WESTMORELAND MINING LLC (WML)

WML was formed as a separate subsidiary of Westmoreland Coal Company in 2001 to facilitate the acquisitions of the operating coal business of Entech, Inc., a subsidiary of Montana Power, and the coal assets of Knife River Corporation, a subsidiary of MDU Resources. WML provides management and administrative support to its subsidiaries, including operational, environmental, sales and accounting services. WML’s subsidiaries are Western Energy Company (Rosebud Mine), Texas Westmoreland Coal Co. (Jewett Mine), Dakota Westmoreland Corporation (Beulah Mine), and Westmoreland Savage Corporation (Savage Mine).

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Rosebud Mine
Western Energy Company’s Rosebud Mine is a 25,000-acre surface mine complex located in the northern Powder River Basin near Colstrip, Montana, and the Northern Cheyenne Indian Reservation. Rosebud is a large operation with three active pits and supplies almost all of its current production to the four-unit 2,200 MW Colstrip Power Station which is adjacent to the mine and was specifically designed to burn Rosebud coal.

Coal is sold to the Colstrip Station under two long-term contracts that expire in 2019. Colstrip is one of the region’s most cost-efficient and cleanest power plants, which should help it maintain a base-load position on the electricity dispatch curve, and ensure continued strong demand for Rosebud coal. The Rosebud Mine produces approximately ten to thirteen million tons per year. For more mine statistics, please see the Coal Operations Table.

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Jewett Mine
Texas Westmoreland Coal Co.’s Jewett Mine is a 35,000-acre surface mine complex located between Dallas and Houston. It currently operates five active pits. It supplies lignite (a grade of coal) under a full lignite requirements contract to the adjacent two-unit Limestone Electric Generating Station owned by NRG Texas. A low-cost, base-load power plant utilizing emission control technologies, Limestone was designed and built specifically to burn lignite from Jewett.

Limestone enjoys a solid position in the Electric Reliability Council of Texas (ERCOT) regional power market, which is heavily weighted with natural gas-fired power generation and thus more expensive and price-volatile than a market more dependent on coal-fired power. The contract between Jewett and Limestone runs through 2018. The Jewett Mine has in-place capacity currently up to 6.5 million tons of lignite annually. For more mine statistics, please see the Coal Operations Table.

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Beulah Mine
Dakota Westmoreland Corporation’s Beulah Mine is a 9,000-acre surface mine complex located 75 miles northwest of Bismarck, North Dakota. It currently produces lignite from three active pits.

Coal from this operation supplies the fuel requirements for the adjacent 427 MW Coyote Generating Station. Coyote is a low-cost, base-load generation facility that utilizes emission control technologies and purchases all of its lignite from the Beulah Mine. The current supply agreement runs through May 2016. Dakota Westmoreland also owns and controls a four-mile rail spur that connects the mine and plant to the Burlington Northern Santa Fe Railroad’s Stanton line, which it uses to supply the two-unit 75 MW Heskett Station, located 74 miles away.

The Beulah Mine produces approximately 3.0 million tons of lignite annually. For more mine statistics, please see the Coal Operations Table.

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Savage Mine
Westmoreland Savage Corporation's Savage Mine is an 874-acre strategically-placed single pit surface mine located on the Montana-North Dakota border. The Savage Mine has a full-requirements contract with the 69 MW Lewis & Clark Station which utilizes emission control technologies and is owned by Montana Dakota Utilities, and a longstanding annual supply relationship with a sugar beet refinery near Sidney, Montana.

The Savage Mine produces approximately three hundred and fifty thousand tons of lignite annually. For more mine statistics, please see the Coal Operations Table.

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