	 	6	 
	Business
	 	 	(B	)	 	 	22	 	 	 	22	 	 	 	22	 	 	 	22	 	 	 	22	 	 	 	22	 	 	 	22	 	 	 	22	 	 	 	22	 	 	 	22	 
	Production/Maintenance
	 	 	 	 	 	 	27	 	 	 	27	 	 	 	27	 	 	 	27	 	 	 	27	 	 	 	27	 	 	 	27	 	 	 	27	 	 	 	27	 	 	 	27	 
	 	 	 	 	 	 	 	 	 
	TOTAL SALARY
	 	 	 	 	 	 	80	 	 	 	82	 	 	 	82	 	 	 	82	 	 	 	82	 	 	 	82	 	 	 	82	 	 	 	82	 	 	 	82	 	 	 	82	 
	 	 	 	 	 	 	 	 	 
	TOTAL JEWETT MINE
	 	 	 	 	 	 	398	 	 	 	393	 	 	 	393	 	 	 	393	 	 	 	393	 	 	 	393	 	 	 	393	 	 	 	393	 	 	 	393	 	 	 	393	 
	 	 	 	 	 	 	 	 	 

 

			
	(A)	 	Includes VP General Manager not billable
	 
	(B)	 	Includes one Accountant not billable
	 
	(C)	 	Includes 1/2 Senior Landman not billable

A-12

 

TEXAS WESTMORELAND COAL CO.

JEWETT MINE

P.O. Box 915

Jewett, TX 75846

	 	 	 	 	 
	NRG Texas Power LLC

	 	INVOICE NO: 2
	 

	 	 	 	 
	P.O. Box
	 	 	 	 
	Princeton, NJ

	 	INVOICE DATE:
	 	February 1, 2008
	 

	 	 	 	 
	Attn:
	 	 	 	 

INVOICE, LSA Article 7.5

Period:     January 16 to 31, 2008

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	New LSA Art.	 	Item	 	Tons	 	Amount	 	$ per Ton
	 	7.2	 	 	Cost of Production
	 	 	274,318.00	 	 	$	3,959,086.50	 	 	$	14.432	 
	 	7.3	 	 	Management Fee, per ton
	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	 	7.4a	 	 	Cost Incentive Adjustment
	 	 	 	 	 	$	—	 	 	$	—	 
	 	7.4b	 	 	Inventory Adjustment
	 	 	 	 	 	$	(1,249.65	)	 	$	(0.005	)
	 	7.4c	 	 	Heating Value Adjustment
	 	 	 	 	 	$	(7,217.05	)	 	$	(0.026	)
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Total, Cost
	 	 	 	 	 	$	[***]	 	 	$	[***]	 

               Credits

Please wire funds on or before February 16, 2008 as follows:

     BANK INFORMATION

A-13

 

Cost Incentive Adjustment (Annual)

LSA Section 7.4(a)(ii)

Bonus/Penalty Calculation

8-17-07 draft

	 	 	 	 	 	 	 	 	 
	 	 	LSA Section	 	 	 	 
	Item	 	Reference	 	Amount	 	Units
	Calculation Input
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Volume Delivered, Actual
	 	7.4(a)(v)	 	 	6,550,000	 	 	tons
	Mine Cost, Actual
	 	7.2	 	 	[***]	 	 	$s
	Volume
Delivered, Approved Original Annual Operation Plan (AOP) 
	 	5.4	 	 	6,500,000	 	 	tons
	
Mine Cost, Approved Revised AOP
	 	5.4 or 5.6	 	 	[***]	 	 	$s
	Work Scope Adjustments, Net
	 	7.4(a)(ii)	 	 	[***]		 	$s
	Commodity Adjustments, Net
	 	7.4(a)(iii)	 	 	[***]	 	 	$s
	Fee Adjusted Basis (FAB) AOP
	 	7.4(a)(ii)	 	 	[***]	 	 	$s
	 
	 	 	 	 	 	 	 	 
	Penalty Calculation
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Mine Cost as % of FAB AOP Cost
	 	7.4(a)(v)	 	 	92.9	%	 	%
	Penalty
Threshold, Actual Mine Cost as % of FAB AOP 
	 	7.4(a)(v)	 	 	103.0	%	 	%
	
Penalty Applies?
	 	7.4(a)(v)	 	no	 	 	 
	Penalty Threshold
	 	7.4(a)(v)	 	[***]	 	 	$s
	Mine Cost Applicable to Penalty
	 	7.4(a)(v)	 	[***]	 	 	$s
	Delivered Volume
	 	7.4(a)(v)	 	na	 	 	Tons
	Mine Cost
Applicable to Penalty per Delivered Ton 
	 	7.4(a)(v)	 	[***]	 	 	$s/Ton
	One-Half of
Applicable Mine Cost per Delivered Ton 
	 	7.4(a)(v)	 	[***]	 	 	$s/Ton
	Penalty Limit per Delivered Ton
	 	7.4(a)(v)	 	[***]	 	 	$s/Ton
	Applicable Penalty per Delivered Ton
	 	7.4(a)(v)	 	[***]	 	 	$s/Ton
	Penalty
	 	7.4(a)(v)	 	 	[***]	 	 	$s
	 
	 	 	 	 	 	 	 	 
	Bonus Calculation
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	FAB AOP Cost as % of Mine Cost
	 	7.4(a)(v)	 	 	107.6	%	 	%
	Bonus
Threshold, FAB AOP as % of Actual Mine Cost 
	 	7.4(a)(v)	 	 	103.0	%	 	%
	Bonus Applies?
	 	7.4(a)(v)	 	yes	 	 	 
	Bonus Threshold
	 	7.4(a)(v)	 	 	[***]	 	 	$s
	Mine Cost Applicable to Bonus
	 	7.4(a)(v)	 	 	[***]	 	 	$s
	Applicable Volume
	 	 7.4(a)(v)(A)&(B)	 	 	6,500,00	 	 	0          Tons
	Mine Cost
Applicable to Bonus per Applicable Ton 
	 	7.4(a)(v)	 	 	[***]	 	 	$s/Ton
	One-Half of
Applicable Mine Cost per Applicable Ton 
	 	7.4(a)(v)	 	 	[***]	 	 	$s/Ton
	Bonus Limit Per Applicable Ton
	 	7.4(a)(v)	 	 	[***]	 	 	$s/Ton
	Applicable Bonus per Applicable Ton
	 	7.4(a)(v)	 	 	[***]	 	 	$s/Ton
	Bonus
	 	7.4(a)(v)	 	 	[***]	 	 	$s
	 
	 	 	 	 	 	 	 	 
	Total, Bonus or Penalty
	 	 	 	 	 	 	 	 
	Bonus or (Penalty)
	 	7.4(a)(vi)(4)	 	 	[***]	 	 	$s
	 
	 	 	 	 	 	 	 	 

 

 

EXHIBIT 5

List of Experts

A.      Accounting Expert

TBD

B.      Legal Expert

TBD

C.      Mining Expert

TBD

Exhibit 5 — Page 1

 

 

EXHIBIT 6

Surge Bin

[Exhibit 6 consists of a graphic depiction of the Surge Bin.]

Exhibit 6 — Page 1

 

 

EXHIBIT 7

Corporate Support Allowance

     Section 7.2(c) of the LSA provides for Mine Costs to include a Corporate Support Allowance as
specified in this Exhibit 7. The Corporate Support Allowance amounts provided herein are the
result of negotiations between the Parties and are not subject to audit or other justification.

     Corporate Support Allowance amounts shall be as provided in the table below. All figures
shown in this table are expressed in 2008 constant dollars and shall be adjusted by the percent
change in the GDP-IPD index from a Fourth Quarter 2007 base value as compared to the Fourth Quarter
index value for the Year prior to the Year in which payment is made; provided, however, in no event
shall the percentage change be less than zero. “GDP-IPD” shall mean the Gross Domestic Product
Implicit Price Deflator index as first published as the advance number by the U.S. Department of
Commerce, Bureau of Economic Analysis (base period of 2000 = 100). The percent change in GDP-IPD
shall be rounded to the nearest third decimal point. The resulting inflation-adjusted amount shall
be paid over twenty-four (24) equal installments during the Year and invoiced as provided under
Section 7.6(a).

	 	 	 	 	 
	2008	 	Constant Dollars	 
	2008
	 	 	[***********]	 
	2009
	 	 	[***********]	 
	2010
	 	 	[***********]	 
	2011
	 	 	[***********]	 
	 
	 	 	 	 
	 
	2012
	 	 	[***********]	 
	2013
	 	 	[***********]	 
	2014
	 	 	[***********]	 
	 
	 	 	 	 
	 
	2015
	 	 	[*********]	 
	2016
	 	 	[*********]	 
	2017
	 	 	[*********]	 
	2018
	 	 	[*********]	 

     For example, where the following GDP-IPD index figures are hypothetical only:

Fourth Quarter 2007 First Published Index Value = 121

Fourth Quarter 2011 First Published Index Value = 140

2012 Corporate Support Allowance in Constant 2008 Dollars = [***********]

Exhibit 7 — Page 1

 

 

Therefore, to calculate the 2012 adjusted Corporate Support Allowance amount:

( 140 / 121 ) = 1.157 * [**********] = [**********]

[**********] / 24 invoices per Year = [**********] per invoice

                               ***************

Notwithstanding the fact that the Corporate Support Allowance amounts above are not subject to
audit or justification, the Corporate Support Allowance is intended to reflect the following areas
and types of support provided to TWCC by its parent(s):

(i) general corporate management; (ii) corporate capital and financial management; (iii)
human resources policy and management including management costs related to TWCC’s 401K
plans; (iv) sales and marketing; (v) corporate insurance; (vi) corporate auditing and
Sarbanes-Oxley compliance, including periodic audits of TWCC, including as may be required
by the applicable regulatory bodies; (vii) investor relations; (viii) corporate legal
activities; (ix) corporate governance; (x) corporate development; (xi) corporate accounting;
(xii) corporate government relations; (xiii) corporate-wide operations policy management;
(xiv) corporate engineering; (xv) corporate IT systems and support; server and WAN
maintenance and support, software maintenance, licensing or training (xvi) corporate records
management; and (xvii) corporate travel and lodging.

The following items, whether incurred and paid directly by TWCC or satisfied by TWCC as a parent
company charge, are agreed to be in addition to the Corporate Support Allowance and therefore
considered Mine Costs under the relevant provisions of Section 7.2 of the LSA, so long as such
costs are directly related to the business and operations of TWCC and approved by NRG in an annual
AOP.

	 	1.	 	IT contract costs for SurvCad, AutoCad, Caterpillar Troubleshooting Software,
Anti-virus, Spyware, and all software licensing; and, maintenance needs exclusive to
TWCC.
	 
	 	2.	 	IT training at TWCC for IT staff and for software set forth in 1. above.

Exhibit 7 — Page 2

 

 

EXHIBIT 8

Form of Invoice

See attached.

Exhibit 8 - Page 1

 

Exhibit 8

TEXAS WESTMORELAND COAL CO.

JEWETT MINE

P. O. Box 915

Jewett, TX 75846

	 	 	 	 	 
	NRG Texas Power LLC

	 	INVOICE NO:	 	 
	 

	 	 	 	 
	P. O. Box
	 	 	 	 
	Princeton, NJ

	 	INVOICE DATE:
	 	June 16, 2008
	Attn:
	 	 	 	 

INVOICE, LSA Section 7.6

Period: June 1 to 15, 2008

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Agmnt Section	 	Item	 	Tons	 	Amount	 	$ per Ton
	7.2
	 	Cost of Production	 	 	280,000.00	 	 	$	4,000,000.00	 	 	$	14.286	 
	7.3
	 	Management Fee, per ton	 	 	 	 	 	$	[***]	 	 	$	[***]	 
	7.4 a
	 	Cost Incentive Adjustment	 	 	 	 	 	$	—	 	 	$	—	 
	7.4.b
	 	Inventory Adjustment *	 	 	 	 	 	$	(48,000.00	)	 	$	(0.171	)
	7.4 c
	 	Heating Value Adjustment **	 	 	 	 	 	$	(30,427.71	)	 	$	(0.109	)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Total, Cost	 	 	 	 	 	$	[***]	 	 	$	[***]	 

 

			
	*	 	Based on May’s fees and applicable ending inventory, pursuant to Section 7.4(b).
	 
	**	 	Based on fees and lignite heating values for deliveries made in the last half of the
May, pursuant to Section 7.4(c).

Please wire funds on or before June 30, 2008 as follows:

 

 

BANK INFORMATION

 

 

7.4 Adjustments

7.4b Monthly Inventory Adjustment

	 	 	 	 	 
	 	 	Prior Month
	Annual Quantity (AOP tons)
	 	 	6,650,000	 
	Inventory Target (1/26th of Annual Quantity)
	 	 	255,769	 
	Actual Month-end Inventory (tons)
	 	 	0	 
	Inventory Shortfall (tons)
	 	 	(255,769	)
	Incremental Fee Adjustment Factor, 0.1% per 1.0%
	 	 	0.001	%
	Month-End Fee Adjustment Factor
	 	 	(0.10000	)
	Deliveries (tons)
	 	 	400,000	 
	Base Fee per Ton
	 	$	[***]	 
	Fee Per Ton Adjustment for Inventory
	 	$	[***]	
	Fee Adjustment for Inventory
	 	$	[***]	

 

 

7.4 Adjustments

7.4 c Daily Heating Value Adjustment

May

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Seven-	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Average	 	 	 	 	 	6000 Btu	 	5800 Btu	 	5800 &	 	5800 &	 	Day	 	Btus	 	 	 	 	 	Base	 	 	 	 	 	Rolling	 	 
	 	 	Daily	 	 	 	 	 	Fee per	 	Fee per	 	6000 Fee	 	6000 Btu	 	Weighted	 	Above or	 	Base Fee	 	Fee	 	Fee	 	Average,	 	Total, Base
	Day of	 	Heat	 	Tons	 	Ton	 	Ton	 	per Ton	 	Fee	 	Average	 	(Below)	 	Adjustment,	 	per	 	Adjustment	 	Fee	 	Fee
	Month	 	Content	 	Delivered	 	Adjustment	 	Adjustment	 	Adjustment	 	Adjustment	 	Btu	 	Deadband	 	%	 	Ton	 	per Ton	 	Adjustment	 	Adjustment
	1

	 	 	6500	 	 	 	18,000	 	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *

	2

	 	 	6600	 	 	 	17,500	 	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *

	3

	 	 	6700	 	 	 	16,800	 	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *

	4

	 	 	6800	 	 	 	18,500	 	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *

	5

	 	 	6900	 	 	 	17,500	 	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *

	6

	 	 	7000	 	 	 	18,000	 	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *

	7

	 	 	7100	 	 	 	17,500	 	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *

	8

	 	 	7200	 	 	 	16,800	 	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *

	9

	 	 	7100	 	 	 	18,500	 	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *

	10

	 	 	7000	 	 	 	17,500	 	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *

	11

	 	 	6900	 	 	 	18,000	 	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *

	12

	 	 	6800	 	 	 	18,000	 	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *

	13

	 	 	7100	 	 	 	18,000	 	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *

	14

	 	 	6800	 	 	 	18,000	 	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *

	15

	 	 	6700	 	 	 	18,000	 	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *
	 	na *

	16

	 	 	6500	 	 	 	17,000	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	6845	 	 	 	45	 	 	 	4.50	 	 	 	1.2000	 	 	 	0.0540	 	 	 	917.59	 	 	 	917.59	 
	17

	 	 	6400	 	 	 	17,000	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	6762	 	 	 	—	 	 	 	—	 	 	 	1.2000	 	 	 	0.0000	 	 	 	—	 	 	 	—	 
	18

	 	 	6300	 	 	 	17,000	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	6678	 	 	 	—	 	 	 	—	 	 	 	1.2000	 	 	 	0.0000	 	 	 	—	 	 	 	—	 
	19

	 	 	6200	 	 	 	17,000	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	6593	 	 	 	—	 	 	 	—	 	 	 	1.2000	 	 	 	0.0000	 	 	 	—	 	 	 	—	 
	20

	 	 	6100	 	 	 	17,000	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	6449	 	 	 	—	 	 	 	—	 	 	 	1.2000	 	 	 	0.0000	 	 	 	—	 	 	 	—	 
	21

	 	 	6000	 	 	 	17,000	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	6318	 	 	 	—	 	 	 	—	 	 	 	1.2000	 	 	 	0.0000	 	 	 	—	 	 	 	—	 
	22

	 	 	5700	 	 	 	17,550	 	 	 	(0.20	)	 	 	(0.20	)	 	 	(0.40	)	 	 	(7,020.00	)	 	 	6169	 	 	 	(31	)	 	 	(3.07	)	 	 	1.2000	 	 	 	(0.0369	)	 	 	(647.39	)	 	 	(7,667.39	)
	23

	 	 	5900	 	 	 	17,200	 	 	 	(0.20	)	 	 	—	 	 	 	(0.20	)	 	 	(3,440.00	)	 	 	6084	 	 	 	(116	)	 	 	(11.64	)	 	 	1.2000	 	 	 	(0.1396	)	 	 	(2,401.82	)	 	 	(5,841.82	)
	24

	 	 	6000	 	 	 	17,500	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	6027	 	 	 	(173	)	 	 	(17.33	)	 	 	1.2000	 	 	 	(0.2079	)	 	 	(3,638.54	)	 	 	(3,638.54	)
	25

	 	 	6100	 	 	 	17,230	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	5999	 	 	 	(201	)	 	 	(20.13	)	 	 	1.2000	 	 	 	(0.2416	)	 	 	(4,163.00	)	 	 	(4,163.00	)
	26

	 	 	6200	 	 	 	17,000	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	5999	 	 	 	(201	)	 	 	(20.13	)	 	 	1.2000	 	 	 	(0.2416	)	 	 	(4,107.43	)	 	 	(4,107.43	)
	27

	 	 	6300	 	 	 	17,000	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	6027	 	 	 	(173	)	 	 	(17.31	)	 	 	1.2000	 	 	 	(0.2077	)	 	 	(3,531.73	)	 	 	(3,531.73	)
	28

	 	 	6400	 	 	 	17,000	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	6083	 	 	 	(117	)	 	 	(11.67	)	 	 	1.2000	 	 	 	(0.1400	)	 	 	(2,380.34	)	 	 	(2,380.34	)
	29

	 	 	6500	 	 	 	17,320	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	6199	 	 	 	(1	)	 	 	(0.07	)	 	 	1.2000	 	 	 	(0.0009	)	 	 	(15.04	)	 	 	(15.04	)
	30

	 	 	6600	 	 	 	17,000	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	6299	 	 	 	—	 	 	 	—	 	 	 	1.2000	 	 	 	0.0000	 	 	 	—	 	 	 	—	 
	31

	 	 	6700	 	 	 	17,518	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	6401	 	 	 	—	 	 	 	—	 	 	 	1.2000	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total

	 	 	 	 	 	 	540,918 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	(10,480.00	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	(19,967.71	)	 	$	(30,427.71	)

 

			
	*	 	The heating value adjustment, if any, for the first half of May was addressed in the prior (June
1) invoice for lignite delivered in the last half of May.

 

 

EXHIBIT 9

Post Execution Savings Actions

Section 7.3 provides that the Management Fee shall be (a) [****] per Ton escalated annually, or (b)
a lower amount escalated annually, as provided in this Exhibit 9. Specifically, in the negotiation
of the Management Fee, NRG agreed to increase its offer of [****] per Ton by an additional [****]
per Ton based upon certain Mine Cost savings presented by TWCC. The Parties acknowledge that
certain of these cost savings can be demonstrated to NRG by TWCC through Post-Execution Savings
Actions, while other savings are derived from cost projection assumptions (“Projection
Assumptions”) that NRG agrees to accept without further recourse upon execution of this LSA,
notwithstanding the adjustments provided under Section 7.4.

The Mine Cost savings categories are provided below along with their respective portions of the
total [****] per Ton. The initial Management Fee shall be [****] per Ton. TWCC shall demonstrate
to NRG that TWCC, no later than March 31, 2008, has taken the actions necessary to implement the
Post-Execution Savings Actions. If TWCC fails to make such demonstration by the stated time, the
base Management Fee shall be decreased thereafter until such time that the demonstration is made,
notwithstanding the adjustments provided under Section 7.4, by the corresponding value of each
category. For example, if TWCC fails to demonstrate to NRG that Equipment Recapitalization action
has been taken by March 31, 2008, the Management Fee shall decrease by [****] per Ton to [****].

	 	 	 	 	 	 	 	 	 
	Post-Execution Savings Actions:	 	%	 	$/Ton
	1.   Equipment Recapitalization
	 	 	[***]	 	 	 	[****]	 
	2.   Retirement NRG Equipment
	 	 	[***]	 	 	 	[****]	 
	3.   Organization Restructure
	 	 	[***]	 	 	 	[****]	 
	4.   Capital Project Outside Services (Contractors) Reduced
	 	 	[***]	 	 	 	[****]	 
	 
	 	 	 	 	 	 	 	 
	Total Post-Execution Savings Actions [*******] per Ton:
	 	 	[***]	 	 	 	[****]	 
	 
	 	 	 	 	 	 	 	 
	Projection Assumptions:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	5.   Inventory Management and Best Available Technology
	 	 	[***]	 	 	 	[****]	 
	6.   Bond Release
	 	 	[***]	 	 	 	[****]	 
	7.   Workers Compensation and Insurance Premium Reduction
	 	 	[***]	 	 	 	[****]	 
	 
	 	 	 	 	 	 	 	 
	Total Projection Assumptions [*******] per Ton:
	 	 	[***]	 	 	 	[****]	 
	 
	 	 	 	 	 	 	 	 
	TOTAL MINE COST SAVINGS
	 	 	[***]	 	 	 	[****]	 

Exhibit 9 — Page 1

 

The following describes each Mine Cost savings category, along with the actions required by TWCC to
demonstrate implementation to NRG.

Post-Execution Savings Actions:

	 	1.	 	Equipment Recapitalization: TWCC shall lease or otherwise provide (16) sixteen mining
units, including: (7) D-10T dozers; (3) D-9T dozers; (2) two D-6LGP dozers; and (4) 100-Ton
end dumps, or the equivalents thereof. The equipment leased or otherwise provided will be
of a condition consistent with the equipment that was included and assumed in development
of the preliminary 2008 AOP.
	 
	 	 	 	Demonstration Action: Provide copies of executed lease documents to NRG, and provide
written notice to NRG that the units are deployed at the Jewett Mine.
	 
	 	2.	 	Retirement of NRG Equipment: Cost savings on an net present value basis, shall be
recognized for sale of 18 retired NRG mining units, replaced by units detailed in paragraph
1 “Equipment Recapitalization” as mentioned above.
	 
	 	 	 	Demonstration Action: Provide copies of executed lease documents for equipment under 1.
above to NRG and schedule for equipment retirement, and provide written notice to NRG that
the NRG equipment has been retired.
	 
	 	3.	 	Organization Restructure: TWCC salaried staff shall be reorganized on or before
January 1, 2008, such that TWCC salaried staffing level shall equal (72) seventy-two.
This staffing level does not include Westmoreland Mining LLC employees, of which a portion
of their time is allocated to TWCC.
	 
	 	 	 	Demonstration Action: Eliminate 6 salaried staffing positions and have salaried staffing
organization chart detailing seventy-two (72) positions as of January 1, 2008.
	 
	 	4.	 	Capital Project Outside Services: TWCC shall perform work activities previously
scheduled for contractors, resulting in savings as shown in 2008 AOP.
	 
	 	 	 	Demonstration Action: 2008 Preliminary AOP to identify work activities to be performed by
TWCC as previously scheduled to be performed by contractors. Provide letter, duly executed
by the President of TWCC, stating that TWCC will not hire contractors to perform the work
identified.

Savings Assumptions (No Demonstration Actions Required):

	 	5.	 	Inventory Management and Best Available Technology (“BAT”): TWCC shall use Prudent
Mining Practices and reasonable commercial efforts to maintain lignite inventory per
Sections 7.4(b) and 8.3 (b) and shall use best available technologies such as SurvCadd,
dozer GPS guidance systems, and dragline line production monitors, to improve certain
mining costs by [***].
	 
	 	6.	 	Bond Release: TWCC shall make reasonable commercial efforts to obtain bond release as
projected in the 2008 Preliminary AOP, and in subsequent AOP’s.

Exhibit 9 — Page 2

 

	 	7.	 	Workers Compensation and Insurance. Cost savings related to actual rates experienced
and projected savings beginning in 2008. The savings are related to a lower premium
modifier, relative to worker compensation and insurance claims.

Exhibit 9 — Page 3

 

EXHIBIT 10

Typical Lignite Quality and Characteristics

A. Proximate Analysis (Gross, As-received Basis):

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Parameter	 	Units	 	Ranges	 	Typical
	Heat Content
	 	Btu/lb.	 	 	5600 - 7200	 	 	 	6500	 
	Total Sulfur
	 	% by weight	 	 	0.4 - 2.2	 	 	 	1.1	 
	Ash
	 	% by weight	 	 	12.0 - 25.0	 	 	 	16.5	 
	Total Moisture
	 	% by weight	 	 	28.0 - 36.0	 	 	 	31.7	 
	Volatile Matter
	 	% by weight	 	 	22.0 - 32.0	 	 	 	26.8	 
	Fixed Carbon
	 	% by weight	 	 	20.0 - 30.0	 	 	 	25.0	 

B. Ultimate Analysis (Gross, As-received Basis):

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Parameter	 	Units	 	Ranges	 	Typical
	Total Moisture
	 	% by weight	 	 	28.0 - 36.0	 	 	 	31.7	 
	Carbon
	 	% by weight	 	 	33.0 - 42.0	 	 	 	38.2	 
	Hydrogen
	 	% by weight	 	 	1.5 - 3.2	 	 	 	2.6	 
	Nitrogen
	 	% by weight	 	 	0.4 - 1.0	 	 	 	0.6	 
	Sulfur
	 	% by weight	 	 	0.4 - 2.2	 	 	 	1.1	 
	Ash
	 	% by weight	 	 	12.0 - 25.0	 	 	 	16.5	 
	Chlorine
	 	% by weight	 	 	0.01 - 0.04	 	 	 	0.02	 
	Oxygen (by diff.)
	 	% by weight	 	 	5.0 - 13.0	 	 	 	9.5	 

Exhibit 10 — Page 1

 

C. Reporting Basis: Mineral Analysis of Ash (% by weight)

	 	 	 	 	 	 	 	 	 
	Parameter	 	Ranges	 	Typical
	Silica (SiO2)
	 	 	40.0 - 65.0	 	 	 	52.0	 
	Alumina (Al2O3)
	 	 	12.0 - 20.0	 	 	 	16.0	 
	Titania (TiO2)
	 	 	0.6 - 1.8	 	 	 	1.1	 
	Ferric Oxide (Fe2O3)
	 	 	5.0 - 18.0	 	 	 	7.8	 
	Calcium (CaO)
	 	 	7.0 - 20.0	 	 	 	9.5	 
	Magnesium (MgO)
	 	 	1.0 - 4.0	 	 	 	2.0	 
	Sodium (Na2O)
	 	 	0 - 1.0	 	 	 	0.3	 
	Potassium (K2O)
	 	 	0 - 1.5	 	 	 	1.0	 
	Phosphorous (P2O5)
	 	 	0 - 1.0	 	 	 	0.3	 
	Magnesia (Mn3O4)
	 	 	0 - 1.0	 	 	 	0.2	 
	Sulfate (SO3)
	 	 	5.0 - 18.0	 	 	 	8.2	 
	Undetermined
	 	 	0 - 4.0	 	 	 	1.6	 

	 	 	 	 	 	 	 	 	 
	 	 	Range	 	Typical
	D. Hardgrove Grindability
Index
	 	 	50 - 75	 	 	 	65	 
	 
	 	 	 	 	 	 	 	 
	E. Size Analysis: 6” X 0”
	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	Parameter	 	Minimum	 	Maximum
	1. Coal Size Range (mm)
	 	 	0	 	 	 	254	 
	2. Coal Less than 1/4 inch
(wt.%)
	 	 	10	 	 	 	30	 

F. Ash Fusion Temperatures — Reducing Atmosphere (Degrees, Fahrenheit):

	 	 	 	 	 	 	 	 	 
	Parameter	 	Ranges	 	Typical
	Initial Deformation
	 	 	1970 - 2550	 	 	 	2133	 
	Softening
	 	 	2030 - 2600	 	 	 	2195	 
	Hemispherical
	 	 	2060 - 2650	 	 	 	2247	 

G. Ash Fusion Temperatures — Oxidizing Atmosphere (Degrees, Fahrenheit):

	 	 	 	 	 	 	 	 	 
	Parameter	 	Ranges	 	Typical
	Initial Deformation
	 	 	2080 - 2600	 	 	 	2230	 
	Softening
	 	 	2150 - 2650	 	 	 	2300	 
	Hemispherical
	 	 	2180 - 2700	 	 	 	2350	 

Exhibit 10 — Page 2

 

EXHIBIT 11

Insurance Requirements

(a) TWCC shall maintain insurance written in the kinds and minimum limits of liability specified
below:

	 	 	 	 	 
	 
	1. 	Workers’ Compensation (WC) -	 	Statutory, including temporary and leased workers.
	 
	 	 	 	 
	 
	 	Employer’s Liability (EL) -	 	$1,000,000
	 
	 	 	 	 
	 
	2. 	Commercial General Liability (GL) -	 	$1,000,000 per occurrence for Bodily Injury, Property Damage, Personal Injury, including death;
 $2,000,000 Aggregate
	 
	 	 	 	 
	 	Inclusions: Contractual Liability (to include hold harmless coverage specified
elsewhere in this Agreement); Broad Form Property; Independent Contractors;
Premises & Operations, Products & Completed Operations, No exclusion for X.C. & U.
	 
	 	 	 	 
	 
	3. 	Automobile Liability (AL) -	 	$1,000,000 Combined Single Limit, including coverage for owned, non-owned and hired vehicles.
	 
	 	 	 	 
	 	Inclusions: Either GL or AL Policy must provide liability coverage that
extends coverage for mobile equipment.
	 
	 	 	 	 
	 
	4. 	Excess Liability (Umbrella) -	 	$25,000,000 coverage that will
respond excess of the underlying EL, GL, and AL policies on a following form basis.

(b) NRG, its parent company, subsidiaries and affiliates, as well as each of their respective
officers, directors, managers, members and employees shall be included as Additional Insured’s on
TWCC’s GL, AL, and Umbrella policies for injury or damage arising out of, resulting from, or in
connection with TWCC’s performance of this Agreement and/or the terms and conditions of this LSA.
The Additional Insured status noted in this Section shall be specifically endorsed to TWCC’s
Policies, and with respect to the General Liability Policy shall be as broad as that provided by
the ISO CG 20 10 11 85 endorsement form. The insurance provided by TWCC shall be primary, without
right of contribution, with respect to any similar insurance maintained by NRG. Waiver of
Subrogation shall be provided pursuant to this written contract for all

Exhibit 11 — Page 1

 

Insureds and Additional Insureds with respect to each of the coverages noted in subsection (a) of
this Section.

(c) Provided NRG annually provides TWCC with a schedule of all NRG Property in the care, custody
and control of TWCC, including the replacement value of all such property, TWCC shall maintain All
Risk Property insurance at the replacement cost listed on the schedule to cover all risks of direct
physical loss or damage to such NRG’s Property. Said coverage to include, but not be limited to
Flood, Windstorm, Earth Movement, Boiler & Machinery Breakdown, Extra Expense, Time Element, Mobile
Equipment, Debris Removal, Off-site Storage, Transit, subject to the terms and conditions and the
form exclusions contained in the policy. The policy shall have no exclusions related to explosion,
collapse, subsidence or underground/subsurface perils or any other perils that are standard to
mining operations. NRG shall be included on TWCC’s All Risk Property insurance policy as a Loss
Payee, as its interest may appear. TWCC shall be responsible for any deductibles. Deductibles
shall not exceed $1,000,000 per occurrence.

Exhibit 11 — Page 2

 

EXHIBIT 12

[Intentionally Omitted]

Exhibit 12 — Page 1

 

EXHIBIT 13

Form of Monthly Report Production Summary

See attached.

Exhibit 13 — Page 1

 

Exhibit 13

JEWETT

SUMMARY

July, 2007

	 	 	 	 	 
	Safety
	 	 	 	 
	Lost Time Incidents
	 	 	0	 
	Days Since Last LTA
	 	 	1,019	 
	Hours Since Last LTA
	 	 	2,146,042	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	MONTH	 	YEAR TO DATE
	COAL	 	Actual	 	Budget	 	Variance	 	%	 	Actual	 	Budget	 	Variance	 	%
	Tons Sold
	 	 	523,802	 	 	 	560,383	 	 	 	-36,581	 	 	 	-6.5	%	 	 	3,901,040	 	 	 	3,906,601	 	 	 	-5,570	 	 	 	-0.1	%
	Tons Uncovered
	 	 	482,420	 	 	 	469,000	 	 	 	13,420	 	 	 	2.9	%	 	 	3,802,697	 	 	 	4,146,000	 	 	 	-343,303	 	 	 	-8.3	%
	BOM Inventory
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pit
	 	 	78,100	 	 	 	387,201	 	 	 	-309,101	 	 	 	-79.8	%	 	 	78,100	 	 	 	387,201	 	 	 	-309,101	 	 	 	-79.8	%
	Stockpile
	 	 	20,445	 	 	 	165,943	 	 	 	-145,498	 	 	 	-87.7	%	 	 	20,445	 	 	 	165,943	 	 	 	-145,498	 	 	 	-87.7	%
	Total
	 	 	98,545	 	 	 	553,144	 	 	 	-454,599	 	 	 	-82.2	%	 	 	98,545	 	 	 	553,144	 	 	 	-454,599	 	 	 	-82.2	%
	EOM Inventory
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pit
	 	 	43,000	 	 	 	323,233	 	 	 	-280,233	 	 	 	-86.7	%	 	 	43,000	 	 	 	323,233	 	 	 	-280,233	 	 	 	-86.7	%
	Stockpile
	 	 	14,163	 	 	 	138,528	 	 	 	-124,365	 	 	 	-89.8	%	 	 	14,163	 	 	 	138,528	 	 	 	-124,365	 	 	 	-89.8	%
	Total
	 	 	57,163	 	 	 	461,761	 	 	 	-404,598	 	 	 	-87.6	%	 	 	57,163	 	 	 	461,761	 	 	 	-404,598	 	 	 	-87.6	%
	Tons Produced
	 	 	517,520	 	 	 	469,000	 	 	 	48,520	 	 	 	10.3	%	 	 	3,894,758	 	 	 	4,146,000	 	 	 	-251.242	 	 	 	-6.1	%
	Insitu Tons Mined
	 	 	623,587	 	 	 	505,000	 	 	 	118,587	 	 	 	23.5	%	 	 	4,288,553	 	 	 	4,472,000	 	 	 	-183,447	 	 	 	-4.1	%
	Recovery
	 	 	83.0	%	 	 	92.9	%	 	 	-9.9	%	 	 	-10.6	%	 	 	90.8	%	 	 	92.7	%	 	 	-1.9	%	 	 	-2.0	%
	Quality/BTU
	 	 	6.619	 	 	 	6,658	 	 	 	39	 	 	 	0.6	%	 	 	6,600	 	 	 	6,636	 	 	 	36	 	 	 	0.5	%
	OVERBURDEN/INTERBURDEN
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	3,342,800	 	 	 	3,768,639	 	 	 	-425,839	 	 	 	-11.3	%	 	 	26,319,907	 	 	 	25,978,389	 	 	 	341,518	 	 	 	1.3	%
	Interburden (BCY)
	 	 	1,351,700	 	 	 	1,603,361	 	 	 	-251,661	 	 	 	-15.7	%	 	 	10,674,293	 	 	 	12,614,704	 	 	 	-1,940,411	 	 	 	-15.4	%
	Total Bank Cubic Yards
	 	 	4,694,500	 	 	 	5,372,000	 	 	 	-677,500	 	 	 	-12.6	%	 	 	36,994,200	 	 	 	38,593,093	 	 	 	-1,598,893	 	 	 	-4.1	%
	Rehandled Overburden (CY)
	 	 	1,429,650	 	 	 	0	 	 	 	1,429,650	 	 	#DIV/0!	 	 	8,822,244	 	 	 	7,938,769	 	 	 	883,475	 	 	 	11.1	%
	Total Moved (CY)
	 	 	6,124,150	 	 	 	5,372,000	 	 	 	752,150	 	 	 	14.0	%	 	 	45,816,444	 	 	 	46,531,862	 	 	 	-715,418	 	 	 	-1.5	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Virgin Ratio
	 	 	9.7	 	 	 	11.5	 	 	 	-1.7	 	 	 	-15.0	%	 	 	9.7	 	 	 	9.3	 	 	 	0.4	 	 	 	4.5	%
	Effective Ratio
	 	 	12.7	 	 	 	11.5	 	 	 	1.2	 	 	 	10.8	%	 	 	12.0	 	 	 	11.2	 	 	 	0.8	 	 	 	7.4	%
	RECLAMATION
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Acres Disturbed
	 	 	46.0	 	 	 	24.0	 	 	 	22.0	 	 	 	91.7	%	 	 	323.30	 	 	 	236.0	 	 	 	87.0	 	 	 	36.9	%
	Acres Graded
	 	 	0.0	 	 	 	50.0	 	 	 	-50.0	 	 	 	-100.0	%	 	 	117.1	 	 	 	350.0	 	 	 	-232.9	 	 	 	-66.5	%
	Acres Topsoil/SPGM
	 	 	19.5	 	 	 	34.2	 	 	 	-14.7	 	 	 	-43.0	%	 	 	237.2	 	 	 	313.4	 	 	 	-76.2	 	 	 	-24.3	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TS/SPGM Stripped Cu. Yds.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	To Stockpile
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Direct Place
	 	 	141,570	 	 	 	248,292	 	 	 	-106,722	 	 	 	-43.0	%	 	 	1,722,072	 	 	 	2,275,284	 	 	 	-553,212	 	 	 	-24.3	%
	TS/SPGM From Stockpile
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	 	141,570	 	 	 	248,292	 	 	 	-106,722	 	 	 	-43.0	%	 	 	1,722,072	 	 	 	2,275,284	 	 	 	-553,212	 	 	 	-24.3	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

JEWETT

COAL PRODUCTION

July, 2007

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	MONTH	 	YEAR TO DATE
	 	 	Actual	 	Budget	 	Variance	 	%	 	Actual	 	Budget	 	Variance	 	%
	AREA B
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Tons Sold
	 	 	93,363	 	 	 	156,525	 	 	 	-63,162	 	 	 	-40.4	%	 	 	845,737	 	 	 	892,715	 	 	 	-48,978	 	 	 	-5.3	%
	Tons Uncovered
	 	 	94.246	 	 	 	131,000	 	 	 	-36,754	 	 	 	-28.1	%	 	 	837,308	 	 	 	923,000	 	 	 	-85,692	 	 	 	-9.3	%
	BOM Pit Inventory
	 	 	0	 	 	 	108,152	 	 	 	-108,152	 	 	 	-100.0	%	 	 	0	 	 	 	108,152	 	 	 	-108,152	 	 	 	-100.0	%
	EOM Pit Inventory
	 	 	4,500	 	 	 	90,285	 	 	 	-85,785	 	 	 	-95.0	%	 	 	4,500	 	 	 	90,285	 	 	 	-85,785	 	 	 	-95.0	%
	Tons Produced
	 	 	89.746	 	 	 	131,000	 	 	 	-41,254	 	 	 	-31.5	%	 	 	839,825	 	 	 	923,000	 	 	 	-83,175	 	 	 	-9.0	%
	Insitu Tons Mined
	 	 	103,209	 	 	 	138,000	 	 	 	-34,791	 	 	 	-25.2	%	 	 	905,335	 	 	 	971,000	 	 	 	-65,665	 	 	 	-6.8	%
	Recovery
	 	 	87.0	%	 	 	94.9	%	 	 	-8.0	%	 	 	-8.4	%	 	 	92.8	%	 	 	95.1	%	 	 	-2.3	%	 	 	-2.4	%
	AREA F NORTH
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Tons Sold
	 	 	128,636	 	 	 	144,576	 	 	 	-15,940	 	 	 	-11.0	%	 	 	886,240	 	 	 	860,842	 	 	 	25,393	 	 	 	3.0	%
	Tons Uncovered
	 	 	100.844	 	 	 	121,000	 	 	 	-20,156	 	 	 	-16.7	%	 	 	812,631	 	 	 	895,000	 	 	 	-82,469	 	 	 	-9.2	%
	BOM Pit Inventory
	 	 	31,100	 	 	 	99,896	 	 	 	-68,796	 	 	 	-68.9	%	 	 	31,100	 	 	 	99,896	 	 	 	-68,796	 	 	 	-68.9	%
	EOM Pit Inventory
	 	 	2,000	 	 	 	83,393	 	 	 	-81,393	 	 	 	-97.6	%	 	 	2,000	 	 	 	83,393	 	 	 	-81,393	 	 	 	-97.6	%
	Tons Produced
	 	 	129,944	 	 	 	121,000	 	 	 	8,944	 	 	 	7.4	%	 	 	558,274	 	 	 	895,000	 	 	 	-26,726	 	 	 	-3.0	%
	Insitu Tons Mined
	 	 	158,261	 	 	 	132,000	 	 	 	26,261	 	 	 	19.9	%	 	 	1,038,425	 	 	 	977,000	 	 	 	61,425	 	 	 	6.3	%
	Recovery
	 	 	82.1	%	 	 	91.7	%	 	 	-9.6	%	 	 	-10.4	%	 	 	83.6	%	 	 	91.6	%	 	 	-8.0	%	 	 	-8.7	%
	AREA F SOUTH
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Tons Sold
	 	 	166,164	 	 	 	259,282	 	 	 	-93,118	 	 	 	-35.9	%	 	 	1,231,751	 	 	 	1,703,768	 	 	 	-472.017	 	 	 	-27.7	%
	Tons Uncovered
	 	 	152,419	 	 	 	217,000	 	 	 	-64,581	 	 	 	-29.8	%	 	 	1,266,232	 	 	 	1,782,000	 	 	 	-515,768	 	 	 	-28.9	%
	BOM Pit Inventory
	 	 	37,800	 	 	 	179,153	 	 	 	-141,353	 	 	 	-78.9	%	 	 	37,800	 	 	 	179,153	 	 	 	-141,353	 	 	 	-78.9	%
	EOM Pit Inventory
	 	 	30,100	 	 	 	149,555	 	 	 	-119,455	 	 	 	-79.9	%	 	 	30,100	 	 	 	149,555	 	 	 	-119,455	 	 	 	-79.9	%
	Tons Produced
	 	 	160,119	 	 	 	217,000	 	 	 	-56,881	 	 	 	-26.2	%	 	 	1,235,090	 	 	 	1,782,000	 	 	 	-546,091	 	 	 	-30.6	%
	Insitu Tons Mined
	 	 	196,283	 	 	 	235,000	 	 	 	-38,717	 	 	 	-16.5	%	 	 	1,334,455	 	 	 	1,930,000	 	 	 	-595,545	 	 	 	-30.9	%
	Recovery
	 	 	81.6	%	 	 	92.3	%	 	 	-10.8	%	 	 	-11.7	%	 	 	92.6	%	 	 	92.3	%	 	 	0.3	%	 	 	0.3	%
	AREA E
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Tons Sold
	 	 	135,639	 	 	 	0	 	 	 	135,639	 	 	#DIV/0!	 	 	934,324	 	 	 	449,285	 	 	 	485,039	 	 	 	108.0	%
	Tons Uncovered
	 	 	134,911	 	 	 	0	 	 	 	134,911	 	 	#DIV/0!	 	 	886,626	 	 	 	546,000	 	 	 	340,626	 	 	 	62.4	%
	BOM Pit Inventory
	 	 	9,200	 	 	 	0	 	 	 	9,200	 	 	#DIV/0!	 	 	9,200	 	 	 	0	 	 	 	9,200	 	 	#DIV/0!
	EOM Pit Inventory
	 	 	6,400	 	 	 	0	 	 	 	6,400	 	 	#DIV/0!	 	 	6,400	 	 	 	0	 	 	 	6,400	 	 	#DIV/0!
	Tons Produced
	 	 	137,711	 	 	 	0	 	 	 	137,711	 	 	#DIV/0!	 	 	926,852	 	 	 	546,000	 	 	 	380,852	 	 	 	69.8	%
	Insitu Tons Mined
	 	 	165,834	 	 	 	0	 	 	 	165,834	 	 	#DIV/0!	 	 	1,010,338	 	 	 	594,000	 	 	 	416,338	 	 	 	70.1	%
	Recovery
	 	 	83.0	%	 	#DIV/0!	 	#DIV/0!	 	#DIV/0!	 	 	91.7	%	 	 	91.9	%	 	 	-0.2	%	 	 	-0.2	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Tons Sold
	 	 	523,802	 	 	 	560,383	 	 	 	-36,581	 	 	 	-6.5	%	 	 	3,901,040	 	 	 	3,906,610	 	 	 	-5,570	 	 	 	-0.1	%
	Tons Uncovered
	 	 	482,420	 	 	 	469,000	 	 	 	13,420	 	 	 	2.9	%	 	 	3,802,697	 	 	 	4,146,000	 	 	 	-343,303	 	 	 	-8.3	%
	BOM Pit Inventory
	 	 	78,100	 	 	 	387,201	 	 	 	-309,101	 	 	 	-79.8	%	 	 	78,100	 	 	 	387,201	 	 	 	-309,101	 	 	 	-79.8	%
	EOM Pit Inventory
	 	 	43,000	 	 	 	323,233	 	 	 	-280,233	 	 	 	-86.7	%	 	 	43,000	 	 	 	323,233	 	 	 	-280,233	 	 	 	-86.7	%
	BOM Stock Inventory
	 	 	20.445	 	 	 	165,943	 	 	 	-145,498	 	 	 	-87.7	%	 	 	20,445	 	 	 	165,943	 	 	 	-145,498	 	 	 	-87.7	%
	EOM Stock Inventory
	 	 	14,163	 	 	 	138,528	 	 	 	-124,365	 	 	 	-89.8	%	 	 	14,163	 	 	 	138,528	 	 	 	-124,365	 	 	 	-89.8	%
	Tons Produced
	 	 	517,520	 	 	 	469,000	 	 	 	48,520	 	 	 	10.3	%	 	 	3,894,758	 	 	 	4,146,000	 	 	 	-251,242	 	 	 	-6.1	%
	Insitu Tons Mined
	 	 	623,587	 	 	 	505,000	 	 	 	118,587	 	 	 	23.5	%	 	 	4,288,553	 	 	 	4,472,000	 	 	 	-183,447	 	 	 	-4.1	%
	Recovery
	 	 	83.0	%	 	 	92.9	%	 	 	-9.9	%	 	 	-10.6	%	 	 	90.8	%	 	 	92.7	%	 	 	-1.9	%	 	 	-2.0	%

 

 

JEWETT

OVERBURDEN

July, 2007

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	MONTH	 	YEAR TO DATE
	 	 	Actual	 	Budget	 	Variance	 	%	 	Actual	 	Budget	 	Variance	 	%
	AREA B
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DL 25 8200
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	814,000	 	 	 	1,605,000	 	 	 	-791,000	 	 	 	-49.3	%	 	 	10,208,400	 	 	 	10,975,000	 	 	 	-766.600	 	 	 	-7.0	%
	Interburden (BCY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Total Bank Cubic Yards
	 	 	814,000	 	 	 	1,605,000	 	 	 	-791,000	 	 	 	-49.3	%	 	 	10,208,400	 	 	 	10,978,000	 	 	 	-766,600	 	 	 	-7.0	%
	Rehandled Overburden (CY)
	 	 	470,950	 	 	 	0	 	 	 	470,950	 	 	#DIV/0!	 	 	2,566,645	 	 	 	1,79B,140	 	 	 	768,505	 	 	 	42.7	%
	Total Overburden Moved (CY)
	 	 	1,284,950	 	 	 	1,605,000	 	 	 	-320,050	 	 	 	-19.9	%	 	 	12,775,045	 	 	 	12,773,140	 	 	 	1,905	 	 	 	0.0	%
	EXCAVATOR/TRUCKS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	0	 	 	 	258,000	 	 	 	-258,000	 	 	 	-100.0	%	 	 	1,058,300	 	 	 	1,614.000	 	 	 	-555,700	 	 	 	-34.4	%
	Interburden (BCY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Total Bank Cubic Yards
	 	 	0	 	 	 	258,000	 	 	 	-258,000	 	 	 	-100.0	%	 	 	1,058,300	 	 	 	1,614,000	 	 	 	-555,700	 	 	 	-34.4	%
	Rehandled Overburden (CY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Total Overburden Moved (CY)
	 	 	0	 	 	 	258,000	 	 	 	-258,000	 	 	 	-100.0	%	 	 	1,058,300	 	 	 	1,614,000	 	 	 	-555,700	 	 	 	-34.4	%
	TRACTORS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Interburden (BCY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Total Bank Cubic Yards
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0l	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Rehandled Overburden (CY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Total Overburden Moved (CY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	TOTAL AREA B
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	814,000	 	 	 	1,863,000	 	 	 	-1,049,000	 	 	 	-56.3	%	 	 	11,266,700	 	 	 	12,589,000	 	 	 	-1,322,300	 	 	 	-10.5	%
	Interburden (BCY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Total Bank Cubic Yards
	 	 	814,000	 	 	 	1,863,000	 	 	 	-1,049,000	 	 	 	-56.3	%	 	 	11,266,700	 	 	 	12,589,000	 	 	 	-1,322,300	 	 	 	-10.5	%
	Rehandled Overburden (CY)
	 	 	470,950	 	 	 	0	 	 	 	470,950	 	 	#DIV/0!	 	 	2,566,645	 	 	 	1,798,140	 	 	 	768,505	 	 	 	42.7	%
	TOTAL
	 	 	1,284,950	 	 	 	1,863,000	 	 	 	-578,050	 	 	 	-31.0	%	 	 	13,833,345	 	 	 	14,387,140	 	 	 	-553,795	 	 	 	-3.8	%
	AREA F NORTH
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DL 26 8200
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	533.600	 	 	 	828,240	 	 	 	-294,640	 	 	 	-35,6	%	 	 	3,765,559	 	 	 	5,664,060	 	 	 	-1,898,501	 	 	 	-33.5	%
	Interburden (BCY)
	 	 	361,500	 	 	 	795,760	 	 	 	-434,260	 	 	 	-54.6	%	 	 	3,478,341	 	 	 	5,441,940	 	 	 	-1,963,599	 	 	 	-36.1	%
	Total Bank Cubic Yards
	 	 	895,100	 	 	 	1,624,000	 	 	 	-728,900	 	 	 	-44.9	%	 	 	7,243,900	 	 	 	11,106,000	 	 	 	-3,862,100	 	 	 	-34.8	%
	Rehandled Overburden (CY)
	 	 	155,000	 	 	 	0	 	 	 	155,000	 	 	#DIV/0!	 	 	2,689,150	 	 	 	3,955,500	 	 	 	-1,266,350	 	 	 	-32.0	%
	Total
Overburden Moved (CY) 8200
	 	 	1,050,100	 	 	 	1,624,000	 	 	 	-573,900	 	 	 	-35.3	%	 	 	9,933,050	 	 	 	15,061,500	 	 	 	-5.128,450	 	 	 	-34.1	%
	EXCAVATOR/TRUCKS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	0	 	 	 	77,755	 	 	 	-77,755	 	 	 	-100.0	%	 	 	547,800	 	 	 	218,939	 	 	 	328,861	 	 	 	150.2	%
	Interburden (BCY)
	 	 	44,400	 	 	 	24,245	 	 	 	20,155	 	 	 	83.1	%	 	 	44,400	 	 	 	171,524	 	 	 	-127,124	 	 	 	-74.1	%
	Total Bank Cubic Yards
	 	 	44,400	 	 	 	102,000	 	 	 	-57,600	 	 	 	-56.5	%	 	 	592,200	 	 	 	390,463	 	 	 	201,737	 	 	 	51.7	%
	Rehandled Overburden (CY)
	 	 	0	 	 	 	.0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0l
	Total Overburden Moved (CY)
	 	 	44,400	 	 	 	102,000	 	 	 	-57,600	 	 	 	-56.5	%	 	 	592,200	 	 	 	390,463	 	 	 	201,737	 	 	 	51.7	%
	TRACTORS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	205,200	 	 	 	0	 	 	 	205,200	 	 	#DIV/0!
	Interburden (BCY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Total Bank Cubic Yards
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	205,200	 	 	 	0	 	 	 	205.200	 	 	#DIV/0!
	Rehandled Overburden (CY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0l
	Total Overburden Moved (CY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	205,200	 	 	 	0	 	 	 	205,200	 	 	#DIV/0!
	TOTAL AREA F NORTH
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	4,518,559	 	 	 	5,882,999	 	 	 	-1,364,440	 	 	 	-23.2	%
	Interburden (BCY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	3,522,741	 	 	 	5,613,464	 	 	 	-2,090,723	 	 	 	-37.2	%
	Total Bank Cubic Yards
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	8,041,300	 	 	 	11,496,463	 	 	 	-3,455,163	 	 	 	-30.1	%
	Rehandled Overburden (CY)
	 	 	155,000	 	 	 	0	 	 	 	155,000	 	 	#DIV/0!	 	 	2,689,150	 	 	 	3,955.500	 	 	 	-1,266,350	 	 	 	-32.0	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	 	155,000	 	 	 	0	 	 	 	155,000	 	 	#DIV/0!	 	 	10,730,450	 	 	 	15,451,963	 	 	 	-4,721,513	 	 	 	-30.6	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

JEWETT

OVERBURDEN

July, 2007

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	MONTH	 	YEAR TO DATE
	 	 	Actual	 	Budget	 	Variance	 	%	 	Actual	 	Budget	 	Variance	 	%
	AREA F SOUTH
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DL 25 8200
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	1,027,200	 	 	 	876,960	 	 	 	150,240	 	 	 	17.1	%	 	 	4,663,168	 	 	 	5,184,774	 	 	 	-521,606	 	 	 	-10.1	%
	Interburden (BCY)
	 	 	359,600	 	 	 	747,040	 	 	 	-387,440	 	 	 	-51,9	%	 	 	3,283,332	 	 	 	4,416,660	 	 	 	-1,133,328	 	 	 	-25.7	%
	Total Bank Cubic Yards
	 	 	1,386,800	 	 	 	1,624,000	 	 	 	-237,200	 	 	 	-14,6	%	 	 	7,946,500	 	 	 	9,601,434	 	 	 	-1,654,934	 	 	 	-17.2	%
	Rehandled Overburden (CY)
	 	 	346,700	 	 	 	0	 	 	 	346,700	 	 	#DIV/0!	 	 	2,098,375	 	 	 	1,601,609	 	 	 	496,766	 	 	 	31.0	%
	Total Overburden Moved
	 	 	1,733,500	 	 	 	1,624,000	 	 	 	109,500	 	 	 	6.7	%	 	 	10,044,875	 	 	 	11,203,043	 	 	 	-1,158,168	 	 	 	-10.3	%
	(CY) 8200
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	EXCAVATOR/TRUCKS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	173,100	 	 	 	122,684	 	 	 	50,416	 	 	 	41.1	%	 	 	1,179,000	 	 	 	369,696	 	 	 	810,204	 	 	 	219.2	%
	Interburden (BCY)
	 	 	32,500	 	 	 	36,316	 	 	 	-3,816	 	 	 	-10.5	%	 	 	32,500	 	 	 	206,500	 	 	 	-174,000	 	 	 	-84.3	%
	Total Bank Cubic Yards
	 	 	205,600	 	 	 	159,000	 	 	 	46,600	 	 	 	29.3	%	 	 	1,212,400	 	 	 	576,196	 	 	 	636,204	 	 	 	110.4	%
	Rehandled Overburden (CY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Total Overburden Moved (CY)
	 	 	205,600	 	 	 	159,000	 	 	 	46,600	 	 	 	29.3	%	 	 	1,212,400	 	 	 	576,196	 	 	 	636,204	 	 	 	110.4	%
	TRACTORS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	125,000	 	 	 	0	 	 	 	125,000	 	 	#DIV/0!	 	 	566,900	 	 	 	0	 	 	 	566,900	 	 	#DIV/0!
	Interburden {BCY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Total Bank Cubic Yards
	 	 	125,000	 	 	 	0	 	 	 	125,000	 	 	#DIV/0!	 	 	566,900	 	 	 	0	 	 	 	566,900	 	 	#DIV/0!
	Rehandled Overburden (CY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Total Overburden Moved (CY)
	 	 	125,000	 	 	 	0	 	 	 	125,000	 	 	#DIV/0!	 	 	566,900	 	 	 	0	 	 	 	566,900	 	 	#DIV/0!
	TOTAL AREA F SOUTH
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	1,325,300	 	 	 	999,644	 	 	 	325,656	 	 	 	32.6	%	 	 	6,409,988	 	 	 	5,554,470	 	 	 	855,498	 	 	 	15.4	%
	Interburden (BCY)
	 	 	392,100	 	 	 	783,356	 	 	 	-391,256	 	 	 	-49.9	%	 	 	3,315,832	 	 	 	4,623,160	 	 	 	-1,307,328	 	 	 	-28.3	%
	Total Bank Cubic Yards
	 	 	1,717,400	 	 	 	1,783,000	 	 	 	-65,600	 	 	 	-3.7	%	 	 	9,725,800	 	 	 	10,177,630	 	 	 	-451,830	 	 	 	-4.4	%
	Rehandled Overburden (CY)
	 	 	346,700	 	 	 	0	 	 	 	346,700	 	 	#DIV/0!	 	 	2,098,375	 	 	 	1,601,609	 	 	 	496,766	 	 	 	31.0	%
	TOTAL
	 	 	2,064,100	 	 	 	1,783,000	 	 	 	281,100	 	 	 	15.8	%	 	 	11,824,175	 	 	 	11,779,239	 	 	 	44,936	 	 	 	0.4	%
	AREA E
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DL 28 8750
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	559,000	 	 	 	0	 	 	 	559,000	 	 	#DIV/0!	 	 	3,195,180	 	 	 	1,833,920	 	 	 	1,361,260	 	 	 	74.2	%
	Interburden (BCY)
	 	 	527,200	 	 	 	0	 	 	 	527,200	 	 	#DIV/0!	 	 	3,793,520	 	 	 	2,334,080	 	 	 	1,464,440	 	 	 	62.7	%
	Total Bank Cubic Yards
	 	 	1,086,200	 	 	 	0	 	 	 	1,086,200	 	 	#DIV/0!	 	 	6,993,700	 	 	 	4,168,000	 	 	 	2,825,700	 	 	 	67.8	%
	Rehandled Overburden (CY)
	 	 	457,000	 	 	 	 	 	 	 	457,000	 	 	#DIV/0!	 	 	1,468,074	 	 	 	583,520	 	 	 	884,554	 	 	 	151.6	%
	Total Overburden Moved (CY)
	 	 	1,543,200	 	 	 	0	 	 	 	1,543,200	 	 	#DIV/0!	 	 	8,461,774	 	 	 	4,751,520	 	 	 	3,710,254	 	 	 	78.1	%
	EXCAVATOR/TRUCKS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	110,900	 	 	 	0	 	 	 	110,900	 	 	#DIV/0!	 	 	574-,00	 	 	 	0               0	 	 	 	574,000	 	 	#DIV/0!
	Interburden (BCY)
	 	 	26,500	 	 	 	0	 	 	 	26,500	 	 	#DIV/0!	 	 	37,200	 	 	 	44,000	 	 	 	-6,800	 	 	 	-15.5	%
	Total Bank Cubic Yards
	 	 	137,400	 	 	 	0	 	 	 	137,400	 	 	#DIV/0!	 	 	611,200	 	 	 	44,000	 	 	 	567,200	 	 	 	1289.1	%
	Rehandled Overburden (CY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Total Overburden Moved (CY)
	 	 	137,400	 	 	 	0	 	 	 	137,400	 	 	#DIV/0!	 	 	611,200	 	 	 	44,000	 	 	 	567,200	 	 	 	1289.1	%
	BWE/TRUCKS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	355,500	 	 	 	118,000	 	 	 	237,500	 	 	 	201.3	%
	Interburden (BCY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Total Bank Cubic Yards
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	355,500	 	 	 	118,000	 	 	 	237,500	 	 	 	201.3	%
	Rehandled Overburden (CY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Total Overburden Moved (CY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	355,500	 	 	 	118,000	 	 	 	237,500	 	 	 	201.3	%
	TRACTORS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Interburden (BCY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Total Bank Cubic Yards
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Rehandled Overburden (CY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Total Overburden Moved (CY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	TOTAL AREA E
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	669,900	 	 	 	0	 	 	 	669,900	 	 	#DIV/0!	 	 	4,124,680	 	 	 	1,951,920	 	 	 	2,172,760	 	 	 	111.3	%
	Interburden (BCY)
	 	 	553,700	 	 	 	0	 	 	 	553,700	 	 	#DIV/0!	 	 	3,835,720	 	 	 	2,378,060	 	 	 	1,457.640	 	 	 	61.3	%
	Total Bank Cubic Yards
	 	 	1,223,600	 	 	 	0	 	 	 	1,223,600	 	 	#DIV/0!	 	 	7,960,400	 	 	 	4,330,000	 	 	 	3,630,400	 	 	 	83.8	%
	Rehandled Overburden (CY)
	 	 	457,000	 	 	 	0	 	 	 	457,000	 	 	#DIV/0!	 	 	1,468,074	 	 	 	583,520	 	 	 	884,554	 	 	 	151.6	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	 	1,680,600	 	 	 	0	 	 	 	1,680,600	 	 	#DIV/0!	 	 	9,426,474	 	 	 	4,913,520	 	 	 	4,514,954	 	 	 	91.9	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

JEWETT

OVERBURDEN

July, 2007

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	MONTH	 	YEAR TO DATE
	 	 	Actual	 	Budget	 	Variance	 	%	 	Actual	 	Budget	 	Variance	 	%
	TOTAL DRAGLINES
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	2,933,800	 	 	 	3,310,200	 	 	 	-376,400	 	 	 	-11.4	%	 	 	21,832,307	 	 	 	23,657,754	 	 	 	-1,825,447	 	 	 	-7.7	%
	Interburden (BCY)
	 	 	1,248,300	 	 	 	1,542,800	 	 	 	-294,500	 	 	 	-19.1	%	 	 	10,560,193	 	 	 	12,192,680	 	 	 	-1,632,487	 	 	 	-13.4	%
	Total Bank Cubic Yards
	 	 	4,182,100	 	 	 	4,853,000	 	 	 	-670,900	 	 	 	-13.8	%	 	 	32,392,500	 	 	 	35,850,434	 	 	 	-3,457,934	 	 	 	-9.6	%
	Rehandled Overburden (CY)
	 	 	1,429,650	 	 	 	0	 	 	 	1,429,650	 	 	#DIV/0!	 	 	8,822,244	 	 	 	7,938,769	 	 	 	883,475	 	 	 	11.1	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	 	5,611,750	 	 	 	4,853,000	 	 	 	758,750	 	 	 	15,6	%	 	 	41,214,744	 	 	 	43,789,203	 	 	 	-2,574,459	 	 	 	-5.9	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	EXCAVATOR/TRUCKS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	284,000	 	 	 	458,438	 	 	 	-174,439	 	 	 	-38.1	%	 	 	3,360,000	 	 	 	2,202,635	 	 	 	1,157,365	 	 	 	52.5	%
	Interburden (BCY)
	 	 	103,400	 	 	 	60,561	 	 	 	42,839	 	 	 	70.7	%	 	 	114,100	 	 	 	422,024	 	 	 	-307,924	 	 	 	-73.0	%
	Total Bank Cubic Yards
	 	 	387,400	 	 	 	519,000	 	 	 	-131,600	 	 	 	-25.4	%	 	 	3,474,100	 	 	 	2,624,659	 	 	 	849,441	 	 	 	32.4	%
	Rehandled Overburden (CY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	 	387,400	 	 	 	519,000	 	 	 	-131,600	 	 	 	-25.4	%	 	 	3,474,100	 	 	 	2,624,659	 	 	 	849,441	 	 	 	32.4	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BWE/TRUCKS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	355,500	 	 	 	118,000	 	 	 	237,500	 	 	 	201.3	%
	Interburden (BCY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Total Bank Cubic Yards
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	355,500	 	 	 	118,000	 	 	 	237,500	 	 	 	201.3	%
	Rehandled Overburden (CY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	355,500	 	 	 	118,000	 	 	 	237,500	 	 	 	201.3	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL TRACTORS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	125,000	 	 	 	0	 	 	 	125,000	 	 	#DIV/0!	 	 	772,100	 	 	 	0	 	 	 	772,100	 	 	#DIV/0!
	Interburden (BCY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	Total Bank Cubic Yards
	 	 	125,000	 	 	 	0	 	 	 	125,000	 	 	#DIV/0!	 	 	772,100	 	 	 	0	 	 	 	772,100	 	 	#DIV/0!
	Rehandled Overburden (CY)
	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!	 	 	0	 	 	 	0	 	 	 	0	 	 	#DIV/0!
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	 	125,000	 	 	 	0	 	 	 	125,000	 	 	#DIV/0!	 	 	772,100	 	 	 	0	 	 	 	772,100	 	 	#DIV/0!
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden (BCY)
	 	 	3,342,800	 	 	 	3,768,639	 	 	 	-425,839	 	 	 	-11.3	%	 	 	26,319,907	 	 	 	25,978,389	 	 	 	341,518	 	 	 	1.3	%
	Interburden (BCY)
	 	 	1,351,700	 	 	 	1,603,361	 	 	 	-251,661	 	 	 	-15.7	%	 	 	10,674,293	 	 	 	12,614,704	 	 	 	-1,940,411	 	 	 	-15.4	%
	Total Bank Cubic Yards
	 	 	4,694,500	 	 	 	5,372,000	 	 	 	-677,500	 	 	 	-12,6	%	 	 	36,994,200	 	 	 	38,593,093	 	 	 	-1,598,893	 	 	 	-4.1	%
	Rehandled Overburden (CY)
	 	 	1,429,650	 	 	 	0	 	 	 	1,429,650	 	 	#DIV/0!	 	 	8,822,244	 	 	 	7,936,769	 	 	 	883,475	 	 	 	11.1	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	 	6,124,150	 	 	 	5,372,000	 	 	 	752,150	 	 	 	14.0	%	 	 	45,816,444	 	 	 	45,531,862	 	 	 	-715,418	 	 	 	-1.5	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Virgin Ratio
	 	 	9.7	 	 	 	11.5	 	 	 	-1.7	 	 	 	-15.0	%	 	 	9.7	 	 	 	9.3	 	 	 	0.4	 	 	 	4.5	%
	Effective Ratio
	 	 	12.7	 	 	 	11.5	 	 	 	1.2	 	 	 	10.8	%	 	 	12.0	 	 	 	11.2	 	 	 	0.8	 	 	 	7.4	%

 

 

JEWETT

PRODUCTIVITY

July, 2007

PRODUCTIVITY

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	MONTH	 	YEAR TO DATE
	 	 	Actual	 	Budget	 	Variance	 	%	 	Actual	 	Budget	 	Variance	 	%
	Man-hours
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Craft
	 	 	49,306.0	 	 	 	50,930.0	 	 	 	-1,624.0	 	 	 	-3.2	%	 	 	347,632	 	 	 	348,295	 	 	 	-663.0	 	 	 	(0.002	)
	Contractor
	 	 	18,374.0	 	 	 	—	 	 	 	18,374.0	 	 	#DIV/0!	 	 	143,341	 	 	 	—	 	 	 	143,341.0	 	 	#DIV/0!
	Salaried
	 	 	12,062.0	 	 	 	12,729.0	 	 	 	-667.0	 	 	 	-5.2	%	 	 	87,062	 	 	 	87,047	 	 	 	15.0	 	 	 	0.000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total
	 	 	79742.0	 	 	 	63659.0	 	 	 	16083.0	 	 	 	25.3	%	 	 	576,035	 	 	 	435,342	 	 	 	142693.0	 	 	 	0.328	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Tons Sold/Craft M-hour
	 	 	7.74	 	 	 	11.00	 	 	 	-3.26	 	 	 	-29.7	%	 	 	7.95	 	 	 	11.22	 	 	 	-3.27	 	 	 	(0.292	)
	Tons Produced/Craft M-Hour
	 	 	7.13	 	 	 	9.21	 	 	 	-2.08	 	 	 	-22.6	%	 	 	7.75	 	 	 	11.90	 	 	 	-4.16	 	 	 	(0.349	)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	OVERBURDEN/INTERBURDEN
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DL 25 8200
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BCY/OP HR
	 	 	1,293	 	 	 	2,538	 	 	 	(1,245.1	)	 	 	-49.1	%	 	 	2,326	 	 	 	2,574	 	 	 	(248.1	)	 	 	(0.096	)
	CY/OP HR Include Rehandle
	 	 	2,041	 	 	 	2,538	 	 	 	(497.1	)	 	 	-19.6	%	 	 	2,911	 	 	 	2,995.8	 	 	 	(85.0	)	 	 	(0.028	)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DL 26 8200
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BCY/OP HR
	 	 	1,401	 	 	 	2,568	 	 	 	(1,167.0	)	 	 	-45.4	%	 	 	2,330	 	 	 	2,605	 	 	 	(274.8	)	 	 	(0.106	)
	CY/OP HR Include Rehandle
	 	 	1,644	 	 	 	2,568	 	 	 	(924.4	)	 	 	-36.0	%	 	 	2,636	 	 	 	3,532.6	 	 	 	(896.8	)	 	 	(0.254	)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DL 27 8200
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BCY/OP HR
	 	 	2,022	 	 	 	2,595	 	 	 	(573.2	)	 	 	-22.1	%	 	 	1,836	 	 	 	2,255	 	 	 	(419.4	)	 	 	(0.186	)
	CY/OP HR Include Rehandle
	 	 	2,527	 	 	 	2,595	 	 	 	(67.8	)	 	 	-2.6	%	 	 	2,321	 	 	 	2,631.7	 	 	 	(310.8	)	 	 	(0.118	)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DL 28 8750
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BCY/OP HR
	 	 	1,762	 	 	#DIV/0!	 	#DIV/0!	 	#DIV/0!	 	 	2,126	 	 	 	2,729	 	 	 	(602.7	)	 	 	(0.221	)
	CY/OP HR Include Rehandle
	 	 	2,503	 	 	#DIV/0!	 	#DIV/0!	 	#DIV/0!	 	 	2,573	 	 	 	3,111.2	 	 	 	(538.4	)	 	 	(0.173	)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Excavator OB-IB
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BCY/OP HR
	 	 	489.1	 	 	 	702.2	 	 	 	(213.1	)	 	 	-30.3	%	 	 	278.3	 	 	 	356.2	 	 	 	(77.9	)	 	 	(0.219	)
	CY/OP HR include Rehandle
	 	 	489.1	 	 	 	702.2	 	 	 	(213.1	)	 	 	-30.3	%	 	 	278.3	 	 	 	356.2	 	 	 	(77.9	)	 	 	(0.219	)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BWE OB-IB
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BCY/OP HR
	 	#DIV/0!	 	#DIV/0!	 	#DIV/0!	 	#DIV/0!	 	 	669.4	 	 	 	106.5	 	 	 	562.9	 	 	 	5.285	 
	CY/OP HR Include Rehandle
	 	#DIV/0!	 	#DIV/0!	 	#DIV/0!	 	#DIV/0!	 	 	669.4	 	 	 	106.5	 	 	 	562.9	 	 	 	5.285	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Tractors
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	93.3	 	 	#DIV/0!	 	#DIV/0!	 	#DIV/0!	 	#DIV/0!	 	#DIV/0!	 	#DIV/0!	 	#DIV/0!
	 
	 	 	93.3	 	 	#DIV/0!	 	#DIV/0!	 	#DIV/0!	 	#DIV/0!	 	#DIV/0!	 	#DIV/0!	 	#DIV/0!
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	COAL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Excavator
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Tons Loaded/OP HR
	 	 	353	 	 	 	357	 	 	 	(3.6	)	 	 	-1.0	%	 	 	2,659	 	 	 	414	 	 	 	2,244.2	 	 	 	5,416	 

 

 

EXHIBIT 14

Form of Monthly Costs Report

See attached.

Exhibit 14 — Page 1

 

Exhibit 14

Texas Westmoreland Coal Co.

Budget Variance Report Detail

For the Month of

March 2007

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Current Month	 	 	 	 	Year To Date	 
	Actual	 	 	Budget	 	 	Variance	 	 	Description	 	Actual	 	 	Budget	 	 	Variance	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	TONS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Lignite:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	187.7	 	 	 	288.1	 	 	 	(100.4	)	 	 	-34.8	%	 	TWCC Tons
	 	 	864.4	 	 	 	1,062.4	 	 	 	(198.0	)	 	 	-18.6	%
	 	349.8	 	 	 	268.0	 	 	 	81.8	 	 	 	30.5	%	 	NRG Tons
	 	 	839.9	 	 	 	605.0	 	 	 	228.9	 	 	 	37.8	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	537.5	 	 	 	556.1	 	 	 	(18.6	)	 	 	-3.3	%	 	Total Tons — Lignite
	 	 	1,698.4	 	 	 	1,667.4	 	 	 	31.0	 	 	 	1.9	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Stripping BCY
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	3,817.6	 	 	 	4,858.0	 	 	 	(1,035.4	)	 	 	-21.3	%	 	8200 Dragline
	 	 	11,383.9	 	 	 	13,872.0	 	 	 	(2,488.1	)	 	 	-17.9	%
	 	835.5	 	 	 	396.0	 	 	 	439.5	 	 	 	111.0	%	 	8750 Dragline
	 	 	2,797.9	 	 	 	1,8829.0	 	 	 	968.9	 	 	 	53.0	%
	 	761.5	 	 	 	626.0	 	 	 	135.5	 	 	 	21.6	%	 	Mobile
	 	 	2,114.0	 	 	 	2,168.0	 	 	 	(54.0	)	 	 	-2.5	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	5,414.6	 	 	 	5,875.0	 	 	 	(460.4	)	 	 	-7.8	%	 	Total Bank Cubic Yards
	 	 	16,295.8	 	 	 	17,869.0	 	 	 	(1,573.2	)	 	 	-8.8	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Overburden Stripping:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$	44.2	 	 	$	33.9	 	 	 	10.3	 	 	 	30.3	%	 	Clearing
	 	$	141.7	 	 	$	101.7	 	 	 	40.0	 	 	 	39.4	%
	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	Relocations
	 	 	0.0	 	 	 	23.0	 	 	 	(23.0	)	 	 	-100.0	%
	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	Dozer-Overburden
	 	 	0.6	 	 	 	0.0	 	 	 	0.6	 	 	 	100.0	%
	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	Scraper Overburden
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	%
	 	1,263.2	 	 	 	555.9	 	 	 	707.2	 	 	 	127.2	%	 	Truck/Loader-O.B.
	 	 	2,485.2	 	 	 	2,316.6	 	 	 	168.7	 	 	 	7.3	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	1,263.2	 	 	 	555.9	 	 	 	707.2	 	 	 	127.2	%	 	Total Mobile-Overburden
	 	 	2,485.8	 	 	 	2,316.6	 	 	 	169.3	 	 	 	7.3	%
	 	1,259.9	 	 	 	1,010.6	 	 	 	249.3	 	 	 	24.7	%	 	Draglines
	 	 	3,304.9	 	 	 	3,119.6	 	 	 	185.3	 	 	 	5.9	%
	 	10.1	 	 	 	0.0	 	 	 	10.1	 	 	 	100.0	%	 	BWE
	 	 	161.4	 	 	 	191.9	 	 	 	(30.5	)	 	 	-15.9	%
	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	Contractor
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	%
	 	118.4	 	 	 	113.1	 	 	 	5.2	 	 	 	4.6	%	 	Pit/Surface Dewater
	 	 	367.5	 	 	 	329.0	 	 	 	38.4	 	 	 	11.7	%
	 	71.2	 	 	 	130.3	 	 	 	(59.1	)	 	 	-45.4	%	 	OB Dewatering
	 	 	335.4	 	 	 	384.1	 	 	 	(48.7	)	 	 	-12.7	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	189.6	 	 	 	243.5	 	 	 	(53.9	)	 	 	-22.1	%	 	Total OB Water Control
	 	 	702.9	 	 	 	713.1	 	 	 	(10.2	)	 	 	-1.4	%
	 	(151.3	)	 	 	0.0	 	 	 	(151.3	)	 	 	100.0	%	 	Deferred Stripping Adj
	 	 	(114.1	)	 	 	0.0	 	 	 	(114.1	)	 	 	100.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	2,615.6	 	 	 	1,843.9	 	 	 	771.8	 	 	 	41.9	%	 	Total Overburden
	 	 	6,682.7	 	 	 	6,465.9	 	 	 	216.8	 	 	 	3.4	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Interburden Stripping
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	30.1	 	 	 	54.9	 	 	 	(24.8	)	 	 	-45.1	%	 	Dozers
	 	 	137.0	 	 	 	220.8	 	 	 	(83.8	)	 	 	-38.0	%
	 	1.1	 	 	 	0.0	 	 	 	1.1	 	 	 	100.0	%	 	Scaper
	 	 	1.4	 	 	 	0.0	 	 	 	1.4	 	 	 	100.0	%
	 	0.1	 	 	 	75.5	 	 	 	(75.4	)	 	 	-99.9	%	 	Truck/Loader
	 	 	3.6	 	 	 	303.6	 	 	 	(300.0	)	 	 	-98.8	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	31.4	 	 	 	130.4	 	 	 	(99.0	)	 	 	-75.9	%	 	Total Mobile-Interburden
	 	 	142.0	 	 	 	524.4	 	 	 	(382.4	)	 	 	-72.9	%
	 	602.1	 	 	 	519.4	 	 	 	82.8	 	 	 	15.9	%	 	Draglines
	 	 	2,187.8	 	 	 	1,603.7	 	 	 	584.1	 	 	 	36.4	%
	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	Water Control
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	633.5	 	 	 	649.8	 	 	 	(16.3	)	 	 	-2.5	%	 	Total Interburden
	 	 	2,329.8	 	 	 	2,128.1	 	 	 	201.7	 	 	 	9.5	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	3,249.2	 	 	 	2,493.6	 	 	 	755.5	 	 	 	30.3	%	 	Total Stripping Costs
	 	 	9,012.5	 	 	 	8,594.1	 	 	 	418.5	 	 	 	4.9	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Coal Production
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	12.8	 	 	 	0.0	 	 	 	12.8	 	 	 	100.0	%	 	Testing & Analysis
	 	 	13.4	 	 	 	0.0	 	 	 	13.4	 	 	 	100.0	%
	 	1.1	 	 	 	0.0	 	 	 	1.1	 	 	 	100.0	%	 	Coal Cleaning
	 	 	8.9	 	 	 	0.0	 	 	 	8.9	 	 	 	100.0	%
	 	234.5	 	 	 	253.7	 	 	 	(19.2	)	 	 	-7.6	%	 	Loading Lignite
	 	 	764.2	 	 	 	760.7	 	 	 	3.5	 	 	 	0.5	%
	 	889.7	 	 	 	751.4	 	 	 	138.3	 	 	 	18.4	%	 	Hauling Lignite
	 	 	2,664.4	 	 	 	2,255.2	 	 	 	408.2	 	 	 	18.1	%
	 	158.9	 	 	 	221.2	 	 	 	(62.3	)	 	 	-28.2	%	 	Crushing & Handling
	 	 	417.8	 	 	 	560.4	 	 	 	(142.6	)	 	 	-25.4	%
	 	(52.9	)	 	 	0.0	 	 	 	(52.9	)	 	 	100.0	%	 	Coal Stockpile: Def. Adj
	 	 	(41.2	)	 	 	0.0	 	 	 	(41.2	)	 	 	100.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	1,244.1	 	 	 	1,226.3	 	 	 	17.8	 	 	 	1.5	%	 	Total Coal Production
	 	 	3,827.5	 	 	 	3,577.2	 	 	 	250.3	 	 	 	7.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	585.4	 	 	 	435.0	 	 	 	150.4	 	 	 	34.6	%	 	Roads:
	 	 	1,478.2	 	 	 	1,303.4	 	 	 	174.8	 	 	 	13.4	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	257.5	 	 	 	172.6	 	 	 	84.9	 	 	 	49.2	%	 	Production Supv.:
	 	 	751.5	 	 	 	517.7	 	 	 	233.8	 	 	 	45.2	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Engineering:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	141.7	 	 	 	150.6	 	 	 	(8.9	)	 	 	-5.9	%	 	Mine Planning
	 	 	395.9	 	 	 	455.6	 	 	 	(57.7	)	 	 	-13.1	%
	 	79.6	 	 	 	142.1	 	 	 	(62.5	)	 	 	-44.0	%	 	Civil & Environ. Eng.
	 	 	349.9	 	 	 	453.1	 	 	 	(103.2	)	 	 	-22.8	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	221.4	 	 	 	292.8	 	 	 	(71.4	)	 	 	-24.4	%	 	Total Engineering
	 	 	745.8	 	 	 	908.7	 	 	 	(162.9	)	 	 	-17.9	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Current Reclamation:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	%	 	Engineering
	 	 	0.5	 	 	 	0.0	 	 	 	0.5	 	 	 	100.0	%
	 	207.0	 	 	 	340.1	 	 	 	(133.1	)	 	 	-39.1	%	 	Regrade
	 	 	503.0	 	 	 	1,080.0	 	 	 	(577.0	)	 	 	-53.4	%
	 	0.0	 	 	 	(152.9	)	 	 	152.9	 	 	 	-100.0	%	 	Recl. Arrearage Cr.
	 	 	0.0	 	 	 	(458.7	)	 	 	458.7	 	 	 	-100.0	%
	 	13.4	 	 	 	0.0	 	 	 	13.4	 	 	 	100.0	%	 	Topsoiling
	 	 	16.3	 	 	 	0.0	 	 	 	16.3	 	 	 	100.0	%
	 	22.0	 	 	 	95.4	 	 	 	(73.4	)	 	 	-76.9	%	 	Revegetation
	 	 	49.1	 	 	 	302.1	 	 	 	(253.0	)	 	 	-83.7	%
	 	4.4	 	 	 	24.2	 	 	 	(19.8	)	 	 	-81.6	%	 	Pond Treatment
	 	 	31.5	 	 	 	76.3	 	 	 	(44.7	)	 	 	-58.7	%
	 	41.6	 	 	 	29.3	 	 	 	12.3	 	 	 	42.1	%	 	Civil-Desilt Ponds/Div
	 	 	43.2	 	 	 	68.3	 	 	 	(25.1	)	 	 	-36.8	%
	 	58.9	 	 	 	66.5	 	 	 	(7.6	)	 	 	-11.4	%	 	Sediment Control
	 	 	59.8	 	 	 	121.0	 	 	 	(61.2	)	 	 	-50.6	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	105.0	 	 	 	120.0	 	 	 	(15.0	)	 	 	-12.5	%	 	Total Erosion Control
	 	 	134.4	 	 	 	265.5	 	 	 	(131.1	)	 	 	-49.4	%

Page 1 of 2

 

Texas Westmoreland Coal Co.

Budget Variance Report Detail

For the Month of

March 2007

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Current Month	 	 	 	 	Year To Date	 
	Actual	 	 	Budget	 	 	Variance	 	 	Description	 	Actual	 	Budget	 	Variance	 
	 	23.4	 	 	 	17.1	 	 	 	6.3	 	 	 	36.7	%	 	Resource Monitoring
	 	 	88.0	 	 	 	48.4	 	 	 	39.6	 	 	 	81.7	%
	 	10.6	 	 	 	0.0	 	 	 	10.6	 	 	 	100.0	%	 	Well Monitoring
	 	 	19.5	 	 	 	0.0	 	 	 	19.5	 	 	 	100.0	%
	 	9.2	 	 	 	40.1	 	 	 	(30.9	)	 	 	-77.1	%	 	HazMat Monitoring
	 	 	10.8	 	 	 	100.2	 	 	 	(89.4	)	 	 	-89.2	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	43.2	 	 	 	57.3	 	 	 	(14.1	)	 	 	-24.6	%	 	Total Compl. Monitoring
	 	 	118.4	 	 	 	148.7	 	 	 	(30.3	)	 	 	-20.4	%
	 	11.0	 	 	 	35.4	 	 	 	(24.4	)	 	 	-68.9	%	 	Permint/Bonding
	 	 	0.4	 	 	 	75.2	 	 	 	(74.8	)	 	 	-99.4	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	401.6	 	 	 	495.2	 	 	 	(93.6	)	 	 	-18.9	%	 	Total Current Recl.	 	 	822.2	 	 	 	1,412.8	 	 	 	(590.7	)	 	 	-41.8	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	231.3	 	 	 	172.0	 	 	 	59.3	 	 	 	34.5	%	 	Post Mine Accretion
	 	 	693.8	 	 	 	515.9	 	 	 	177.8	 	 	 	34.5	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	DD&A
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	69.5	 	 	 	147.0	 	 	 	(77.5	)	 	 	-52.7	%	 	Amortization
	 	 	219.8	 	 	 	462.8	 	 	 	(243.0	)	 	 	-52.5	%
	 	41.7	 	 	 	34.8	 	 	 	6.9	 	 	 	19.7	%	 	Depletion
	 	 	181.7	 	 	 	175.4	 	 	 	5.3	 	 	 	3.0	%
	 	388.7	 	 	 	298.4	 	 	 	90.3	 	 	 	30.3	%	 	ARO Depletion
	 	 	1,272.8	 	 	 	1,003.9	 	 	 	268.9	 	 	 	26.8	%
	 	166.6	 	 	 	83.6	 	 	 	83.0	 	 	 	99.4	%	 	Depreciation
	 	 	521.2	 	 	 	269.4	 	 	 	251.8	 	 	 	93.5	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	666.5	 	 	 	563.8	 	 	 	102.8	 	 	 	18.2	%	 	Total DD&A	 	 	2,195.5	 	 	 	1,912.4	 	 	 	283.1	 	 	 	14.8	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Safety Administration
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	27.6	 	 	 	21.2	 	 	 	6.4	 	 	 	30.4	%	 	Safety Administration
	 	 	73.8	 	 	 	90.5	 	 	 	(16.7	)	 	 	-18.5	%
	 	1.9	 	 	 	27.9	 	 	 	(26.0	)	 	 	-93.3	%	 	Training/Inspection
	 	 	79.3	 	 	 	71.2	 	 	 	8.1	 	 	 	11.4	%
	 	101.6	 	 	 	98.1	 	 	 	3.5	 	 	 	3.5	%	 	Safety Awards
	 	 	105.3	 	 	 	108.8	 	 	 	(3.5	)	 	 	-3.2	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	131.1	 	 	 	147.1	 	 	 	(16.1	)	 	 	-10.9	%	 	Total Safety Admin.	 	 	258.4	 	 	 	270.6	 	 	 	(12.1	)	 	 	-4.5	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	20.3	 	 	 	19.0	 	 	 	1.3	 	 	 	6.9	%	 	Purchasing
	 	 	45.4	 	 	 	57.0	 	 	 	(11.5	)	 	 	-20.2	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	46.9	 	 	 	94.2	 	 	 	(47.3	)	 	 	-50.2	%	 	Warehousing
	 	 	264.6	 	 	 	277.1	 	 	 	(12.5	)	 	 	-4.5	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Facilities:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	75.6	 	 	 	100.8	 	 	 	(25.2	)	 	 	-25.0	%	 	Buildings
	 	 	241.9	 	 	 	298.6	 	 	 	(56.7	)	 	 	-19.0	%
	 	14.0	 	 	 	17.1	 	 	 	(3.1	)	 	 	-18.3	%	 	Security
	 	 	41.9	 	 	 	55.1	 	 	 	(13.2	)	 	 	-24.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	89.6	 	 	 	117.9	 	 	 	(28.4	)	 	 	-24.0	%	 	Total Facilities	 	 	283.8	 	 	 	353.6	 	 	 	(69.9	)	 	 	-19.8	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Lands:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	33.0	 	 	 	28.5	 	 	 	4.5	 	 	 	15.7	%	 	Land Department
	 	 	86.6	 	 	 	88.2	 	 	 	(1.5	)	 	 	-1.8	%
	 	0.6	 	 	 	0.6	 	 	 	(0.0	)	 	 	-0.1	%	 	Lease Rentals/Mineral
	 	 	2.1	 	 	 	2.1	 	 	 	(0.0	)	 	 	0.0	%
	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	%	 	Lease Rentals/Surface
	 	 	6.7	 	 	 	10.0	 	 	 	(3.3	)	 	 	-32.6	%
	 	110.7	 	 	 	110.7	 	 	 	(0.0	)	 	 	0.0	%	 	Adv. Roy-Non Recoup.
	 	 	314.4	 	 	 	314.4	 	 	 	0.0	 	 	 	0.0	%
	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	%	 	Right Of Way Costs
	 	 	0.5	 	 	 	0.5	 	 	 	0.0	 	 	 	0.0	%
	 	0.1	 	 	 	0.0	 	 	 	0.1	 	 	 	100.0	%	 	Filing Fees
	 	 	0.1	 	 	 	0.0	 	 	 	0.1	 	 	 	100.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	144.4	 	 	 	139.9	 	 	 	4.5	 	 	 	3.3	%	 	Total Lands	 	 	420.4	 	 	 	415.1	 	 	 	(4.7	)	 	 	-1.1	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Royalty/Prod Tax Costs:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	53.7	 	 	 	44.2	 	 	 	9.5	 	 	 	21.6	%	 	Federal Reclamation
	 	 	169.8	 	 	 	148.7	 	 	 	21.1	 	 	 	14.2	%
	 	171.5	 	 	 	200.0	 	 	 	(28.5	)	 	 	-14.3	%	 	Sales Tax
	 	 	295.8	 	 	 	600.0	 	 	 	(304.2	)	 	 	-50.7	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	225.2	 	 	 	244.2	 	 	 	(19.0	)	 	 	-7.8	%	 	Total Production Taxes
	 	 	465.6	 	 	 	748.7	 	 	 	(283.1	)	 	 	-37.8	%
	 	105.3	 	 	 	143.9	 	 	 	(38.6	)	 	 	-26.8	%	 	Production Royalty
	 	 	386.7	 	 	 	417.0	 	 	 	(30.3	)	 	 	-7.3	%
	 	(66.5	)	 	 	0.0	 	 	 	(66.5	)	 	 	100.0	%	 	Recoupment Cr.
	 	 	(66.5	)	 	 	0.0	 	 	 	(66.5	)	 	 	100.0	%
	 	108.2	 	 	 	55.1	 	 	 	53.1	 	 	 	96.4	%	 	Overriding Royalty
	 	 	340.8	 	 	 	286.5	 	 	 	54.3	 	 	 	19.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	147.0	 	 	 	199.0	 	 	 	(51.9	)	 	 	-26.1	%	 	Total Royalties
	 	 	661.0	 	 	 	703.5	 	 	 	(42.5	)	 	 	-6.0	%
	 	27.5	 	 	 	37.5	 	 	 	(10.0	)	 	 	-26.6	%	 	Property Taxes
	 	 	110.0	 	 	 	112.5	 	 	 	(2.5	)	 	 	-2.2	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	$	399.8	 	 	$	480.7	 	 	 	(80.9	)	 	 	-16.8	%	 	Total Royalty/Prod Tax	 	$	1,236.7	 	 	$	1,564.7	 	 	 	(328.0	)	 	 	-21.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	20.8	 	 	 	42.5	 	 	 	(21.7	)	 	 	-51.1	%	 	Human Resources:
	 	 	114.0	 	 	 	128.2	 	 	 	(14.2	)	 	 	-11.1	%
	 	31.2	 	 	 	140.0	 	 	 	(108.7	)	 	 	-77.7	%	 	Information Technology
	 	 	158.6	 	 	 	299.1	 	 	 	(140.5	)	 	 	-47.0	%
	 	178.3	 	 	 	192.3	 	 	 	(13.9	)	 	 	-7.2	%	 	Business:
	 	 	550.1	 	 	 	559.2	 	 	 	(9.2	)	 	 	-1.6	%
	 	397.2	 	 	 	360.3	 	 	 	36.9	 	 	 	10.2	%	 	Executive:
	 	 	495.0	 	 	 	498.8	 	 	 	(3.7	)	 	 	-0.8	%
	 	673.8	 	 	 	593.6	 	 	 	80.2	 	 	 	13.5	%	 	Equipment Costs:
	 	 	1,902.1	 	 	 	1,780.9	 	 	 	121.2	 	 	 	6.8	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$	8,990.3	 	 	$	8,178.6	 	 	$	811.7	 	 	 	9.9	%	 	Grand Total
	 	$	25,246.0	 	 	$	24,946.5	 	 	$	299.5	 	 	 	1.2	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	UNIT COSTS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$	16.73	 	 	$	14.71	 	 	$	2.02	 	 	 	13.7	%	 	Cost per Ton — Lignite
	 	$	14.86	 	 	$	14.96	 	 	 	($0.10	)	 	 	-0.6	%
	$	1.28	 	 	$	1.10	 	 	$	0.17	 	 	 	15.8	%	 	Cost per MMBTU — Lignite
	 	$	1.12	 	 	$	1.12	 	 	$	0.00	 	 	 	0.3	%
	$	0.60	 	 	$	0.42	 	 	$	0.18	 	 	 	41.4	%	 	Stripping Cost per BCY
	 	$	0.55	 	 	$	0.48	 	 	$	0.07	 	 	 	15.0	%
	$	0.40	 	 	$	0.29	 	 	$	0.11	 	 	 	37.3	%	 	Dragline Stripping $/BCY
	 	$	0.39	 	 	$	0.30	 	 	$	0.09	 	 	 	28.7	%
	$	1.71	 	 	$	1.10	 	 	$	0.62	 	 	 	56.3	%	 	Mobile Stripping $/BCY
	 	$	1.32	 	 	$	1.40	 	 	 	($0.08	)	 	 	-5.7	%

Page 2 of 2

 

Texas Westmoreland Coal Co.

Jewett Mine

Performance Summary

March 2007

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Month	 	 	 	Year To Date	 
	 	 	Actual	 	 	0+12 Fcst	 	 	Budget	 	 	 	Actual	 	 	0+12 Fcst	 	 	Budget	 
	QUANTITIES:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sales Tons
	 	 	537.5	 	 	 	556.1	 	 	 	556.1	 	 	 	 	1698.4	 	 	 	1667.4	 	 	 	1667.4	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8200 Dragline Bcy
	 	 	3,817.6	 	 	 	4,853.0	 	 	 	4,853.0	 	 	 	 	11,383.9	 	 	 	13,872.0	 	 	 	13,872.0	 
	8750 Dragline Stripping
	 	 	835.5	 	 	 	396.0	 	 	 	396.0	 	 	 	 	2,797.9	 	 	 	1,829.0	 	 	 	1,829.0	 
	Mobile Stripping
	 	 	761.5	 	 	 	626.0	 	 	 	626.0	 	 	 	 	2,114.0	 	 	 	2,168.0	 	 	 	2,168.0	 
	Total Bcy	 	 	5,414.6	 	 	 	5,875.0	 	 	 	5,875.0	 	 	 	 	16,295.8	 	 	 	17,869.0	 	 	 	17,869.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	UNIT COSTS:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden Stripping:
	 	 	 	 	 	 	 	 	 	$/Bcy	 	 	 	 	 	 	 	 
	Clearing
	 	$	0.008	 	 	$	0.006	 	 	$	0.006	 	 	 	$	0.009	 	 	$	0.006	 	 	$	0.006	 
	Relocations
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dozer-Overburden
	 	$	0.000	 	 	$	0.000	 	 	$	0.000	 	 	 	$	0.000	 	 	$	0.000	 	 	$	0.000	 
	Scraper-Overburden
	 	$	0.000	 	 	$	0.000	 	 	$	0.000	 	 	 	$	0.000	 	 	$	0.000	 	 	$	0.000	 
	Truck/Loader-O.B.
	 	$	1.659	 	 	$	0.888	 	 	$	0.888	 	 	 	$	1.176	 	 	$	1.069	 	 	$	1.069	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Mobile-Overburden
	 	$	1.659	 	 	$	0.888	 	 	$	0.888	 	 	 	$	1.176	 	 	$	1.069	 	 	$	1.069	 
	Draglines
	 	$	0.271	 	 	$	0.193	 	 	$	0.193	 	 	 	$	0.233	 	 	$	0.199	 	 	$	0.199	 
	Pit/Surface Dewater
	 	$	0.022	 	 	$	0.019	 	 	$	0.019	 	 	 	$	0.023	 	 	$	0.018	 	 	$	0.018	 
	OB Dewatering
	 	$	0.013	 	 	$	0.022	 	 	$	0.022	 	 	 	$	0.021	 	 	$	0.021	 	 	$	0.021	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total OB Water Control
	 	$	0.035	 	 	$	0.041	 	 	$	0.041	 	 	 	$	0.043	 	 	$	0.040	 	 	$	0.040	 
	Deferred Stripping Adj
	 	$	(0.028	)	 	$	0.000	 	 	$	0.000	 	 	 	$	(0.007	)	 	$	0.000	 	 	$	0.000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Overburden	 	$	0.483	 	 	$	0.314	 	 	$	0.314	 	 	 	$	0.410	 	 	$	0.362	 	 	$	0.362	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Interburden Stripping:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dozers
	 	$	0.040	 	 	$	0.088	 	 	$	0.088	 	 	 	$	0.065	 	 	$	0.102	 	 	$	0.102	 
	Scraper
	 	$	0.001	 	 	$	0.000	 	 	$	0.000	 	 	 	$	0.001	 	 	$	0.000	 	 	$	0.000	 
	Truck/Loader
	 	$	0.000	 	 	$	0.121	 	 	$	0.121	 	 	 	$	0.002	 	 	$	0.140	 	 	$	0.140	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Mobile-Interburden
	 	$	0.041	 	 	$	0.208	 	 	$	0.208	 	 	 	$	0.067	 	 	$	0.242	 	 	$	0.242	 
	Draglines
	 	$	0.129	 	 	$	0.099	 	 	$	0.099	 	 	 	$	0.154	 	 	$	0.102	 	 	$	0.102	 
	Water Control
	 	$	0.000	 	 	$	0.000	 	 	$	0.000	 	 	 	$	0.000	 	 	$	0.000	 	 	$	0.000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Interbuden	 	$	0.117	 	 	$	0.111	 	 	$	0.111	 	 	 	$	0.143	 	 	$	0.119	 	 	$	0.119	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Stripping Costs	 	$	0.600	 	 	$	0.424	 	 	$	0.424	 	 	 	$	0.553	 	 	$	0.481	 	 	$	0.481	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	$/Ton	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Coal Production:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Testing & Analysis
	 	$	0.024	 	 	$	0.000	 	 	$	0.000	 	 	 	$	0.008	 	 	$	0.000	 	 	$	0.000	 
	Coal Cleaning
	 	$	0.002	 	 	$	0.000	 	 	$	0.000	 	 	 	$	0.005	 	 	$	0.000	 	 	$	0.000	 
	Loading Lignite
	 	$	0.436	 	 	$	0.456	 	 	$	0.456	 	 	 	$	0.450	 	 	$	0.456	 	 	$	0.456	 
	Hauling Lignite
	 	$	1.655	 	 	$	1.351	 	 	$	1.351	 	 	 	$	1.569	 	 	$	1.353	 	 	$	1.353	 
	Crushing & Handling
	 	$	0.296	 	 	$	0.398	 	 	$	0.398	 	 	 	$	0.246	 	 	$	0.336	 	 	$	0.336	 
	Coal Stockpile: Def. Adj.
	 	$	(0.098	)	 	$	0.000	 	 	$	0.000	 	 	 	$	(0.024	)	 	$	0.000	 	 	$	0.000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Coal Production	 	$	2.315	 	 	$	2.205	 	 	$	2.205	 	 	 	$	2.254	 	 	$	2.145	 	 	$	2.145	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Roads:
	 	$	1.089	 	 	$	0.782	 	 	$	0.782	 	 	 	$	0.870	 	 	$	0.782	 	 	$	0.782	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Production Supervision:
	 	$	0.479	 	 	$	0.310	 	 	$	0.310	 	 	 	$	0.442	 	 	$	0.310	 	 	$	0.310	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Engineering:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mine Planning
	 	$	0.264	 	 	$	0.271	 	 	$	0.271	 	 	 	$	0.233	 	 	$	0.273	 	 	$	0.273	 
	Civil &
Environmental Eng.
	 	$	0.148	 	 	$	0.256	 	 	$	0.256	 	 	 	$	0.206	 	 	$	0.272	 	 	$	0.272	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Engineering	 	$	0.412	 	 	$	0.526	 	 	$	0.526	 	 	 	$	0.439	 	 	$	0.545	 	 	$	0.545	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Current Reclamation:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Engineering
	 	$	0.000	 	 	$	0.000	 	 	$	0.000	 	 	 	$	0.000	 	 	$	0.000	 	 	$	0.000	 
	Regrade
	 	$	0.385	 	 	$	0.612	 	 	$	0.612	 	 	 	$	0.296	 	 	$	0.648	 	 	$	0.648	 
	Reclamation Arrearage Cr.
	 	$	0.000	 	 	$	(0.275	)	 	$	(0.275	)	 	 	$	0.000	 	 	$	(0.275	)	 	$	(0.275	)
	Topsoiling
	 	$	0.025	 	 	$	0.000	 	 	$	0.000	 	 	 	$	0.010	 	 	$	0.000	 	 	$	0.000	 
	Revegetation
	 	$	0.041	 	 	$	0.172	 	 	$	0.172	 	 	 	$	0.029	 	 	$	0.181	 	 	$	0.181	 

Page 1 of 2

 

Texas Westmoreland Coal Co.

Jewett Mine

Performance Summary

March 2007

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Month	 	 	 	Year To Date	 
	 	 	Actual	 	 	0+12 Fcst	 	 	Budget	 	 	 	Actual	 	 	0+12 Fcst	 	 	Budget	 
	Erosion Control
	 	$	0.195	 	 	$	0.216	 	 	$	0.216	 	 	 	$	0.079	 	 	$	0.159	 	 	$	0.159	 
	Compl. Monitoring
	 	$	0.080	 	 	$	0.103	 	 	$	0.103	 	 	 	$	0.070	 	 	$	0.089	 	 	$	0.089	 
	Permint/Bonding
	 	$	0.020	 	 	$	0.064	 	 	$	0.064	 	 	 	$	0.000	 	 	$	0.045	 	 	$	0.045	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Current Recl.	 	$	0.747	 	 	$	0.891	 	 	$	0.891	 	 	 	$	0.484	 	 	$	0.847	 	 	$	0.847	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Post Mine Accretion:
	 	$	0.430	 	 	$	0.309	 	 	$	0.309	 	 	 	$	0.408	 	 	$	0.309	 	 	$	0.309	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DD&A:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Amortization
	 	$	0.129	 	 	$	0.264	 	 	$	0.264	 	 	 	$	0.129	 	 	$	0.278	 	 	$	0.278	 
	Depletion
	 	$	0.078	 	 	$	0.063	 	 	$	0.063	 	 	 	$	0.107	 	 	$	0.106	 	 	$	0.106	 
	ARO Depletion
	 	$	0.723	 	 	$	0.537	 	 	$	0.537	 	 	 	$	0.749	 	 	$	0.602	 	 	$	0.602	 
	Depreciation
	 	$	0.310	 	 	$	0.150	 	 	$	0.150	 	 	 	$	0.307	 	 	$	0.162	 	 	$	0.162	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total DD&A	 	$	1.240	 	 	$	1.014	 	 	$	1.014	 	 	 	$	1.293	 	 	$	1.147	 	 	$	1.147	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Safety Administration:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Safety Administration
	 	$	0.051	 	 	$	0.038	 	 	$	0.038	 	 	 	$	0.043	 	 	$	0.054	 	 	$	0.054	 
	Training/Inspection
	 	$	0.003	 	 	$	0.050	 	 	$	0.050	 	 	 	$	0.047	 	 	$	0.043	 	 	$	0.043	 
	Safety Awards
	 	$	0.189	 	 	$	0.176	 	 	$	0.176	 	 	 	$	0.062	 	 	$	0.065	 	 	$	0.065	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Safety Admin.	 	$	0.244	 	 	$	0.265	 	 	$	0.265	 	 	 	$	0.152	 	 	$	0.162	 	 	$	0.162	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Purchasing:
	 	$	0.038	 	 	$	0.034	 	 	$	0.034	 	 	 	$	0.027	 	 	$	0.034	 	 	$	0.034	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Warehousing:
	 	$	0.087	 	 	$	0.169	 	 	$	0.169	 	 	 	$	0.156	 	 	$	0.166	 	 	$	0.166	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Facilities:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Building
	 	$	0.141	 	 	$	0.181	 	 	$	0.181	 	 	 	$	0.142	 	 	$	0.179	 	 	$	0.179	 
	Security
	 	$	0.026	 	 	$	0.031	 	 	$	0.031	 	 	 	$	0.025	 	 	$	0.033	 	 	$	0.033	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Facilities	 	$	0.167	 	 	$	0.212	 	 	$	0.212	 	 	 	$	0.167	 	 	$	0.212	 	 	$	0.212	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lands:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Land Department
	 	$	0.061	 	 	$	0.051	 	 	$	0.051	 	 	 	$	0.051	 	 	$	0.053	 	 	$	0.053	 
	Lease Rentals/Mineral
	 	$	0.001	 	 	$	0.001	 	 	$	0.001	 	 	 	$	0.001	 	 	$	0.001	 	 	$	0.001	 
	Lease Rentals/Surface
	 	$	0.000	 	 	$	0.000	 	 	$	0.000	 	 	 	$	0.004	 	 	$	0.006	 	 	$	0.006	 
	Adv. Roy-Non Recoup.
	 	$	0.206	 	 	$	0.199	 	 	$	0.199	 	 	 	$	0.185	 	 	$	0.189	 	 	$	0.189	 
	Right Of Way Costs
	 	$	0.000	 	 	$	0.000	 	 	$	0.000	 	 	 	$	0.000	 	 	$	0.000	 	 	$	0.000	 
	Filing Fees
	 	$	0.000	 	 	$	0.000	 	 	$	0.000	 	 	 	$	0.000	 	 	$	0.000	 	 	$	0.000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Lands	 	$	0.269	 	 	$	0.252	 	 	$	0.252	 	 	 	$	0.242	 	 	$	0.249	 	 	$	0.249	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Royalty/Prod Tax Costs:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Federal Reclamation
	 	$	0.100	 	 	$	0.079	 	 	$	0.079	 	 	 	$	0.100	 	 	$	0.089	 	 	$	0.089	 
	Sales Taxes
	 	$	0.319	 	 	$	0.360	 	 	$	0.360	 	 	 	$	0.174	 	 	$	0.360	 	 	$	0.360	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Production Taxes
	 	$	0.419	 	 	$	0.439	 	 	$	0.439	 	 	 	$	0.274	 	 	$	0.449	 	 	$	0.449	 
	Production Royalty
	 	$	0.196	 	 	$	0.259	 	 	$	0.259	 	 	 	$	0.228	 	 	$	0.250	 	 	$	0.250	 
	Recoupment Cr.
	 	$	(0.124	)	 	$	0.000	 	 	$	0.000	 	 	 	$	(0.039	)	 	$	0.000	 	 	$	0.000	 
	Overriding Royalty
	 	$	0.201	 	 	$	0.099	 	 	$	0.099	 	 	 	$	0.201	 	 	$	0.172	 	 	$	0.172	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Royalties
	 	$	0.274	 	 	$	0.358	 	 	$	0.358	 	 	 	$	0.389	 	 	$	0.422	 	 	$	0.422	 
	Property Taxes
	 	$	0.051	 	 	$	0.067	 	 	$	0.067	 	 	 	$	0.065	 	 	$	0.067	 	 	$	0.067	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Roy/Prod Tax Costs	 	$	0.744	 	 	$	0.864	 	 	$	0.864	 	 	 	$	0.728	 	 	$	0.938	 	 	$	0.938	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Human Resources:
	 	$	0.039	 	 	$	0.076	 	 	$	0.076	 	 	 	$	0.067	 	 	$	0.077	 	 	$	0.077	 
	Information Technology:
	 	$	0.058	 	 	$	0.252	 	 	$	0.252	 	 	 	$	0.093	 	 	$	0.179	 	 	$	0.179	 
	Business:
	 	$	0.332	 	 	$	0.346	 	 	$	0.346	 	 	 	$	0.324	 	 	$	0.335	 	 	$	0.335	 
	Executive:
	 	$	0.739	 	 	$	0.648	 	 	$	0.648	 	 	 	$	0.291	 	 	$	0.299	 	 	$	0.299	 
	Equipment Costs:
	 	$	1.254	 	 	$	1.068	 	 	$	1.068	 	 	 	$	1.120	 	 	$	1.068	 	 	$	1.068	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Cost/Ton	 	$	16.728	 	 	$	14.708	 	 	$	14.708	 	 	 	$	14.865	 	 	$	14.961	 	 	$	14.961	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Page 2 of 2

 

EXHIBIT 15

Form of Monthly and Quarterly Variance Report

See attached.

Exhibit 15 — Page 1

 

					
	 	 	Westmoreland Coal Company
	 	Page – 1
	 
	 	Cost By Sub by Cat Code	 	 
	 
	 	As of 31	 	 

Exhibit 15

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Current	 	Current	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Months	 	Months	 	Budget	 	%	 	YTD	 	YTD	 	Budget	 	%
	Description	 	Actuals	 	Budgets	 	Variance	 	Variance	 	Actuals	 	Budgets	 	Variance	 	Variance
	25100 Clearing
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contract Labor
	 	 	44,168.38	 	 	 	33,885.00	 	 	 	10,283.38	 	 	 	.30	 	 	 	141,721.88	 	 	 	101,681.00	 	 	 	40,040.88	 	 	 	.39	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Clearing
	 	 	44,168.38	 	 	 	33,885.00	 	 	 	10,283.38	 	 	 	.30	 	 	 	141,721.88	 	 	 	101,681.00	 	 	 	40,040.88	 	 	 	.39	 
	25200 Relocations
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contract Labor
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	23,000.00	 	 	 	23,000.00-	 	 	 	1.00-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Relocations
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	23,000.00	 	 	 	23,000.00-	 	 	 	1.00-	 
	25300 Mobile
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Mobile
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	25310 Dozers
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	608.41	 	 	 	 	 	 	 	608.41	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Dozers
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	608.41	 	 	 	 	 	 	 	608.41	 	 	 	 	 
	25320 Scrapers
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Scrapers
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	25330 TK/Leader
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)	 	 	262,709.07	 	 	 	148,069.00	 	 	 	114,640.07	 	 	 	.77	 	 	 	466,538.25	 	 	 	603,779.00	 	 	 	137,240.75-	 	 	 	.23-	 
	Contract Labor
	 	 	211,548.61	 	 	 	24,762.00	 	 	 	186,786.61	 	 	 	7.54	 	 	 	273,950.56	 	 	 	100,970.00	 	 	 	172,980.56	 	 	 	1.71	 
	Equipment w/Maint Labor, F&T	 	 	788,892.81	 	 	 	383,092.00	 	 	 	405,800.81	 	 	 	1.06	 	 	 	1,597,136.96	 	 	 	1,530,889.00	 	 	 	66,247.96	 	 	 	.04	 
	Equipment Rental/Lease
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	147,611.38	 	 	 	80,947.00	 	 	 	66,664.38	 	 	 	.82	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total TK/Leader
	 	 	1,263,150.49	 	 	 	55,923.00	 	 	 	707,227.49	 	 	 	1.27	 	 	 	2,485,237.15	 	 	 	2,316,585.00	 	 	 	168,652.15	 	 	 	.07	 
	25400 Draglines
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)	 	 	226,262.20	 	 	 	172,948.00	 	 	 	53,314.20	 	 	 	.31	 	 	 	634,446.24	 	 	 	529,680.00	 	 	 	104,755.24	 	 	 	.20	 
	Contract Labor
	 	 	1,404.38	 	 	 	10,890.00	 	 	 	9,485.62-	 	 	 	.87-	 	 	 	1,715.62	 	 	 	12,622.00	 	 	 	10,906.38-	 	 	 	.86-	 
	Equipment w/Maint Labor, F&T	 	 	1,032,238.62	 	 	 	824,362.00	 	 	 	207,876.62	 	 	 	.25	 	 	 	2,664,943.68	 	 	 	2,570,87_.00	 	 	 	94,136.68	 	 	 	.04	 
	Equipment Rental/Lease
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	3,784.56	 	 	 	 	 	 	 	3,784.56	 	 	 	 	 
	Materials and Supplies
	 	 	 	 	 	 	2,360.00	 	 	 	2,360.00-	 	 	 	1.00-	 	 	 	 	 	 	 	6,490.00	 	 	 	6,490.00-	 	 	 	1.00-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Draglines
	 	 	1,259,905.20	 	 	 	1,010,560.00	 	 	 	249,345.20	 	 	 	.25	 	 	 	3,304,890.10	 	 	 	3,119,599.00	 	 	 	185,291.10	 	 	 	.06	 
	25500 Bucketwheel- OB
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)	 	 	1,006.72	 	 	 	 	 	 	 	1,006.72	 	 	 	 	 	 	 	53,206.33	 	 	 	57,880.00	 	 	 	4,673.67-	 	 	 	.08-	 
	Contract Labor
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	26.70	 	 	 	 	 	 	 	26.70	 	 	 	 	 
	Equipment w/Maint Labor, F&T
	 	 	8,904.35	 	 	 	 	 	 	 	8,904.35	 	 	 	 	 	 	 	107,979.68	 	 	 	134,053.00	 	 	 	26,073.32-	 	 	 	.19-	 
	Materials and Supplies
	 	 	209.08	 	 	 	 	 	 	 	209.08	 	 	 	 	 	 	 	209.08	 	 	 	 	 	 	 	209.08	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Bucketwheel- OB
	 	 	10,120.15	 	 	 	 	 	 	 	10,120.15	 	 	 	 	 	 	 	161,421.79	 	 	 	191,933.00	 	 	 	30,511.21-	 	 	 	.16-	 
	25600 Contractor- OB
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Contractor- OB
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

					
	 	 	Westmoreland Coal Company
	 	Page – 2
	 
	 	Cost By Sub by Cat Code	 	 
	 
	 	As of 31	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Current	 	Current	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Months	 	Months	 	Budget	 	%	 	YTD	 	YTD	 	Budget	 	%
	Description	 	Actuals	 	Budgets	 	Variance	 	Variance	 	Actuals	 	Budgets	 	Variance	 	Variance
	25700 Drainage / water control OB
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Drainage / water control OB
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	25710 Pit/Surface
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	85,052.43	 	 	 	79,261.00	 	 	 	5,791.43	 	 	 	.07	 	 	 	234,836.88	 	 	 	230,112.00	 	 	 	4,724.88	 	 	 	.02	 
	Contract Labor
	 	 	8,576.82	 	 	 	9,807.00	 	 	 	1,230.18-	 	 	 	.13-	 	 	 	25,559.19	 	 	 	28,472.00	 	 	 	2,912.81-	 	 	 	.10-	 
	Equipment w/Maint Labor, F&T
	 	 	23,482.28	 	 	 	18,680.00	 	 	 	4,802.28	 	 	 	.26	 	 	 	93,343.82	 	 	 	54,232.00	 	 	 	39,111.82	 	 	 	.72	 
	Safety Supplies
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	7.74	 	 	 	 	 	 	 	7.74	 	 	 	 	 
	Materials and Supplies
	 	 	1,246.47	 	 	 	5,400.00	 	 	 	4,153.53-	 	 	 	.77-	 	 	 	13,708.14	 	 	 	16,200.00	 	 	 	2,491.86-	 	 	 	.15-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Pit/Surface
	 	 	118,358.00	 	 	 	113,148.00	 	 	 	5,210.00	 	 	 	.05	 	 	 	367,455.77	 	 	 	329,016.00	 	 	 	38,439.77	 	 	 	.12	 
	25720 Overburden
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	15,913.62	 	 	 	13,836.00	 	 	 	2,077.62	 	 	 	.15	 	 	 	42,474.46	 	 	 	41,508.00	 	 	 	966.46	 	 	 	.02	 
	Contact labor
	 	 	27,406.96	 	 	 	78,000.00	 	 	 	50,593.04-	 	 	 	.65-	 	 	 	173,281.06	 	 	 	233,750.00	 	 	 	50,468.94-	 	 	 	.26-	 
	Equipment w/Maint Labor, F&T
	 	 	3,112.02	 	 	 	 	 	 	 	3,112.02	 	 	 	 	 	 	 	6,603.89	 	 	 	 	 	 	 	6,603.89	 	 	 	 	 
	Materials and supplies
	 	 	17,622.46	 	 	 	30,500.00	 	 	 	12,877.54-	 	 	 	.42-	 	 	 	83,143.14	 	 	 	84,850.00	 	 	 	1,706.86-	 	 	 	.02-	 
	Electricity
	 	 	7,155.16	 	 	 	8,000.00	 	 	 	8.44.84-	 	 	 	.11-	 	 	 	29,924.14	 	 	 	24,000.00	 	 	 	5,924.14	 	 	 	.25	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Overburden
	 	 	71,210.22	 	 	 	130,336.00	 	 	 	59,125.78-	 	 	 	.45-	 	 	 	335,426.69	 	 	 	384,108.00	 	 	 	48,681.31-	 	 	 	.13-	 
	25800 OB Drill & BI
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total OB Drill&BI
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	30110 Dozers- IB
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	8,479.73	 	 	 	14,624.00	 	 	 	6,144.27-	 	 	 	.42-	 	 	 	31,134.92	 	 	 	59,632.00	 	 	 	28,497.08-	 	 	 	.48-	 
	Contract Labor
	 	 	3,795.15	 	 	 	2,446.00	 	 	 	1,349.15	 	 	 	.55	 	 	 	10,359.42	 	 	 	9,973.00	 	 	 	386.42	 	 	 	.04	 
	Equipment w/Maint Labor, F&T
	 	 	17,874.41	 	 	 	37,836.00	 	 	 	19,961.59-	 	 	 	.53-	 	 	 	89,947.08	 	 	 	151,199.00	 	 	 	61,251.92-	 	 	 	.41-	 
	Equipment Rental/Lease
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5,542.11	 	 	 	 	 	 	 	5,542.11	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Dozers- IB
	 	 	30,149.29	 	 	 	54,905.00	 	 	 	24,756.71-	 	 	 	.45-	 	 	 	136,983.53	 	 	 	220,804.00	 	 	 	83,820.47-	 	 	 	.38-	 
	30128 Scrapers- IB
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Equipment w/Maint Labor, F&T
	 	 	1,125.90	 	 	 	 	 	 	 	1,125.90	 	 	 	 	 	 	 	1,405.87	 	 	 	 	 	 	 	1,405.87	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Scrapers- IB
	 	 	1,125.90	 	 	 	 	 	 	 	1,125.90	 	 	 	 	 	 	 	1,405.87	 	 	 	 	 	 	 	1,405.87	 	 	 	 	 
	30130 Track/Loader- IB
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	456.30	 	 	 	20,108.00	 	 	 	19,651.70-	 	 	 	.98-	 	 	 	1,695.32	 	 	 	81,996.00	 	 	 	80,300.68-	 	 	 	.98-	 
	Contract Labor
	 	 	107.27	 	 	 	3,363.00	 	 	 	3,255.73-	 	 	 	.97-	 	 	 	107.27	 	 	 	13,712.00	 	 	 	13,604.73-	 	 	 	.99-	 
	Equipment w/Maint Labor, F&T
	 	 	467.96-	 	 	 	52,025.00	 	 	 	52,492.96-	 	 	 	1.01-	 	 	 	1,767.06	 	 	 	207,899.00	 	 	 	206,131.94-	 	 	 	.99-	 
	Equipment Rental/Lease
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	55.20	 	 	 	 	 	 	 	55.20	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Truck / Loader- IB
	 	 	95.61	 	 	 	75,496.00	 	 	 	75,400.39-	 	 	 	1.00-	 	 	 	3,624.85	 	 	 	303,607.00	 	 	 	299,982.15-	 	 	 	.99-	 

 

 

					
	 	 	Westmoreland Coal Company
	 	Page – 3
	 
	 	Cost By Sub by Cat Code	 	 
	 
	 	As of 31	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Current	 	Current	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Months	 	Months	 	Budget	 	%	 	YTD	 	YTD	 	Budget	 	%
	Description	 	Actuals	 	Budgets	 	Variance	 	Variance	 	Actuals	 	Budgets	 	Variance	 	Variance
	30209 Draglines- IB
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	95,038.55	 	 	 	89,094.00	 	 	 	5,944.55	 	 	 	.07	 	 	 	334,051.27	 	 	 	272,866.00	 	 	 	61,185.27	 	 	 	.22	 
	Contract Labor
	 	 	 	 	 	 	5,610.00	 	 	 	5,610.00-	 	 	 	1.00-	 	 	 	316.13	 	 	 	6,503.00	 	 	 	6,186.87-	 	 	 	.95-	 
	Equipment w/Maint Labor, F&T
	 	 	307,106.91	 	 	 	424,672.00	 	 	 	82,434.91	 	 	 	.19	 	 	 	1,853,449.45	 	 	 	1,324,355.00	 	 	 	529,094.45	 	 	 	.40	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Draglines- IB
	 	 	602,145.46	 	 	 	519,376.00	 	 	 	82,769.46	 	 	 	.16	 	 	 	2,187,816.85	 	 	 	1,603,724.00	 	 	 	584,092.85	 	 	 	.36	 
	30409 Draglines
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Draglines
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	35100 Test&Analy
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	585.28	 	 	 	 	 	 	 	585.28	 	 	 	 	 	 	 	841.34	 	 	 	 	 	 	 	841.34	 	 	 	 	 
	Contract Labor
	 	 	12,105.08	 	 	 	 	 	 	 	12,105.08	 	 	 	 	 	 	 	12,426.98	 	 	 	 	 	 	 	12,426.98	 	 	 	 	 
	Materials and Supplies
	 	 	115.20	 	 	 	 	 	 	 	115.20	 	 	 	 	 	 	 	115.20	 	 	 	 	 	 	 	115.20	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Test&Analy
	 	 	12,805.56	 	 	 	 	 	 	 	12,805.56	 	 	 	 	 	 	 	13,383.52	 	 	 	 	 	 	 	13,383.52	 	 	 	 	 
	35200 Coal Cleaning
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	3,076.44	 	 	 	 	 	 	 	3,076.44	 	 	 	 	 
	Equipment w/Maint Labor, F&T
	 	 	1,093.94	 	 	 	 	 	 	 	1,093.94	 	 	 	 	 	 	 	5,838.25	 	 	 	 	 	 	 	5,838.25	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Coal Cleaning
	 	 	1,093.94	 	 	 	 	 	 	 	1,093.94	 	 	 	 	 	 	 	8,914.69	 	 	 	 	 	 	 	8,914.69	 	 	 	 	 
	35400 Loading
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	70,742.50	 	 	 	67,237.00	 	 	 	3,505.50	 	 	 	.05	 	 	 	215,316.82	 	 	 	201,896.00	 	 	 	13,420.82	 	 	 	.07	 
	Contract Labor
	 	 	1,797.22	 	 	 	4,099.00	 	 	 	2,301.78-	 	 	 	.56-	 	 	 	4,278.72	 	 	 	12,309.00	 	 	 	8,030.28-	 	 	 	.65-	 
	Equipment w/Maint Labor, F&T
	 	 	161,914.50	 	 	 	182,351.00	 	 	 	20,436.50-	 	 	 	.11-	 	 	 	544,574.40	 	 	 	546,448.00	 	 	 	1,873.60-	 	 	 	0.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Loading
	 	 	234,454.22	 	 	 	253,637.00	 	 	 	19,232.78-	 	 	 	.08-	 	 	 	764,169.94	 	 	 	760,653.00	 	 	 	3,516.94	 	 	 	0.00	 
	35500 Haulage
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	68,527.53	 	 	 	169,171.00	 	 	 	100,643,47-	 	 	 	.59-	 	 	 	203,039.80	 	 	 	508,037.00	 	 	 	304,997.20-	 	 	 	.50-	 
	Contract Labor
	 	 	161,528.45	 	 	 	32,471.00	 	 	 	129,057.45	 	 	 	3.97	 	 	 	355,275.69	 	 	 	97,501.00	 	 	 	257,774.69	 	 	 	2.64	 
	Equipment w/Maint Labor, F&T
	 	 	659,640.82	 	 	 	549,715.00	 	 	 	109,925.82	 	 	 	.20	 	 	 	2,104,098.00	 	 	 	1,650,632.00	 	 	 	453,466.00	 	 	 	.27	 
	Equipment Rental/Lease
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,963.49	 	 	 	 	 	 	 	1,963.49	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Haulage
	 	 	889,696.80	 	 	 	751,357.00	 	 	 	138,339.80	 	 	 	.18	 	 	 	2,664,376.98	 	 	 	2,256,170.00	 	 	 	408,206.98	 	 	 	.18	 
	35600 Crush & Hand
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	77,334.65	 	 	 	74,172.00	 	 	 	3,162.65	 	 	 	.04	 	 	 	220,911.33	 	 	 	218,273.00	 	 	 	2,638.33	 	 	 	.01	 
	Contract Labor
	 	 	1,210.74	 	 	 	51,125.00	 	 	 	49,914.26-	 	 	 	.98-	 	 	 	7,610.38	 	 	 	54,373.00	 	 	 	46,762.62-	 	 	 	.86-	 
	Equipment w/Maint Labor, F&T
	 	 	80,395.62	 	 	 	94,441.00	 	 	 	14,045.38-	 	 	 	.15-	 	 	 	189,173.89	 	 	 	283,254.00	 	 	 	94,080.11-	 	 	 	.33-	 
	Equipment Rental/Lease
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	105.50	 	 	 	 	 	 	 	105.50	 	 	 	 	 
	Materials and Supplies
	 	 	 	 	 	 	1,495.00	 	 	 	1,495.00-	 	 	 	1.00-	 	 	 	 	 	 	 	4,485.00	 	 	 	4,485.00-	 	 	 	1.00-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

					
	 	 	Westmoreland Coal Company
	 	Page – 4
	 
	 	Cost By Sub by Cat Code	 	 
	 
	 	As of 31	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Current	 	Current	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Months	 	Months	 	Budget	 	%	 	YTD	 	YTD	 	Budget	 	%
	Description	 	Actuals	 	Budgets	 	Variance	 	Variance	 	Actuals	 	Budgets	 	Variance	 	Variance
	Total Crush & Hand
	 	 	158,941.01	 	 	 	221,233.00	 	 	 	62,291.99-	 	 	 	.28-	 	 	 	417,801.10	 	 	 	560,385.00	 	 	 	142,583.90-	 	 	 	.25-	 
	40000 Roads
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	173,544.68	 	 	 	146,664.00	 	 	 	26,880.68	 	 	 	.18	 	 	 	449,223.51	 	 	 	440,389.00	 	 	 	8,834.51	 	 	 	.02	 
	Contract Labor
	 	 	18,932.52	 	 	 	27,651.00	 	 	 	8,718.48-	 	 	 	.32-	 	 	 	120,359.18	 	 	 	81,384.00	 	 	 	38,975.18	 	 	 	.48	 
	Equipment w/Maint Labor, F&T
	 	 	375,700.17	 	 	 	240,671.00	 	 	 	135,029.17	 	 	 	.56	 	 	 	835,609.36	 	 	 	722,665.00	 	 	 	112,944.36	 	 	 	.16	 
	Equipment Rental/Lease
	 	 	5,050.00-	 	 	 	 	 	 	 	5,050.00-	 	 	 	 	 	 	 	11,163.02	 	 	 	 	 	 	 	11,163.02	 	 	 	 	 
	Materials and Supplies
	 	 	17,464.29	 	 	 	18,105.00	 	 	 	640.71-	 	 	 	.04-	 	 	 	48,735.39	 	 	 	53,115.00	 	 	 	4,379.61-	 	 	 	.08-	 
	Electricity
	 	 	4,821.53	 	 	 	1,950.00	 	 	 	2,871.53	 	 	 	1.47	 	 	 	13,323.58	 	 	 	5,850.00	 	 	 	7,473.58	 	 	 	1.28	 
	Freight
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	175.04-	 	 	 	 	 	 	 	175.04-	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Roads
	 	 	585,413.19	 	 	 	435,041.00	 	 	 	150,372.19	 	 	 	.35	 	 	 	1,478,239.00	 	 	 	1,303,403.00	 	 	 	174,836.00	 	 	 	.13	 
	45000 Prod Superv
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	122,258.29	 	 	 	28,611.00	 	 	 	93,647.29	 	 	 	3.27	 	 	 	228,770.44	 	 	 	85,833.00	 	 	 	142,937.44	 	 	 	1.67	 
	Supervisor Labor (Fringe & Tax)
	 	 	115,423.27	 	 	 	127,860.00	 	 	 	12,436.73-	 	 	 	.10-	 	 	 	361,290.66	 	 	 	383,580.00	 	 	 	22,289.34-	 	 	 	.06-	 
	Contract Labor
	 	 	1,955.78	 	 	 	7,500.00	 	 	 	5,544.22-	 	 	 	.74-	 	 	 	61,347.55	 	 	 	22,500.00	 	 	 	38,847.55	 	 	 	1.73	 
	Equipment w/Maint Labor, F&T
	 	 	7,314.90	 	 	 	 	 	 	 	7,314.90	 	 	 	 	 	 	 	71,447.30	 	 	 	 	 	 	 	71,447.30	 	 	 	 	 
	Equipment Rental/Lease
	 	 	 	 	 	 	1,500.00	 	 	 	1,500.00-	 	 	 	1.00-	 	 	 	 	 	 	 	4,500.00	 	 	 	4,500.00-	 	 	 	1.00-	 
	Safety Supplies
	 	 	3,347.62	 	 	 	 	 	 	 	3,347.62	 	 	 	 	 	 	 	8,902.74	 	 	 	 	 	 	 	8,902.74	 	 	 	 	 
	Materials and Supplies
	 	 	5,047.34	 	 	 	4,900.00	 	 	 	147.34	 	 	 	.03	 	 	 	14,285.61	 	 	 	14,700.00	 	 	 	414.39-	 	 	 	.03-	 
	Electricity
	 	 	1,916.06	 	 	 	1,520.00	 	 	 	796.06	 	 	 	.71	 	 	 	4,560.59	 	 	 	3,360.00	 	 	 	1,200.59	 	 	 	.36	 
	Other
	 	 	239.47	 	 	 	1,066.00	 	 	 	826.53-	 	 	 	.78-	 	 	 	892.54	 	 	 	3,198.00	 	 	 	2,305.46-	 	 	 	.72-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Prod Superv
	 	 	257,502.73	 	 	 	172,557.00	 	 	 	84,945.73	 	 	 	.49	 	 	 	751,497.43	 	 	 	517,671.00	 	 	 	233,826.43	 	 	 	.45	 
	50100 Mine Plan
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	20,700.59	 	 	 	23,423.00	 	 	 	2,722.41-	 	 	 	.12-	 	 	 	54,216.58	 	 	 	70,269.00	 	 	 	16,052.42-	 	 	 	.23-	 
	Supervisor Labor (Fringe & Tax)
	 	 	90,168.93	 	 	 	94,404.00	 	 	 	4,235.07-	 	 	 	.04-	 	 	 	263,758.32	 	 	 	283,212.00	 	 	 	19,453.68-	 	 	 	.07-	 
	Contract Labor
	 	 	28,320.08	 	 	 	29,258.00	 	 	 	937.92-	 	 	 	.03-	 	 	 	70,587.73	 	 	 	96,974.00	 	 	 	26,386.27-	 	 	 	.27-	 
	Materials and Supplies
	 	 	357.57	 	 	 	1,460.00	 	 	 	1,102.43-	 	 	 	.76-	 	 	 	2,436.40	 	 	 	3,060.00	 	 	 	623.60-	 	 	 	.20-	 
	Other
	 	 	2,195.04	 	 	 	2,100.00	 	 	 	95.04	 	 	 	.05	 	 	 	4,948.92	 	 	 	2,100.00	 	 	 	2,848.92	 	 	 	1.36	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Mine Plan
	 	 	141,742.21	 	 	 	150,645.00	 	 	 	8,902.79-	 	 	 	.06-	 	 	 	395,947.95	 	 	 	455,615.00	 	 	 	59,667.05-	 	 	 	.13-	 
	50200 Civil Engineering
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Supervisor Labor (Fringe & Tax)
	 	 	4,271.13	 	 	 	68,673.00	 	 	 	64,400.87-	 	 	 	.94-	 	 	 	154,722.22	 	 	 	206,016.00	 	 	 	51,293.78-	 	 	 	.25-	 
	Contract Labor
	 	 	27,697.89	 	 	 	12,629.00	 	 	 	15,068.89	 	 	 	1.19	 	 	 	42,603.02	 	 	 	59,611.00	 	 	 	17,007.98-	 	 	 	.29-	 
	Materials and Supplies
	 	 	741.70	 	 	 	615.00	 	 	 	126.70	 	 	 	.21	 	 	 	759.32	 	 	 	6,845.00	 	 	 	6,085.68-	 	 	 	.89-	 
	Legal
	 	 	2,321.94	 	 	 	5,500.00	 	 	 	3,178.06-	 	 	 	.58-	 	 	 	17,101.74	 	 	 	16,500.00	 	 	 	601.74	 	 	 	.04	 
	Other
	 	 	44,575.73	 	 	 	54,700.00	 	 	 	10,124.27-	 	 	 	.19-	 	 	 	134,679.13	 	 	 	164,100.00	 	 	 	29,420.87-	 	 	 	.18-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

					
	 	 	Westmoreland Coal Company
	 	Page – 5
	 
	 	Cost By Sub by Cat Code	 	 
	 
	 	As of 31	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Current	 	Current	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Months	 	Months	 	Budget	 	%	 	YTD	 	YTD	 	Budget	 	%
	Description	 	Actuals	 	Budgets	 	Variance	 	Variance	 	Actuals	 	Budgets	 	Variance	 	Variance
	Total Civil Engineering
	 	 	79,608.39	 	 	 	142,116.00	 	 	 	62,507.61-	 	 	 	.44-	 	 	 	349,865.43	 	 	 	453,072.00	 	 	 	103,206.57-	 	 	 	.23-	 
	53100 Engineering
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contract Labor
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	475.00	 	 	 	 	 	 	 	475.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Engineering
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	475.00	 	 	 	 	 	 	 	475.00	 	 	 	 	 
	53200 Regrading
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	41,931.24	 	 	 	45,338.00	 	 	 	3,406.76-	 	 	 	.05-	 	 	 	91,863.33	 	 	 	131,626.00	 	 	 	39,762.67-	 	 	 	.30-	 
	Contract Labor
	 	 	43,281.20	 	 	 	85,722.00	 	 	 	42,440.80-	 	 	 	.50-	 	 	 	102,777.29	 	 	 	302,272.00	 	 	 	199,494.71-	 	 	 	.66-	 
	Equipment w/Maint Labor, F&T
	 	 	121,790.84	 	 	 	100,277.00	 	 	 	21,513.84	 	 	 	.21	 	 	 	244,866.34	 	 	 	291,127.00	 	 	 	46,260.66-	 	 	 	.16-	 
	Equipment Rental/Lease
	 	 	 	 	 	 	48,151.00	 	 	 	48,151.00-	 	 	 	1.00-	 	 	 	63,383.50	 	 	 	139,793.00	 	 	 	76,409.50-	 	 	 	.55-	 
	Safety Supplies
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	80.07	 	 	 	 	 	 	 	80.07	 	 	 	 	 
	Materials and Supplies
	 	 	 	 	 	 	60,588.00	 	 	 	60,588.00-	 	 	 	1.00-	 	 	 	27.24	 	 	 	215,220.00	 	 	 	215,192.76-	 	 	 	1.00-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Regrading
	 	 	207,003.28	 	 	 	340,076.00	 	 	 	133,072.72-	 	 	 	.39-	 	 	 	502,997.77	 	 	 	1,080,038.00	 	 	 	577,040.23-	 	 	 	.53-	 
	55210 Topsoiling
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	5,419.32	 	 	 	 	 	 	 	5,419.32	 	 	 	 	 	 	 	6,963.77	 	 	 	 	 	 	 	6,963.77	 	 	 	 	 
	Contract Labor
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	316.13	 	 	 	 	 	 	 	316.13	 	 	 	 	 
	Equipment w/Maint Labor, F&T
	 	 	7,992.38	 	 	 	 	 	 	 	7,992.38	 	 	 	 	 	 	 	9,068.09	 	 	 	 	 	 	 	9,068.09	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Topsoiling
	 	 	13,411.70	 	 	 	 	 	 	 	13,411.70	 	 	 	 	 	 	 	16,347.99	 	 	 	 	 	 	 	16,347.99	 	 	 	 	 
	55300 Revegetation
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contract Labor
	 	 	15,480.99	 	 	 	71,535.00	 	 	 	56,054.01-	 	 	 	.78-	 	 	 	38,324.48	 	 	 	226,575.00	 	 	 	188,250.52-	 	 	 	.83-	 
	Materials and Supplies
	 	 	6,504.98	 	 	 	23,845.00	 	 	 	17,340.02-	 	 	 	.73-	 	 	 	10,769.14	 	 	 	75,525.00	 	 	 	64,755.86-	 	 	 	.86-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Revegetation
	 	 	21,985.97	 	 	 	95,380.00	 	 	 	73,394.03-	 	 	 	.77-	 	 	 	49,093.62	 	 	 	302,100.30	 	 	 	253,006.38-	 	 	 	.84-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	55400 Erosion control
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Erosion control
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	55410 Ero ctrl- Pond Treat
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	153.02	 	 	 	 	 	 	 	153.02	 	 	 	 	 
	Contract Labor
	 	 	4,401.90	 	 	 	2,800.00	 	 	 	1,601.90	 	 	 	.57	 	 	 	8,607.99	 	 	 	8,400.00	 	 	 	207.99	 	 	 	.02	 
	Materials and Supplies
	 	 	 	 	 	 	21,384.00	 	 	 	21,384.00-	 	 	 	1.00-	 	 	 	22,758.95	 	 	 	67,860.00	 	 	 	45,101.05-	 	 	 	.66-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Ero ctrl- Pond Treat
	 	 	4,401.90	 	 	 	24,184.00	 	 	 	19,782.10-	 	 	 	.82-	 	 	 	31,519.96	 	 	 	76,260.00	 	 	 	44,740.04-	 	 	 	.59-	 
	55420 Civil- Desilt Ponds
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contract Labor
	 	 	41,629.74	 	 	 	23,820.00	 	 	 	17,809.74	 	 	 	.75	 	 	 	43,151.73	 	 	 	51,820.00	 	 	 	8,668.27-	 	 	 	.17-	 
	Materials and Supplies
	 	 	 	 	 	 	3,480.00	 	 	 	3,480.00-	 	 	 	1.00-	 	 	 	 	 	 	 	10,440.00	 	 	 	10,440.00-	 	 	 	1.00-	 
	Electricity
	 	 	 	 	 	 	2,000.00	 	 	 	2,000.00-	 	 	 	1.00-	 	 	 	 	 	 	 	6,000.00	 	 	 	6,000.00-	 	 	 	1.00-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Civil- Desilt Ponds
	 	 	41,629.74	 	 	 	29,300.00	 	 	 	12,329.74	 	 	 	.42	 	 	 	43,151.73	 	 	 	68,260.00	 	 	 	25,108.27-	 	 	 	.37-	 

 

 

					
	 	 	Westmoreland Coal Company
	 	Page – 6
	 
	 	Cost By Sub by Cat Code	 	 
	 
	 	As of 31	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Current	 	Current	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Months	 	Months	 	Budget	 	%	 	YTD	 	YTD	 	Budget	 	%
	Description	 	Actuals	 	Budgets	 	Variance	 	Variance	 	Actuals	 	Budgets	 	Variance	 	Variance
	55430 Sediment Control- Base Recl
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contract Labor
	 	 	58,932.86	 	 	 	29,000.00	 	 	 	29,932.86	 	 	 	1.03	 	 	 	59,531.24	 	 	 	83,500.00	 	 	 	23,968.76-	 	 	 	.29-	 
	Materials and Supplies
	 	 	 	 	 	 	37,500.00	 	 	 	37,500.00-	 	 	 	1.00-	 	 	 	227.55	 	 	 	37,500.00	 	 	 	37,272.45-	 	 	 	.99-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Sediment Control- Base Recl
	 	 	58,932.86	 	 	 	66,500.00	 	 	 	7,567.14-	 	 	 	.11-	 	 	 	59,758.79	 	 	 	121,000.00	 	 	 	61,241.21-	 	 	 	.51-	 
	55501 Resource Monitoring- Base Recl
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	444.44	 	 	 	 	 	 	 	444.44	 	 	 	 	 	 	 	1,041.89	 	 	 	 	 	 	 	1,041.89	 	 	 	 	 
	Contract Labor
	 	 	21,267.57	 	 	 	16,049.00	 	 	 	5,218.57	 	 	 	.33	 	 	 	74,630.15	 	 	 	47,147.00	 	 	 	27,503.15	 	 	 	.58	 
	Materials and Supplies
	 	 	1,722.83	 	 	 	1,100.00	 	 	 	622.83	 	 	 	.57	 	 	 	11,326.31	 	 	 	1,300.00	 	 	 	10,026.31	 	 	 	7.71	 
	Electricity
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,006.13	 	 	 	 	 	 	 	1,006.13	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Resource Monitoring- Base Recl
	 	 	23,434.84	 	 	 	17,149.00	 	 	 	6,285.84	 	 	 	.37	 	 	 	88,024.48	 	 	 	48,447.00	 	 	 	39,577.48	 	 	 	.82	 
	55502 Well Monitoring- Base Recl
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contract labor
	 	 	10,576.57	 	 	 	 	 	 	 	10,576.57	 	 	 	 	 	 	 	19,543.57	 	 	 	 	 	 	 	19,543.57	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Well Monitoring- Base Recl
	 	 	10,576.57	 	 	 	 	 	 	 	10,576.57	 	 	 	 	 	 	 	19,543.57	 	 	 	 	 	 	 	19,543.57	 	 	 	 	 
	55503 HazMat Monitoring- Base Recl
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	294.70	 	 	 	 	 	 	 	294.70	 	 	 	 	 	 	 	294.70	 	 	 	 	 	 	 	294.70	 	 	 	 	 
	Contract Labor
	 	 	7,335.18	 	 	 	39,013.00	 	 	 	31,677.82-	 	 	 	.81-	 	 	 	2,911.08	 	 	 	91,947.00	 	 	 	89,035.92-	 	 	 	.97-	 
	Materials and Supplies
	 	 	 	 	 	 	1,100.00	 	 	 	1,100.00-	 	 	 	1.00-	 	 	 	2,653.87	 	 	 	8,300.00	 	 	 	5,646.13-	 	 	 	.68-	 
	Legal
	 	 	1,557.83	 	 	 	 	 	 	 	1,557.83	 	 	 	 	 	 	 	4,903.47	 	 	 	 	 	 	 	4,903.47	 	 	 	 	 
	Other
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	50.00	 	 	 	 	 	 	 	50.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total HazMat Monitoring- Base Recl
	 	 	9,187.71	 	 	 	40,113.00	 	 	 	30,925.29-	 	 	 	.77-	 	 	 	10,813.12	 	 	 	100,247.00	 	 	 	89,433.88-	 	 	 	.89-	 
	55310 Permit/Bonding
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contract Labor
	 	 	4,557.79	 	 	 	20,925.00	 	 	 	16,367.21-	 	 	 	.78-	 	 	 	7,361.46-	 	 	 	48,725.00	 	 	 	56,086.46-	 	 	 	1.15-	 
	Materials and Supplies
	 	 	 	 	 	 	750.00	 	 	 	750.00-	 	 	 	1.00-	 	 	 	 	 	 	 	2,250.00	 	 	 	2,250.00-	 	 	 	1.00-	 
	Legal
	 	 	2,750.40	 	 	 	3,750.00	 	 	 	999.60-	 	 	 	.27-	 	 	 	2,750.40	 	 	 	12,250.00	 	 	 	9,499.60-	 	 	 	.78-	 
	Other
	 	 	3,700.00	 	 	 	10,000.00	 	 	 	6,300.00	 	 	 	.63-	 	 	 	5,040.00	 	 	 	12,000.00	 	 	 	6,960.00-	 	 	 	.58-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Permit/Bonding
	 	 	11,008.19	 	 	 	35,425.00	 	 	 	24,416.81	 	 	 	.69-	 	 	 	428.94	 	 	 	475,225.00	 	 	 	74,796.06-	 	 	 	.99-	 
	55610 Final Pit
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	15,487.39	 	 	 	123,959.00	 	 	 	108,481.61-	 	 	 	.88-	 	 	 	118,796.75	 	 	 	257,657.00	 	 	 	138,860.25-	 	 	 	.54-	 
	Supervisor Labor (Fringe & Tax)
	 	 	39,945.62	 	 	 	 	 	 	 	39,945.62	 	 	 	 	 	 	 	39,945.62	 	 	 	 	 	 	 	39,945.62	 	 	 	 	 
	Contract Labor
	 	 	89,756.54	 	 	 	47,236.00	 	 	 	42,520.54	 	 	 	.90	 	 	 	188,304.01	 	 	 	100,640.00	 	 	 	87,664.01	 	 	 	.87	 
	Equipment w/Maint Labor, F&T
	 	 	8,892.74	 	 	 	291,911.00	 	 	 	283,018.26-	 	 	 	.97-	 	 	 	354,039.57	 	 	 	597,417.00	 	 	 	243,377.43-	 	 	 	.41-	 

 

 

					
	 	 	Westmoreland Coal Company
	 	Page – 7
	 
	 	Cost By Sub by Cat Code	 	 
	 
	 	As of 31	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Current	 	Current	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Months	 	Months	 	Budget	 	%	 	YTD	 	YTD	 	Budget	 	%
	Description	 	Actuals	 	Budgets	 	Variance	 	Variance	 	Actuals	 	Budgets	 	Variance	 	Variance
	Equipment Rental/Lease
	 	 	 	 	 	 	44,693.00	 	 	 	44,693.00-	 	 	 	1.00-	 	 	 	31,294.51	 	 	 	123,829.00	 	 	 	92,534.49-	 	 	 	.75-	 
	Materials and Supplies
	 	 	42.66	 	 	 	8,835.00	 	 	 	8,792.34-	 	 	 	1.00-	 	 	 	42.66	 	 	 	27,863.00	 	 	 	27,820.34-	 	 	 	1.00-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Final Pit
	 	 	154,124.95	 	 	 	516,644.00	 	 	 	362,519.05-	 	 	 	.70-	 	 	 	732,423.12	 	 	 	1,107,406.00	 	 	 	374,982.88-	 	 	 	.34-	 
	55620 Facil Remov
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Facil Remov
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	55630 Res Monit
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contract Labor
	 	 	4,098.94	 	 	 	 	 	 	 	4,098.94	 	 	 	 	 	 	 	10,148.44	 	 	 	 	 	 	 	10,148.44	 	 	 	 	 
	Materials and Supplies
	 	 	6,485.14-	 	 	 	 	 	 	 	4,685.14-	 	 	 	 	 	 	 	42,500.00-	 	 	 	 	 	 	 	42,500.00-	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Res Monit
	 	 	2,386.20-	 	 	 	 	 	 	 	2,386.20-	 	 	 	 	 	 	 	32,351.56-	 	 	 	 	 	 	 	32,351.56-	 	 	 	 	 
	55640 Engineering
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Supervisor Labor (Fringe & Tax)
	 	 	62,473.85	 	 	 	 	 	 	 	62,473.85	 	 	 	 	 	 	 	62,473.85	 	 	 	 	 	 	 	62,473.85	 	 	 	 	 
	Contract Labor
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	20,497.96	 	 	 	 	 	 	 	20,497.96	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Engineering
	 	 	62,473.85	 	 	 	 	 	 	 	62,473.85	 	 	 	 	 	 	 	82,953.81	 	 	 	 	 	 	 	82,953.81	 	 	 	 	 
	55650 Regrading
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	1,330.64	 	 	 	 	 	 	 	1,330.64	 	 	 	 	 	 	 	3,388.59	 	 	 	 	 	 	 	3,388.59	 	 	 	 	 
	Contract Labor
	 	 	47,920.67	 	 	 	 	 	 	 	47,920.67	 	 	 	 	 	 	 	207,339.17	 	 	 	 	 	 	 	207,339.17	 	 	 	 	 
	Materials and Supplies
	 	 	10,008.61	 	 	 	 	 	 	 	10,008.61	 	 	 	 	 	 	 	44,274.35	 	 	 	 	 	 	 	44,274.35	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Regrading
	 	 	59,259.92	 	 	 	 	 	 	 	59,259.92	 	 	 	 	 	 	 	255,002.11	 	 	 	 	 	 	 	255,002.11	 	 	 	 	 
	55660 Revegetation
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contract Labor
	 	 	48,978.88	 	 	 	162,388.00	 	 	 	113,409.12-	 	 	 	.70-	 	 	 	112,191.30	 	 	 	342,116.00	 	 	 	229,924.20-	 	 	 	.67-	 
	Materials and Supplies
	 	 	30,355.07	 	 	 	158,120.00	 	 	 	127,764.93-	 	 	 	.81-	 	 	 	31,816.48	 	 	 	188,905.00	 	 	 	157,688.52-	 	 	 	.83-	 
	Other
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	500.00	 	 	 	 	 	 	 	500.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Revegetation
	 	 	79,333.95	 	 	 	320,508.00	 	 	 	241,174.05-	 	 	 	.75-	 	 	 	144,508.28	 	 	 	531,021.00	 	 	 	386,512.72-	 	 	 	.73-	 
	55670 Permit Bonding
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contract Labor
	 	 	815.00	 	 	 	 	 	 	 	815.00	 	 	 	 	 	 	 	11,049.86	 	 	 	 	 	 	 	11,049.86	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Permit/Bonding
	 	 	815.00	 	 	 	 	 	 	 	815.00	 	 	 	 	 	 	 	11,049.86	 	 	 	 	 	 	 	11,049.86	 	 	 	 	 
	55700 Accretion
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Accretion
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	56100 Final Pit
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Final Pit
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	56300 D, D, & A
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Amortization
	 	 	69,546.16	 	 	 	147,006.00	 	 	 	77,459.84-	 	 	 	.53-	 	 	 	219,768.17	 	 	 	462,767.00	 	 	 	242,998.83-	 	 	 	.53-	 
	Depletion
	 	 	41,671.07	 	 	 	34,800.00	 	 	 	6,871.07	 	 	 	.20	 	 	 	181,734.41	 	 	 	176,400.00	 	 	 	5,334.41	 	 	 	.03	 

 

 

					
	 	 	Westmoreland Coal Company
	 	Page – 8
	 
	 	Cost By Sub by Cat Code	 	 
	 
	 	As of 31	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Current	 	Current	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Months	 	Months	 	Budget	 	%	 	YTD	 	YTD	 	Budget	 	%
	Description	 	Actuals	 	Budgets	 	Variance	 	Variance	 	Actuals	 	Budgets	 	Variance	 	Variance
	ARO Depletion
	 	 	388,724.45	 	 	 	298,394.00	 	 	 	90,330.45	 	 	 	.30	 	 	 	1,272,753.24	 	 	 	1,003,873.00	 	 	 	268,880.24	 	 	 	.27	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total D, D, & A
	 	 	499,941.68	 	 	 	480,200.00	 	 	 	19,741.68	 	 	 	.04	 	 	 	1,674,255.82	 	 	 	1,643,040.00	 	 	 	31,215.82	 	 	 	.02	 
	60058 Safety Admin
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Supervisor Labor (Fringe & Tax)
	 	 	19,920.51	 	 	 	17,088.00	 	 	 	2,832.51	 	 	 	.17	 	 	 	56,580.81	 	 	 	51,264.00	 	 	 	5,316.81	 	 	 	.10	 
	Contract Labor
	 	 	1,734.62	 	 	 	1,825.00	 	 	 	90.38-	 	 	 	.05-	 	 	 	2,635.28	 	 	 	10,075.00	 	 	 	7,439.72-	 	 	 	.74-	 
	Safety Supplies
	 	 	2,910.75	 	 	 	1,950.00	 	 	 	960.75	 	 	 	.49	 	 	 	5,368.74	 	 	 	17,800.00	 	 	 	12,431.26-	 	 	 	.70-	 
	Materials and Supplies
	 	 	196.49	 	 	 	100.00	 	 	 	96.49	 	 	 	.96	 	 	 	3,807.99	 	 	 	7,850.00	 	 	 	4,042.01-	 	 	 	.51-	 
	Other
	 	 	2,852.95	 	 	 	212.00	 	 	 	2,640.95	 	 	 	12.46	 	 	 	5,419.94	 	 	 	3,556.00	 	 	 	1,863.94	 	 	 	.52	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Safety Admin
	 	 	27,615.32	 	 	 	21,175.00	 	 	 	6,440.32	 	 	 	.30	 	 	 	73,812.76	 	 	 	90,545.00	 	 	 	16,732.24-	 	 	 	.18-	 
	69100 Training/Insp
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	19,839.79	 	 	 	72,556.00	 	 	 	2,716.21-	 	 	 	.12-	 	 	 	62,994.14	 	 	 	65,504.00	 	 	 	2,909.86-	 	 	 	.04-	 
	Contract Labor
	 	 	19,325.27-	 	 	 	 	 	 	 	19,325.27-	 	 	 	 	 	 	 	14,346.06	 	 	 	 	 	 	 	14,346.06	 	 	 	 	 
	Materials and Supplies
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	631.05	 	 	 	 	 	 	 	631.05	 	 	 	 	 
	Other
	 	 	1,350.00	 	 	 	5,295.00	 	 	 	3,945.90-	 	 	 	.75-	 	 	 	1,350.00	 	 	 	5,295.00	 	 	 	3,945.00-	 	 	 	.75-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Training/Insp
	 	 	1,864.52	 	 	 	27,851.00	 	 	 	25,986.48-	 	 	 	.93-	 	 	 	79,321.25	 	 	 	71,199.00	 	 	 	8,122.25	 	 	 	.11	 
	60200 Awards
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other
	 	 	101,589.56	 	 	 	98,110.00	 	 	 	3,479.56	 	 	 	.04	 	 	 	105,313.24	 	 	 	108,830.00	 	 	 	3,516.76-	 	 	 	.03-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Awards
	 	 	101,589.56	 	 	 	98,110.00	 	 	 	3,479.56	 	 	 	.04	 	 	 	105,313.24	 	 	 	108,830.00	 	 	 	3,516.76-	 	 	 	.03-	 
	65100 Purchasing
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Supervisor Labor (Fringe & Tax)
	 	 	23,970.24	 	 	 	20,102.00	 	 	 	3,868.24	 	 	 	.19	 	 	 	65,898.61	 	 	 	60,306.00	 	 	 	5,592.61	 	 	 	.09	 
	Contract Labor
	 	 	 	 	 	 	1,500.00	 	 	 	1,500.00-	 	 	 	1.00-	 	 	 	 	 	 	 	4,500.00	 	 	 	4,500.00-	 	 	 	1.00-	 
	Materials and Supplies
	 	 	 	 	 	 	300.00	 	 	 	300.00-	 	 	 	1.00-	 	 	 	205.92	 	 	 	1,100.00	 	 	 	894.03-	 	 	 	.81-	 
	Discounts
	 	 	3,667.39-	 	 	 	3,000.00-	 	 	 	667.39-	 	 	 	.22	 	 	 	13,266.99-	 	 	 	9,000.00-	 	 	 	4,286.99-	 	 	 	.48	 
	Price Adjustments
	 	 	179.80-	 	 	 	 	 	 	 	179.80-	 	 	 	 	 	 	 	7,621.34-	 	 	 	 	 	 	 	7,621.34-	 	 	 	 	 
	Other
	 	 	140.65	 	 	 	50.00	 	 	 	90.65	 	 	 	1.81	 	 	 	241.01	 	 	 	50.00	 	 	 	191.01	 	 	 	3.82	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Purchasing
	 	 	20,263.70	 	 	 	18,952.00	 	 	 	1,311.70	 	 	 	.07	 	 	 	45,437.21	 	 	 	56,956.00	 	 	 	11,518.79-	 	 	 	.20-	 
	65200 Warehousing
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	49,540.15	 	 	 	47,151.00	 	 	 	2,389.15	 	 	 	.05	 	 	 	146,063.91	 	 	 	141,453.00	 	 	 	4,610.91	 	 	 	.03	 
	Supervisor Labor (Fringe & Tax)
	 	 	12,104.52	 	 	 	12,608.00	 	 	 	503.48-	 	 	 	.04-	 	 	 	37,588.55	 	 	 	37,824.00	 	 	 	235.45-	 	 	 	.01-	 
	Equipment Rental/Lease
	 	 	125.00	 	 	 	125.00	 	 	 	 	 	 	 	 	 	 	 	383.44	 	 	 	375.00	 	 	 	8.44	 	 	 	.02	 
	Materials and Supplies
	 	 	 	 	 	 	275.00	 	 	 	275.00-	 	 	 	1.00-	 	 	 	7.90	 	 	 	1,425.00	 	 	 	1,417.10-	 	 	 	.99-	 
	Freight
	 	 	24,177.81	 	 	 	25,000.00	 	 	 	822.19-	 	 	 	.03-	 	 	 	76,535.34	 	 	 	75,004.00	 	 	 	1,535.34	 	 	 	.02	 
	Hot Shot Fees
	 	 	2,791.63	 	 	 	5,000.00	 	 	 	2,208.37-	 	 	 	.44-	 	 	 	12,938.38	 	 	 	15,000.00	 	 	 	2,061.62-	 	 	 	.14-	 
	Restocking Fees
	 	 	633.56	 	 	 	1,000.00	 	 	 	366.44-	 	 	 	.37-	 	 	 	2,631.15	 	 	 	3,000.00	 	 	 	368.85-	 	 	 	.12-	 

 

 

					
	 	 	Westmoreland Coal Company
	 	Page – 9
	 
	 	Cost By Sub by Cat Code	 	 
	 
	 	As of 31	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Current	 	Current	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Months	 	Months	 	Budget	 	%	 	YTD	 	YTD	 	Budget	 	%
	Description	 	Actuals	 	Budgets	 	Variance	 	Variance	 	Actuals	 	Budgets	 	Variance	 	Variance
	Inventory Adjustments
	 	 	37,956.22-	 	 	 	3,000.00	 	 	 	40,956.22-	 	 	 	13.65	-	 	 	8,727.50-	 	 	 	3,000.00	 	 	 	11,727.50-	 	 	 	3.91-	 
	Price Adjustments
	 	 	427.00	 	 	 	 	 	 	 	427.00	 	 	 	 	 	 	 	427.00	 	 	 	 	 	 	 	427.00	 	 	 	 	 
	Other
	 	 	4,940.80-	 	 	 	 	 	 	 	4,940.80-	 	 	 	 	 	 	 	3,251.61-	 	 	 	 	 	 	 	3,251.61-	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Warehousing
	 	 	46,902.65	 	 	 	94,159.00	 	 	 	47,256.35-	 	 	 	.50	-	 	 	264,596.56	 	 	 	277,077.00	 	 	 	12,480.44-	 	 	 	.05-	 
	66100 Buildings
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hourly Labor (Fringe & Tax)
	 	 	6,506.03	 	 	 	10,829.00	 	 	 	4,322.97-	 	 	 	.40	-	 	 	17,600.36	 	 	 	32,481.00	 	 	 	14,886.64-	 	 	 	.46-	 
	Supervisor Labor (Fringe & Tax)
	 	 	9,482.60	 	 	 	7,996.00	 	 	 	1,486.60	 	 	 	.19	 	 	 	26,107.49	 	 	 	23,981.00	 	 	 	2,119.49	 	 	 	.09	 
	Contract Labor
	 	 	12,225.32	 	 	 	21,000.00	 	 	 	8,774.68-	 	 	 	.42	-	 	 	46,171.79	 	 	 	68,000.00	 	 	 	21,828.21-	 	 	 	.32-	 
	Equipment w/Maint Labor F&T
	 	 	5.01-	 	 	 	 	 	 	 	5.01-	 	 	 	 	 	 	 	79.35	 	 	 	 	 	 	 	79.35	 	 	 	 	 
	Safety Supplies
	 	 	20.18	 	 	 	 	 	 	 	20.18	 	 	 	 	 	 	 	26.99	 	 	 	 	 	 	 	26.99	 	 	 	 	 
	Materials and Supplies
	 	 	3,019.12	 	 	 	6,275.00	 	 	 	3,255.88	-	 	 	.52	-	 	 	20,696.10	 	 	 	21,275.00	 	 	 	578.90	-	 	 	.03	-
	Electricity
	 	 	44,372.87	 	 	 	54,743.00	 	 	 	10,370.13-	 	 	 	.19	-	 	 	131,214.76	 	 	 	151,979.00	 	 	 	20,764.24-	 	 	 	.14-	 
	Other
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	850.00	 	 	 	850.00-	 	 	 	1.00-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Buildings
	 	 	75,621.11	 	 	 	100,843.00	 	 	 	25,221.89-	 	 	 	.25	-	 	 	241,896.84	 	 	 	298,579.00	 	 	 	56,682.16-	 	 	 	.19-	 
	66200 Security
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contract Labor
	 	 	12,988.83	 	 	 	15,989.00	 	 	 	3,000.17-	 	 	 	.19	-	 	 	38,966.49	 	 	 	43,967.00	 	 	 	5,000.51-	 	 	 	.11-	 
	Materials and Supplies
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	166.73	 	 	 	7,800.00	 	 	 	7,633.27-	 	 	 	.98-	 
	Other
	 	 	968.39	 	 	 	1,100.00	 	 	 	131.61-	 	 	 	.12	-	 	 	2,723.41	 	 	 	3,340.00	 	 	 	576.59-	 	 	 	.17-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Security
	 	 	13,957.22	 	 	 	17,039.00	 	 	 	3,131.78-	 	 	 	.18	-	 	 	41,856.63	 	 	 	55,067.00	 	 	 	13,210.37-	 	 	 	.24-	 
	69100 Lands Department
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Supervisor Labor (Fringe & Tax)
	 	 	30,518.56	 	 	 	26,198.00	 	 	 	4,320.56	 	 	 	.16	 	 	 	82,011.80	 	 	 	78,594.10	 	 	 	3,417.80	 	 	 	.04	 
	Materials and Supplies
	 	 	235.00	 	 	 	100.00	 	 	 	135.00	 	 	 	1.35	 	 	 	267.00	 	 	 	2,500.00	 	 	 	2,233.00-	 	 	 	.89-	 
	Legal
	 	 	1,939.73	 	 	 	2,000.00	 	 	 	60.27-	 	 	 	.03	-	 	 	3,017.22	 	 	 	6,000.00	 	 	 	2,982.78-	 	 	 	.50-	 
	Other
	 	 	341.78	 	 	 	250.00	 	 	 	91.78	 	 	 	.37	 	 	 	1,309.52	 	 	 	1,060.00	 	 	 	249.52	 	 	 	.24	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Lands Department
	 	 	33,035.07	 	 	 	28,548.00	 	 	 	4,487.07	 	 	 	.16	 	 	 	86,605.54	 	 	 	88,154.00	 	 	 	1,548.46-	 	 	 	.02-	 
	69200 Lease rentals / Mineral
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other
	 	 	593.56	 	 	 	594.00	 	 	 	.44-	 	 	 	0.00	 	 	 	2,094.36	 	 	 	2,095.00	 	 	 	.64-	 	 	 	0.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Lease rentals / Mineral
	 	 	593.56	 	 	 	594.00	 	 	 	.44-	 	 	 	0.00	 	 	 	2,094.36	 	 	 	2,095.00	 	 	 	.64-	 	 	 	0.00	 
	69300 Lease rentals / Surface
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6,717.74	 	 	 	9,974.00	 	 	 	3,256.26-	 	 	 	.33-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Lease rentals / Surface
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6,717.74	 	 	 	9,974.00	 	 	 	3,256.26-	 	 	 	.33-	 
	69500 Adv Royalties non recoup
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other
	 	 	110,717.79	 	 	 	110,718.00	 	 	 	.21-	 	 	 	0.00	 	 	 	314,413.20	 	 	 	314,413.00	 	 	 	.20	 	 	 	0.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

					
	 	 	Westmoreland Coal Company
	 	Page – 10
	 
	 	Cost By Sub by Cat Code	 	 
	 
	 	As of 31	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Current	 	Current	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Months	 	Months	 	Budget	 	%	 	YTD	 	YTD	 	Budget	 	%
	Description	 	Actuals	 	Budgets	 	Variance	 	Variance	 	Actuals	 	Budgets	 	Variance	 	Variance
	Total Adv. Royalties non recoup
	 	 	110,717.79	 	 	 	110,718.00	 	 	 	.21-	 	 	 	0.00	 	 	 	314,413.20	 	 	 	314,413.00	 	 	 	.20	 	 	 	0.00	 
	69600 Right of Way Cost
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	500.00	 	 	 	500.00	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Right of Way Cost
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	500.00	 	 	 	500.00	 	 	 	 	 	 	 	 	 
	69800 Filing fees
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other
	 	 	60.00	 	 	 	 	 	 	 	60.00	 	 	 	 	 	 	 	99.00	 	 	 	 	 	 	 	99.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Filing Fees
	 	 	60.00	 	 	 	 	 	 	 	60.00	 	 	 	 	 	 	 	99.00	 	 	 	 	 	 	 	99.00	 	 	 	 	 
	70120 Federal Reclamation
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other
	 	 	53,745.10	 	 	 	44,200.00	 	 	 	9,545.10	 	 	 	.22	 	 	 	169,836.30	 	 	 	148,700.00	 	 	 	21,136.30	 	 	 	.14	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Federal Reclamation
	 	 	53,745.10	 	 	 	44,200.00	 	 	 	9,545.10	 	 	 	.22	 	 	 	169,836.30	 	 	 	148,700.00	 	 	 	21,136.30	 	 	 	.14	 
	70160 Sales Taxes
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other
	 	 	171,474.94	 	 	 	200,000.00	 	 	 	28,525.06-	 	 	 	.14-	 	 	 	295,809.71	 	 	 	600,000.00	 	 	 	304,190.29-	 	 	 	.51-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Sales Taxes
	 	 	171,474.94	 	 	 	200,000.00	 	 	 	28,525.06-	 	 	 	.14-	 	 	 	295,609.71	 	 	 	600,000.00	 	 	 	304,190.29-	 	 	 	.51-	 
	70230 Royalties Private
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other
	 	 	105,328.05	 	 	 	143,901.00	 	 	 	38,572.95-	 	 	 	.27-	 	 	 	386,707.18	 	 	 	417,041.00	 	 	 	30,333.82-	 	 	 	.07-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Royalties Private
	 	 	105,328.05	 	 	 	143,901.00	 	 	 	38,572.95-	 	 	 	.27-	 	 	 	386,707.18	 	 	 	417,041.00	 	 	 	30,333.82-	 	 	 	.07-	 
	70231 Royalties Private
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other
	 	 	66,469.40-	 	 	 	 	 	 	 	66,469.40-	 	 	 	 	 	 	 	66,469.40-	 	 	 	 	 	 	 	66,469.40-	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Royalties Private
	 	 	66,469.40-	 	 	 	 	 	 	 	66,469.40-	 	 	 	 	 	 	 	66,469.40-	 	 	 	 	 	 	 	66,469.00-	 	 	 	 	 
	70240 Overriding Royalties
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other
	 	 	108,181.70	 	 	 	55,080.00	 	 	 	53,101.70	 	 	 	.96	 	 	 	340,788.80	 	 	 	286,480.00	 	 	 	54,308.80	 	 	 	.19	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Overriding Royalties
	 	 	108,181.70	 	 	 	55,080.00	 	 	 	55,101.70	 	 	 	.96	 	 	 	340,788.80	 	 	 	286,480.00	 	 	 	54,308.80	 	 	 	.19	 
	70300 Property Taxes
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other
	 	 	27,532.84	 	 	 	37,500.00	 	 	 	9,967.16-	 	 	 	.27-	 	 	 	109,998.64	 	 	 	112,500.00	 	 	 	2,501.36-	 	 	 	.02-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Property Taxes
	 	 	27,532.84	 	 	 	37,500.00	 	 	 	9,967.16-	 	 	 	.27-	 	 	 	109,998.64	 	 	 	112,500.00	 	 	 	2,501.36-	 	 	 	.02-	 

 

 

					
	 
	 	Westmoreland Coal Company
	 	Page – 11
	 
	 	Cost By Sub by Cat Code	 	 
	 
	 	As of 31	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Current	 	Current	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Months	 	Months	 	Budget	 	%	 	YTD	 	YTD	 	Budget	 	%
	Description	 	Actuals	 	Budgets	 	Variance	 	Variance	 	Actuals	 	Budgets	 	Variance	 	Variance
	     120110 HR
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	01   Hourly Labor (Fringe & Tax)
	 	 	 	 	 	 	1,347.00	 	 	 	1,347.00-	 	 	 	1.00-	 	 	 	175.00	 	 	 	4,041.00	 	 	 	3,866.00-	 	 	 	.96-	 
	04   Supervisor Labor (Fringe &
Tax)
	 	 	26,754.23	 	 	 	24,245.00	 	 	 	2,509.23	 	 	 	.10	 	 	 	78,395.08	 	 	 	72,735.00	 	 	 	5,660.08	 	 	 	.08	 
	24   Materials and Supplies
	 	 	 	 	 	 	450.00	 	 	 	450.00-	 	 	 	1.00-	 	 	 	463.45	 	 	 	1,350.00	 	 	 	880.55-	 	 	 	.66-	 
	54   Legal
	 	 	14,565.06-	 	 	 	6,000.00	 	 	 	20,565.06-	 	 	 	3.43-	 	 	 	20,412.47	 	 	 	18,000.00	 	 	 	2,412.47	 	 	 	.13	 
	55   Outside Services
	 	 	4,130.00	 	 	 	6,130.00	 	 	 	2,000.00-	 	 	 	.33-	 	 	 	7,524.94	 	 	 	18,390.00	 	 	 	10,865.06-	 	 	 	.59-	 
	80   Other
	 	 	4,484.42	 	 	 	4,351.00	 	 	 	133.42	 	 	 	.03	 	 	 	7,016.30	 	 	 	13,713.00	 	 	 	6,696.70-	 	 	 	.49-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	20,803.59	 	 	 	42,523.00	 	 	 	21,719.41-	 	 	 	.51-	 	 	 	113,987.24	 	 	 	128,229.00	 	 	 	14,241.76-	 	 	 	.11-	 
	     120115 IT
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	04   Supervisor Labor (Fringe &
Tax)
	 	 	24,847.99	 	 	 	21,283.00	 	 	 	3,564.99	 	 	 	.17	 	 	 	64,727.62	 	 	 	63,849.00	 	 	 	878.62	 	 	 	.01	 
	16   Equipment Rental/Lease
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	24   Materials and Supplies
	 	 	627.49	 	 	 	9,858.00	 	 	 	9,230.51-	 	 	 	.94-	 	 	 	46,034.73	 	 	 	61,626.00	 	 	 	15,391.27-	 	 	 	.25-	 
	55   Outside Services
	 	 	904.89	 	 	 	102,313.00	 	 	 	101,408.11-	 	 	 	.99-	 	 	 	25,770.00	 	 	 	160,727.00	 	 	 	134,957.00-	 	 	 	.84-	 
	56   Communications
	 	 	4,239.39	 	 	 	3,180.00	 	 	 	1,559.39	 	 	 	.49	 	 	 	15,663.97	 	 	 	9,541.00	 	 	 	6,123.97	 	 	 	.64	 
	80Other
	 	 	89.95	 	 	 	3,320.00	 	 	 	3,230.05-	 	 	 	.97-	 	 	 	6,384.86	 	 	 	3,320.00	 	 	 	3,064.86	 	 	 	.92	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	31,209.71	 	 	 	139,954.00	 	 	 	107,744.29-	 	 	 	.78-	 	 	 	158,581.18	 	 	 	299,061.00	 	 	 	140,480.82-	 	 	 	.47-	 
	     120120 Business (acctg)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	01   Hourly Labor (Fringe & Tax)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	04   Supervisor Labor (Fringe &
Tax)
	 	 	65,900.38	 	 	 	69,187.00	 	 	 	3,286.62-	 	 	 	.05-	 	 	 	209,648.79	 	 	 	307,561.00	 	 	 	2,087.79	 	 	 	.01	 
	16   Equipment Rental/Lease
	 	 	8,384.93	 	 	 	8,999.00	 	 	 	614.07-	 	 	 	.07-	 	 	 	9,332.67	 	 	 	10,317.00	 	 	 	984.33-	 	 	 	.10-	 
	24   Materials and Supplies
	 	 	6,822.71	 	 	 	5,000.00	 	 	 	1,822.71	 	 	 	.36	 	 	 	19,693.42	 	 	 	15,000.00	 	 	 	4,693.42	 	 	 	.31	 
	48   Discounts
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	54   Legal
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	55   Outside Services
	 	 	6,775.29	 	 	 	6,746.00	 	 	 	29.29	 	 	 	0.00	 	 	 	31,617.34	 	 	 	18,383.00	 	 	 	13,229.34	 	 	 	.72	 
	56   Communications
	 	 	1,249.05	 	 	 	300.00	 	 	 	949.05	 	 	 	3.16	 	 	 	3,433.70	 	 	 	3,100.00	 	 	 	333.70	 	 	 	.11	 
	60   Insurance
	 	 	93,037.22	 	 	 	92,890.00	 	 	 	147.22	 	 	 	0.00	 	 	 	279,111.66	 	 	 	278,670.00	 	 	 	441.66	 	 	 	0.00	 
	64   Internal Expense
	 	 	5,091.49	 	 	 	5,098.00	 	 	 	6.51-	 	 	 	0.00	 	 	 	15,274.47	 	 	 	15,294.00	 	 	 	19.53-	 	 	 	0.00	 
	68   Interest Income
	 	 	4,409.06-	 	 	 	 	 	 	 	4,409.06-	 	 	 	 	 	 	 	14,446.80-	 	 	 	 	 	 	 	14,446.80-	 	 	 	 	 
	72   Other Inc/Deductions
	 	 	8,994.30-	 	 	 	 	 	 	 	8,994.30-	 	 	 	 	 	 	 	15,603.81-	 	 	 	 	 	 	 	15,603.81-	 	 	 	 	 
	80   Other
	 	 	4,479.69	 	 	 	4,050.00	 	 	 	429.69	 	 	 	.11	 	 	 	11,995.98	 	 	 	10,900.00	 	 	 	1,095.98	 	 	 	.10	 
	88   Depreciation
	 	 	166,603.08	 	 	 	83,555.00	 	 	 	83,048.08	 	 	 	.99	 	 	 	521,237.08	 	 	 	269,399.00	 	 	 	251,838.08	 	 	 	.93	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	344,940.48	 	 	 	275,825.00	 	 	 	69,115.48	 	 	 	.25	 	 	 	1,071,294.50	 	 	 	828,629.00	 	 	 	242,655.50	 	 	 	.29	 
	     120150 Executive
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	01   Hourly Labor (Fringe & Tax)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

					
	 	 	Westmoreland Coal Company
	 	Page – 12
	 
	 	Cost By Sub by Cat Code	 	 
	 
	 	As of 31	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Current	 	Current	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Months	 	Months	 	Budget	 	%	 	YTD	 	YTD	 	Budget	 	%
	Description	 	Actuals	 	Budgets	 	Variance	 	Variance	 	Actuals	 	Budgets	 	Variance	 	Variance
	04   Supervisor Labor (Fringe &
Tax)
	 	 	92,721.10	 	 	 	48,257.00	 	 	 	44,464.10	 	 	 	.92	 	 	 	164,637.74	 	 	 	144,771.00	 	 	 	19,366.74	 	 	 	.14	 
	24   Materials and Supplies
	 	 	 	 	 	 	350.00	 	 	 	350.00-	 	 	 	1.00-	 	 	 	 	 	 	 	1,050.00	 	 	 	1,050.00-	 	 	 	1.00-	 
	54   Legal
	 	 	15,576.36	 	 	 	1,000.00	 	 	 	14,576.36	 	 	 	14.38	 	 	 	17,576.36	 	 	 	8,000.00	 	 	 	9,576.36	 	 	 	1.20	 
	55   Outside Services
	 	 	 	 	 	 	2,500.00	 	 	 	2,500.00-	 	 	 	1.00-	 	 	 	55.10	 	 	 	7,500.00	 	 	 	7,444.90-	 	 	 	.99-	 
	76   Donations
	 	 	550.00	 	 	 	2,020.00	 	 	 	1,470.00-	 	 	 	.73-	 	 	 	1,763.50	 	 	 	5,560.00	 	 	 	3,796.50-	 	 	 	.68-	 
	80   Other
	 	 	3,709.14	 	 	 	6,193.00	 	 	 	2,483.85-	 	 	 	.40-	 	 	 	26,293.97	 	 	 	31,875.00	 	 	 	5,581.03-	 	 	 	.18-	 
	99   Parent Co Overhead
	 	 	284,684.66	 	 	 	300,040.00	 	 	 	15,315.34-	 	 	 	.05-	 	 	 	284,684.66	 	 	 	300,000.00	 	 	 	15,315.34-	 	 	 	.05-	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	397,241.26	 	 	 	360,320.00	 	 	 	36,921.26	 	 	 	.10	 	 	 	495,011.33	 	 	 	498,756.00	 	 	 	3,744.67-	 	 	 	.01-	 
	     120195 Equip Cost (Maint)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	04   Supervisor Labor (Fringe &
Tax)
	 	 	121,325.86	 	 	 	137,746.00	 	 	 	16,420.14-	 	 	 	.12-	 	 	 	408,693.59	 	 	 	413,238.00	 	 	 	4,544.41-	 	 	 	.01-	 
	12   Equipment w/Maint Labor, F&T
	 	 	552,315.43	 	 	 	455,879.00	 	 	 	96,436.43	 	 	 	.21	 	 	 	1,493,216.59	 	 	 	1,367,637.00	 	 	 	125,579.59	 	 	 	.09	 
	80   Other
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	673,641.29	 	 	 	593,625.00	 	 	 	80,016.29	 	 	 	.13	 	 	 	1,901,910.18	 	 	 	1,780,875.00	 	 	 	121,035.18	 	 	 	.07	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grand Totals
	 	 	9,316,672.72	 	 	 	1,996,712.00	 	 	 	319,960.72	 	 	 	.04	 	 	 	25,900,905.33	 	 	 	26,527,731.00	 	 	 	626,825.67-	 	 	 	.02-	 

 

 

Texas Westmoreland Coal Co.

Capital Status Report

For the Month of March, 2007

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Work	 	Project	 	 	 	 	 	 	 	Actuals	 	Authorized	 	2007	 	Amount
	Order	 	Number	 	Status	 	     Description      	 	Current Month	 	Year to Date	 	Amount	 	Budget	 	Anticipated
	TCN Capital Projects:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	25336	 	 	 	07-01	 	 	 	ü	 	 	Enbridge 8” Pipeline
	 	$	32,400	 	 	$	32,400	 	 	$	50,000	 	 	 	85,000	 	 	 	50,000	 
	 	25339	 	 	 	07-02	 	 	 	ü	 	 	Magellan 16” Pipeline
	 	$	0	 	 	$	3,500	 	 	 	50,000	 	 	 	50,000	 	 	 	50,000	 
	 	25340	 	 	 	07-03	 	 	 	ü	 	 	Boom Support Ropes – 8200
	 	$	60,435	 	 	$	63,075	 	 	 	78,000	 	 	 	78,000	 	 	 	78,000	 
	 	25341	 	 	 	07-04	 	 	 	ü	 	 	BWE Capital Repairs
	 	$	0	 	 	$	0	 	 	 	300,000	 	 	 	300,000	 	 	 	300,000	 
	 	25342	 	 	 	07-05	 	 	 	ü	 	 	Cable Tractor
	 	$	0	 	 	$	53,858	 	 	 	58,000	 	 	 	58,000	 	 	 	58,000	 
	 	25343	 	 	 	07-06	 	 	 	ü	 	 	DL Bucket-8200
	 	$	0	 	 	$	0	 	 	 	643,000	 	 	 	643,000	 	 	 	643,000	 
	 	25344	 	 	 	07-07	 	 	 	ü	 	 	DL Bucket-8750
	 	$	0	 	 	$	0	 	 	 	750,000	 	 	 	750,000	 	 	 	750,000	 
	 	25345	 	 	 	07-08	 	 	 	ü	 	 	Dozer GPS Guidance (2)
	 	$	0	 	 	$	0	 	 	$	115,000	 	 	 	115,000	 	 	 	115,000	 
	 	25346	 	 	 	07-09	 	 	 	ü	 	 	Dragline Prod. Monitor-DL27
	 	$	1,197	 	 	$	1,197	 	 	$	150,000	 	 	 	150,000	 	 	 	150,000	 
	 	25347	 	 	 	07-10	 	 	 	ü	 	 	Dragline Capital Repairs
	 	$	162,856	 	 	$	241,636	 	 	 	1,344,000	 	 	 	1,344,000	 	 	 	1,344,000	 
	 	25348	 	 	 	07-11	 	 	 	ü	 	 	Engine Replacements
	 	$	301,542	 	 	$	545,656	 	 	 	2,148,228	 	 	 	2,148,228	 	 	 	2,148,228	 
	 	25349	 	 	 	07-12	 	 	 	ü	 	 	Light Vehicles
	 	$	77,153	 	 	$	77,153	 	 	 	356,000	 	 	 	356,000	 	 	 	356,000	 
	 	25350	 	 	 	07-13	 	 	 	ü	 	 	Purchase Used Water Truck
	 	 	-$16,771	 	 	$	148,809	 	 	 	240,000	 	 	 	240,000	 	 	 	240,000	 
	 	25351	 	 	 	07-14	 	 	 	ü	 	 	Replace Boom/Serice Truck
	 	$	17,957	 	 	$	17,957	 	 	 	200,000	 	 	 	200,000	 	 	 	200,000	 
	 	25352	 	 	 	07-15	 	 	 	ü	 	 	Swing Beaing 5130
	 	$	0	 	 	$	0	 	 	 	125,000	 	 	 	125,000	 	 	 	125,000	 
	 	25353	 	 	 	07-16	 	 	 	ü	 	 	Tools & Small Equipment
	 	$	0	 	 	$	1,969	 	 	 	51,750	 	 	 	51,750	 	 	 	51,750	 
	 	25354	 	 	 	07-17	 	 	 	ü	 	 	SurvCADD
	 	$	0	 	 	$	0	 	 	 	58,000	 	 	 	58,000	 	 	 	58,000	 
	 	25355	 	 	 	07-18	 	 	 	ü	 	 	Replace Plotter
	 	$	0	 	 	$	0	 	 	 	9,000	 	 	 	9,00	 	 	 	9,000	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Subtotal – Budgeted
	 	$	636,769	 	 	$	1,187,209	 	 	$	6,725,978	 	 	$	6,760,978	 	 	$	6,725,978	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Non-Budget / Carryover Projects:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	19375	 	 	 	06-02	 	 	 	ü	 	 	Sediment Pond 035
	 	$	40,590	 	 	$	977,601	 	 	 	745,220	 	 	 	745,220	 	 	 	745,220	 
	 	19376	 	 	 	06-03	 	 	 	ü	 	 	D04-F diversion/Access Rd
	 	$	6,980	 	 	 	($187,238	)	 	 	(219,745	)	 	 	(219,745	)	 	 	(219,745	)
	 	19377	 	 	 	06-04	 	 	 	ü	 	 	D02 Buff Diversion
	 	$	0	 	 	 	($506	)	 	 	16,930	 	 	 	16,930	 	 	 	16,930	 
	 	19379	 	 	 	06-06	 	 	 	ü	 	 	F-4 Haul Road
	 	$	128,598	 	 	$	218,709	 	 	 	395,200	 	 	 	395,200	 	 	 	395,200	 
	 	19381	 	 	 	06-11	 	 	 	ü	 	 	FM39 ROW Docs
	 	$	0	 	 	$	0	 	 	 	97,170	 	 	 	97,170	 	 	 	97,170	 
	 	19382	 	 	 	06-12	 	 	 	ü	 	 	FM Reloc Design
	 	$	23,545	 	 	$	89,015	 	 	 	152,240	 	 	 	152,240	 	 	 	152,240	 
	 	19390	 	 	 	06-19	 	 	 	ü	 	 	DL Repairs
	 	$	66,000	 	 	$	66,000	 	 	 	206,000	 	 	 	206,000	 	 	 	206,000	 
	 	34435	 	 	 	07-19	 	 	 	ü	 	 	Purchase Used Forklift
	 	$	23,500	 	 	$	23,500	 	 	 	23,500	 	 	 	0	 	 	 	23,500	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Subtotal Non-Budget
	 	$	289,212	 	 	$	1,187,081	 	 	$	1,416,515	 	 	$	1,393,015	 	 	$	1,416,515	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	TGN TOTAL
	 	$	925,982	 	 	$	2,374,290	 	 	$	8,142,493	 	 	$	8,153,993	 	 	$	8,142,493	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

Status Codes:

	y	 	AAFE Written
	 
	ü	 	AFE Approved
	 
	%	 	Project Complete

 

 

TWCC Variance Analysis

For the Year-To-Date and Month Ending

March 31, 2007

Actual vs. Budget:

Current Month: March 2007

Sales Tons - 537K actual tons vs. 556K budget tons, 19K or 0% under budget.

March actual quality was 6,549 vs. budget of 6,669 with deliveries totaling 7.04 TBtu vs. 7.417
TBtu budget. The customer requested additional tons be delivered earlier in the quarter. NRG’s
outage schedule for March was changed from the 1st and 3rd weeks to the
1st and 2nd weeks of January. Total sales were to remain as planned for the
1st quarter. Rainfall for the month was 5.4 inches greater than the historical average.

Sales Revenues - $8.5M vs. $8.9M Budget, $.4M under budget or 5%.

$-368.9K was due to decreased Btu’s delivered,

$-89.5 K was due to decreased Special Management Fee, resulting from reduced BTU’s.

$55.4K was due to increased Surcharge, resulting from a higher than budget index.

Production revenue for 2007 is $.98/MMBtu rather than $1.00 as previously used. The $.02/MMBtu
reduction will continue until the reduction yields $1.82M for production royalties on NRG leases.
The special management fee (SMF) is $.115/MMBtu or $.01 greater than last year. Both of these
assumptions were used in the budget.

Cost of Sales: was $838K greater than budget or 14%.

Diesel fuel costs were $148K below budget, with average monthly pricing of $1.86/gallon vs. budget
of $2.20. Electricity costs for the month were on budget. As planned the BWE system did not operate
this month.

Dragline stripping was $332K over budget or 22%. All (4) machines operated during the month. The
three 8200 draglines exceeded planned hours by 56-hours while the 8750 machines, which was budgeted
to operate part of the month, actually operated 270 hours more than plan.

There were no major dragline outages during the month for any of the 8200 draglines. DL28 was down
21 hours to change out a bucket.

Mobile Stripping was $608K over budget or 89%. Equipment in this category operated 3,718 more hours
than plan or 71%. The mobile fleet was scheduled to perform post mine reclamation activities but
changes to production planning required the system to stay in operations.

Deferred expense was $204K less than budget. $151.3K in the stripping category and $53K decrease in
lignite handling due to an increase in stockpile tons. Total inventory increased from 105K to 182K
tons, while stockpile inventory increased from 33K to 59K tons. The budget anticipated a constant
level in the stockpile.

Lignite Handling was $70K over budget or 6%. Hauling costs account for $138K of the overage and is
due primarily to 324 additional hauler hours. Equipment O&M costs were 20% greater than budget.
Tire costs continue to be an issue. Lignite crushing was $49K less than budget or 22%. The crusher
was down 22 hours to install new scale idlers.

Road Maintenance was $150K greater than budget or 35%. Increased equipment costs ($135K) were the
bulk of the increase. A total of 1,494 additional hours were used during the month. 521 additional
grader hours and 322 additional end dump hours make up the bulk of the overage.

 

 

Current Reclamation was $193K under budget or 44%, The mobile fleet was busy during the month
performing stripping and a small amount of capital related activities. This delayed regrade
activity will be
forecasted into future months. Revegetation costs were under budget $73K due to cold and rainy
weather. These funds will also be utilized later in the year.

DD&A - $666.5K vs. $563.8K Budget, $103K over budget or 18%. Depletion costs were $97K over budget
primarily due to increase in the ARO rate related to increased liability/asset at the beginning of
the year. Depreciation and amortization was $6K over budget due to changes in capital costs and
timing.

SG&A - $636K vs. $734K Budget, $98K under budget or 2%. Informational services account for $109K of
this variance. Outside services totaling $101K related to Minescape and PeopleSoft soft maintenance
agreements were not billed as planned.

Income Tax - $-185K vs. $264K Budget, $449K under budget or 170% due to decreased pretax net income
of -$1.2M.

Year-To-Date: March 2007

Safety - At the end of March, the mine completed another quarter without a lost time accident. A
total of approximately 1,865,000 hours has been accumulated to date. On June 2nd the
mine will break their previous no lost time accident record of 951 days.

Sales
Tons - 1,698K actual tons vs. 1,667K budget tons, 30K or 2% over budget. 

Year to date quality was 6,607 vs. budget of 6,672 with deliveries totaling 22.44 TBtu vs. 22.25
TBtu budget. The customer requested additional tons be delivered earlier in the quarter. NRG’s
outage scheduled for March was changed from the 1st and 3rd weeks to the
1st and 2nd weeks of January. Total sales were to remain as planned for the
quarter. Rainfall for the year was 5.8 inches greater than the historical average.

Sales
Revenues - $26.8M vs. $26.9M Budget, $81K under budget or .3%.
$+190.3K was due to increased Btu’s delivered,

$-43.9 K was due to decreased Special Management Fee, resulting from
reduced sales in December of
last year. The special management fee (SMF) is only recognizable
as revenue when the cash is
received from our customer. A portion of the reduced SMF is due to
less carryover from December
2006 than plan. 

$227.8K was due to decreased Surcharge, resulting from a lower than
budget index. Shortly after the
budget was prepared the index began a steady decline.

Production revenue for 2007 is $.98/MMBtu rather than $1.00 as previously used for 2006. The
$.02/MMBtu reduction will continue until the decrease yields $1.82M for production royalties on NRG
leases. It is currently estimated that this reduced rate will continue throughout the year. The
special management fee (SMF) is $.115/MMBtu or $.01 greater than last year. Both of these
assumptions were used in the budget.

Cost of Sales: was $334K greater than budget or 1.7%.

Diesel fuel costs were $454K below budget, with average year-to-date pricing of $1.81/gallon vs.
budget of $2.20. Electricity costs for the year were $37K over budget. The BWE system continues to
be utilized only when necessary and has accumulated only 531 hours and is $31K or 16% over budget.
Utilization of the BWE system will be curtailed for the remainder of the year.

Dragline stripping was $769K over budget or 16%. The 8200 draglines operated 210 hours less than
plan. DL27 experienced a 2 week unplanned outage to change out pendant lines that failed earlier
than anticipated. The 8750 operated 760 more hours than plan. These additional hours were utilized
to increase lignite inventories. Actual inventory at the end of the quarter was 182K tons while the
budget called for an inventory of 574K. 1,000 additional dozer hours were used than budget. These
dozers are primarily used in aid of the dragline and in the construction of pit ramps. The
increased equipment hours added $474K to the costs.

 

 

The 8750 suffered an unanticipated wire rope failure which increased maintenance costs an
additional $109K.

Mobile Stripping was $213K under budget or 8%. Equipment in this category operated 1,285 fewer
hours than plan or 6%. The mobile fleet was scheduled to perform post mine reclamation activities
but changes to production planning required the system to stay in operations. A box-cut in F-South
was opened a month and a half later than planned due to permitting delays. The F-4 haulroad
construction was delayed into 2007 due to a change in scope concerning final approval to changes to
the Pond 35 embankment. The mobile fleet utilized 6,700 hours assisting with reimbursable capital
construction activities during the quarter.

Deferred Lignite expense was $155.3K less than budget. This is a decrease of $114.1 in the
stripping category and $41.2K in lignite handling due to increased stockpile tons. Total inventory
increased from 155.5K to 182K tons, while stockpile inventory increased from 39.5K to 59.4K tons.
The budget anticipated a constant level in the stockpile.

Lignite Handling was $291K over budget or 8%. Hauling costs account for $408K of the overage and is
due primarily to 1,215 additional hauler hours. The bulk of these hours was due to a 1.5 mile
longer haul from area F-North due to the permitting delay mentioned above. Equipment O&M costs were
27% greater than budget or $453K. Tire costs continue to be an issue. Lignite crushing was $129K
less than budget or 23%. A total of 621 additional equipment hours has been experienced above
budget. Some of these hours are attributable to the additional stockpile activity.

Road Maintenance was $175K greater than budget or 13%. Additional equipment costs of $113K were the
bulk of the increase. 3,075 additional equipment hours were used during the quarter. 1000 of those
hours were end dumps and dozers made up an additional 1,315 hours. Not included in the above hours
were 1,005 fewer water truck hours.

Maintenance Support was $121.3 greater than budget or 7%. Support equipment costs are $676K greater
than budget or 83% while the maintenance other category is $555.5 less than budget or 58%. The
maintenance support category is made up all the equipment that supports the production machines.
These categories include pumps, cranes, fuel trucks, light plants, electrical systems to name a
few. Activity in this cost group is extremely difficult to interpret. Plans are being discussed to
categorize costs in such a manner that the review will be simplified.

Current Reclamation was $813K under budget or 59%. The regrade activity was $577.0K under budget or
53%. The catch-up activity performed last year has allowed us to utilize the equipment in other
production areas for a short duration. Dozers that were assigned to this task have been temporarily
reassigned. This delayed regrade activity wiil be forecasted into future months. Revegetation costs
were under budget $253K due to weather. These funds will also be utilized later in the year.

DD&A - $2,195K vs. $1,912K Budget, $283K over budget or 15%. Depletion costs were $274K over budget
primarily due to increase in the ARO rate related to increased liability/asset at the beginning of
the year. Depreciation and amortization was $9K over budget due to changes in capital costs and
timing.

SG&A - $1,325K vs. $1,480K Budget, $156K under budget or 11%. Informational services accounts for
$140K of this variance. Outside services totaling $101K related to Minescape mine planning and
PeopleSoft software maintenance agreements were not billed as planned. The PeopleSoft costs are
being accumulated at corporate and will be passed down at a later date.

Income Tax - $577K vs. $718K Budget, $141K under budget or 20% due to decreased pretax net income
of -$370K.

 

 

Exhibit 16

NORTHWESTERN RESOURCES CO.

Jewett, Texas

(903) 626-5485

INFORMATION PROVIDED TO JEWETT MINE

PERCENTAGE LEASES ROYALTY OWNERS REGARDING

CALCULATION OF ROYALTIES UNDER PERCENTAGE LEASES

IN CONNECTION WITH ROYALTY PROPOSAL

August 3, 1992

 

 

August 3, 1992

INFORMATION PROVIDED TO JEWETT MINE

PERCENTAGE LEASES ROYALTY OWNERS REGARDING

CALCULATION OF ROYALTIES UNDER PERCENTAGE LEASES

IN CONNECTION WITH ROYALTY PROPOSAL

	1.	 	Some of the lignite or coal leases included in the Jewett Mine provide for payment of
royalties based upon a percentage of the price for which Northwestern Resources Co. (“NWR”)
sells at the mine the lignite produced from those leases. For ease of reference those leases
are generally referred to as “Percentage Leases.” The wording of the particular royalty
provisions in the leases varies to some extent.
	 
	2.	 	At the Jewett Mine (“Mine”) NWR mines the lignite and sells it to Utility Fuels, Inc. (“UFI”)
pursuant to the terms of a Lignite Supply Agreement dated August 29, 1979. That agreement
provides for, among other things, the price paid NWR by UFI at the Mine. The price for the
lignite sold by NWR to UFI is based upon costs to produce and deliver the lignite incurred by
NWR plus certain fees. UFI takes delivery of the lignite at the Mine, transports the lignite
by conveyor approximately one mile to the Limestone Generating Plant (“Power Plant”) owned by
Houston Lighting & Power Company (“HL&P”), further crushes the lignite, stockpiles the lignite
as necessary, maintains and operates the transportation and handling equipment and delivers
and sells the lignite at the Power Plant to HL&P pursuant to the terms of a Lignite Supply
Agreement dated October 8, 1985. HL&P burns the lignite in the Power Plant to generate
electricity for sale to HL&P’s customers. The sales delivery point between NWR and UFI is near
the boundary of the Mine. The sales delivery point between UFI and HL&P is at the Power Plant.
	 
	3.	 	UFI and HL&P are wholly owned subsidiaries of Houston Industries Incorporated (“HII”). NWR
is owned by the Montana Power Company, and is not affiliated with UFI, HL&P or HII.
	 
	4.	 	UFI owns the transportation and handling equipment referred to in paragraph 2 hereinabove.
NWR is not involved in those transportation and handling activities, and NWR does not include
in its sales price to UFI any amounts relating to such equipment or UFI’s operation and
maintenance of the equipment. The price UFI charges HL&P for the lignite at the Power Plant is
based upon UFI’s costs to obtain, transport and handle the lignite plus certain fees. UFI
includes in its costs the expenses incurred in the operation and maintenance of the
transportation and handling equipment, an annual amount that over time will return to UFI the
cost of the transportation and handling equipment, and a return on the investment of UFI in
the handling equipment.
	 
	5.	 	NWR uses mining equipment and facilities in conducting the mining operations at the Mine.
Most of that mining equipment and facilities are owned by UFI, not by NWR. UFI made the
investment in the equipment and facilities. In determining its lignite price to HL&P, UFI
also includes in its costs, an annual amount that over time will return to UFI the cost of the
mining equipment and facilities, and a return on the investment of

 

 

August 3, 1992

	 	 	UFI in the mining equipment and facilities. The price NWR charges UFI at the Mine for the
lignite is based upon NWR’s costs to produce and deliver the lignite to UFI plus certain
fees. NWR does not include in its cost of producing and delivering the lignite to UFI any
amount for return of or return on the investment made by UFI in the mining equipment and
facilities. NWR leases the mining equipment and facilities from UFI and pays UFI a rental of
$1 per year.
	 
	6.	 	NWR does include in its cost of producing and delivering lignite to UFI the royalties and
overriding royalties paid by NWR to the lignite lessors and to others.
	 
	7.	 	The methodology employed by NWR in the past for the calculation of royalties owed to royalty
owners under Percentage Leases is described in Exhibit “A” hereof. This methodology is
sometimes referred to hereinafter as the “Current Methodology.” NWR believes that the Current
Methodology is a correct method to calculate royalties owed under Percentage Leases, and that
continued use of such methodology in the future would be appropriate. Under the Current
Methodology, the prices upon which royalties are paid do not include amounts based upon the
following:

	 	(i)	 	the return of and the return on UFI’s investment in the mining equipment and
facilities used by NWR at the Mine;
	 
	 	(ii)	 	the royalties and overriding royalties paid by NWR to the lessors and to
others;
	 
	 	(iii)	 	the return of and the return on UFI’s investment in the transportation and
handling facilities used to move the lignite from the Mine to the Power Plant, and to
handle the lignite;
	 
	 	(iv)	 	the operation and maintenance expenses associated with the transportation and
handling equipment referred to in “(iii)” above.

     You are cautioned that the amounts used in Exhibit “A” are illustrative only and that the
actual amounts may vary substantially depending upon a number of factors.

	8.	 	Despite NWR’s belief that the Current Methodology is wholly appropriate and fulfills the
royalty payment obligations under the Percentage Leases, certain royalty owners have in the
past filed lawsuits challenging the production royalty payments made by NWR under Percentage
Leases. NWR and UFI were named as Defendants in all of the lawsuits and HL&P and HII were
also named as Defendants in three of the lawsuits. While NWR and the other Defendants have
disagreed with all such challenges, the Defendants settled each of the cases in order to avoid
further litigation.
	 
	9.	 	Only one of the lawsuits referred to in paragraph 8 above was tried. That was the case styled
International Screening Products Corp. v. Houston Industries, Incorporated, Houston
Lighting & Power Company, Utility Fuels, Inc., and Northwestern Resources Co., and that
case was tried to a jury in the District Court of Brazoria County, Texas, 149th Judicial
District, in Angleton, Texas during the period May 26, 1992 through June 4, 1992. On June 5,
1992 the jury returned a verdict in favor of the Plaintiff and against NWR on several issues.
The jury’s verdict was favorable to the. remaining Defendants –

 

 

August 3, 1992

	 	 	UFI, HL&P and HII. Subsequent to that trial, NWR and the other Defendants settled the
International Screening case, and an agreed judgment was entered by the Court. That
judgment vacated and set aside the jury verdict. In settling this case all of the Defendants
denied liability, and all of the parties settled, thereby avoiding further litigation.
	 
	10.	 	Since the trial of the International Screening case, NWR has received inquiries from
some of the Jewett Mine Percentage Lease royalty owners. NWR recognizes that some royalty
owners under Percentage Leases who have not actually challenged NWR’s royalty payments or
royalty payment methodology might do so. Desiring to avoid further litigation over such
royalty payments, if a reasonable basis can be achieved, NWR is willing to take action to
avoid any such disputes by entering into appropriate agreements with certain Percentage Lease
royalty owners. The types of these agreements are discussed hereinafter in paragraph 12. For
ease of reference hereinafter, these agreements are sometimes collectively referred to as the
“Royalty Proposal.”
	 
	11.	 	The Percentage Lease royalty owners to whom this Royalty Proposal will be made available will
include the following:

	 	(i)	 	certain royalty owners whose Percentage Leases have already been mined;
	 
	 	(ii)	 	royalty owners whose Percentage Leases are currently being mined; and
	 
	 	(iii)	 	royalty owners whose Percentage Leases have not yet been mined.

With respect to royalty owners identified in (i) and (ii), the Royalty Proposal provides
that with respect to royalty payments for production which has already occurred, additional
payments would be made only with respect to production for which royalty was due and payable
on or after August 1, 1988. Royalty owners who have already settled with NWR would not be
eligible for any payments pursuant to the Royalty Proposal.

	12.	 	The basic elements of the Royalty Proposal (discussed in detail hereinafter) are as follows:

	 	(i)	 	for past production NWR will pay to the royalty owners additional sums of money
for royalties as specified hereinafter (that is, in addition to the amounts already
received by the royalty owners);
	 
	 	(ii)	 	for future production (both as to leases on which some production has already
occurred and as to leases on which no production has yet occurred) NWR will enter into
amendments of the Percentage Leases specifying the methodology to be employed in
calculating royalties on production, if any, which occurs in the future; and
	 
	 	(iii)	 	the royalty owners would be required to execute releases and other
documentation acceptable to NWR, UFI, HL&P and HII, protecting them from any further
claims by the royalty owners who accept the Royalty Proposal.

 

 

August 3, 1992

	 	 	This Royalty Proposal can be accepted only by royalty owners who execute the agreements and
documents required by NWR.

	13.	 	On Exhibit “B” hereof (which is included for illustration purposes only) NWR has set forth
the methodology which NWR would utilize for calculating royalties under Percentage Leases
(hereinafter the “Revised Methodology”) with respect to production which has already occurred
and with respect to production which occurs in the future. For production which has already
occurred, NWR will pay interest at the rate of 6% per annum (simple) calculated as
appropriate from the dates on which royalty payments were due under each Percentage Lease.

     In calculating royalties pursuant to the Revised Methodology NWR will perform the
accounting to determine the price for lignite from each lease according to generally
accepted accounting principles to generate the data included in the Revised Methodology. The
application of generally accepted accounting principles involves certain discretionary
decisions that may affect the amount of royalties to be paid. This data and all related
calculations will be available for review by the Percentage Lease royalty owner according to
the audit provisions of the lease agreements.

     In Section II of Exhibit “B” a comparison is made between the elements included in the
royalty calculation based upon the Current Methodology and those included based upon the
Revised Methodology. Under the Revised Methodology the royalty owner receives additional
amounts based upon the following:

	 	(i)	 	the return of and the return on UFI’s investment in the mining equipment;
	 
	 	(ii)	 	the royalties and overriding royalties paid by NWR to the lessors and to
others; and
	 
	 	(iii)	 	for additional amounts attributable to production which has already occurred,
6% per annum (simple) interest, calculated as appropriate from the dates on which
royalty payments were due under the Percentage Leases.

	14.	 	NWR calls to the particular attention of royalty owners the following facts regarding the
Revised Methodology which NWR is offering as part of the Royalty Proposal:

	 	(i)	 	royalties paid pursuant to the Revised Methodology are calculated differently
in some respects than the royalty underpayment determined by the jury in the
International Screening case — that is to say, the per ton royalty which can
be derived from the royalty underpayment determined by the jury exceeds the per ton
royalty provided for in the Revised Methodology (if that methodology were applied to
the production involved in the case);
	 
	 	(ii)	 	while the Revised Methodology assumes, for settlement purposes, that certain
amounts are added to the price for royalty calculation purposes to reflect UFI’s return
of and return on its investment in the mining equipment and facilities, this assumption
does not alter the fact that NWR’s price charged to UFI does not and will not actually
include payments to NWR attributable to such return on and

 

 

August 3, 1992

	 	 	 	return of UFI’s investment in mining equipment and facilities, and NWR will not
receive any such payments;
	 
	 	(iii)	 	no monies will be paid based upon claims for fraud or claims of any nature
other than for additional royalties based upon proper application of the royalty
provisions of the leases and interest as herein provided;
	 
	 	(iv)	 	with respect to lease amendments affecting future production, royalties will be
paid in accordance with the amendments, if any; to the extent and when there is
production; if no production occurs from the lease, no production royalties will be
paid; and
	 
	 	(v)	 	The obligations of NWR to use the revised methodology to calculate percentage
royalties will be subject to the Lignite Supply Agreement remaining in effect upon
substantially the same terms and NWR or its successor or assignee continuing as
operator of the Mine.

	15.	 	NWR is making the Royalty Proposal to certain other Jewett Mine royalty owners. Royalty
owners whose lignite has already been produced and who do not agree to the Royalty Proposal
will not receive any additional monies from NWR. Royalty owners whose production occurs in the
future and who do not agree to the Royalty Proposal will not receive any additional monies
from NWR and they will be paid in the future (if, to the extent and when production occurs)
based upon the Current Methodology.
	 
	16.	 	In several places this Royalty Proposal contains discussion of estimates of costs, prices,
amounts and timing of production and/or amounts of royalty payments. Such estimates are
included for illustration purposes only and no royalty owner should assume that the actual
results will be the same as those reflected in the estimates. For example, any references to
estimated amounts of future production of lignite are not intended to represent and do not
represent, assurances by NWR that any production or any particular amount of production will
actually occur in the future from particular leases. By further way of example, NWR is not
able at this time to predict with accuracy the costs of production it will experience in
mining operations in future months and years and which will be included in the price used to
calculate production royalties. The purpose of this paragraph 16 is to emphasize to each
royalty owner that estimates used in this Royalty Proposal are to be used for illustration
purposes only and are not to be viewed by royalty owners as representations, assurances or
guarantees.
	 
	17.	 	The offer reflected in this Royalty Proposal shall remain open for acceptance by royalty
owners to whom the offer is made for a period of thirty (30) days after the date on which each
royalty owner receives the offer. The offer shall not remain open beyond this thirty (30) day
period for any royalty owners unless NWR agrees in writing with particular royalty owners to
extend the time during which the offer can be accepted. NWR reserves the right to extend the
time during which this offer can be accepted by some royalty owners, while not extending the
time to others.

 

 

August 3, 1992

	18.	 	For each Percentage Lease NWR will provide to the royalty owner upon request the following
information:

	 	(i)	 	historical data on payments, if any, already made under the lease for advance
and/or production royalties;
	 
	 	(ii)	 	NWR’s current estimate of the tons of production from the lease if the
lease is produced in the future;
	 
	 	(iii)	 	a lease specific comparison of the results of applying the Current Methodology
and the Revised Methodology to the particular lease situation (understanding that for
future royalties only estimates are available);
	 
	 	(iv)	 	the Lignite Supply Agreement between NWR and UFI, dated August 29, 1979;
	 
	 	(v)	 	the Lignite Supply Agreement between UFI and HL&P, dated October 8, 1985;
	 
	 	(vi)	 	the Construction and Operation Agreement between NWR and UFI, dated December
17,1985 (effective July 1,1983); and
	 
	 	(vii)	 	other appropriate information requested by the royalty owners in connection
with their consideration of this Royalty Proposal.

	19.	 	NWR is prepared to meet with the Percentage Leases royalty owners and/or their
representatives, as appropriate, on an expedited basis.

 

 

Exhibit “A”

August 3, 1992

Northwestern Resources Co.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Current	 
	 	 	 	 	 	 	Methodology	 
	 	 	 	 	 	 	$/ton	 
	Tons sold -example lease (000’s) 100	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	Cost of lignite sold	 	 	 	 
	 	- 10.2a	 	 	Production
	 	$	6,198	 
	 	- 10.2c	 	 	Production taxes
	 	$	0.100	 
	 	- 10.2d	 	 	Genera!
	 	$	0.938	 
	 	- 10.3a	 	 	Post mine reclamation
	 	$	0.290	 
	 	- 10.3b	 	 	Rentals, advance royalties
	 	$	0.086	 
	 	- 10.3c	 	 	Relocations
	 	$	0.139	 
	 	- 10.3d	 	 	Ad valorem taxes
	 	$	0.076	 
	 	- 10.3e	 	 	Compliance
	 	$	0.471	 
	 	- 10.3f	 	 	insurance
	 	$	0.061	 
	 	 	 	 	 
	 	 	 	 
	 	- 10.4	 	 	Dedication fee
	 	$	1.703	 
	 	- 10.5	 	 	Management fee
	 	$	1.561	 
	 	 	 	 	 
	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	subtotal (A) (C)
	 	$	11.623	 
	 	 	 	 	 
	 	 	 	 
	 	- 10.2b	 	 	royalties (B)
	 	$	0.697	 
	 	 	 	 	 
	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Total
	 	$	12.320	 
	 	 	 	 	 
	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Estimated royalty due ($000’s)
	 	$	70	 
	 	 	 	 	 
	 	 	 

Notes:

 

			
	(A)	 	For illustration purposes cost shown are based on 1991 data.
	 
	(B)	 	For illustration purposes royalties are calculated at 6%.
	 
	(C)	 	Costs are categorized per the Lignite Supply Agreement between NWR and UFI.

 

 

Exhibit “B”

Schedule 1

August 3, 1992

Northwestern Resources Co.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Revised	 
	 	 	 	 	 	 	Methodology	 
	 	 	 	 	 	 	$/ton	 
	     Tons sold — example lease (000’s) 100	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	Cost of lignite sold	 	 
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	- 10.2a	 	 	Production
	 	$	6.198	 
	 	- 10.2c	 	 	Production taxes
	 	$	0.100	 
	 	- 10.2d	 	 	General
	 	$	0.938	 
	 	- 10.3a	 	 	Post mine reclamation
	 	$	0.290	 
	 	- 10.3b	 	 	Rentals, advance royalties
	 	$	0.086	 
	 	- 10.3c	 	 	Relocations
	 	$	0.139	 
	 	- 10.3d	 	 	Ad valorem taxes
	 	$	0.076	 
	 	- 10.3e	 	 	Compliance
	 	$	0.471	 
	 	- 10.3f	 	 	Insurance
	 	$	0.061	 
	 	 	 	 	 
	 	 	 	 
	 	- 10.4	 	 	Dedication fee
	 	$	1.703	 
	 	- 10.5	 	 	Management fee
	 	$	1.561	 
	 	 	 	 	 
	 	 	 
	 	 	 	 	 
	 	 	 	 
	subtotal (A) (C)	 	$	11.623	 
	 	 	 	 	 
	 	 	 
	 	 	 	 	 
	 	 	 	 
	Return of investment (D)	 	$	1.890	 
	Return of investment (D)	 	$	3.060	 
	 	 	 	 	 
	 	 	 
	 	 	 	 	 
	 	 	 	 
	subtotal	 	 
	 	$	16.573	 
	 	 	 	 	 
	 	 	 	 
	- 10.2b royalties (B)	 	$	0.994	 
	royalty on a royalty (B)	 	$	0.060	 
	 	 	 	 	 
	 	 	 
	 	 	 	 	 
	 	 	 	 
	subtotal	 	 
	 	$	1.054	 
	 	 	 	 	 
	 	 	 
	 	 	 	 	 
	 	 	 	 
	New grand total	 	$	17.627	 
	 	 	 	 	 
	 	 	 
	 	 	 	 	 
	 	 	 	 
	Estimated royalty due ($000’s)	 	$	105	 
	 	 	 	 	 
	 	 	 

Notes:

 

			
	(A)	 	For illustration purposes cost shown are based on 1991 data.
	 
	(B)	 	For illustration purposes royalties are calculated at 6%.
	 
	(C)	 	Costs are categorized perthe Lignite Supply Agreement between NWR and UFI.
	 
	(D)	 	Costs are categorized perthe Lignite Supply Agreement between UFI and HL&P.

 

 

Exhibit “B”

Schedule 2

August 3, 1992

Northwestern Resources Co.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Current	 	Revised
	 	 	 	 	 	 	Methodology	 	Methodology
	Tons sold	 	 
	 	yes	 	yes
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Cost of lignite sold	 	 
	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	- 10.2a	 	 	Production
	 	yes	 	yes
	 	- 10.2c	 	 	Production taxes
	 	yes	 	yes
	 	- 10.2d	 	 	General
	 	yes	 	yes
	 	- 10.3a	 	 	Post mine reclamation
	 	yes	 	yes
	 	- 10.3b	 	 	Rentals, advance royalties
	 	yes	 	yes
	 	- 10.3c	 	 	Relocations
	 	yes	 	yes
	 	- 10.3d	 	 	Ad valorem taxes
	 	yes	 	yes
	 	- 10.3e	 	 	Compliance
	 	yes	 	yes
	 	- 10.3f	 	 	Insurance
	 	yes	 	yes
	 	- 10.4	 	 	Dedication fee
	 	yes	 	yes
	 	- 10.5	 	 	Management fee
	 	yes	 	yes
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	subtotal (A)	 	 
	 	yes	 	yes
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Mining Equipment & Facilities:	 	 
	 	 	 	 	 	 	 	 
	Return of investment (B)	 	 
	 	no	 	yes
	Return on investment (B)	 	 
	 	no	 	yes
	Subtotal	 	 
	 	 	 	 	 	 	 	 
	 	- 10.2b	 	 	Royalty
	 	yes	 	yes
	 	 	 	 	Royalty on a royalty
	 	no	 	yes
	Subtotal	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	New grand total	 	 
	 	 	 	 	 	 	 	 

 

			
	(A)	 	Costs are categorized per the Lignite Supply Agreement between NWR and UFI.

	 
	(B)	 	Costs are categorized per the Lignite Supply Agreement between UFI and HL&P.

 

 

EXHIBIT 17

Cost Incentive Adjustment Sample Calculations

See attached.

Exhibit 17 — Page 1

 

 

Exhibit 17

Cost Incentive Adjustment (Annual)

LSA Section 7.4(a)

Bonus/Penalty Calculation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	LSA Section	 	 	 	 	 	 
	Item	 	Reference	 	Amount	 	Units	 	notes
	Calculation Input
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Volume Delivered, Actual

	 	7.4(a)(iii)
	 	 	8,850,000	 	 	tons
	 	actual tons delivered
	Mine Cost, Actual

	 	 	7.2	 	 	 	[******]	 	 	$s	 	see agreement section 7.2 for the scope of included costs
	Volume Delivered, Approved Original

	 	 	5.4	 	 	 	6,650,000	 	 	tons
	 	tons approved for delivery in the original aop
	Annual Operation Plan (AOP)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mine Cost, Approved Revised AOP

	 	5.4 or 5.6
	 	 	[******]	 	 	$s	 	this is the approved revised AOP
	Charge to NRG Owned Inventory

	 	 	 	 	 	 	[******]	 	 	$s	 	parts inventory re-stock added to approved AOP
	Work Scope Adjustments, Net

	 	 	7.4(a	)(i)	 	 	[******]	 	 	$s	 	work scope adjustments are calculated on a separate worksheet
	Commodity Adjustments Net

	 	 	7.4(a	)(ii)	 	 	[******]	 	 	$s	 	commodity adjustments are calculated on a separate worksheet
	Fee Adjustment Basis (FAB) AOP

	 	 	7.4(a	)(i)	 	 	[******]	 	 	$s	 	add the net work scope adjustment $s to the approved aop cost
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Penalty Calculation
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mine cost as % of FAB AOP Cost

	 	7.4(a)(iii)
	 	 	102.0	%	 	 	%	 	 	the actual mine cost divided by the fab aop
	Penalty Threshold, Actual Mine Cost
as of % of
FAB AOP

	 	7.4(a)(iii)
	 	 	103.0	%	 	 	%	 	 	the 103% threshold referenced in the agreement
	Penalty Applies?

	 	7.4(a)(iii)
	 	no
	 	 	 	 	 	is the saline cost more than 103% of the fab aop?
	Penalty Threshold

	 	7.4(a)(iii)
	 	 	[******]	 	 	$s	 	multiply the fab aop $s by the 103% threshold referenced above
	Mine Costs Applicable to Penalty

	 	7.4(a)(iii)
	 	 	[******]	 	 	$s	 	the actual cost less the penalty threshold
	Delivered Volume

	 	7.4(a)(iii)
	 	na
	 	Tons
	 	the actual volume delivered
	Mine Cost applicable to Penalty per
Delivered Ton

	 	7.4(a)(iii)
	 	 	[******]	 	 	$s/Ton
	 	use mine cost applicable to penalty divied by the actual
volume delivered
	One-half of Applicable Mine Cost

	 	7.4(a)(iii)
	 	 	[******]	 	 	$s/Ton
	 	one-half of the line above
	per Delivered Ton
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Penalty Limit per Delivered Ton

	 	7.4(a)(iii)
	 	 	[******]	 	 	$s/Ton
	 	this is fixed at [****] per ton per the agreement
	Applicable Penalty per Delivered Ton

	 	7.4(a)(iii)
	 	 	[******]	 	 	$s/Ton
	 	the lesser of the one-half share of the penalty limit
	Penalty

	 	7.4(a)(iii)
	 	 	[******]	 	 	$s	 	the penalty amount, if any
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bonus Calculation
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	FAB AOP Cost as % of Mine Cost

	 	7.4(a)(iii)
	 	 	98.0	%	 	 	%	 	 	the fab aop divided by the actual inline cost

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	LSA Section	 	 	 	 	 	 
	Item	 	Reference	 	Amount	 	Units	 	notes
	Bonus Threshold, FAB AOP as % of Actual Mine Cost	 	7.4(a)(iii)	 	 	103.0	%	 	 	%	 	 	the 103% threshold referenced in the agreement
	Bonus Applies?	 	7.4(a)(iii)	 	no	 	 	 	 	 	is the fab aop more than 103% of mine cost?
	Bonus Threshold	 	7.4(a)(iii)	 	 	[******]	 	 	$s	 	divide the fab aop $s by the 103% threshold referenced above
	Mine Cost Applicable to Bonus	 	7.4(a)(iii)	 	 	[******]	 	 	$s	 	the bonus threshold less the actual cost
	Applicable Volume	 	7.4(a)(iii)(A)&(B)	 	na	 	Tons	 	less of actual volume delivered or approved AOP volume
	Mine Cost Applicable to Bonus per Applicable Ton	 	7.4(a)(iii)	 	 	[******]	 	 	$s/Ton	 	the mine cost applicable to bonus divided by the applicable volume
	One-half of Applicable Mine Cost per Applicable Ton	 	7.4(a)(iii)	 	 	[******]	 	 	$s/Ton	 	one-half of the line above
	Bonus Limit per Applicable Ton	 	7.4(a)(iii)	 	 	[******]	 	 	$s/Ton	 	this is fixed at [****] per ton per the agreement
	Applicable Bonus per Applicable Ton	 	7.4(a)(iii)	 	 	[******]	 	 	$s/Ton	 	the lesser of the one-half share or the bonus limit
	Bonus	 	7.4(a)(iii)	 	 	[******]	 	 	$s	 	the bonus amount, if any
	Total, Bonus or Penalty	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bonus or (Penalty)	 	7.4(a)(iii)	 	[******]

Indicates input	 	$s	 	 

 

 

Cost Incentive Adjustment (Annual)

LSA Section 7.4(a)

Mining Work Scope Adjustments

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Approved AOP, per Section 5.4, 5.5 and/or 5.6	 	 	Actual	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Excess or	 	 	 	 
	Function or Item 	 	Measurement Units	 	 	Units	 	 	Cost	 	 	Cost per Unit	 	 	Units	 	 	Project Cost	 	 	(Shortfall)	 	 	Adjustment	 
	 	 	 	 	 	 	 	 	 	 	($s)	 	 	($s per Unit)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	($s)	 
	Overburden Stripping
	 	BCY	 	 	83,600,000	 	 	 	[******]	 	 	 	[******]	 	 	 	82,000,000	 	 	 	 	 	 	 	[******]	 	 	 	[******]	 
	Sub Accounts:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Clearing
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Relocations
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overburden
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dewatering
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pit/Surface
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dewatering
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dragline Stripping
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mobile Stripping
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Coal Production
	 	Tons	 	 	6,856,000	 	 	 	[******]	 	 	 	[******]	 	 	 	6,656,000	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sub Accounts:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Test and Analysis
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Coal Cleaning
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Loading
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hauling
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Crushing
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Maintenance
	 	Equipment Hours	 	 	380,000	 	 	 	[******]	 	 	 	[******]	 	 	 	370,000	 	 	 	 	 	 	 	[******]	 	 	 	 	 
	Sub Accounts:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Road Maintenance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Support Equipment
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Maintenance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	General
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Maintenance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reclamation
	 	Acres	 	 	500	 	 	 	[******]	 	 	 	[******]	 	 	 	450	 	 	 	 	 	 	 	[******]	 	 	 	[******]	 
	Sub Accounts:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Regrading
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Approved AOP, per Section 5.4, 5.5 and/or 5.6	 	 	Actual	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Excess or	 	 	 	 
	Function or Item 	 	Measurement Units	 	 	Units	 	 	Cost	 	 	Cost per Unit	 	 	Units	 	 	Project Cost	 	 	(Shortfall)	 	 	Adjustment	 
	 	 	 	 	 	 	 	 	 	 	($s)	 	 	($s per Unit)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	($s)	 
	Revegetation
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Erosion Control —
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Current
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Final Pit
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Facility Removal
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Erosion Control -
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Post Mine Mgmt.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Compliance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(Permitting,
Monitoring,
Hazmat
Monitoring,
Sediment
Control, Pond
Treatment, Hay
Production)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Warehouse Inventory
	 	$	 	 	 	 	 	 	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	(Change to NRG Owned
Inventory)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Capital Projects
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pond 36
	 	% Completion	 	 	100	 	 	 	[******]	 	 	 	[******]	 	 	 	60	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Construction
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Light Vehicles
	 	# Purchased	 	 	15	 	 	 	[******]	 	 	 	[******]	 	 	 	14	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Dragline Bucket
	 	% Completion	 	 	100	 	 	 	[******]	 	 	 	[******]	 	 	 	100	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Motor Grader
	 	% Completion	 	 	100	 	 	 	[******]	 	 	 	[******]	 	 	 	90	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Replacement
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Administration
	 	% Completion	 	 	100	 	 	 	[******]	 	 	 	[******]	 	 	 	0	 	 	 	[******]	 	 	 	[******]	 	 	 	[******]	 
	Building Roof
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mining Work Scope
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Adjustments
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Indicates input	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

Cost Incentive Adjustment (Annual)

LSA Section 7.4(a)

Commodity Adjustments

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Approved AOP, per Section 5.4, 5.5, and/or 5.6	 	 	Actual	 	 	Commodity Adjustment	 
	Commodity	 	Units	 	 	Measurement Units	 	 	Cost	 	 	Cost per Unit	 	 	Index	 	 	Units	 	 	Cost	 	 	Cost per Unit	 	 	Index	 	 	Units	 	 	Cost per Unit	 	 	Adjustment	 
	 	 	 	 	 	 	 	 	 	 	($s)	 	 	($s per Unit)	 	 	 	 	 	 	 	 	 	 	($s)	 	 	($s per Unit)	 	 	 	 	 	 	 	 	 	 	($s per Unit)	 	 	($s)	 
	Electricity
	 	 	80,000,000	 	 	kWh	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	79,000,000	 	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	80,000,000	 	 	 	[******]	 	 	 	[******]	 
	Diesel
	 	 	6,000,000	 	 	gallons	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	6,400,000	 	 	 	[******]	 	 	 	[******]	 	 	 	 	 	 	 	6,000,000	 	 	 	[******]	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Tires	 	See Exhibit # 18 Example 2,7.4 (a(iii)(B)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	Steel	 	See Exhibit # 18,7.4 (a)(iii)(C)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[******]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	 	[******]	 
	 
	 	 	 	 	 	indicates input	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

Exhibit 18

Certain Escalation Adjustments

Section 7.3 Management Fee Inflation Adjustment

Section 7.3 of the LSA provides for the Management Fee to be escalated annually by the percent
change in the GDP-IPD as provided in this Exhibit 18.

“GDP-IPD” shall mean the Gross Domestic Product-Implicit Price Deflator index as first published as
the advance number by the U.S. Department of Commerce, Bureau of Economic Analysis (base period of
2000= 100). The Management Fee shall be escalated annually by the percent change in the GDP-IPD
index from a Fourth Quarter 2007 first published index value as compared to the Fourth Quarter
index value for the Year prior to the Year to be adjusted. The percent change in GDP-IPD shall be
rounded to the nearest third decimal point. The resulting escalated Management Fee shall be rounded
to the nearest second decimal point. No percent adjustment shall be less than zero.

For example, where the following GDP-IPD index figures are hypothetical only:

Fourth Quarter 2007 First Published Index Value =121

Fourth Quarter 2011 First Published Index Value = 140

Base 2008 Management Fee = [****] per Ton

Therefore, to calculate the escalated Management Fee effective on January 1, 2012:

(140 /121 ) = 1.157 * [****] = [****] per Ton

 

 

Section 7.4(a)(iii)(B) Tire Budget Adjustment

Section 7.4(a)(iii)(B) of the LSA provides for a Tire Budget to be adjusted for actual costs for
the purpose of calculating Cost Incentive Adjustments, with an example calculation provided for
guidance in this Exhibit 18.

All resulting dollar amounts shall be rounded to the nearest second decimal point.

Example 1. Calculation of Tire Budget Adjustment

All figures and category designations below are hypothetical

	 	 	 	 	 
	Assume 2009 AOP Tire Budget as Follows
	 	 	 	 
	Category 1 — 50 units of R49 X 27.00 tires at budgeted cost of [******] per tire

	 	= [******]
	 	 
	Category 2 — 20 units of R51 X 33.00 tires at budgeted cost of [******] per tire

	 	= [******]	 	 
	Category 3 — 20 units of R49 X 24.00 tires at budgeted cost of [******] per tire

	 	= [******]	 	 
	 	 	 
	Total 90 units of tires budgeted at average cost of [******] per tire

	 	= [******]	 	 
	 
	 	 	 	 
	Actual 2009 AOP Tire Costs as Follows
	 	 	 	 
	Category 1 — 50 units of R49 X 27.00 tires at actual cost of [******] per tire

	 	= [******]	 	 
	Category 2 — 20 units of R51 X 33.00 tires at actual cost of [******] per tire

	 	= [******]	 	 
	Category 3 — 20 units of R49 X 24.00 tires at actual cost of [******] per tire

	 	= [******]	 	 
	 	 	 
	Total 90 units of tires budgeted at average cost of [******] per tire

	 	= [******]	 	 
	 
	 	 	 	 
	No variance in units of tires purchased versus 2009 AOP Tire Budget.
	 	 	 	 
	Therefore, adjusted 2009 AOP Tire Budget = [******]
	 	 	 	 

Example 2. Calculation of Tire Budget Adjustment

All figures and category designations below are hypothetical

	 	 	 	 	 
	Assume 2009 AOP Tire Budget as Follows
	 	 	 	 
	Category 1 — 50 units of R49 X 27.00 tires at budgeted cost of [******] per tire

	 	= [******]
	 	 
	Category 2 — 20 units of R51 X 33.00 tires at budgeted cost of [******] per tire

	 	= [******]	 	 
	Category 3 — 20 units of R49 X 24.00 tires at budgeted cost of [******] per tire

	 	= [******]	 	 
	 	 	 
	Total 90 units of tires budgeted at average cost of [******] per tire

	 	= [******]	 	 
	 
	 	 	 	 
	Actual 2009 AOP Tire Costs as Follows
	 	 	 	 
	Category 1 — 60 units of R49 X 27.00 tires at actual cost of [******] per tire

	 	= [******]	 	 
	Category 2 — 30 units of R51 X 33.00 tires at actual cost of [******] per tire

	 	= [******]	 	 
	Category 3 — 20 units of R49 X 24.00 tires at actual cost of [******] per tire

	 	= [******]	 	 
	 	 	 
	Total 110 units of tires budgeted at average cost of [******] per tire

	 	= [******]	 	 

Example 2. Calculation of Tire Budget Adjustment (Continued)

Allowed variance from Tire Budget units = +/-10% (without Change Order or other agreement) 90 units
in Tire Budget * 1.100% = 99 units allowed

99 units * [******] average per tire = [******]

Therefore, adjusted 2009 AOP Tire Budget = [******]

 

 

Section 7.4(a)(iii)(C) Steel Budget Adjustment

Section 7.4(a)(iii)(C) of the LSA provides for a Steel Budget to be adjusted for inflation for the
purpose of calculating Cost Incentive Adjustments, with an example calculation provided for
guidance in this Exhibit 18.

The percent change in the indices and assumed inflation rates shall be rounded to the nearest third
decimal point and the resulting dollar amounts shall be rounded to the nearest second decimal
point.

Example Calculation of Steel Budget Adjustment

All figures below are hypothetical

			
	1.	 	2009 AOP Steel Budget

	 	 	 	 	 	 	 
	(A) Budgeted Wear Component Costs

	 	= [******] * 70%
	 	= [******]
	 	 
	(B) Budgeted Parts Costs

	 	= [******] * 50%
	 	= [******]	 	 
	 	 	 
	(C) 2009 AOP Steel Budget

	 	= (A) + (B)
	 	= [******]	 	 

			
	2.	 	2009 AOP Inflation Rate Used to Adjust Steel from 2008 Dollars = 3.000%.

Expected 2009 Average Steel Index implied by 2009 AOP = 103.

			
	3.	 	Steel Index Value as of July 2008 = 100 (2009 AOP Base Steel Index Value)

			
	4.	 	Actual Quarterly Steel Index Values for 2009

	 	 	 	 	 
	First Quarter Index Value

	 	= 101
	 	 
	Second Quarter Index Value

	 	= 103	 	 
	Third Quarter Index Value

	 	= 106	 	 
	Fourth Quarter Index Value

	 	= 107	 	 
	 	 	 
	Average 2009 Change in Steel Index Value

	 	= 104.25	 	 

			
	5.	 	Calculation of Percentage Adjustment Ratio to 2009 Steel Budget

	 	 	 	 	 
	(D) Average 2009 Steel Index Value

	 	= 104.25
	 	 
	(E) 2009 AOP Steel Index

	 	= 103.00	 	 
	 	 	 
	(F) Adjustment Ratio for 2009 AOP ((D) / (E))

	 	= 1.012	 	 

			
	6.	 	Calculate Adjustment to 2009 Steel Budget

	 	 	 	 	 
	(G) 2009 AOP Steel Budget (C)

	 	= [******]
	 	 
	(H) Adjusted Ratio (F)

	 	= 1.012	 	 
	 	 	 
	(I) 2009 Adjusted Steel Budget = (G) * (H)

	 	= [******]	 	 

 

 

EXHIBIT 19

Equipment Maintenance Schedule

See attached.

Exhibit 19 — Page 1

 

 

Exhibit 19

2007 Equipment Component Replacement Forecast

Section 22 Existing Equipment and Assets

Section 22 of the LSA provides that TWCC agrees that all maintenance of Mine equipment, whether
such equipment is owned or leased by TWCC, owned by NRG, will be conducted in accordance with the
forecasted maintenance schedule attached to this LSA as Exhibit 19. Along with forecasted component
replacements for the period of September 1 through December 31, 2007 as listed herein, TWCC will
continue performing preventative maintenance consistent with Prudent Mining Practices on all
equipment, whether such equipment is owned by TWCC, owned by NRG, or leased.

Forecasted Equipment Component Replacement

September 1, 2007- December 31, 2007

	 	 	 	 	 
	EQUIPMENT #	 	MODEL	 	COMPONENT
	BH0011

	 	CAT5130B
	 	STRN L/H
	 

	 	 	 	STRN R/H
	 
	 	 	 	 
	BH0007

	 	HITACHI EX 1100
	 	FDRV L/H
	 

	 	 	 	FDRV R/H
	 

	 	 	 	STRN L/H
	 
	 	 	 	 
	BH0008

	 	HITACHI EX 1100
	 	STRN L/H

STRN R/H
	 
	 	 	 	 
	BH0012

	 	CAT 5110
	 	FDRV R/H
	 
	 	 	 	 
	DZ0814

	 	CAT 834B
	 	FDRV L/F
	 

	 	 	 	FDRV L/R
	 

	 	 	 	FDRV R/F
	 

	 	 	 	FDRV R/R
	 
	 	 	 	 
	MG0005

	 	CAT16G
	 	DIFF
	 

	 	 	 	FDRV R/H
	 
	 	 	 	 
	MG0008

	 	CAT 16H
	 	FDRV L/H
	 
	 	 	 	 
	MG0009

	 	CAT 16H
	 	DIFF
	 
	 	 	 	 
	HL0001

	 	EUCLID CH120
	 	DIFF
	 
	 	 	 	 
	HL0002

	 	EUCLID CH120
	 	DIFF
	 

	 	 	 	FDRV L/H
	 

	 	 	 	TRNS

 

 

Forecasted Equipment Component Replacement

September 1, 2007- December 31, 2007

(continued)

	 	 	 	 	 
	EQUIPMENT #	 	MODEL	 	COMPONENT
	HL0003

	 	EUCLID CH120
	 	FDRV R/H
	 
	 	 	 	 
	HL0004

	 	EUCLID CH120
	 	FDRV R/H
	 
	 	 	 	 
	HL0005

	 	EUCLID CH120
	 	TRNS
	 
	 	 	 	 
	HL0007

	 	EUCLID CH120
	 	FDRV L/H
	 
	 	 	 	 
	HL0008

	 	EUCLID CH120
	 	FDRV L/H
	 

	 	 	 	HTCH
	 

	 	 	 	TRNS
	 
	 	 	 	 
	HL0010

	 	EUCLID CH120
	 	FDRV R/H
	 
	 	 	 	 
	HL0015

	 	RIMPULL CW180
	 	HTCH
	 
	 	 	 	 
	HL0016

	 	RIMPULL CW180
	 	HTCH
	 
	 	 	 	 
	HL0017

	 	RIMPULL CW180
	 	DIFF
	 

	 	 	 	HTCH
	 
	 	 	 	 
	SC0503

	 	CAT 657E
	 	DIFF-R
	 

	 	 	 	FDRV L/F
	 

	 	 	 	FDRV L/R
	 

	 	 	 	FDRV R/F
	 

	 	 	 	FDRV R/R
	 
	 	 	 	 
	LD0007

	 	CAT 992D
	 	FDRV L/F
	 

	 	 	 	FDRV L/R
	 

	 	 	 	FDRV R/F
	 

	 	 	 	FDRV L/F
	 
	 	 	 	 
	ED0011

	 	CAT 785C
	 	DIFF
	 
	 	 	 	 
	ED0013

	 	CAT 785C
	 	DIFF
	 
	 	 	 	 
	ED0015

	 	CAT 777D
	 	TCNV

 

 

Forecasted Equipment Component Replacement

September 1, 2007- December 31, 2007

	 	 	 	 	 
	EQUIPMENT #	 	MODEL	 	COMPONENT
	ED0016

	 	CAT 777D
	 	DIFF
	 
	 	 	 	 
	ED0017

	 	CAT 777D
	 	DIFF
	 

	 	 	 	TCNV
	 
	 	 	 	 
	WW003

	 	CAT631E
	 	FDRV L/H
	 

	 	 	 	FDRV R/H

 

 

Component Legend

	 	 	 	 	 	 	 	 	 
	DIFF

	 	= Differential
	 	L/F
	 	= Left Front
	 	 
	FDRV

	 	= Final Drive
	 	L/R
	 	= Left Rear	 	 
	HTCH

	 	= Hitch
	 	R/F
	 	= Right Front	 	 
	STRN

	 	= Steering Clutch
	 	R/R
	 	= Right Rear	 	 
	TCNV

	 	= Torque Converter
	 	L/H
	 	= Left Hand	 	 
	TRNS

	 	= Transmission
	 	R/H
	 	= Right Hand	 	 

 

 

EXHIBIT 20

Reclamation

The following provisions of the Settlement Agreement are restated herein and defined terms used
herein shall have the meanings set forth in the Settlement Agreement:

“G. RECLAMATION

     1. REI currently posts a corporate guarantee of NWR’s reclamation bond filed with the Railroad
Commission of Texas (“RCT”) to secure NWR’s obligation to complete Final Reclamation of the Jewett
Mine. As long as the cost to REI does not change and the conditions imposed by the RCT as a
condition of self-bonding do not change materially, REI will continue to provide such corporate
guaranty in compliance with the rules of the RCT for all renewals and amendments of the surface
mining permit until NWR has been fully released from all reclamation obligations related to the
Jewett Mine. Currently, REI incurs no direct cost in providing the corporate guarantee. (REI has
some internal cost in processing and recording the guaranty). In the future, if REI incurs
additional costs directly as a result of providing the corporate guarantee, NWR will pay those
costs.

     2. Final reclamation of the Jewett Mine at the end of its useful life is considered a sunk
cost and these expenditures will be accounted for separately during the Post-Transition Period.
The Parties shall agree on final reclamation costs and REI will be responsible for the cost of all
final reclamation. NWR shall pay all current reclamation costs (contemporaneous reclamation
activities required under Section 816.383 of the Texas Surface Coal Mining regulations (or any
successor provisions)) during the Post-Transition Period, including all reclamation costs
associated with closing any mine area depleted prior to the end of the Jewett Mine’s useful life.
NWR shall use good mining practices during the Post-Transition Period to insure that only a
reasonable and appropriate amount of reclamation remains at the end of the useful life of the
Jewett Mine and shall bear the cost of its failure to comply with this provision.”

Exhibit 20 — Page 1

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