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			&lt;font style="display: inline;font-weight:bold;"&gt;2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GENERAL&lt;/font&gt;&lt;font style="display: inline;"&gt;&amp;nbsp;&lt;/font&gt;
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		&lt;p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman;font-size: 12pt"&gt;
			&lt;font style="display: inline;font-weight:bold;font-style:italic;"&gt;Investment in Joint Venture&lt;/font&gt;&lt;font style="display: inline;font-weight:bold;font-style:italic;"&gt;s&lt;/font&gt;&lt;font style="display: inline;font-weight:bold;font-style:italic;"&gt;.&lt;/font&gt;&lt;font style="display: inline;"&gt; &amp;nbsp; &amp;nbsp;&lt;/font&gt;&lt;font style="display: inline;"&gt;Investments in other entities are accounted for using the consolidation, equity method or cost basis depending upon the level of ownership, the Partnership&amp;#x2019;s ability to exercise significant influence over the operating and financial policies of the investee and whether the Partnership is determined to be the primary beneficiary of a variable interest entity. Equity investments are recorded at original cost and adjusted periodically to recognize the Partnership&amp;#x2019;s proportionate share of the investees&amp;#x2019; net income or losses after the date of investment. Any losses from the Partnership&amp;#x2019;s equity method investment are absorbed by the Partnership based upon its proportionate ownership percentage. If losses are incurred that exceed the Partnership&amp;#x2019;s investment in the equity method entity, then the Partnership must continue to record its proportionate share of losses in excess of its investment. Investments are written down only when there is clear evidence that a decline in value that is other than temporary has occurred.&lt;/font&gt;
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			&lt;font style="display: inline;"&gt;In May 2008, the Operating Company entered into a joint venture, Rhino Eastern LLC (&amp;#x201C;Rhino Eastern&amp;#x201D;), with an affiliate of Patriot Coal Corporation (&amp;#x201C;Patriot&amp;#x201D;) to acquire the Eagle mining complex. To initially capitalize the joint venture, the Operating Company contributed approximately $&lt;/font&gt;&lt;font style="display: inline;"&gt;16.1&lt;/font&gt;&lt;font style="display: inline;"&gt; million for a &lt;/font&gt;&lt;font style="display: inline;"&gt;51&lt;/font&gt;&lt;font style="display: inline;"&gt;% ownership interest in the joint venture and the Partnership accounts for the investment in the joint venture and its results of operations under the equity method. The Partnership considers the operations of this entity to comprise a reporting segment (&amp;#x201C;Eastern Met&amp;#x201D;) and has provided additional detail related to this operation in Note 18, &amp;#x201C;Segment Information.&amp;#x201D; As of June 30, 2013 and December 31, 2012, the Partnership has recorded its Rhino Eastern equity method investment of $&lt;/font&gt;&lt;font style="display: inline;"&gt;18.9&lt;/font&gt;&lt;font style="display: inline;"&gt; million and $&lt;/font&gt;&lt;font style="display: inline;"&gt;21.8&lt;/font&gt;&lt;font style="display: inline;"&gt; million, respectively, as a long-term asset. During the six months ended June 30, 2013, the Partnership contributed additional capital based upon its ownership share to the Rhino Eastern joint venture in the amount of $&lt;/font&gt;&lt;font style="display: inline;"&gt;0.4&lt;/font&gt;&lt;font style="display: inline;"&gt; million.&lt;/font&gt;
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			&lt;font style="display: inline;"&gt;On July 9, 2012, Patriot filed for Chapter 11 bankruptcy protection. Normal operations have continued at the joint venture and thus far the bankruptcy filing has not had a material negative effect on Rhino Eastern.&lt;/font&gt;
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			&lt;font style="display: inline;"&gt;In March 2012, the Partnership made an initial investment of approximately $&lt;/font&gt;&lt;font style="display: inline;"&gt;0.1&lt;/font&gt;&lt;font style="display: inline;"&gt; million in a new joint venture, Timber Wolf, with affiliates of Wexford Capital LP (&amp;#x201C;Wexford Capital&amp;#x201D;).&amp;nbsp;&amp;nbsp;Timber Wolf was formed to construct and operate a condensate river terminal that will provide barge trans-loading services for parties conducting activities in the Utica Shale region of eastern Ohio.&amp;nbsp;&amp;nbsp;The initial investment was the Partnership&amp;#x2019;s proportionate minority ownership share to purchase land for the construction site of the condensate river terminal. Timber Wolf had no operating activities during 2012 or the six months ended June 30, 2013. The Partnership has included its Timber Wolf investment in its Other category.&lt;/font&gt;
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			&lt;font style="display: inline;"&gt;In December 2012, the Partnership made an initial investment of approximately $&lt;/font&gt;&lt;font style="display: inline;"&gt;2.0&lt;/font&gt;&lt;font style="display: inline;"&gt; million in a new joint venture, Muskie Proppant LLC (&amp;#x201C;Muskie&amp;#x201D;), with affiliates of Wexford Capital. Muskie was formed to provide sand for fracking operations to drillers in the Utica Shale region and other oil and natural gas basins in the United States. The Partnership recorded its proportionate share of the operating profit/(loss) for the three and six months ended June 30, 2013, approximately &lt;/font&gt;&lt;font style="display: inline;"&gt;$17,000&lt;/font&gt;&lt;font style="display: inline;"&gt; and &lt;/font&gt;&lt;font style="display: inline;"&gt;($132,000)&lt;/font&gt;&lt;font style="display: inline;"&gt;, respectively, for Muskie, which is still undergoing operational development. &lt;/font&gt;&lt;font style="display: inline;"&gt;During the &lt;/font&gt;&lt;font style="display: inline;"&gt;six months ended June 30,&lt;/font&gt;&lt;font style="display: inline;"&gt; 2013, the Partnership contributed additional capital based upon its ownership share to the &lt;/font&gt;&lt;font style="display: inline;"&gt;Muskie&lt;/font&gt;&lt;font style="display: inline;"&gt; joint venture in the amount of $&lt;/font&gt;&lt;font style="display: inline;"&gt;0.4&lt;/font&gt;&lt;font style="display: inline;"&gt; million.&lt;/font&gt;&lt;font style="display: inline;"&gt;&amp;nbsp;&lt;/font&gt;&lt;font style="display: inline;"&gt;As of &lt;/font&gt;&lt;font style="display: inline;"&gt;June&lt;/font&gt;&lt;font style="display: inline;"&gt; &amp;nbsp;3&lt;/font&gt;&lt;font style="display: inline;"&gt;0&lt;/font&gt;&lt;font style="display: inline;"&gt;, 2013 and December 31, 2012, the Partnership has recorded its &lt;/font&gt;&lt;font style="display: inline;"&gt;Muskie equity method investment of $&lt;/font&gt;&lt;font style="display: inline;"&gt;2.0&lt;/font&gt;&lt;font style="display: inline;"&gt; million and $&lt;/font&gt;&lt;font style="display: inline;"&gt;1.7&lt;/font&gt;&lt;font style="display: inline;"&gt; million, respectively, as a long-term asset.&lt;/font&gt;&lt;font style="display: inline;"&gt; The Partnership includes any operating activities of Muskie in its Other category.&lt;/font&gt;&lt;font style="display: inline;"&gt;&amp;nbsp;&lt;/font&gt;
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			&lt;font style="display: inline;font-weight:bold;font-style:italic;"&gt;Recently Issued Accounting Standards.&lt;/font&gt;&lt;font style="display: inline;"&gt;&amp;nbsp;&lt;/font&gt;&lt;font style="display: inline;"&gt;In February 2013, the Financial Accounting Standards Board (&amp;#x201C;FASB&amp;#x201D;) issued Accounting Standards Update (&amp;#x201C;ASU&amp;#x201D;) No. 2013-02, &amp;#x201C;Comprehensive Income (Topic 220) Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income&amp;#x201D;. This ASU requires preparers to report, in one place, information about reclassifications out of accumulated other comprehensive income (&amp;#x201C;AOCI&amp;#x201D;). The ASU also requires companies to report changes in AOCI balances. For significant items reclassified out of AOCI to net income in their entirety in the same reporting period, reporting (either on the face of the statement where net income is presented or in the notes) is required about the effect of the reclassifications on the respective line items in the statement where net income is presented. For items that are not reclassified to net income in their entirety in the same reporting period, a cross reference to other disclosures currently required under U&lt;/font&gt;&lt;font style="display: inline;"&gt;.&lt;/font&gt;&lt;font style="display: inline;"&gt;S&lt;/font&gt;&lt;font style="display: inline;"&gt;.&lt;/font&gt;&lt;font style="display: inline;"&gt; GAAP (e.g., pension amounts that are included in inventory) is required in the notes. The above information must be presented in one place (parenthetically on the face of the financial statements by income statement line item or in a note). Public companies must provide the information required by the ASU (e.g., changes in AOCI balances and reclassifications out of AOCI) in interim and annual periods. For public companies, the ASU is effective for fiscal years and interim periods within those years beginning after 15 December 2012, or the first quarter of 2013 for calendar-year companies. The Partnership has included the required disclosures of ASU 2013-02 in this Form 10Q and this ASU did not have a material effect on the Partnership.&lt;/font&gt;&lt;font style="display: inline;"&gt;&amp;nbsp;&lt;/font&gt;
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