Note 9 - Related Party Transactions

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

NOTE 

9

—RELATED PARTY TRANSACTIONS

Mineral Lease and Surface Rights Agreements

Much of the coal reserves and surface rights that we control were acquired through a series of mineral leases and surface rights agreements with Ramaco Coal, LLC. Payments of minimum coal royalties and throughput payments commenced in 

2017

 pursuant to the terms of the agreements. Under these agreements, minimum royalties are paid in arrears each month to the extent that the earned production royalties for such month are less than the required minimums. In the

first

quarter of

2018,

production royalties of

$1.3

million were paid or accrued. Royalties of

$169

thousand were paid in the

three

months ended

March 31, 2017.

On-going Administrative Services

Under a Mutual Services Agreement dated 

December 22, 2017 

but effective as of 

March 31, 2017, 

the Company and Ramaco Coal, LLC agreed to share the services of certain of each company’s employees.  Each party will pay the other a fee on a quarterly basis for such services calculated as the annual base salary of each employee providing services multiplied by the percentage of time each employee spent providing services for the other party.  The services will be provided for 

12

-month terms, but 

may 

be terminated by either party at the end of any 

12

-month term by providing written notice at least 

30

 days prior to the end of the then-current term. 

No

 payments were made under this agreement in 

2017

or the

first

quarter of

2018.