<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-01-18</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001297720</issuerCik>
        <issuerName>James River Coal CO</issuerName>
        <issuerTradingSymbol>JRCC</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001295984</rptOwnerCik>
            <rptOwnerName>Pirate Capital LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>200 CONNECTICUT AVENUE</rptOwnerStreet1>
            <rptOwnerStreet2>4TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>NORWALK</rptOwnerCity>
            <rptOwnerState>CT</rptOwnerState>
            <rptOwnerZipCode>06854</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2006-01-18</value>
            </transactionDate>
            <deemedExecutionDate>
                <value>2006-01-18</value>
            </deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>30000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>39.31</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>1994707</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>see footnote 1</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">The securities beneficially owned by the Reporting Person are held directly by Jolly Roger Fund LP a limited partnership for
 which the Reporting Person serves as general partner and Jolly Roger Offshore Fund LTD, Jolly Roger Activist Portfolio
 Company LTD and Mint Master Fund LTD, each an entity for which the Reporting Person serves as investment advisor
 (collectively, the &quot;Funds&quot;). The Reporting Person is deemed to be the indirect beneficial owner of the securities reported
 by reason of its position as general partner and investment advisor, as applicable, of the Funds, and its pecuniary interest
 in such shares (within the meaning of Rule 16a-1(a)(2) under the Securities Exchange Act of 1934, as amended) is a
 fractional interest in such amount.  The Reporting Person disclaims beneficial ownership of any and all such amounts in
 excess of such actual pecuniary interest.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Prentice Capital LLC, by Thomas R. Hudson Jr. its Portfolio Manager</signatureName>
        <signatureDate>2006-01-20</signatureDate>
    </ownerSignature>
</ownershipDocument>
