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8-K - FORM 8-K - NATURAL RESOURCE PARTNERS LP | h68632e8vk.htm |
EX-10.1 - EX-10.1 - NATURAL RESOURCE PARTNERS LP | h68632exv10w1.htm |
Exhibit 99.1
Natural Resource Partners L.P. |
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601 Jefferson St., Suite 3600, Houston, TX 77002
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NEWS RELEASE
Natural Resource Partners Sponsor
Leases Large Tract of Coal Reserves
Leases Large Tract of Coal Reserves
HOUSTON, November 13, 2009 Natural Resource Partners L.P. (NYSE:NRP) announced today
that Great Northern Properties Limited Partnership (GNP), a private landowner and one of the
original sponsors of Natural Resource Partners, has signed a coal lease with Ark Land Company, a
subsidiary of Arch Coal, Inc. (NYSE:ACI) on the Otter Creek Tracts located in southeastern Montana.
The coal lease grants Arch the right to mine approximately 9,600 acres of GNP-owned minerals that
encompass approximately 731 million tons of high-quality sub-bituminous reserves.
The leasing of this large tract of reserves by Great Northern Properties will present NRP a
significant growth opportunity within the next ten years, said Corbin J. Robertson, Jr., Chairman
and CEO of Natural Resource Partners. At the time of the formation of the Natural Resource
Partners, we put an agreement in place that would grant NRP the opportunity to acquire up to 20
billion tons of coal reserves. In 2007, NRP was able to purchase the Mettiki reserves in Northern
West Virginia from Western Pocahontas Properties, another original sponsor, under the same
agreement, and the coal lease between Great Northern and Arch puts another large block of reserves
in line for a similar acquisition.
These reserves are a portion of the approximately 20 billion tons of coal reserves owned by Great
Northern Properties in Montana and North Dakota. The reserves are subject to an agreement between
GNP and NRP that states that the reserves must be offered to NRP at the time that the reserves
exceed a value of $10 million. Due to the long time frame for the reserves to be developed,
anticipated being between five and ten years, Natural Resource Partners has decided that it is in
its best interest to temporarily waive its rights under that agreement. The waiver agreement will
defer the offering of these reserves to NRP until such time as the operations on these reserves
reach a significant production level. The agreement was reviewed and approved by the Conflicts
Committee of NRPs Board of Directors.
Company Profile
Natural Resource Partners L.P. is headquartered in Houston, TX, with its operations headquarters in
Huntington, WV. NRP is a master limited partnership that is principally engaged in the business of
owning and managing mineral reserve properties. NRP owns coal reserves and coal handling and
transportation infrastructure in the three major coal producing regions of the United
NRPs Sponsor Leases Large Tract of Reserves | Page 2 of 2 |
States: Appalachia, the Illinois Basin and the Powder River Basin. In addition, the partnership
owns and manages aggregate reserves being mined in West Virginia, Texas and Washington.
For additional information, please contact Kathy H. Roberts at 713-751-7555 or
kroberts@nrplp.com. Further information about NRP is available on the partnerships website
at www.nrplp.com.
Forward-Looking Statements
This press release may include forward-looking statements as defined by the Securities and
Exchange Commission. Such statements include the development time for the Otter Creek reserves and
the timeframe in which NRP would potentially purchase these reserves. All statements, other than
statements of historical facts, included in this press release that address activities, events or
developments that the partnership expects, believes or anticipates will or may occur in the future
are forward-looking statements. These statements are based on certain assumptions made by the
partnership based on its experience and perception of historical trends, current conditions,
expected future developments and other factors it believes are appropriate in the circumstances.
Such statements are subject to a number of assumptions, risks and uncertainties, many of which are
beyond the control of the partnership. These risks include, but are not limited to, decreases in
demand for coal; changes in operating conditions and costs; production cuts by our lessees;
commodity prices; unanticipated geologic problems; changes in the legislative or regulatory
environment and other factors detailed in Natural Resource Partners Securities and Exchange
Commission filings. Natural Resource Partners L.P. has no obligation to publicly update or revise
any forward-looking statement, whether as a result of new information, future events or otherwise.
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