Commitments And Contingencies

3 Months Ended

Mar. 31, 2013

Commitments And Contingencies [Abstract]

Commitments And Contingencies

13. COMMITMENTS AND CONTINGENCIES 

Coal Sales Contracts and Contingencies—As of March  31, 2013, the Partnership had commitments under sales contracts to deliver annually scheduled base quantities of approximately  2.9 million, 2.4 million, 1.6 million, 1.1 million and 1.1 million tons of coal to 19 customers in 2013, 8 customers in 2014, 4 customers in 2015, 2 customers in 2016, and 2 customers in 2017, respectively. Some of the contracts have sales price adjustment provisions, subject to certain limitations and adjustments, based on a variety of factors and indices.

Purchase Commitments—As of March 31, 2013, the Partnership had approximately  0.8 million gallons remaining on a commitment to purchase diesel fuel at fixed prices through December 2013 for approximately $2.5 million. 

Purchased Coal Expenses—The Partnership incurs purchased coal expense from time to time related to coal purchase contracts. Purchased coal expense from coal purchase contracts for the three months ended March  31, 2013 and 2012  were as follows:

	Three months ended March 31,
	2013	2012
	(in thousands)
Purchased coal expense	$              972	$           5,226

Leases—The Partnership leases various mining, transportation and other equipment under operating leases. The Partnership also leases coal reserves under agreements that call for royalties to be paid as the coal is mined. Lease and royalty expense for the three months ended March  31, 2013 and 2012 was as follows:  

	Three months ended March 31,
	2013	2012
	(in thousands)
Lease expense	$              867	$              695
Royalty expense	$           2,908	$           4,286

Joint Ventures—Pursuant to the Rhino Eastern joint venture agreement with Patriot, the Partnership is required to contribute additional capital to assist in funding the development and operations of the Rhino Eastern joint venture. During the three months ended March 31, 2013 and 2012, the Partnership made capital contributions of approximately $0.4 million to the Rhino Eastern joint venture. The Partnership may be required to contribute additional capital to the Rhino Eastern joint venture in subsequent periods. 

The Partnership may contribute additional capital to the Timber Wolf joint venture that was formed in the first quarter of 2012.  The Partnership made an initial capital contribution of approximately $0.1 million during the year ended December 31, 2012 based upon its proportionate ownership interest.

The Partnership may contribute additional capital to the Muskie Proppant joint venture that was formed in the fourth quarter of 2012. The Partnership made an initial capital contribution of approximately $2.0 million during the fourth quarter of 2012 and an additional capital contribution of approximately $0.3 million during the three months ended March 31, 2013, each based upon its proportionate ownership interest.