7. Other Short-Term and Long-Term Obligations

Federal Coal Lease Obligations

Federal coal lease obligations consisted of (in thousands):

	June 30,		December 31,
	2013		2012
Federal coal lease obligations, current	$	54,339	$	63,191
Federal coal lease obligations, noncurrent	122,928		122,928
Total federal coal lease obligations	$	177,267	$	186,119

Our federal coal lease obligations, as reflected in the consolidated balance sheets, consist of obligations payable to the Bureau of Land Management of the U.S. Department of the Interior (the “BLM”) discounted at an imputed interest rate. Imputed interest is included in accrued expenses.

We have federal coal lease payments, as follows (dollars in thousands):

					June 30, 2013				December 31, 2012
	Annual		Imputed		Carrying		Fair		Carrying		Fair
Payment Dates	Payment		Interest Rate		Value		Value(1)		Value		Value(1)
May 1, 2009 — 2013	$	9,620	8.70	%	$	—	$	—	$	8,852	$	9,532
July 1, 2011 — 2015	$	59,545	8.50	%	152,078		174,744		152,078		171,075
September 1, 2011 — 2015	$	9,862	8.50	%	25,189		28,519		25,189		28,196
					$	177,267	$	203,263	$	186,119	$	208,803

(1) The fair value of estimates for federal coal lease obligations was determined by discounting the remaining lease payments using the then current estimate of the credit-adjusted, risk-free rate based on our then current credit rating, which are considered Level 2 in the fair value hierarchy.

Future payments on federal coal leases are as follows (in thousands):

Year Ended December 31,
2013	$	69,407
2014	69,407
2015	69,407
Total	208,221
Less: imputed interest	30,954
Total principal payments	177,267
Less: current portion	54,339
Long-term federal coal leases payable	$	122,928

Capital Equipment Lease Obligations

During the three months ended June 30, 2013, we entered into capital leases on equipment under various lease schedules, which are subject to the master lease agreement, and are pre-payable at our option. Interest on the leases is based on the one-month LIBOR plus 1.95% for an annual rate of 2.14% as of June 30, 2013. The gross value of property, plant, and equipment under capital leases was $7.6 million as of June 30, 2013 and related primarily to the leasing of mining equipment. The accumulated depreciation for these items was $0.2 million at June 30, 2013, and changes thereto have been included in Depreciation, depletion and amortization in the consolidated statements of operations. Due to the variable nature of the imputed interest, fair value is equal to carrying value.

Capital equipment lease obligations consisted of (in thousands):

Year Ended December 31,
2013	$	621
2014	1,225
2015	1,201
2016	1,178
2017	1,155
Thereafter	2,694
Total	8,074
Less: interest	563
Total principal payments	7,511
Less: current portion	1,086
Long-term capital equipment lease obligations	$	6,425

Accounts Receivable Securitization

On February 11, 2013, we executed an Accounts Receivable Securitization Facility (“A/R Securitization Program”) with capacity of up to $75 million. CPE Resources and certain of our subsidiaries are parties to the A/R Securitization Program. In January 2013, we formed CPE Receivables LLC (the “SPE”), a special purpose, bankruptcy-remote wholly-owned subsidiary, to purchase, subject to certain exclusions, in a true sale, trade receivables generated by certain of our subsidiaries without recourse (other than customary indemnification obligations for breaches of specific representations and warranties), and then transfer undivided interests in up to $75 million of those accounts receivable to a financial institution for cash borrowings for our ultimate benefit. The total aggregate borrowings are limited by eligible accounts receivable, as defined under the terms of the A/R Securitization Program. At June 30, 2013, the A/R Securitization Program would have allowed for $51.9 million of borrowing capacity. There were no borrowings from the A/R Securitization Program at June 30, 2013. The SPE is consolidated into our financial statements.

Amended Credit Agreement

Our Amended Credit Agreement establishes a commitment to provide us with a senior secured revolving credit facility with a capacity of up to a $500 million, which can be used to borrow funds or issue letters of credit. The financial covenants in the Amended Credit Agreement are based on EBITDA (which is defined in the Amended Credit Agreement and is not the same as EBITDA or Adjusted EBITDA otherwise presented), requiring us to maintain defined minimum levels of interest coverage and providing for a limitation on our leverage ratio. The borrowing capacity under the Amended Credit Agreement is reduced by the amount of letters of credit issued and is limited by the covenant ratio of funded debt to EBITDA. As of June 30, 2013, our borrowing capacity under the Amended Credit Agreement and the A/R Securitization Program was approximately $487 million. Our obligations under the credit facility are secured by substantially all of CPE Resources’s assets and substantially all of the assets of certain of CPE Resources’s subsidiaries, subject to certain permitted liens and customary exceptions for similar coal financings. Our obligations under the credit facility are also supported by a guarantee by CPE Resources’s domestic restricted subsidiaries. The credit facility matures on June 3, 2016. As of June 30, 2013, no borrowings were outstanding under the credit facility and we were in compliance with the covenants contained in our Amended Credit Agreement.