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Wiki	Wiki Summary
Operation Mincemeat	Operation Mincemeat was a successful British deception operation of the Second World War to disguise the 1943 Allied invasion of Sicily. Two members of British intelligence obtained the body of Glyndwr Michael, a tramp who died from eating rat poison, dressed him as an officer of the Royal Marines and placed personal items on him identifying him as the fictitious Captain (Acting Major) William Martin.
Arithmetic	Arithmetic (from Ancient Greek ἀριθμός (arithmós) 'number', and τική [τέχνη] (tikḗ [tékhnē]) 'art, craft') is an elementary part of mathematics that consists of the study of the properties of the traditional operations on numbers—addition, subtraction, multiplication, division, exponentiation, and extraction of roots. In the 19th century, Italian mathematician Giuseppe Peano formalized arithmetic with his Peano axioms, which are highly important to the field of mathematical logic today.
Bitwise operation	In computer programming, a bitwise operation operates on a bit string, a bit array or a binary numeral (considered as a bit string) at the level of its individual bits. It is a fast and simple action, basic to the higher-level arithmetic operations and directly supported by the processor.
Special Activities Center	The Special Activities Center (SAC) is a division of the Central Intelligence Agency responsible for covert operations and paramilitary operations. The unit was named Special Activities Division (SAD) prior to 2015.
Operations management	Operations management is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in meeting customer requirements.
Special operations	Special operations (S.O.) are military activities conducted, according to NATO, by "specially designated, organized, selected, trained, and equipped forces using unconventional techniques and modes of employment". Special operations may include reconnaissance, unconventional warfare, and counter-terrorism actions, and are typically conducted by small groups of highly-trained personnel, emphasizing sufficiency, stealth, speed, and tactical coordination, commonly known as "special forces".
Emergency operations center	An emergency operations center (EOC) is a central command and control facility responsible for carrying out the principles of emergency preparedness and emergency management, or disaster management functions at a strategic level during an emergency, and ensuring the continuity of operation of a company, political subdivision or other organization.\nAn EOC is responsible for strategic direction and operational decisions and does not normally directly control field assets, instead leaving tactical decisions to lower commands.
Operations research	Operations research (British English: operational research), often shortened to the initialism OR, is a discipline that deals with the development and application of advanced analytical methods to improve decision-making. It is sometimes considered to be a subfield of mathematical sciences.
Transportation engineering	Transportation engineering or transport engineering is the application of technology and scientific principles to the planning, functional design, operation and management of facilities for any mode of transportation in order to provide for the safe, efficient, rapid, comfortable, convenient, economical, and environmentally compatible movement of people and goods transport. \nThe planning aspects of transportation engineering relate to elements of urban planning, and involve technical forecasting decisions and political factors.
Minsk agreements	The Minsk agreements were a series of international agreements which sought to end the war in the Donbas region of Ukraine. The first, known as the Minsk Protocol, was drafted in 2014 by the Trilateral Contact Group on Ukraine, consisting of Ukraine, Russia, and the Organization for Security and Co-operation in Europe (OSCE), with mediation by the leaders of France and Germany in the so-called Normandy Format.
The Four Agreements	The Four Agreements: A Practical Guide to Personal Freedom is a self-help book by bestselling author Don Miguel Ruiz with Janet Mills. The book offers a code of conduct claiming to be based on ancient Toltec wisdom that advocates freedom from self-limiting beliefs that may cause suffering and limitation in a person's life.
Non-disclosure agreement	A non-disclosure agreement (NDA), also known as a confidentiality agreement (CA), confidential disclosure agreement (CDA), proprietary information agreement (PIA), secrecy agreement (SA), or non-disparagement agreement, is a legal contract or part of a contract between at least two parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes, but wish to restrict access to. Doctor–patient confidentiality (physician–patient privilege), attorney–client privilege, priest–penitent privilege and bank–client confidentiality agreements are examples of NDAs, which are often not enshrined in a written contract between the parties.
Prenuptial agreement	A prenuptial agreement, antenuptial agreement, or premarital agreement (commonly referred to as a prenup), is a written contract entered into by a couple prior to marriage or a civil union that enables them to select and control many of the legal rights they acquire upon marrying, and what happens when their marriage eventually ends by death or divorce. Couples enter into a written prenuptial agreement to supersede many of the default marital laws that would otherwise apply in the event of divorce, such as the laws that govern the division of property, retirement benefits, savings, and the right to seek alimony (spousal support) with agreed-upon terms that provide certainty and clarify their marital rights.
Master service agreement	A master service agreement, sometimes known as a framework agreement, is a contract reached between parties, in which the parties agree to most of the terms that will govern future transactions or future agreements.\nA master agreement delineates a schedule of lower-level service agreements, permitting the parties to quickly enact future transactions or agreements, negotiating only the points specific to the new transactions and relying on the provisions in the master agreement for common terms.
Paris agreements	The Paris Agreement (French: Accord de Paris), often referred to as the Paris Accords or the Paris Climate Accords, is an international treaty on climate change, adopted in 2015. It covers climate change mitigation, adaptation, and finance.
Customer Profitability Analysis	Customer Profitability Analysis (in short CPA) is a management accounting and a credit underwriting method, allowing businesses and lenders to determine the profitability of each customer or segments of customers, by attributing profits and costs to each customer separately. CPA can be applied at the individual customer level (more time consuming, but providing a better understanding of business situation) or at the level of customer aggregates / groups (e.g.
Customer profitability	Customer Profitability Analysis (in short CPA) is a management accounting and a credit underwriting method, allowing businesses and lenders to determine the profitability of each customer or segments of customers, by attributing profits and costs to each customer separately. CPA can be applied at the individual customer level (more time consuming, but providing a better understanding of business situation) or at the level of customer aggregates / groups (e.g.
Yoda conditions	In programming jargon, Yoda conditions (also called Yoda notation) is a programming style where the two parts of an expression are reversed from the typical order in a conditional statement. A Yoda condition places the constant portion of the expression on the left side of the conditional statement.
Dirichlet conditions	In mathematics, the Dirichlet conditions are sufficient conditions for a real-valued, periodic function f to be equal to the sum of its Fourier series at each point where f is continuous. Moreover, the behavior of the Fourier series at points of discontinuity is determined as well (it is the midpoint of the values of the discontinuity).
Twenty-one Conditions	The Twenty-one Conditions, officially the Conditions of Admission to the Communist International, refer to the conditions, most of which were suggested by Vladimir Lenin, to the adhesion of the socialist parties to the Third International (Comintern) created in 1919. The conditions were formally adopted by the Second Congress of the Comintern in 1920.
Wolfe conditions	In the unconstrained minimization problem, the Wolfe conditions are a set of inequalities for performing inexact line search, especially in quasi-Newton methods, first published by Philip Wolfe in 1969.In these methods the idea is to find\n\n \n \n \n \n min\n \n x\n \n \n f\n (\n \n x\n \n )\n \n \n {\displaystyle \min _{x}f(\mathbf {x} )}\n for some smooth \n \n \n \n f\n :\n \n \n R\n \n \n n\n \n \n →\n \n R\n \n \n \n {\displaystyle f\colon \mathbb {R} ^{n}\to \mathbb {R} }\n . Each step often involves approximately solving the subproblem\n\n \n \n \n \n min\n \n α\n \n \n f\n (\n \n \n x\n \n \n k\n \n \n +\n α\n \n \n p\n \n \n k\n \n \n )\n \n \n {\displaystyle \min _{\alpha }f(\mathbf {x} _{k}+\alpha \mathbf {p} _{k})}\n where \n \n \n \n \n \n x\n \n \n k\n \n \n \n \n {\displaystyle \mathbf {x} _{k}}\n is the current best guess, \n \n \n \n \n \n p\n \n \n k\n \n \n ∈\n \n \n R\n \n \n n\n \n \n \n \n {\displaystyle \mathbf {p} _{k}\in \mathbb {R} ^{n}}\n is a search direction, and \n \n \n \n α\n ∈\n \n R\n \n \n \n {\displaystyle \alpha \in \mathbb {R} }\n is the step length.
Nervous Conditions	Nervous Conditions is a novel by Zimbabwean author Tsitsi Dangarembga, first published in the United Kingdom in 1988. It was the first book published by a black woman from Zimbabwe in English.
Conditions of Learning	Conditions of Learning, by Robert M. Gagné, was originally published in 1965 by Holt, Rinehart and Winston and describes eight kinds of learning and nine events of instruction. This theory of learning involved two steps.
Conditions (album)	Conditions is the debut studio album by Australian rock band The Temper Trap, released in Australia through Liberation Music on 19 June 2009. It was later released in the United Kingdom on 10 August 2009.
Standard temperature and pressure	Standard temperature and pressure (STP) are standard sets of conditions for experimental measurements to be established to allow comparisons to be made between different sets of data. The most used standards are those of the International Union of Pure and Applied Chemistry (IUPAC) and the National Institute of Standards and Technology (NIST), although these are not universally accepted standards.
Profit (economics)	An economic profit is the difference between the revenue a commercial entity has received from its outputs and the opportunity costs of its inputs. It equals to total revenue minus total cost, including both explicit and implicit costs.
Profitability index	Profitability index (PI), also known as profit investment ratio (PIR) and value investment ratio (VIR), is the ratio of payoff to investment of a proposed project. It is a useful tool for ranking projects because it allows you to quantify the amount of value created per unit of investment.
Small Is Profitable	Small Is Profitable: The Hidden Economic Benefits of Making Electrical Resources the Right Size is a 2002 book by energy analyst Amory Lovins and others. The book describes 207 ways in which the size of "electrical resources"—devices that make, save, or store electricity—affects their economic value.
SAP ERP	SAP ERP is an enterprise resource planning software developed by the German company SAP SE. SAP ERP incorporates the key business functions of an organization. The latest version of SAP ERP (V.6.0) was made available in 2006.
Round dance (honey bee)	A round dance is the communicative behaviour of a foraging honey bee (Apis mellifera), in which she moves on the comb in close circles, alternating right and then left. It is previously believed that the round dance indicates that the forager has located a profitable food source close to the hive and the round dance transitions into the waggle dance when food sources are more than 50 meters away.
Dysphagia	Dysphoria (from Ancient Greek δύσφορος (dúsphoros) 'grievous'; from δυσ- (dus-) 'bad, difficult', and φέρω (phérō) 'to bear') is a profound state of unease or dissatisfaction. It is the opposite of euphoria.
Transport	Transport (in British English), or transportation (in American English), is the movement of humans, animals, and goods from one location to another. In other words, the action of transport is defined as a particular movement of an organism or thing from a point A (a place in space) to a point B. \nModes of transport include air, land (rail and road), water, cable, pipeline, and space.
Penal transportation	Penal transportation or transportation was the relocation of convicted criminals, or other persons regarded as undesirable, to a distant place, often a colony, for a specified term; later, specifically established penal colonies became their destination. While the prisoners may have been released once the sentences were served, they generally did not have the resources to return home.
CSX Transportation	CSX Transportation (reporting mark CSXT), known colloquially as simply CSX, is a Class I freight railroad operating in the eastern United States and the Canadian provinces of Ontario and Quebec. The railroad operates approximately 21,000 route miles (34,000 km) of track.
Škoda Transportation	Škoda Transportation a.s. is a Czech engineering company that continues the legacy of Škoda Works' rolling stock manufacturing that started at the end of 19th century in Plzeň.
Transportation authority	The Metropolitan Transportation Authority (MTA) is a public benefit corporation responsible for public transportation in the New York City metropolitan area of the U.S. state of New York. The MTA is the largest public transit authority in the United States, serving 12 counties in Downstate New York, along with two counties in southwestern Connecticut under contract to the Connecticut Department of Transportation, carrying over 11 million passengers on an average weekday systemwide, and over 850,000 vehicles on its seven toll bridges and two tunnels per weekday.

Risk Factors
ALLIANCE RESOURCE PARTNERS LP ITEM 1A RISK FACTORS Risks Inherent in an Investment in us A substantial or extended decline in coal prices could negatively impact our results of operations
The prices we receive for our production depends upon factors beyond our control, including: • the supply of and demand for domestic and foreign coal; • weather conditions; • the proximity to, and capacity of, transportation facilities; 16 ______________________________________________________________________ [43]Table of Contents • worldwide economic conditions; • domestic and foreign governmental regulations and taxes; • the price and availability of alternative fuels; and • the effect of worldwide energy conservation measures
A substantial or extended decline in coal prices could materially and adversely affect us by decreasing our revenues to the extent we are not otherwise protected pursuant to the specific terms of our coal supply agreements
A material amount of our net income and cash flow is dependent on our continued ability to realize direct or indirect benefits from federal income tax credits such as non-conventional source fuel tax credits
If the benefit to us from any of these tax credits is materially reduced, it could negatively impact our results of operations and reduce our cash available for distributions
The non-conventional source fuel tax credit is scheduled to expire on December 31, 2007
In 2005, we derived a material amount of our net income under long-term agreements with SSO These agreements are dependent on the ability of the synfuel facility’s owner to use certain qualifying federal income tax credits available to the facility and are subject to early cancellation in certain circumstances, including in the event that these synfuel tax credits become unavailable to the owner
In 2005, the benefit of this synfuel tax credit was approximately dlra24dtta1 million
If, because of budgetary shortfalls or any other reason, the federal government was to significantly reduce or eliminate these credits, it could negatively impact our results of operations and reduce our cash available for distributions
Non-conventional source fuel tax credits are subject to a pro-rata phase-out or reduction if the annual average wellhead price per barrel for all domestic crude oil (the reference price) as determined by the Secretary of the Treasury exceeds certain levels
The reference price is not subject to regulation by the United States Government
The reference price for a calendar year is typically published in April of the following year
For qualified fuel sold during the 2004 calendar year, the reference price was dlra36dtta75
The pro-rata reduction of non-conventional source fuel tax credits for 2004 would have begun if the reference price was approximately dlra51dtta00 per barrel, with a complete phase-out or reduction of non-conventional synfuel tax credits if the reference price reached approximately dlra64dtta00 per barrel
We could experience a reduction of revenues associated with non-conventional source fuel facilities in the future if non-conventional source fuel tax credits become unavailable to the owners of the non-conventional source fuel facilities we service as a result of the rise in the wellhead price per barrel of crude oil above specified levels
At the present time, we have not been advised of any reductions in coal feedstock supply requirements or related services provided to any of our non-conventional source fuel facility customers
The non-conventional synfuel tax credit is scheduled to expire on December 31, 2007
A loss of the benefit from state tax credits may adversely affect our ability to pay our quarterly distribution Several states in which we operate or our utility customers reside have established a statutory framework for tax credits against income, franchise, or severance taxes, which have benefited, directly or indirectly, coal operators or customers purchasing coal mine production from within the applicable state
The state statutes authorizing these tax credits are scheduled to expire in accordance with their term provisions
Furthermore, these state statutes or our ability to benefit, directly or indirectly, from them may be subject to challenge by third parties
One of the states in which we operate has established a statutory framework for tax credits against income or franchise taxes, that have benefited, directly or indirectly, coal operators or customers purchasing coal produced from mines within that state
In 2005, the indirect benefit of this state tax credit to us was approximately dlra8dtta3 million
Although this credit is not set to expire by its terms in the near future, we are aware that legislation may be proposed that would eliminate this credit as a potential measure to reduce that state’s budget deficit
If these state statutes expire or any challenges are successful, we would lose the benefits of these credits
Therefore, if our operations do not produce increased cash flow sufficient to replace any lost benefits, we may not be able to pay the current quarterly distribution on its outstanding common units
Competition within the coal industry may adversely affect our ability to sell coal, and excess production capacity in the industry could put downward pressure on coal prices
We compete with other large coal producers and hundreds of small coal producers in various regions of the United States for domestic sales
The industry has undergone significant consolidation over the last decade
This consolidation 17 ______________________________________________________________________ [44]Table of Contents has led to several competitors having significantly larger financial and operating resources than we have
In addition, we compete to some extent with western surface coal mining operations that have a much lower per ton cost of production and produce low-sulfur coal
Over the last 20 years, growth in production from western coal mines has substantially exceeded growth in production from the east
Declining prices would reduce our revenues and would adversely affect our ability to make distributions to our unitholders
Any change in consumption patterns by utilities away from the use of coal could affect our ability to sell the coal we produce
Some power plants are fueled by natural gas because of the cheaper construction costs compared to coal-fired plants and because natural gas is a cleaner burning fuel
The domestic electric utility industry accounts for approximately 90prca of domestic coal consumption
The amount of coal consumed by the domestic electric utility industry is affected primarily by the overall demand for electricity, the price and availability of competing fuels for power plants such as nuclear, natural gas and fuel oil as well as hydroelectric power, and environmental and other governmental regulations
From time to time conditions in the coal industry may make it more difficult for us to extend existing or enter into new long-term coal supply agreements
This could affect the stability and profitability of our operations
A substantial decrease in the amount of coal sold by us pursuant to long-term contracts would reduce the certainty of the price and amounts of coal sold and subject our revenue stream to increased volatility
If that were to happen, changes in spot market coal prices below the long term contract price would have a greater impact on our results, and any decreases in the spot market price for coal could adversely affect our profitability and cash flow
In 2005, we sold approximately 86dtta0prca of our sales tonnage under contracts having a term greater than one year
Long-term sales contracts have historically provided a relatively secure market for the amount of production committed under the terms of the contracts
From time to time industry conditions, however, may make it more difficult for us to enter into long-term contracts with our electric utility customers in the future
In the future, if supply exceeds demand in the coal industry, electric utilities may become less willing to lock in price or quantity commitments for an extended period of time
Accordingly, we may not be able to continue to obtain long-term sales contracts with reliable customers as existing contracts expire
Some of our long-term coal supply agreements contain provisions allowing for the renegotiation of prices and, in some instances, the termination of the contract or the suspension of purchases by customers
Some of our long-term contracts contain provisions which allow for the purchase price to be renegotiated at periodic intervals
These price reopener provisions may automatically set a new price based on the prevailing market price or, in some instances, require the parties to the contract to agree on a new price
Any adjustment or renegotiation leading to a significantly lower contract price could adversely affect our operating profit margins
Accordingly, long-term contracts may provide only limited protection during adverse market conditions
In some circumstances, failure of the parties to agree on a price under a reopener can also lead to early termination of a contract
Several of our long-term contracts also contain provisions that allow the customer to suspend or terminate performance under the contract upon the occurrence or continuation of certain specified events
These events are called “force majeure” events
Some of these events that are specific to the coal industry include: • our inability to deliver the quantities or qualities of coal specified; • changes in the Clean Air Act rendering use of our coal inconsistent with the customer’s pollution control strategies; and • the occurrence of events beyond the reasonable control of the affected party, including labor disputes, mechanical malfunctions and changes in government regulations
18 ______________________________________________________________________ [45]Table of Contents In addition, certain contracts are terminable as a result of events that are beyond our control
For example, we have entered into agreements with several coal synfuel facilities to provide coal feedstock and other services
Each of these agreements provides for early cancellation in the event federal synfuel tax credits become unavailable or upon the termination of associated coal synfuel sales contracts between the facility and our customers
In the event of early termination of any of our long-term contracts, if we are unable to enter into new contracts on similar terms, our business, financial condition and results of operations could be adversely affected
Extensive environmental laws and regulations affect coal consumers, which have corresponding effects on the demand for our coal as a fuel source
Federal, state and local laws and regulations extensively regulate the amount of sulfur dioxide, particulate matter, nitrogen oxides, mercury and other compounds emitted into the air from electric power plants, which are the ultimate consumers of our coal
These laws and regulations can require significant emission control expenditures for many coal-fired power plants, and various new and proposed laws and regulations may require further emission reductions and associated emission control expenditures
A substantial portion of our coal has a high sulfur content, which may result in increased sulfur dioxide emissions when combusted
Accordingly, these laws and regulations may affect demand and prices for our low- and high-sulfur coal
There is also continuing pressure on state and federal regulators to impose limits on carbon dioxide emissions from electric power plants, particularly coal-fired power plants
As a result of these current and proposed laws, regulations and trends, electricity generators may elect to switch to other fuels that generate less of these emissions, possibly further reducing demand for our coal
” We depend on a few customers for a significant portion of our revenues, and the loss of one or more significant customers could affect our ability to maintain the sales volume and price of the coal we produce
During 2005, we derived approximately 36dtta4prca of our total revenues from three customers, which individually accounted for 10prca or more of our 2005 total revenues
If we were to lose any of these customers without finding replacement customers willing to purchase an equivalent amount of coal on similar terms, or if these customers were to change the amounts of coal purchased or the terms, including pricing terms, on which they buy coal from us, it could have a material adverse effect on our business, financial condition and results of operations
Litigation relating to disputes with our customers may result in substantial costs, liabilities and loss of revenues
From time to time we have disputes with our customers over the provisions of long-term coal supply contracts relating to, among other things, coal pricing, quality, quantity and the existence of specified conditions beyond our control that suspend performance obligations under the particular contract
Our profitability may decline due to unanticipated mine operating conditions and other factors that are not within our control
Our mining operations are influenced by changing conditions that can affect production levels and costs at particular mines for varying lengths of time and as a result can diminish our profitability
These conditions include, among others: • weather conditions; • equipment availability, replacement or repair; • prices for fuel, steel, explosives and other supplies; • Fires; • variations in thickness of the layer, or seam, of coal; • amounts of overburden, partings, rock and other natural materials; • accidental mine water discharges and other geological conditions; 19 ______________________________________________________________________ [46]Table of Contents • shortage of skilled labor; or • fluctuations in transportation costs and the availability or reliability of transportation
These conditions have had, and can be expected in the future to have, a significant impact on our operating results
For example, during the past two years, three loss incidents have occurred at our mine complexes
For details on these incidents and their negative effect on our results of operations, please read “Item 7
Management’s Discussion and Analysis of Financial Condition and Results of Operations—Pattiki Vertical Belt Incident,” “—MC Mining Fire Incident” and “—Dotiki Fire Incident
” Prolonged disruption of production at any of our mines would result in a decrease in our revenues and profitability, which could be material
Decreases in our profitability as a result of the factors described above could materially adversely impact our quarterly or annual results
These risks may not be covered by our insurance policies
Coal mining is subject to inherent risks that are beyond our control, and these risks may not be fully covered under our insurance policies
Our mines are subject to conditions or events beyond our control that could disrupt operations and affect the cost of mining at particular mines for varying lengths of time
These risks include: • fires and explosions from methane; • natural disasters, such as heavy rains and flooding; • mining and processing equipment failures and unexpected maintenance problems; • mine flooding due to the failure of subsurface water seals or water removal equipment; • changes or variations in geologic conditions, such as the thickness of the coal deposits and the amount of rock and soil overlying the coal deposits; • inability to acquire mining rights or permits; • employee injuries or fatalities; and • labor-related interruptions
During the past two years, three loss incidents have occurred at our mining complexes
On June 14, 2005, our Pattiki mining complex was temporarily idled for a period of 36 calendar days by the failure of the vertical conveyor belt system used in conveying raw coal out of the mine
” On December 26, 2004, our Excel Nodtta 3 mine was temporarily idled for a period of 57 calendar days following the occurrence of a mine fire
Production continues to be adversely impacted by inefficiencies attributable to or associated with this mine fire
Management’s Discussion and Analysis of Financial Conditions and Results of Operations—MC Mining Fire Incident
” On February 11, 2004, our Dotiki mining complex was temporarily idled for a period of 27 calendar days following the occurrence of a mine fire that originated with a diesel supply tractor
Management’s Discussion and Analysis of Financial Conditions and Results of Operations—Dotiki Fire Incident
” For details on how these incidents adversely affected our financial condition and results of operations, please read “Item 7
” Loss incidents such as these are likely to increase the cost of mining and delay or halt production at particular mines for varying lengths of time
We do carry commercial (including business interruption and extra expense) property insurance policies; however, these risks may not be fully covered by these insurance policies
A shortage of skilled labor may make it difficult for us to maintain labor productivity and competitive costs and could adversely affect our profitability
Efficient coal mining using modern techniques and equipment requires skilled laborers, preferably with at least one year of experience and proficiency in multiple mining tasks
In recent years, a shortage of trained coal miners has caused 20 ______________________________________________________________________ [47]Table of Contents us to operate certain mining units without full staff, which decreases our productivity and increases our costs
This shortage of trained coal miners is the result of a significant percentage of experienced coal miners reaching the age for retirement, combined with the difficulty of attracting new workers to the coal industry
Thus, this shortage of skilled labor could continue over an extended period
If the shortage of experienced labor continues or worsens, it could have an adverse impact on our labor productivity and costs and our ability to expand production in the event there is an increase in the demand for our coal, which could adversely affect our profitability
None of our employees are represented under collective bargaining agreements
If some or all of our currently union-free operations were to become unionized, it could adversely affect our productivity and increase the risk of work stoppages at our mining complexes
In addition, even if we remain union-free, our operations may still be adversely affected by work stoppages at unionized companies, particularly if union workers were to orchestrate boycotts against our operations
We may be unable to obtain and renew permits necessary for our operations, which could reduce our production, cash flow and profitability
Mining companies must obtain numerous permits that impose strict conditions and obligations relating to various environmental and safety matters in connection with coal mining
The permitting rules are complex and can change over time
The public has the right to comment on permit applications and otherwise participate in the permitting process, including through court intervention
Accordingly, permits required by us to conduct our operations may not be issued, maintained or renewed, or may not be issued or renewed in a timely fashion, or may involve requirements that restrict our ability to economically conduct our mining operations
Limitations on our ability to conduct our mining operations due to the inability to obtain or renew necessary permits could reduce our production, cash flow and profitability
Please read “Regulations and Laws—Mining Permits and Approvals
” Recent federal district court decisions in West Virginia, and related litigation filed in federal district court in Kentucky, have created uncertainty regarding the future ability to obtain certain general permits authorizing the construction of valley fills for the disposal of overburden from mining operations
A July 2004 decision by the Southern District of West Virginia in Ohio Valley Environmental Coalition v
Bulen enjoined the Huntington District of the US Army Corps of Engineers from issuing further permits pursuant to Nationwide Permit 21, which is a general permit issued by the US Army Corps of Engineers to streamline the process for obtaining permits under Section 404 of the Clean Water Act
The Fourth Circuit Court of Appeals issued a decision on November 23, 2005, vacating the district court decision in Bulen and remanding the case to the lower court for further argument
A similar lawsuit has been filed in federal district court in Kentucky that seeks to enjoin the issuance of permits pursuant to Nationwide Permit 21 by the Louisville District of the US Army Corps of Engineers
We do not operate any mines located within the Southern District of West Virginia, and currently only utilize Nationwide Permit 21 at one location in Indiana
In the event current or future litigation contesting the use of Nationwide Permit 21 is successful, we may be required to apply for individual discharge permits pursuant to Section 404 of the Clean Water Act in areas where it would have otherwise utilized Nationwide Permit 21
Such a change could result in delays in obtaining required mining permits to conduct operations, which could in turn result in reduced production, cash flow and profitability
Fluctuations in transportation costs and the availability or reliability of transportation could reduce revenues by causing us to reduce our production or by impairing our ability to supply coal to our customers
Transportation costs represent a significant portion of the total cost of coal for our customers and, as a result, the cost of transportation is a critical factor in a customer’s purchasing decision
Increases in transportation costs could make coal a less competitive source of energy or could make our coal production less competitive than coal produced from other sources
On the other hand, significant decreases in transportation costs could result in increased competition from coal producers in other parts of the country
For instance, difficulty in coordinating the many eastern coal loading facilities, the large number of small shipments, the steeper average grades of the terrain and a more unionized workforce are all issues that combine to make coal shipments originating in the eastern United States inherently more expensive on a per-mile basis than coal shipments originating in the western United States
Historically, high coal transportation rates from the western coal producing areas into certain eastern markets limited the use of western coal in those markets
Lower or higher rail rates from the western coal producing areas to markets served by eastern US coal producers have created 21 ______________________________________________________________________ [48]Table of Contents major competitive challenges, as well as opportunities for eastern coal producers
In the event of lower transportation costs, the increased competition could have a material adverse effect on our business, financial condition and results of operations
Some of our mines depend on a single transportation carrier or a single mode of transportation
Disruption of any of these transportation services due to weather-related problems, flooding, drought, accidents, mechanical difficulties, strikes, lockouts, bottlenecks, and other events could temporarily impair our ability to supply coal to our customers
Our transportation providers may face difficulties in the future that may impair our ability to supply coal to our customers, resulting in decreased revenues
If there are disruptions of the transportation services provided by our primary rail or barge carriers that transport our coal and we are unable to find alternative transportation providers to ship our coal, our business could be adversely affected
The states of Kentucky and West Virginia have recently increased enforcement of weight limits on coal trucks on their public roads
It is possible that other states in which our coal is transported by truck will modify their laws to limit truck weight limits
Such legislation could result in shipment delays and increased costs
An increase in transportation costs could have an adverse effect on our ability to increase or to maintain production and could adversely affect revenues
Expansions of existing mines that we have completed since our formation, as well as mine expansions that we may undertake in the future, involve a number of risks, any of which could cause us not to realize the anticipated benefits
Since our formation and the acquisition of our predecessor in August 1999, we have expanded our operations by adding and developing mines and coal reserves in existing, adjacent and neighboring properties
We continually seek to expand our operations and coal reserves
If we are unable to successfully integrate the companies, businesses or properties we are able to acquire through such expansion, our profitability may decline and we could experience a material adverse effect on our business, financial condition, or results of operations
Expansion transactions involve various inherent risks, including: • uncertainties in assessing the value, strengths, and potential profitability of, and identifying the extent of all weaknesses, risks, contingent and other liabilities (including environmental or mine safety liabilities) of, expansion opportunities; • the ability to achieve identified operating and financial synergies anticipated to result from an expansion; • problems that could arise from the integration of the new operations; and • unanticipated changes in business, industry or general economic conditions that affect the assumptions underlying our rationale for pursuing the expansion opportunity
Any one or more of these factors could cause us not to realize the benefits anticipated to result from an expansion
Any expansion opportunities we pursue could materially affect our liquidity and capital resources and may require us to incur indebtedness, seek equity capital or both
In addition, future expansions could result in us assuming more long-term liabilities relative to the value of the acquired assets than we have assumed in our previous expansions
We may not be able to successfully grow through future acquisitions, and we may not be able to effectively integrate the various businesses or properties we acquire
Historically, a portion of our growth and operating results have been from acquisitions
Our future growth could be limited if we are unable to continue to make acquisitions, or if we are unable to successfully integrate the companies, businesses or properties we acquire
We may not be successful in consummating any acquisitions and the consequences of these acquisitions is unknown
Moreover, any acquisition could be dilutive to earnings and distributions to unitholders and any additional debt incurred to finance an acquisition could affect our ability to make distributions to unitholders
Our ability to make acquisitions in the future could be limited by restrictions under our existing or future debt agreements, competition from other coal companies for attractive properties or the lack of suitable acquisition candidates
22 ______________________________________________________________________ [49]Table of Contents The unavailability of an adequate supply of coal reserves that can be mined at competitive costs could cause our profitability to decline
Our profitability depends substantially on our ability to mine coal reserves that have the geological characteristics that enable them to be mined at competitive costs and to meet the quality needed by our customers
Because our reserves decline as we mine coal, our future success and growth depend, in part, upon our ability to acquire additional coal reserves that are economically recoverable
Replacement reserves may not be available when required or, if available, may not be capable of being mined at costs comparable to those characteristic of the depleting mines
We may not be able to accurately assess the geological characteristics of any reserves that we acquire, which may adversely affect our profitability and financial condition
Exhaustion of reserves at particular mines also may have an adverse effect on our operating results that is disproportionate to the percentage of overall production represented by such mines
Our ability to obtain other reserves in the future could be limited by restrictions under our existing or future debt agreements, competition from other coal companies for attractive properties, the lack of suitable acquisition candidates or the inability to acquire coal properties on commercially reasonable terms
Our business depends, in part, upon our ability to find, develop or acquire additional coal reserves that we can recover economically
Our existing reserves will decline as they are depleted
Our planned development projects and acquisition activities may not increase our reserves significantly and we may not have continued success expanding existing and developing additional mines
We believe that there are substantial reserves on certain adjacent or neighboring properties that are unleased and otherwise available
However, we may not be able to negotiate leases with the landowners on acceptable terms
An inability to expand our operations into adjacent or neighboring reserves under this strategy could have a material adverse effect on our business, financial condition or results of operations
The estimates of our coal reserves may prove inaccurate, and you should not place undue reliance on these estimates
The estimates of our coal reserves may vary substantially from actual amounts of coal we are able to economically recover
The reserve data set