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6 www.coalage.com December 2018 news DoI Ryan Zinke to Step Down b r e a k i n g n e w s Alliance Buys Remaining Interest in AllDale On December 17, Alliance Resource Partners (ARLP) entered into de- finitive agreements to acquire the general partner interests in AllDale Minerals, LP and AllDale Minerals II, LP and all of the limited partner interests in AllDale not currently owned by ARLP's affiliate, Cavalier Minerals JV LLC. ARLP has also begun development of the Excel mine No. 5, an extension of its MC Mining operation in Pike County, Kentucky. "Today's announcements reflect ARLP's commitment to con- tinually invest in our business to build and support long-term cash flows," said Joe Craft, president and CEO. "The AllDale acquisition gives ARLP control of a significant ownership position in the oil and gas minerals sector and lays the foundation for a new growth plat- form for the future." Regarding the Excel Mine No. 5 development, Craft said it will allow the company to retain and grow its market share in the domestic and international coal markets for this highly-valued low sulfur, high BTU product. Currently, ARLP owns a 96% interest in Cavalier, which owns ap- proximately 72% of the limited partner interest in AllDale. Upon closing of the transaction, ARLP will own 100% of the general partner and ap- proximately 97% of the limited partner interests in AllDale, controlling approximately 42,000 net royalty acres positioned in the core of the Anadarko, Permian, Williston and Appalachian basins. ARLP will acquire the partnership interests for a cash purchase price of $175.96 million, which will be funded with cash on hand and borrowings under its credit facility. The transaction is expected to close in early January. In addition, ARLP also owns approximately 3,950 net royalty acres through its limited partner interest in AllDale Minerals III LP. ARLP has begun development activity for the Excel Mine No. 5 and currently anticipates deploying total capital of approximately $45 million to $50 million over the next 18 to 24 months. ARLP's sub- sidiary, MC Mining LLC, controls the estimated 15 million tons of coal reserves assigned to the Excel Mine No. 5 and will own the new mining complex, and the Excel Mining LLC subsidiary will conduct all min- ing operations. The underground operation will use continuous mining units employing room-and-pillar mining techniques and annual pro- duction capacity is expected to be approximately 1.3 million tons of high BTU, low-sulfur coal. MC Mining plans to use its existing underground mining equip- ment and preparation plant to produce and process coal from the Excel Mine No. 5 and expects to ship coal produced from the mine to various transloading facilities on the Ohio River and the Big Sandy River for barge deliveries or directly to customers via the CSX railroad and by truck. MC Mining expects to transition its current workforce to the Excel Mine No. 5 and will continue to employ approximately 211 workers. The development plan for the Excel Mine No. 5 is designed to provide a seamless transition from the current MC Mining operation as its reserves deplete in 2020. On December 15, via Twitter, President Donald Trump announced that Secretary of Interior Ryan Zinke would step down at the end of the year. This comes after nu- merous investigations were initiated by the Department of Interior's (DoI) Office of In- spector General after receiving allegations of travel-related waste by Zinke's, abuse of power, and other ethics violations. President Trump said, "Ryan has accom- plished much during his tenure and I want to thank him for his service to our nation." Trump said a replacement would be announced this week. Following Trump's announcement, in a statement on Twitter, Zinke said, "I love working for the president and am incred- ibly proud of all the good work we've ac- complished together. However, after 30 years of public service, I cannot justify spending thousands of dollars defending myself and my family against false allega- tions. It is better for the president and In- terior to focus on accomplishments rather than fictitious allegations." Some of the probes into Zinke includ- ed his involvement in a Montana land deal with the chairman of Halliburton and whether it constituted a conflict of interest, and a decision to not grant two tribes approval to operate a casino in Con- necticut. One investigation has also been referred to the Department of Justice, but which one has not been disclosed. The inspector general investigated several allegations of travel-related waste against Zinke, including whether his use of U.S. DoI Secretary Ryan Zinke addresses tribal leaders after signing a conservation funding package worth more than $300 million earlier this year.