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al Mine Safety and Health Administration (MSHA) because of elevated carbon monoxide levels. On March 1, Foresight asked MSHA for permission to tem- porarily seal the mine in an apparent attempt to "extinguish the combustion event" as described by Ohio-based Murray Energy Corp., which acquired a significant stake in Foresight last year and speaks publicly for the company. There was no word on when, or even if, Deer Run will resume production. Foresight's largest customers in 2015 included Southern Co., Dayton Power & Light and EDF Trading, representing about 21.5%, 11.9% and 10.7%, respectfully, of all tons sold. Foresight also sells coal directly or indirectly to foreign customers in Europe, South America and Asia. Gary Broadbent, Murray Energy's assistant general counsel and spokesman for both Murray and Foresight, declined to comment on what action Foresight might take if the negotia- tions with lenders ultimately prove unsuccessful. NRP Files Suit Against Foresight Energy Natural Resource Partners L.P. (NRP) is suing Foresight Energy for breach of contract in an Illinois state court over a force majeure declared by Foresight after its Deer Run longwall steam coal mine near Hillsboro in Montgomery County initially was idled a year ago because of elevated carbon monoxide levels. NRP, a Houston-based company that receives coal royalties from reserves it leases to producers such as Foresight, filed the suit against Foresight on November 24, 2015, in the Fourth Judicial Circuit in Montgomery County, NRP disclosed in a March 11 filing with the federal Securities and Exchange Commission (SEC). According to NRP, the complaint alleged, among other things, breach of contract by Foresight resulting from a "wrong- ful declaration of force majeure at Hillsboro's Deer Run mine in July 2015. The effect of a valid force majeure would relieve Foresight Energy of its obligation to pay us minimum deficiency payments of $7.5 million per quarter, or $30 million per year. Foresight Energy's failure to make the deficiency payment with respect to the second, third and fourth quarters of 2015 resulted in a $16.2 million cash impact to us." Such an amount "will increase for each quarter during which mining operations continue to be idled," NRP said, adding it does not currently have an estimate as to when Deer Run will resume production. If the mine remains idled for an extended period or if it permanently closes, "our financial condition could be adversely affected," NRP warned. Deer Run produced 1.9 million tons of coal in 2015 after turning out 5.5 million tons in 2014, according to the Mine Safety and Health Administration. In the second and third quar- ters last year, the mine produced only about 160,000 tons. A Foresight spokesman declined to comment on the suit. Altogether, NRP reported $668 million in non-cash impair- ment charges in 2015 that resulted in a net loss of $559.5 mil- lion, or $45.75/unit, for the year, largely because of the declining market value of its assets due to "continued deterioration of the coal markets and significant decline in oil prices." That com- pared to net income of $106.7 million, or $9.42/unit, in 2014. NRP's total revenue and other income actually increased in 2015 to $488.8 million, from $399.7 million in 2014. NRP owned in excess of 2.3 billion tons of coal reserves as of December 31, 2014, in the Illinois Basin, Powder River Basin and Appalachia, the company said on its website. Of that total, 82% were underground reserves and 25% were metallurgical. Hallador's Sunrise Coal Picks Up Triad Reserves Sunrise Coal, an arm of Colorado-based Hallador Energy, announced March 22 that it has purchased more than 14 mil- lion tons of proven underground coal reserves from Triad Mining in an $18.25 million deal. The deal for the southwestern Indiana reserves associated with Triad's Freelandville complex in Sullivan and Knox coun- ties also includes associated advanced royalties and a coal sales agreement that extends through 2017. The reserves are both leased and owned. Triad Mining is a subsidiary of Kentucky-headquartered Blackhawk Mining. Hallador officials said all newly purchased reserves are contiguous to its existing Oaktown 1 mine reserve; it will mine the tonnage from the Oaktown 1 mine portal. President and CEO Brent Bilsland said the Freelandville reserves deal gives Sunrise access to tons they already controlled, but did not previously include within their reserve base. "This transaction increases our reserve base at our lowest cost mine and creates a solid foundation of sales going forward," he said. "We feel this investment ensures the low cost position of the Oaktown mine and solidifies the employment of our dedicated miners." Consumers' Classic Seven Plants to Close Michigan's largest utility, Consumers Energy, announced March 21 that its seven oldest coal plants, also known as the Classic Seven, will be shutting down next month after 60 years of service. The Classic Seven, which together generated 1,000 n e w s c o n t i n u e d C A L E N D A R O F E V E N T S May 1-4, 2016: Canadian Institute of Mining, Vancouver, British Columbia, Canada. Contact: Web: www.cim.org. May 11-13, 2016: Joint MCMI Texas Regional Meeting and TMRA's Support Member Conference, Horseshoe Bay Resort, Texas. Contact: Texas Mining and Reclamation Association, Cathy Pierce; Email: cathy.pierce@tmra.com; Tel: 903-238-6624; Web: www.tmra.com or www.rmcmi.org. June 26-28, 2016: 2016 Rocky Mountain Coal Mining Institute's Annual Conference, Steamboat Springs, Colorado. Contact: RMCMI; Web: www.rmcmi.org. July 26-28, 2016: International Conference on Ground Control in Mining, Lakeview Resort and Conference Center |Morgantown, USA September 14-16, 2016: 2016 MEMSA Technical Symposium, Sheraton Sand Key, Clearwater Beach, Florida. Contact: Web: www.miningelectrical.org. September 26-28, 2016: MINExpo INTERNATIONAL 2016, Las Vegas Convention Center, Las Vegas, Nevada. Contact: Web: www.minexpo.com. October 16-18, 2016: World Coal Leaders Network, EPIC SANA, Lisbon, Portugal. Contact: Web: www.coaltrans.com/world-coal-conference/details.html. December 5-9, 2016: American Exploration and Mining Association Annual Meeting, Sparks, Nevada. Contact: Web: miningamerica.org. 12 www.coalage.com April 2016