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This excerpt taken from the ACI 10-K filed Mar 1, 2010. Title to
Coal Property
Title to coal properties held by lessors or grantors to us and
our subsidiaries and the boundaries of properties are normally
verified at the time of leasing or acquisition. However, in
cases involving less significant properties and consistent with
industry practices, title and boundaries are not completely
verified until such time as our independent operating
subsidiaries prepare to mine such reserves. If defects in title
or boundaries of undeveloped reserves are discovered in the
future, control of and the right to mine such reserves could be
adversely affected. You should see “A defect in title or
the loss of a leasehold interest in certain property could limit
our ability to mine our coal reserves or result in significant
unanticipated costs” contained under the heading “Risk
Factors” for more information.
At December 31, 2009, approximately 11.9% of our coal
reserves were held in fee, with the balance controlled by
leases, most of which do not expire until the exhaustion of
mineable and merchantable coal. Under current mining plans,
substantially all reported leased reserves will be mined out
within the period of existing leases or within the time period
of assured lease renewals. Royalties are paid to lessors either
as a fixed price per ton or as a percentage of the gross sales
price of the mined coal. The majority of the significant leases
are on a percentage royalty basis. In some cases, a payment is
required, payable either at the time of execution of the lease
or in annual installments. In most cases, the prepaid royalty
amount is applied to reduce future production royalties.
From time to time, lessors or sublessors of land leased by our
subsidiaries have sought to terminate such leases on the basis
that such subsidiaries have failed to comply with the financial
terms of the leases or that the mining and related operations
conducted by such subsidiaries are not authorized by the leases.
Some of these allegations relate to leases upon which we conduct
operations material to our consolidated financial position,
results of operations and liquidity, but we do not believe any
pending claims by such lessors or sublessors have merit or will
result in the termination of any material lease or sublease.
We leased approximately 20,400 acres of property to other
coal operators in 2009. We received royalty income of
$6.3 million in 2009 from the mining of approximately
2.2 million tons, $6.8 million in 2008 from the mining
of approximately 3.1 million tons and $5.6 million in
2007 from the mining of approximately 2.1 million tons on
those properties. We have included reserves at properties leased
by us to other coal operators in the reserve figures set forth
in this report.
We are involved in various claims and legal actions arising in
the ordinary course of business, including employee injury
claims. After conferring with counsel, it is the opinion of
management that the ultimate resolution of these claims, to the
extent not previously provided for, will not have a material
adverse effect on our consolidated financial condition, results
of operations or liquidity.
These excerpts taken from the ACI 10-K filed Feb 27, 2009. Title to
Coal Property
Title to coal properties held by lessors or grantors to us and
our subsidiaries and the boundaries of properties are normally
verified at the time of leasing or acquisition. However, in
cases involving less significant properties and consistent with
industry practices, title and boundaries are not completely
verified until such time as our independent operating
subsidiaries prepare to mine such reserves. If defects in title
or boundaries of undeveloped reserves are discovered in the
future, control of and the right to mine such reserves could be
adversely affected. You should see “A defect in title or
the loss of a leasehold interest in certain property could limit
our ability to mine our coal reserves or result in significant
unanticipated costs” contained under the heading “Risk
Factors” beginning on page 30 for more information.
At December 31, 2008, approximately 16.4% of our coal
reserves were held in fee, with the balance controlled by
leases, most of which do not expire until the exhaustion of
mineable and merchantable coal. Under current mining plans,
substantially all reported leased reserves will be mined out
within the period of existing leases or within the time period
of assured lease renewals. Royalties are paid to lessors either
as a fixed price per ton or as a percentage of the gross sales
price of the mined coal. The majority of the significant leases
are on a percentage royalty basis. In some cases, a payment is
required, payable either at the time of execution of the lease
or in annual installments. In most cases, the prepaid royalty
amount is applied to reduce future production royalties.
From time to time, lessors or sublessors of land leased by our
subsidiaries have sought to terminate such leases on the basis
that such subsidiaries have failed to comply with the financial
terms of the leases or that the mining and related operations
conducted by such subsidiaries are not authorized by the leases.
Some of these allegations relate to leases upon which we conduct
operations material to our consolidated financial position,
results of operations and liquidity, but we do not believe any
pending claims by such lessors or sublessors have merit or will
result in the termination of any material lease or sublease.
We leased approximately 23,900 acres of property to other
coal operators in 2008. We received royalty income of
$6.8 million in 2008 from the mining of approximately
3.1 million tons, $5.6 million in 2007 from the mining
of approximately 2.1 million tons and $5.0 million in
2006 from the mining of approximately 2.4 million tons on
those properties. We have included reserves at properties leased
by us to other coal operators in the reserve figures set forth
in this report.
We are involved in various claims and legal actions arising in
the ordinary course of business, including employee injury
claims. After conferring with counsel, it is the opinion of
management that the ultimate resolution of these claims, to the
extent not previously provided for, will not have a material
adverse effect on our consolidated financial condition, results
of operations or liquidity.
Table of Contents
Title to Coal Property Title to coal properties held by lessors or grantors to us and our subsidiaries and the boundaries of properties are normally verified at the time of leasing or acquisition. However, in cases involving less significant properties and consistent with industry practices, title and boundaries are not completely verified until such time as our independent operating subsidiaries prepare to mine such reserves. If defects in title or boundaries of undeveloped reserves are discovered in the future, control of and the right to mine such reserves could be adversely affected. You should see “A defect in title or the loss of a leasehold interest in certain property could limit our ability to mine our coal reserves or result in significant unanticipated costs” contained under the heading “Risk Factors” beginning on page 30 for more information. At December 31, 2008, approximately 16.4% of our coal reserves were held in fee, with the balance controlled by leases, most of which do not expire until the exhaustion of mineable and merchantable coal. Under current mining plans, substantially all reported leased reserves will be mined out within the period of existing leases or within the time period of assured lease renewals. Royalties are paid to lessors either as a fixed price per ton or as a percentage of the gross sales price of the mined coal. The majority of the significant leases are on a percentage royalty basis. In some cases, a payment is required, payable either at the time of execution of the lease or in annual installments. In most cases, the prepaid royalty amount is applied to reduce future production royalties. From time to time, lessors or sublessors of land leased by our subsidiaries have sought to terminate such leases on the basis that such subsidiaries have failed to comply with the financial terms of the leases or that the mining and related operations conducted by such subsidiaries are not authorized by the leases. Some of these allegations relate to leases upon which we conduct operations material to our consolidated financial position, results of operations and liquidity, but we do not believe any pending claims by such lessors or sublessors have merit or will result in the termination of any material lease or sublease. We leased approximately 23,900 acres of property to other coal operators in 2008. We received royalty income of $6.8 million in 2008 from the mining of approximately 3.1 million tons, $5.6 million in 2007 from the mining of approximately 2.1 million tons and $5.0 million in 2006 from the mining of approximately 2.4 million tons on those properties. We have included reserves at properties leased by us to other coal operators in the reserve figures set forth in this report.
We are involved in various claims and legal actions arising in the ordinary course of business, including employee injury claims. After conferring with counsel, it is the opinion of management that the ultimate resolution of these claims, to the extent not previously provided for, will not have a material adverse effect on our consolidated financial condition, results of operations or liquidity.
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