Note 8 - Commitments and Contingencies

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

8

.

Commitments and Contingencies

Leases—

The Company entered into a lease for new office space in Lexington, Kentucky. The lease term expires in

March

2022.

Monthly rents under the lease are

$6,053.

Total commitments under the lease over its term are

$375,281.

Environmental Liabilities

—Environmental liabilities are recognized when the expenditures are considered probable and can be reasonably estimated. Measurement of liabilities is based on currently enacted laws and regulations, existing technology and undiscounted site-specific costs. Generally, such recognition would coincide with a commitment to a formal plan of action. No amounts have been recognized for environmental liabilities.

Surety Bond

—In accordance with state laws, the Company is required to post reclamation bonds to assure that reclamation work is completed. Reclamation bonds outstanding at

March

31,

2017

totaled approximately

$4.8

million.

Construction Commitments

—On

September

2,

2016,

the Company entered into a fixed price contract with a West Virginia contractor for the construction of a coal preparation plant, coal loadout and associated belting and storage facilities on the Elk Creek property for

$27.8

million. A remaining

$11.8

million under the contract is yet to be billed. Construction of the preparation plant and associated facilities is scheduled for completion in the

second

half of

2017.

In

September

2016,

the Company entered into a fixed price contract for the construction of a railroad spur from the site of the Elk Creek preparation plant and loadout for

$4.5

million. At

March

31,

2017,

$1.0

million remained to be billed under this contract. Construction of the railroad spur is scheduled for completion in the

second

half of

2017.