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PATTIKI VERTICAL HOIST CONVEYOR SYSTEM FAILURE IN 2010
12 Months Ended
Dec. 31, 2012
PATTIKI VERTICAL HOIST CONVEYOR SYSTEM FAILURE IN 2010  
PATTIKI VERTICAL HOIST CONVEYOR SYSTEM FAILURE IN 2010

3. PATTIKI VERTICAL HOIST CONVEYOR SYSTEM FAILURE IN 2010

        On May 13, 2010, White County Coal's Pattiki mine was temporarily idled following the failure of the vertical hoist conveyor system used in conveying raw coal out of the mine. Operating expenses for the twelve months ended December 31, 2010 include $1.2 million for retirement of certain assets related to the failed vertical hoist conveyor system in addition to other repair and clean-up expenses that were not significant on a consolidated or segment basis. As the loss on the vertical hoist conveyor system did not exceed the deductible under the ARLP Partnership's commercial property (including business interruption) insurance policies, it did not recover any amounts under such policies.

        While the Pattiki mine was temporarily idled, the ARLP Partnership expanded coal production at its other coal mines in the region, including the addition of the seventh and eighth production units at the River View mine, to partially offset the loss of production from the Pattiki mine. Consequently, the temporary idling of the Pattiki mine in 2010 did not have a material adverse impact on our results of operations and cash flows. On July 19, 2010, the Pattiki mine resumed limited production while White County Coal continued to assess the effectiveness and reliability of the repaired vertical hoist conveyor system. On January 3, 2011, the Pattiki mine returned to full production capacity.