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This excerpt taken from the ACI 10-K filed Mar 1, 2010. Coal
Lands and Mineral Rights
Amounts paid to acquire the Company’s coal reserves are
capitalized and depleted over the life of proven and probable
reserves. A significant portion of the Company’s coal
reserves are controlled through leasing arrangements. Coal lease
rights are depleted using the
units-of-production
method, and the rights are assumed to have no residual value.
The leases are generally long-term in nature (original terms
range from 10 to 50 years), and substantially all of the
leases contain provisions that allow for automatic extension of
the lease term providing certain requirements are met. The net
book value of the Company’s leased coal interests was
$1.6 billion and $1.1 billion at December 31,
2009 and 2008, respectively.
The Company has entered into various non-cancelable royalty
lease agreements and federal lease bonus payments under which
future minimum payments are due. These payments under such
agreements are capitalized as the cost of the underlying mineral
reserves. The Company made payments under these arrangements of
$138.3 million in 2009, $122.2 million in 2008 and
$122.2 million in 2007. Annual installment payments of
$16.1 million will be paid in 2010, 2011, 2012 and 2013.
These excerpts taken from the ACI 10-K filed Feb 27, 2009. Coal
Lands and Mineral Rights
Amounts paid to acquire the Company’s coal reserves are
capitalized and depleted over the life of proven and probable
reserves. A significant portion of the Company’s coal
reserves are controlled through leasing arrangements. The cost
of coal lease rights are depleted using the units-of-production
method, and the rights are assumed to have no residual value.
The leases are generally long-term in nature (original terms
range from 10 to
Table of Contents
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
50 years), and substantially all of the leases contain
provisions that allow for automatic extension of the lease term
providing certain requirements are met. The net book value of
the Company’s leased coal interests was $1.1 billion
and $1.0 billion at December 31, 2008 and 2007,
respectively.
The Company has entered into various non-cancelable royalty
lease agreements and federal lease bonus payments under which
future minimum payments are due. On September 22, 2004, the
Company was the successful bidder in a federal auction of
certain mining rights in the 5,084-acre Little Thunder
tract in the Powder River Basin of Wyoming. The Company’s
lease bonus bid amounted to $611.0 million for the tract
payable in five equal installments. The Company paid
installments of $122.2 million in 2006, 2007 and 2008, with
the last remaining annual payment to be paid in 2009. These
payments are capitalized as the cost of the underlying mineral
reserves.
Coal Lands and Mineral Rights Amounts paid to acquire the Company’s coal reserves are capitalized and depleted over the life of proven and probable reserves. A significant portion of the Company’s coal reserves are controlled through leasing arrangements. The cost of coal lease rights are depleted using the units-of-production method, and the rights are assumed to have no residual value. The leases are generally long-term in nature (original terms range from 10 to
Table of ContentsNOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 50 years), and substantially all of the leases contain provisions that allow for automatic extension of the lease term providing certain requirements are met. The net book value of the Company’s leased coal interests was $1.1 billion and $1.0 billion at December 31, 2008 and 2007, respectively. The Company has entered into various non-cancelable royalty lease agreements and federal lease bonus payments under which future minimum payments are due. On September 22, 2004, the Company was the successful bidder in a federal auction of certain mining rights in the 5,084-acre Little Thunder tract in the Powder River Basin of Wyoming. The Company’s lease bonus bid amounted to $611.0 million for the tract payable in five equal installments. The Company paid installments of $122.2 million in 2006, 2007 and 2008, with the last remaining annual payment to be paid in 2009. These payments are capitalized as the cost of the underlying mineral reserves. These excerpts taken from the ACI 10-K filed Feb 29, 2008. Coal
Lands and Mineral Rights
Amounts paid to acquire the Company’s coal reserves are
capitalized and depleted over the life of proven and probable
reserves. A significant portion of the Company’s coal
reserves are controlled through leasing arrangements. The cost
of coal lease rights are depleted using the units-of-production
method, and the rights are assumed to have no residual value.
The leases are generally long-term in nature (original terms
range from 10 to 50 years), and substantially all of the
leases contain provisions that allow for automatic extension of
the lease term as long as mining continues. The net book value
of the Company’s leased coal interests was
$1.0 billion and $954.2 million at December 31,
2007 and 2006, respectively.
The Company has entered into various non-cancelable royalty
lease agreements and federal lease bonus payments under which
future minimum payments are due. On September 22, 2004, the
Company was the successful bidder in a federal auction of
certain mining rights in the 5,084-acre Little Thunder
tract in the Powder River Basin of Wyoming. The Company’s
lease bonus bid amounted to $611.0 million for the tract
payable in five equal installments. The Company paid the second
and third installments of $122.2 million in 2006 and 2007,
with the two remaining annual payments to be paid in 2008 and
2009. These payments are capitalized as the cost of the
underlying mineral reserves.
Coal Lands and Mineral Rights Amounts paid to acquire the Company’s coal reserves are capitalized and depleted over the life of proven and probable reserves. A significant portion of the Company’s coal reserves are controlled through leasing arrangements. The cost of coal lease rights are depleted using the units-of-production method, and the rights are assumed to have no residual value. The leases are generally long-term in nature (original terms range from 10 to 50 years), and substantially all of the leases contain provisions that allow for automatic extension of the lease term as long as mining continues. The net book value of the Company’s leased coal interests was $1.0 billion and $954.2 million at December 31, 2007 and 2006, respectively. The Company has entered into various non-cancelable royalty lease agreements and federal lease bonus payments under which future minimum payments are due. On September 22, 2004, the Company was the successful bidder in a federal auction of certain mining rights in the 5,084-acre Little Thunder tract in the Powder River Basin of Wyoming. The Company’s lease bonus bid amounted to $611.0 million for the tract payable in five equal installments. The Company paid the second and third installments of $122.2 million in 2006 and 2007, with the two remaining annual payments to be paid in 2008 and 2009. These payments are capitalized as the cost of the underlying mineral reserves. This excerpt taken from the ACI 10-K filed Mar 1, 2007. Coal Lands and Mineral
Rights |
A significant portion of the Company’s coal reserves are
controlled through leasing arrangements. Amounts paid to acquire
such reserves are capitalized and depleted over the life of
those reserves that are proven and probable. Coal lease rights
are depleted using the
units-of-production
method, and the rights are assumed to have no residual value.
The leases are generally long-term in nature (original terms
range from 10 to 50 years), and substantially all of the
leases contain provisions that allow for automatic extension of
the lease term as long as mining continues. The net book value
of the Company’s leased coal interests was
$954.2 million and $908.7 million at December 31,
2006 and 2005, respectively.
The Company has entered into various non-cancelable royalty
lease agreements and federal lease bonus payments under which
future minimum payments are due. On September 22, 2004, the
Company was the successful bidder in a federal auction of
certain mining rights in the
5,084-acre Little
Thunder tract in the Powder River Basin of Wyoming. The
Company’s lease bonus bid amounted to $611.0 million
for the tract payable in five equal installments. The Company
paid the first installment of $122.2 million in 2004 and
the second in 2006, with the remaining three annual payments to
be paid in fiscal years 2007 through 2009. These payments are
capitalized as the cost of the underlying mineral reserves.
F-15
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(Continued)
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RELATED TOPICS for ACI: |
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