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

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2005-01-07</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001301063</issuerCik>
        <issuerName>Foundation Coal Holdings, Inc.</issuerName>
        <issuerTradingSymbol>FCL</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001277410</rptOwnerCik>
            <rptOwnerName>BLACKSTONE MANAGEMENT ASSOCIATES IV LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O THE BLACKSTONE GROUP</rptOwnerStreet1>
            <rptOwnerStreet2>345 PARK AVENUE</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10154</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001277408</rptOwnerCik>
            <rptOwnerName>BLACKSTONE FAMILY INVESTMENT PARTNERSHIP IV-A LP</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O THE BLACKSTONE GROUP</rptOwnerStreet1>
            <rptOwnerStreet2>345 PARK AVENUE</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10154</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001310608</rptOwnerCik>
            <rptOwnerName>Blackstone FCH Capital Partners IV L.P.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O THE BLACKSTONE GROUP</rptOwnerStreet1>
            <rptOwnerStreet2>345 PARK AVENUE</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10154</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001070843</rptOwnerCik>
            <rptOwnerName>PETERSON PETER G</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O THE BLACKSTONE GROUP</rptOwnerStreet1>
            <rptOwnerStreet2>345 PARK AVENUE</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10154</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001070844</rptOwnerCik>
            <rptOwnerName>SCHWARZMAN STEPHEN A</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O THE BLACKSTONE GROUP</rptOwnerStreet1>
            <rptOwnerStreet2>345 PARK AVENUE</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10154</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, par value $0.01 per share</value>
            </securityTitle>
            <transactionDate>
                <value>2005-01-07</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F1"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>1208972</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>8089020</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See footnotes</value>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                    <footnoteId id="F4"/>
                    <footnoteId id="F5"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock, par value $0.01 per share</value>
            </securityTitle>
            <transactionDate>
                <value>2005-01-07</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F1"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>63630</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>425738</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See footnotes</value>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                    <footnoteId id="F4"/>
                    <footnoteId id="F5"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">In connection with the Issuer's initial public offering (the &quot;IPO&quot;), on December 8, 2004, the Issuer declared a stock
dividend payable to the holders of record of the Issuer's common stock (the &quot;Common Stock&quot;) issued and outstanding on
December 8, 2004 (the &quot;Record Date&quot;). The payment of such stock dividend was contingent upon whether the underwriters in
the IPO exercised their option to purchase an additional 3,541,500 shares of Common Stock (the &quot;Over-Allotment Option&quot;). On
January 7, 2004, the Over-Allotment Option expired, and as of that date the underwriters had purchased 511,900 shares
pursuant to the Over-Allotment Option. The remaining 3,029,600 shares were issued ratably to the Issuer's holders as of the
Record Date.</footnote>
        <footnote id="F2">Following the reported transaction, Blackstone FCH Capital Partners IV L.P. owns 8,089,020 shares of Common Stock reported as
beneficially owned in the above table. (This amount of shares reported as beneficially owned by Blackstone FCH
Capital Partners IV L.P. reflects an adjustment of four shares fewer than were previously reported on Form 3. The
adjustment is to correct a previous rounding error.) Blackstone Family Investment Partnership IV-A L.P. (together with
Blackstone FCH Capital Partners IV L.P., the &quot;Blackstone Funds&quot;) owns 425,738 shares of Common Stock reported as
beneficially owned in the above table. Blackstone Management Associates IV L.L.C. is the sole general partner of each of
the Blackstone Funds and, as such, may be deemed to share beneficial ownership of the shares of Common Stock held by the
Blackstone Funds.</footnote>
        <footnote id="F3">Messrs. Peter G. Peterson and Stephen A. Schwarzman are the founding members of Blackstone Management Associates IV L.L.C.
and, as such, may be deemed to share beneficial ownership of the shares of Common Stock held by the Blackstone Funds.</footnote>
        <footnote id="F4">Information with respect to each of the Reporting Persons is given solely by such Reporting Persons, and no Reporting Person
has responsibility for the accuracy or completeness of information supplied by another Reporting Person.</footnote>
        <footnote id="F5">Pursuant to Rule 16a-1(a)(4) of the Securities Exchange Act of 1934, as amended, each of the Reporting Persons, other than
the Blackstone Funds, herein states that this filing shall not be deemed an admission that he or it is the beneficial owner
of any of the shares of Common Stock covered by this Statement. Each of Blackstone Management Associates IV L.L.C., Messrs.
Peter G. Peterson and Stephen A. Schwarzman disclaims beneficial ownership of the Common Stock, except to the extent of his
or its pecuniary interest in such shares of Common Stock.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Prakash Melwani (on behalf of Blackstone Management Associates IV L.L.C.) (Please see attached Joint Filer Information for signatures of other Reporting Persons)</signatureName>
        <signatureDate>2005-01-11</signatureDate>
    </ownerSignature>
</ownershipDocument>

