106455--3/13/2009--WESTMORELAND_COAL

related topics

{cost, contract, operation}

{operation, natural, condition}

{cost, regulation, environmental}

{cost, operation, labor}

{customer, product, revenue}

{provision, law, control}

{loss, insurance, financial}

{regulation, change, law}

{product, market, service}

{condition, economic, financial}

{stock, price, operating}

Continuing unfavorable economic conditions could have a material adverse effect on our results of operations. Volatility in the capital markets could negatively impact our pension expense and cash contributions. Our coal mining operations are subject to external conditions that could disrupt operations and negatively affect our profitability. If transportation for the coal produced by our Absaloka and Beulah Mines becomes unavailable, or if transportation becomes uneconomical for Absaloka coal, our revenues could suffer. Our revenues could suffer if our customers reduce or suspend their coal purchases. Disputes relating to our coal supply agreements could harm our financial results. Our expenditures for heritage costs and postretirement medical benefits could be materially higher than we have predicted if our underlying assumptions prove to be incorrect. If the cost of obtaining new reclamation bonds and renewing existing reclamation bonds continues to increase or if we are unable to obtain additional bonding capacity, our operating results could be negatively affected. We face competition for sales to new and existing customers, and the loss of sales or a reduction in the prices we receive under new or renewed contracts would lower our revenues. Our mining operations are extensively regulated, which imposes significant costs on us, and delays in receiving permits or future regulations and developments could increase those costs or limit our ability to produce and sell coal. Concerns about the environmental impacts of coal combustion, including perceived impacts on global climate change, are resulting in increased regulation of coal combustion in many jurisdictions, and interest in further regulation, which could significantly affect demand for our products. We have significant reclamation and mine closure obligations. If the assumptions underlying our accruals are materially inaccurate, or if we are required to cover reclamation obligations that have been assumed by our customers, we could be required to expend greater amounts than we currently anticipate, which could negatively affect our operating results in future periods. Our revenues could be affected by unscheduled outages at the power plants we supply or own or if the scheduled maintenance outages at the power plants we supply or own last longer than anticipated. A decrease in the availability or increase in costs of key supplies, capital equipment or commodities such as diesel fuel, steel, explosives and tires could affect our financial results. If we experience unanticipated increases in the capital expenditures we expect to make over the next several years, our liquidity could suffer. Provisions of our certificate of incorporation, bylaws, Delaware law and our stockholder rights plan may have anti-takeover effects that could prevent a change of control of our company that stockholders may consider favorable, and the market price of our common stock may be lower as a result. Future sales of our common stock by our major stockholder may depress our share price and influence our management policies. Our ability to operate effectively and achieve our strategic goals depends on maintaining satisfactory labor relations. Our financial results may be impacted by the different interpretations and application of accounting literature in the mining industry. We have formed a limited liability company to utilize potential Indian Coal Production Tax Credits, or ICTC s. Under certain circumstances, the transaction may be cancelled and we may be required to return payments received from the third party.

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106455--3/13/2009--WESTMORELAND_COAL_CO