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What changed in ALLIANCE RESOURCE PARTNERS LP's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of ALLIANCE RESOURCE PARTNERS LP's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+561 added−599 removedSource: 10-K (2024-02-23) vs 10-K (2023-02-24)

Top changes in ALLIANCE RESOURCE PARTNERS LP's 2023 10-K

561 paragraphs added · 599 removed · 465 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

168 edited+44 added−54 removed112 unchanged
Biggest changeApproximately 43.5 million tons of the resources are currently leased/subleased to our subsidiary, Sebree Mining, LLC ("Sebree"). ​ Appalachia Basin ​ Alliance Resource Properties, either directly or through its subsidiaries, holds coal mineral reserves and resources in the following counties in the Appalachian Basin: ​ ● Grant County, West Virginia ● Tucker County, West Virginia ● Washington County, Pennsylvania ​ Approximately 76.8 million tons of proven and probable reserves and 85.4 million tons of measured, indicated and inferred coal mineral resources are controlled by Alliance Resource Properties in the Appalachian Basin and are leased/subleased or held for lease/sublease to our mining complexes or third parties as follows: ​ Tunnel Ridge .
Biggest changeLeasing of these properties is dependent upon further development by our operating subsidiaries or third-party mining complexes, which is regulatory and market dependent. ​ Dotiki Resources ​ Approximately 76.0 million tons of the resources are currently leased/subleased or held for lease/sublease to our subsidiary, Webster. ​ Sebree South Resources ​ Approximately 43.5 million tons of the resources are currently leased/subleased to our subsidiary, Sebree. ​ Appalachia Basin ​ Alliance Resource Properties, either directly or through its subsidiaries, holds coal mineral reserves and resources in the following counties in the Appalachian Basin: ​ ● Brooke County, West Virginia ● Grant County, West Virginia ● Ohio County, West Virigina ● Tucker County, West Virginia ● Washington County, Pennsylvania ​ Approximately 80.7 million tons of reserves and 85.4 million tons of coal mineral resources are controlled by Alliance Resource Properties in the Appalachian Basin and are leased/subleased to our mining complexes or held for lease/sublease in the future as follows: ​ Tunnel Ridge Reserves and Resources ​ Approximately 75.0 million tons of the reserves and resources are currently leased/subleased or held for lease/sublease to our subsidiary, Tunnel Ridge. ​ 13 Table of Contents Mountain View Reserves and Resources ​ Approximately 13.1 million tons of the reserves and resources are currently leased/subleased or held for lease/sublease to our subsidiary, Mettiki (WV). ​ Penn Ridge Resources ​ Approximately 78.0 million tons of the resources are not under a lease.
ITEM 1. BUSINESS ​ General ​ Introduction ​ We are a diversified natural resource company that generates operating and royalty income from the production and marketing of coal to major domestic and international utilities and industrial users as well as royalty income from oil & gas mineral interests located in strategic producing regions across the United States.
ITEM 1. BUSINESS ​ Introduction ​ We are a diversified natural resource company that generates operating and royalty income from the production and marketing of coal to major domestic and international utilities and industrial users as well as royalty income from oil & gas mineral interests located in strategic producing regions across the United States.
Francis also develops and contracts EV charging stations for third-party customers. ​ Infinitum is a Texas-based developer and manufacturer of electric motors featuring printed circuit board stators that have the potential to result in motors that are smaller, lighter, quieter, more efficient and capable of operating at a fraction of the carbon footprint of conventional electric motors. ​ NGP ETP IV focuses on investments that are part of the global transition toward a lower carbon economy by partnering with top-tier management teams and investing growth equity in companies that drive or enable the growth of renewable energy, the electrification of our economy, or the efficient use of energy. ​ Environmental, Health, and Safety Regulations ​ Our coal operations, and those of the operators on the properties in which we hold oil & gas mineral interests, are subject to extensive regulation by federal, state, and local authorities on matters such as: ​ ● employee health and safety; ● permits and other licensing requirements for mining or exploration and production activities; ● air quality standards; ● water quality standards; ● storage of petroleum products and substances that are regarded as hazardous under applicable laws or that, if spilled, could reach waterways or wetlands; ● plant and wildlife protection that could limit or prohibit mining or exploration and production activities; ● restrict the types, quantities, and concentration of materials that can be released into the environment in the performance of mining or exploration and production activities; ● initiate investigatory and remedial measures to mitigate pollution from former or current operations, such as restoration of waste ponds, mining areas, drilling pits, and plugging of abandoned wells; ● storage and handling of explosives; ● wetlands protection; ● surface subsidence from underground mining; and ● the effects, if any, that mining has on groundwater quality and availability. ​ Failure to comply with environmental laws and regulations may result in the assessment of administrative, civil, and criminal sanctions, including monetary penalties, the imposition of strict, joint and several liability, investigatory and remedial obligations, and the issuance of injunctions limiting or prohibiting some or all of the operations on our properties.
Francis also develops and contracts EV charging stations for third-party customers. ​ Infinitum is a Texas-based developer and manufacturer of electric motors featuring printed circuit board stators that have the potential to result in motors that are smaller, lighter, quieter, more efficient and capable of operating at a fraction of the carbon footprint of conventional electric motors. ​ NGP ET IV focuses on investments that are part of the global transition toward a lower carbon economy by partnering with top-tier management teams and investing growth equity in companies that drive or enable the growth of renewable energy, the electrification of our economy, or the efficient use of energy. ​ Environmental, Health, and Safety Regulations ​ Our coal operations, and those of the operators on the properties in which we hold oil & gas mineral interests, are subject to extensive regulation by federal, state, and local authorities on matters such as: ​ ● employee health and safety; ● permits and other licensing requirements for mining or exploration and production activities; ● air quality standards; ● water quality standards; ● storage of petroleum products and substances that are regarded as hazardous under applicable laws or that, if spilled, could reach waterways or wetlands; ● plant and wildlife protection that could limit or prohibit mining or exploration and production activities; ● restrict the types, quantities, and concentration of materials that can be released into the environment in the performance of mining or exploration and production activities; ● initiate investigatory and remedial measures to mitigate pollution from former or current operations, such as restoration of waste ponds, mining areas, drilling pits, and plugging of abandoned wells; ● storage and handling of explosives; ● wetlands protection; ● surface subsidence from underground mining; and ● the effects, if any, that mining has on groundwater quality and availability. ​ 15 Table of Contents Failure to comply with environmental laws and regulations may result in the assessment of administrative, civil, and criminal sanctions, including monetary penalties, the imposition of strict, joint and several liability, investigatory and remedial obligations, and the issuance of injunctions limiting or prohibiting some or all of the operations on our properties.
Any future use of the EPA's Section 404 "veto" power could create uncertainty with regard to our continued use of current permits, as well as impose additional time and cost burdens on future operations, potentially adversely affecting our coal revenues.
Circuit. Any future use of the EPA's Section 404 "veto" power could create uncertainty with regard to our continued use of current permits, as well as impose additional time and cost burdens on future operations, potentially adversely affecting our coal revenues.
Combustion of fuel for mining equipment used in coal production also emits GHGs. Future regulation of GHG emissions in the United States could occur pursuant to future United States treaty commitments, new domestic legislation, or regulation by the EPA.
Combustion of fuel for mining equipment used in coal production also emits GHGs. Future regulation of GHG emissions in the United States could occur pursuant to future United States treaty commitments, new or existing domestic legislation, or regulation by the EPA.
We believe that our diverse and rich resource base and strategic investments will allow us to continue to create long-term value for unitholders. ​ We are currently the second-largest coal producer in the eastern United States with seven operating underground mining complexes in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia as well as a coal-loading terminal in Indiana on the Ohio River.
We believe that our diverse and rich resource base and strategic investments will allow us to continue to create long-term value for unitholders. ​ We are the largest coal producer in the eastern United States with seven operating underground mining complexes in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia as well as a coal-loading terminal in Indiana on the Ohio River.
Based on geologic data and the ongoing development by operators, our mineral interests in the STACK play contain multiple producing zones of economic horizontal development including but not limited to the Meramec and Woodford formations. ​ 11 Table of Contents Williston Basin—Bakken ​ The Williston Basin stretches from western North Dakota into eastern Montana.
Based on geologic data and the ongoing development by operators, our mineral interests in the STACK play contain multiple producing zones of economic horizontal development including but not limited to the Meramec and Woodford formations. ​ 10 Table of Contents Williston Basin—Bakken ​ The Williston Basin stretches from western North Dakota into eastern Montana.
Similar to RGGI, five western states launched the Western Regional Climate Initiative, although only California and certain Canadian provinces are currently active participants.
Similar to RGGI, five western states launched the Western Regional Climate Initiative, although only California, Washington and certain Canadian provinces are currently active participants.
A portion of our long-term contracts is subject to price adjustment provisions, which periodically permit an increase or decrease in the contract price, typically to reflect changes in specified indices or changes in production costs resulting from regulatory changes, or both. These provisions, however, may not assure that the contract price will reflect every change in production or other costs.
A portion of our long-term contracts is subject to price adjustment provisions, which periodically permit an increase or decrease in the contract price, typically to reflect changes in specified indices or changes in production costs resulting from regulatory changes, or both. These provisions, however, may not ensure that the contract price will reflect every change in production or other costs.
Our recent purchases of acreage located entirely in the Permian Basin through the Belvedere Acquisition, the Jase Acquisition and the JC Resources Acquisition demonstrate our commitment to continued acquisition of mineral interests in the nation's highest growth oil & gas plays. ​ Anadarko Basin—SCOOP and STACK Plays ​ The SCOOP play (South Central Oklahoma Oil Province) is located in central Oklahoma in Grady, Garvin, Stephens, and McClain Counties.
Our purchases of acreage located entirely in the Permian Basin through the Belvedere, Jase and JC Resources Acquisitions demonstrate our commitment to continued acquisition of mineral interests in the nation's highest growth oil & gas plays. ​ Anadarko Basin—SCOOP and STACK Plays ​ The SCOOP play (South Central Oklahoma Oil Province) is located in central Oklahoma in Grady, Garvin, Stephens, and McClain Counties.
We did not derive 10% or more of our revenues from any other single customer. For more information about these customers, please read "Item 8. Financial Statement and Supplemental Data—Note 24 – Concentration of Credit Risk and Major Customers." ​ Coal Competition ​ The coal industry is intensely competitive.
We did not derive 10% or more of our revenues from any other single customer. For more information about these customers, please read "Item 8. Financial Statement and Supplemental Data—Note 22 – Concentration of Credit Risk and Major Customers." ​ Coal Competition ​ The coal industry is intensely competitive.
Under the program, states are required to develop SIPs to improve visibility. Typically, these plans call for reductions in sulfur dioxide and nitrogen oxide emissions from coal-fueled electric plants. In prior cases, the EPA has decided to negate the SIPs and impose stringent requirements through Federal Implementation Plans ("FIPs").
Under the program, states are required to develop SIPs to improve visibility. Typically, these plans call for reductions in sulfur dioxide and nitrogen oxide emissions from coal-fueled electric plants. In prior cases, the EPA has decided to negate the SIPs and impose stringent requirements through FIPs.
For more information, see our risk factor titled "We, our customers, or the operators of our oil & gas mineral interests could be subject to litigation related to climate change." ​ In addition, environmental advocacy groups have filed a variety of judicial challenges claiming that the environmental analyses conducted by federal agencies before granting permits and other approvals necessary for certain coal activities do not satisfy the requirements of the National Environmental Policy Act ("NEPA").
For more information, see our risk factor titled "We, our customers, or the operators of our oil & gas mineral interests could be subject to litigation related to climate change." ​ In addition, environmental advocacy groups have filed a variety of judicial challenges claiming that the environmental analyses conducted by federal agencies before granting permits and other approvals necessary for certain coal activities do not satisfy the requirements of the NEPA.
Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources— Cash Requirements ." ​ 20 Table of Contents Air Emissions ​ The CAA and similar state and local laws and regulations regulate emissions into the air and affect coal mining, as well as oil & gas, operations.
Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources— Cash Requirements ." 19 Table of Contents ​ Air Emissions ​ The CAA and similar state and local laws and regulations regulate emissions into the air and affect coal mining, as well as oil & gas, operations.
Installation of additional emissions control technology and any additional measures required under applicable federal and state laws and regulations related to air emissions will make it more costly to operate coal-fired power plants and possibly other facilities that consume coal and, depending on the requirements of individual state implementation plans ("SIPs"), could make fossil fuels a less attractive fuel alternative in the planning and building of power plants in the future.
Installation of additional emissions control technology and any additional measures required under applicable federal and state laws and regulations related to air emissions will make it more costly to operate coal-fired power plants and possibly other facilities that consume coal and, depending on the requirements of SIPs, could make fossil fuels a less attractive fuel alternative in the planning and building of power plants in the future.
The most important factors on which we compete are coal price, coal quality (including sulfur and heat content), reliability and diversity of supply, and transportation costs from the mine to the customer. We are currently the second-largest coal producer in the eastern United States.
The most important factors on which we compete are coal price, coal quality (including sulfur and heat content), reliability and diversity of supply, and transportation costs from the mine to the customer. We are the largest coal producer in the eastern United States.
Approximately two-thirds of our royalty-based leases have initial terms of five to 40 years, with substantially all lessees having the option to extend the lease for additional terms. ​ Under our standard royalty lease, we grant the lessees the right to mine and sell our reserves and resources in exchange for royalty payments based on a percentage of the sale price or a fixed royalty per ton of coal mined and sold.
Approximately 60% of our royalty-based leases have initial terms of five to 40 years, with substantially all lessees having the option to extend the lease for additional terms. ​ Under our standard royalty lease, we grant the lessees the right to mine and sell our reserves and resources in exchange for royalty payments based on a percentage of the sale price or a fixed royalty per ton of coal mined and sold.
Depending on the language of the contract, some contracts may terminate upon an event of force majeure that extends for a certain period. 8 Table of Contents ​ The international coal market has been a part of our business with indirect sales to end-users in Europe, Africa, Asia, North America, and South America.
Depending on the language of the contract, some contracts may terminate upon an event of force majeure that extends for a certain period. ​ The international coal market has been a part of our business with indirect sales to end-users in Europe, Africa, Asia, North America, and South America.
While these laws impose ongoing compliance obligations, such costs are not believed to have a material impact on our operations. ​ RCRA impacts the coal industry in particular because it regulates the disposal of certain coal combustion by-products ("CCB"). On April 17, 2015, the EPA finalized regulations under RCRA for the disposal of CCB.
While these laws impose ongoing compliance obligations, such costs are not believed to have a material impact on our operations. ​ RCRA impacts the coal industry in particular because it regulates the disposal of certain CCB. On April 17, 2015, the EPA finalized regulations under RCRA for the disposal of CCB.
In November 2019, the EPA proposed revisions to the 2015 ELG rule and announced proposed changes to regulations for the disposal of coal ash in order to reduce compliance costs. In October 2020, EPA published a final rule. In August 2021, EPA initiated supplemental rulemaking indicating that it intended to strengthen certain discharge limits.
In November 2019, the EPA proposed revisions to the 2015 ELG 25 Table of Contents rule and announced proposed changes to regulations for the disposal of coal ash in order to reduce compliance costs. In October 2020, EPA published a final rule. In August 2021, EPA initiated supplemental rulemaking indicating that it intended to strengthen certain discharge limits.
While the EPA issued one conditional approval, the EPA required the remaining facilities to cease receipt of waste within 135 days of completion of public comment, or 26 Table of Contents around July 2022. And, in January 2023, the EPA issued six proposed determinations to deny facilities' requests to continue disposal into unlined surface impoundments.
While the EPA issued one conditional approval, the EPA required the remaining facilities to cease receipt of waste within 135 days of completion of public comment, or around July 2022. And, in January 2023, the EPA issued six proposed determinations to deny facilities' requests to continue disposal into unlined surface impoundments.
The contractual time commitments for customers to nominate future purchase volumes under these contracts are typically sufficient to allow us to balance our sales commitments with prospective production capacity. ​ The provisions of long-term contracts are the results of both bidding procedures and extensive negotiations with each customer.
The contractual time commitments 7 Table of Contents for customers to nominate future purchase volumes under these contracts are typically sufficient to allow us to balance our sales commitments with prospective production capacity. ​ The provisions of long-term contracts are the results of both bidding procedures and extensive negotiations with each customer.
The international community gathered again at the 26th Conference to the Parties ("COP26") during which multiple announcements were made, including a call for parties to eliminate fossil fuel subsidies, among other measures.
The international community gathered again at the COP26 during which multiple announcements were made, including a call for parties to eliminate fossil fuel subsidies, among other measures.
For more information, see our Risk Factor titled "Our operations are subject to a series of risks resulting from climate change." ​ Water Discharge ​ The Federal Clean Water Act ("CWA") and similar state and local laws and regulations regulate discharges into certain waters, primarily through permitting.
For more information, see our Risk Factor titled "Our operations are subject to a series of risks resulting from climate change." ​ Water Discharge ​ The CWA and similar state and local laws and regulations regulate discharges into certain waters, primarily through permitting.
For more information about citations or orders for violations of standards under the FMSHA, as amended by the MINER Act, please see our Exhibit 95.1 to this Annual Report on Form 10-K. ​ We are focused on the health of our employees.
For more information about citations or orders for violations of standards under the FMSHA, as amended by the MINER Act, please see our Exhibit 95.1 to this Annual Report on Form 10-K. 26 Table of Contents ​ We are focused on the health of our employees.
The combined effect of the CCB rules and the Effluent Limitations Guidelines and Standards ("ELG") regulations (discussed below) has compelled power generating companies to close existing ash ponds and may force the closure of certain existing coal burning power plants that cannot comply with the new standards.
The combined effect of the CCB rules and the ELG regulations (discussed below) has compelled power generating companies to close existing ash ponds and may force the closure of certain existing coal burning power plants that cannot comply with the new standards.
A significant reduction in fossil fuels' share of power generating capacity could have a material adverse effect on our business, financial condition, and results of operations. ​ In addition to the greenhouse gas ("GHG") issues discussed below, the air emissions programs that may affect our operations or the operations of those on the properties in which we hold mineral interests, directly or indirectly, include but are not limited to the following: ​ ● The EPA's Acid Rain Program, provided in Title IV of the CAA, regulates emissions of sulfur dioxide from electric generating facilities.
A significant reduction in fossil fuels' share of power generating capacity could have a material adverse effect on our business, financial condition, and results of operations. ​ In addition to the GHG issues discussed below, the air emissions programs that may affect our operations or the operations of those on the properties in which we hold mineral interests, directly or indirectly, include but are not limited to the following: ​ ● The EPA ' s Acid Rain Program, provided in Title IV of the CAA, regulates emissions of sulfur dioxide from electric generating facilities.
Depending on the position and employer, incentive compensation bonuses can be based on production and safety goals at a specific coal operation or broader performance goals across the Partnership, among other factors. We intend for each employee's total compensation to be competitive in the marketplace. ​ 27 Table of Contents Workplace safety is fundamental to our culture.
Depending on the position and employer, incentive compensation bonuses can be based on production and safety goals at a specific coal operation or broader performance goals across the Partnership, among other factors. We intend for each employee's total compensation to be competitive in the marketplace. ​ Workplace safety is fundamental to our culture.
Depending on the proximity of the customer to the mining complex and the transportation available for delivering coal to that customer, transportation costs can be a substantial part of the total delivered cost of a customer's coal. As a consequence, the availability and cost of transportation constitute important factors in the marketability of coal.
Depending on the proximity of the customer to the mining complex and the transportation available for delivering coal to that customer, transportation costs can be a substantial part of the total delivered cost of a customer's coal. Consequently, the availability and cost of transportation constitute important factors in the marketability of coal.
Separately, the implementation of new standards by states has the potential to delay or otherwise impact oil & gas production activities, which could reduce the profitability of our mineral interests. ​ ● The EPA's regional haze program is designed to protect and improve visibility at and around national parks, national wilderness areas, and international parks.
Separately, the implementation of new standards by states has the potential to delay or otherwise impact oil & gas production activities, which could reduce the profitability of our mineral interests. ​ ● The EPA ' s regional haze program is designed to protect and improve visibility at and around national parks, national wilderness areas, and international parks.
In addition to purchasing or trading for additional sulfur dioxide allowances, affected power facilities can satisfy the requirements of the EPA's Acid Rain Program by switching to lower-sulfur fuels, installing pollution control devices such as flue gas desulfurization systems, or "scrubbers," or by reducing electricity-generating levels.
In addition to purchasing or trading for additional sulfur dioxide allowances, affected power facilities can satisfy the requirements of the EPA ' s Acid Rain Program by switching to lower-sulfur fuels, installing pollution control devices such as flue gas desulfurization systems, or " scrubbers, " or by reducing electricity-generating levels.
The regional haze program, including particularly the EPA's FIPs, and any future regulations may restrict the construction of new coal-fired power plants whose operation may impair visibility at and around federally protected areas and may require some existing coal-fired power plants to install additional control measures designed to limit haze-causing emissions.
The regional haze program, including particularly the EPA ' s FIPs, and any future regulations may restrict the construction of new coal-fired power plants whose operation may impair visibility at and around federally protected areas and may require some existing coal-fired power plants to install additional control measures designed to limit haze-causing emissions.
The practices of, rates set by and capacity availability of, the transportation company serving a particular mine or customer may affect, either adversely or favorably, our marketing efforts concerning coal produced from the relevant mining complex.
The rates set by and available capacity of the transportation company serving a particular mine or customer may affect, either adversely or favorably, our marketing efforts concerning coal produced from the relevant mining complex.
Pursuant to this process, the EPA has adopted more stringent NAAQS for fine particulate matter ("PM"), ozone, nitrogen oxide, and sulfur dioxide.
Pursuant to this process, the EPA has adopted more stringent NAAQS for fine PM, ozone, nitrogen oxide, and sulfur dioxide.
Sulfur dioxide is a by-product of coal combustion. Affected facilities purchase or are otherwise allocated sulfur dioxide emissions allowances, which must be surrendered annually in an amount equal to a facility's sulfur dioxide emissions in that year. Affected facilities may sell or trade excess allowances to other facilities that require additional allowances to offset their sulfur dioxide emissions.
Sulfur dioxide is a by-product of coal combustion. Affected facilities purchase or are otherwise allocated sulfur dioxide emissions allowances, which must be surrendered annually in an amount equal to a facility ' s sulfur dioxide emissions in that year. Affected facilities may sell or trade excess allowances to other facilities that require additional allowances to offset their sulfur dioxide emissions.
Workers' compensation laws also compensate survivors of workers who suffer employment-related deaths. We generally self-insure this potential expense using our actuary estimates of the cost of present and future claims.
Workers' compensation laws also provide for the potential compensation of survivors of workers who suffer employment-related deaths. We generally self-insure this potential expense using our actuary estimates of the cost of present and future claims.
However, because of the extensive and detailed nature of these regulatory requirements, particularly the regulatory system of the Mine Safety and Health Administration ("MSHA") where citations can be issued without regard to fault and many of the standards include subjective elements, it is not reasonable to expect any coal mining company to be free of citations.
However, because of the extensive and detailed nature of these regulatory requirements, particularly the regulatory system of MSHA where citations can be issued without regard to fault and many of the standards include subjective elements, it is not reasonable to expect any coal mining company to be free of citations.
Fish and Wildlife Service (the "USFWS") works closely with the OSM and state regulatory agencies to ensure that species subject to the ESA are protected from potential impacts from mining-related and oil & gas exploration and production activities.
The USFWS works closely with the OSM and state regulatory agencies to ensure that species subject to the ESA are protected from potential impacts from mining-related and oil & gas exploration and production activities.
In June 2011, the EPA finalized the Cross-State Air Pollution Rule ("CSAPR"), a replacement rule for CAIR, which would have required 28 states in the Midwest and eastern seaboard to reduce power plant emissions that cross state lines and contribute to ozone and/or fine particle pollution in other states.
In June 2011, the EPA finalized the CSAPR, a replacement rule for CAIR, which would have required twenty-eight states in the Midwest and eastern seaboard to reduce power plant emissions that cross state lines and contribute to ozone and/or fine particle pollution in other states.
The prices we are able to obtain for our domestic sales of coal are primarily linked to coal consumption patterns of domestic electricity-generating utilities, which in turn are influenced by economic activity, government regulations, weather, and technological developments, as well as the location, quality, price and availability of competing sources of fuel and alternative energy sources such as natural gas, nuclear energy, petroleum and renewable energy sources for electrical power generation. ​ For additional information, please see "Item 1A.
The price per ton for our domestic coal sales are primarily linked to coal consumption patterns of domestic electricity-generating utilities, which in turn are influenced by economic activity, government regulations, weather, and technological developments, as well as the location, quality, price and availability of competing sources of fuel and alternative energy sources such as natural gas, nuclear energy, petroleum and renewable energy sources for electrical power generation. ​ For additional information, please see "Item 1A.
In September 2018, the EPA issued a memorandum that detailed plans to assist states as they develop their SIPs, which was followed by a supplemental memorandum in July 2021 for SIPs for the second implementation period. ​ ● The EPA's new source review ("NSR") program under the CAA in certain circumstances requires existing coal-fired power plants, when modifications to those plants significantly increase emissions, to install more stringent air emissions control equipment.
In September 2018, the EPA issued a memorandum that detailed plans to assist states as they develop their SIPs, which was followed by a supplemental memorandum in July 2021 for SIPs for the second implementation period. ​ ● The EPA ' s NSR program under the CAA in certain circumstances requires existing coal-fired power plants, when modifications to those plants significantly increase emissions, to install more stringent air emissions control equipment.
Although the United States had withdrawn from the Paris Agreement, President Biden recommitted the United States in February 2021 and, in April 2021, announced a new, more rigorous nationally determined emissions reduction level of 50-52% reduction from 2005 levels in economy-wide net GHG emissions by 2030.
President Biden recommitted the United States to the Paris Agreement in February 2021 and, in April 2021, announced a new, more rigorous nationally determined emissions reduction level of 50-52% reduction from 2005 levels in economy wide net GHG emissions by 2030.
Finally, activists may try to hamper fossil-fuel companies by other means, including pressuring financing and other institutions into restricting access to capital, bonding, and insurance, as well as pursuing tort litigation for various alleged climate-related impacts.
Finally, activists 23 Table of Contents may try to hamper fossil-fuel companies by other means, including pressuring financing and other institutions into restricting access to capital, bonding, and insurance, as well as pursuing tort litigation for various alleged climate-related impacts.
These requirements would not be supplanted by a replacement rule for the Clean Air Interstate Rule ("CAIR"), discussed below. ​ ● The CAIR calls for power plants in 28 states and Washington, D.C. to reduce emission levels of sulfur dioxide and nitrogen oxide pursuant to a cap-and-trade program similar to the system in effect for acid rain.
These requirements would not be supplanted by a replacement rule for the CAIR, discussed below. ​ ● The CAIR called for power plants in 28 states and Washington, D.C. to reduce emission levels of sulfur dioxide and nitrogen oxide pursuant to a cap-and-trade program similar to the system in effect for acid rain.
And, in January 2023, the CEQ released guidance, effective immediately, to assist federal agencies in assessing the GHG emissions and climate change effects of their proposed actions under NEPA. ​ Many states and regions have adopted GHG initiatives and certain governmental bodies have or are considering the imposition of fees or taxes based on the emission of GHG by certain facilities, including coal-fired electric generating 24 Table of Contents facilities.
And, in January 2023, the CEQ released guidance, effective upon publication, to assist federal agencies in assessing the GHG emissions and climate change effects of their proposed actions under NEPA. ​ Many states and regions have adopted GHG initiatives and certain governmental bodies have or are considering the imposition of fees or taxes based on the emission of GHG by certain facilities, including coal-fired electric generating facilities.
In addition, we collected approximately 13,000 respirable dust samples from the mining environment where our miners regularly work and travel. The average concentration of those samples was 55% below the regulatory standard. We are also regularly inspected by MSHA.
In addition, we collected approximately 13,800 respirable dust samples from the mining environment where our miners regularly work and travel. The average concentration of those samples was 56% below the regulatory standard. We are also regularly inspected by MSHA.
Although like other coal companies, we have been cited for violations in the ordinary course of our business, we have never had a permit suspended or revoked because of any violation, and the penalties assessed for these violations have not been material. ​ Mine Health and Safety Laws ​ The operation of our mines is subject to the Federal Mine Safety and Health Act of 1977 ("FMSHA"), and regulations adopted pursuant thereto.
Although like other coal companies, we have been cited for violations in the ordinary course of our business, we have never had a permit suspended or revoked because of any violation, and the penalties assessed for these violations have not been material. ​ 16 Table of Contents Mine Health and Safety Laws ​ The operation of our mines is subject to FMSHA, and regulations adopted pursuant thereto.
The comment period for the proposed rule closed in December 2020. ● In September 2021, MSHA published a proposed rule requiring that mine operators employing six or more miners develop and implement a written safety program for mobile and powered haulage equipment at surface mines and surface areas of underground mines (Safety Program for Surface Mobile Equipment).
The comment period for the proposed rule closed in December 2020 and the final rule is expected in August 2024. ● In September 2021, MSHA published a proposed rule requiring that mine operators employing six or more miners develop and implement a written safety program for mobile and powered haulage equipment at surface mines and surface areas of underground mines (Safety Program for Surface Mobile Equipment).
There have been a series of federal rulemakings focused on emissions from coal-fired electric generating facilities.
There has been a series of federal rulemakings focused on emissions from coal-fired electric generating facilities.
We are currently unaware of any material liability associated with the release or disposal of hazardous substances from our past or present mine sites. ​ The Federal Resource Conservation and Recovery Act ("RCRA") and analogous state laws impose requirements for the generation, transportation, treatment, storage, disposal, and cleanup of hazardous and non-hazardous wastes.
We are currently unaware of any material liability associated with the release or disposal of hazardous substances from our past or present mine sites. ​ The RCRA and analogous state laws impose requirements for the generation, transportation, treatment, storage, disposal, and cleanup of hazardous and non-hazardous wastes.
For more information, please see the risk factors described in "Item 1A. Risk Factors" below. ​ 16 Table of Contents We are committed to conducting mining operations in compliance with applicable federal, state, and local laws and regulations.
For more information, please see the risk factors described in "Item 1A. Risk Factors" below. ​ We are committed to conducting mining operations in compliance with applicable federal, state, and local laws and regulations.
Our workforce is entirely union-free. Our typical employee has approximately six years of experience with the Partnership and more than 40% of all employees remain employed for more than five years. ​ To attract and retain the most qualified personnel across all functions of our business we offer competitive compensation packages.
Our typical employee has approximately six years of experience with the Partnership and more than 40% of all employees remain employed for more than five years. ​ To attract and retain the most qualified personnel across all functions of our business we offer competitive compensation packages.
RIVER VIEW COMPLEX ​ Miner ​ ​ ​ ​ River View Mine ​ Coal Type: Low-Sulfur ​ ​ ​ ​ Mining Type: Underground ​ Transportation: Barge, Railroad, ​ ​ ​ ​ Mining Access: Slope & Shaft ​ & Truck ​ ​ ​ ​ Mining Method: Continuous ​ ​ ​ ​ ​ ​ Miner ​ ​ ​ ​ ​ ​ Coal Type: Medium/High-Sulfur ​ ​ ​ ​ ​ ​ Transportation: Barge & Truck ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ We lease most of our coal mineral reserves and resources from Alliance Resource Properties or private parties and generally have the right to maintain leases in force until the exhaustion of mineable and merchantable coal located within the leased premises or a larger coal mineral reserve or resource area.
HAMILTON COMPLEX ​ Mining Method: Longwall ​ ​ ​ ​ Hamilton Mine ​ & Continuous Miner ​ ​ ​ ​ Mining Type: Underground ​ Coal Type: Medium/High-Sulfur ​ ​ ​ ​ Mining Access: Slope & Shaft ​ Transportation: Barge ​ ​ ​ ​ Mining Method: Longwall ​ ​ ​ ​ ​ ​ & Continuous Miner ​ ​ ​ ​ ​ ​ Coal Type: Medium/High-Sulfur ​ ​ ​ ​ ​ ​ Transportation: Barge, Railroad ​ ​ ​ ​ ​ ​ & Truck ​ ​ ​ ​ ​ ​ 5 Table of Contents We lease most of our coal mineral reserves and resources from Alliance Resource Properties or private parties and generally have the right to maintain leases in force until the exhaustion of mineable and merchantable coal located within the leased premises or a larger coal mineral reserve or resource area.
GIBSON COMPLEX ​ Warrior Mine ​ Mountain View Mine ​ Gibson South Mine ​ Mining Type: Underground ​ Mining Type: Underground ​ Mining Type: Underground ​ Mining Access: Slope & Shaft ​ Mining Access: Slope & Shaft ​ ​ Mining Access: Slope & Shaft ​ Mining Method: Continuous ​ Mining Method: Longwall ​ ​ Mining Method: Continuous ​ Miner ​ & Continuous Miner ​ ​ Miner ​ Coal Type: Medium/High-Sulfur ​ Coal Type: Low/Medium ​ ​ Coal Type: Low/Medium-Sulfur ​ Transportation: Barge, Railroad, ​ Sulfur - Metallurgical ​ ​ Transportation: Barge, Railroad ​ & Truck ​ Transportation: Railroad ​ ​ & Truck ​ ​ ​ & Truck ​ ​ ​ ​ 5.
GIBSON COMPLEX ​ Warrior Mine ​ Mountain View Mine ​ Gibson South Mine ​ Mining Type: Underground ​ Mining Type: Underground ​ Mining Type: Underground ​ Mining Access: Slope & Shaft ​ Mining Access: Slope & Shaft ​ ​ Mining Access: Slope & Shaft ​ Mining Method: Room & Pillar ​ Mining Method: Longwall ​ ​ Mining Method: Room & Pillar ​ Coal Type: Medium/High-Sulfur ​ & Continuous Miner ​ ​ Coal Type: Low/Medium-Sulfur ​ Transportation: Barge, Railroad, ​ Coal Type: Low/Medium ​ ​ Transportation: Barge, Railroad ​ & Truck ​ Sulfur - Metallurgical ​ ​ & Truck ​ ​ ​ Transportation: Railroad ​ ​ ​ ​ E.
Lessees calculate royalty payments due to us and are required to report tons of coal mined and sold as well as the sales prices of the extracted coal. ​ The following chart summarizes the coal sales associated with our coal mineral interests for the years ended December 31, 2022, 2021 and 2020. ​ Year Ended December 31, Coal Regions 2022 2021 2020 (tons in millions) Illinois Basin 21.2 18.9 16.6 Appalachia 0.6 1.3 2.3 Total 21.8 20.2 18.9 ​ ​ 12 Table of Contents The following map shows the location of our coal mineral interests: ​ ​ ​ ​ ​ ​ ​ Illinois Basin: ​ 4.
Lessees calculate royalty payments due to us and are required to report tons of coal mined and sold as well as the sales prices of the extracted coal. ​ The following chart summarizes the coal sales associated with our coal mineral interests for the years ended December 31, 2023, 2022 and 2021. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, Coal Regions 2023 2022 2021 ​ ​ (tons in millions) Illinois Basin 19.9 21.2 18.9 ​ Appalachia 0.3 0.6 1.3 ​ Total 20.2 21.8 20.2 ​ ​ 11 Table of Contents The following map shows the location of our coal mineral interests: ​ ​ ​ ​ ​ ​ ​ Illinois Basin: ​ ​ Appalachian Basin: ​ A.
Although we have not quantified the full impact, implementing and complying with these new federal and state safety laws and regulations have had, and are expected to continue to have, an adverse impact on our results of operations and financial position. ​ Black Lung Benefits Act ​ The Black Lung Benefits Act of 1977 and the Black Lung Benefits Reform Act of 1977, as amended in 1981 ("BLBA") require businesses that conduct current mining operations to make payments of black lung benefits to current and former coal miners with black lung disease, to some survivors of a miner who dies from this disease, and to a trust fund for the payment of benefits and medical expenses where no responsible coal mine operator has been identified for claims.
Although we have not quantified the full impact, implementing and complying with these new federal and state safety laws and regulations have had, and are expected to continue to have, an adverse impact on our results of operations and financial position. ​ Black Lung Benefits Act ​ The BLBA requires businesses that conduct current mining operations to make payments of black lung benefits to current and former coal miners with black lung disease, to some survivors of a miner who dies from this disease, and to a trust fund for the payment of benefits and medical expenses under circumstances including where no responsible coal mine operator has been identified for claims.
Financial Statements and Supplementary Data—Note 20 – Asset Retirement Obligations." In addition, states from time to time have increased and may continue to increase their fees and taxes to fund reclamation or orphaned mine sites and acid mine drainage control on a statewide basis. ​ Under SMCRA, responsibility for unabated violations, unpaid civil penalties, and unpaid reclamation fees of independent contract mine operators and other third parties can be imputed to other companies that are deemed, according to the regulations, to have "owned" or "controlled" the third-party violator.
In addition, states from time to time have increased and may continue to increase their fees and taxes to fund reclamation or orphaned mine sites and acid mine drainage control on a statewide basis. ​ Under SMCRA, responsibility for unabated violations, unpaid civil penalties, and unpaid reclamation fees of independent contract mine operators and other third parties can be imputed to other companies that are deemed, according to the regulations, to have "owned" or "controlled" the third-party violator.
In making decisions regarding employee compensation, we review current compensation levels for each position within other companies in the coal industry and other peers and use our discretion to determine an appropriate total compensation package, which generally includes some combination of base salary, possible incentive compensation, medical, dental and life insurance benefits and participation in our profit sharing and savings plan.
In making decisions regarding employee compensation, we review current compensation levels for each position within other companies in the coal industry and other peers and use our discretion to determine an appropriate total compensation package, which generally includes some combination of base salary, incentive compensation, health and welfare benefits and participation in our profit sharing and savings plan.
In October 2021, the Biden Administration proposed the rollback of new rules promulgated under the Trump Administration and, in June 2022, the USFWS and the National Marine Fisheries Service published a final rule rescinding the 2020 regulatory definition of "habitat." If the USFWS were to designate species indigenous to the areas in which we operate as threatened or endangered or to redesignate a species from threatened to endangered, we or the operators of the properties in which we hold oil & gas mineral interests could be subject to additional regulatory and permitting requirements, which in turn could increase operating costs or adversely affect our revenues. ​ Other Environmental, Health, and Safety Regulations ​ In addition to the laws and regulations described above, we are subject to regulations regarding underground and above-ground storage tanks in which we may store petroleum or other substances.
Additionally, in June 2022, the USFWS and the National Marine Fisheries Service published a final rule rescinding the 2020 regulatory definition of "habitat." If the USFWS were to designate species indigenous to the areas in which we operate as threatened or endangered or to redesignate a species from threatened to endangered, we or the operators of the properties in which we hold oil & gas mineral interests could be subject to additional regulatory and permitting requirements, which in turn could increase operating costs or adversely affect our revenues. ​ Other Environmental, Health, and Safety Regulations ​ In addition to the laws and regulations described above, we are subject to regulations regarding underground and above-ground storage tanks in which we may store petroleum or other substances.
Oil & gas production on the properties in which we hold mineral interests could be adversely affected to the extent any final rule imposes increased operating costs on the oil & gas industry. ​ GHG Emissions ​ Combustion of fossil fuels, such as the coal we produce and the oil & gas produced from our mineral interests, results in the emission of GHGs, such as carbon dioxide and methane.
Oil & gas production on the properties in which we hold mineral interests could be adversely affected to the extent the rules and any of their requirements impose increased operating costs on the oil & gas industry. ​ GHG Emissions ​ Combustion of fossil fuels, such as the coal we produce and the oil & gas produced from our mineral interests, results in the emission of GHGs, such as carbon dioxide and methane.
The Btu content of our coal ranges from 11,450 to 13,200. ​ The following chart summarizes our coal production by region for the last three years. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, Coal Regions 2022 2021 2020 ​ ​ (tons in millions) Illinois Basin 24.2 22.2 17.9 ​ Appalachia 11.3 10.0 9.1 ​ Total 35.5 32.2 27.0 ​ ​ ​ 5 Table of Contents The following map shows the location of our coal mining operations: ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Operations: ​ 4.
The Btu content of our coal ranges from 11,450 to 13,200. ​ The following chart summarizes our coal production by region for the last three years. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, Coal Regions 2023 2022 2021 ​ ​ (tons in millions) Illinois Basin 25.2 24.3 22.2 ​ Appalachia 9.7 11.2 10.0 ​ Total 34.9 35.5 32.2 ​ ​ ​ 4 Table of Contents The following map shows the location of our coal mining operations: ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Operations: ​ D.
In addition to providing medical, dental, and vision insurance with no out-of-pocket premiums for our employees, we also provide on-site medical clinics to provide medical services to our employees and their families. Furthermore, at each of our coal operations and corporate offices, we provide a human resource representative to assist employees with various human resource matters.
In addition to providing medical, dental, and vision benefits for our employees, we also provide on-site medical clinics to provide medical services to our employees and their families. Furthermore, at each of our coal operations and corporate offices, we provide a human resource representative to assist employees with various human resource matters.
For example, criminal liability may be imposed upon corporate operators who knowingly and willfully authorize, order, or carry out violations of the FMSHA, or its mandatory health and safety standards. 17 Table of Contents ​ The Federal Mine Improvement and New Emergency Response Act of 2006 ("MINER Act") significantly amended the FMSHA, imposing more extensive and stringent compliance standards, increasing criminal penalties and establishing a maximum civil penalty for non-compliance, and expanding the scope of federal oversight, inspection, and enforcement activities.
For example, criminal liability may be imposed upon corporate operators who knowingly and willfully authorize, order, or carry out violations of the FMSHA, or its mandatory health and safety standards. ​ The MINER Act significantly amended the FMSHA, imposing more extensive and stringent compliance standards, increasing criminal penalties, and establishing a maximum civil penalty for non-compliance, and expanding the scope of federal oversight, inspection, and enforcement activities.
Risk Factors." ​ Coal Transportation ​ Our coal is transported from our mining complexes to our customers by barge, rail, and truck reflecting important flexibility advantages in supplying our customers.
Risk Factors." 8 Table of Contents ​ Coal Transportation ​ Our coal is transported from our mining complexes to our customers by barge, rail, and truck, reflecting important flexibility advantages in supplying our customers.
The Mountain View mine produces low/medium-sulfur coal, which is transported by truck either to the Mettiki (MD) preparation plant for processing for shipment into the metallurgical coal market or otherwise, or directly to the coal blending facility at the Virginia Electric and Power Company Mt. Storm Power Station.
Mettiki (WV) began longwall mining in November 2006. The Mountain View mine produces low/medium-sulfur coal, which is transported by truck either to the Mettiki (MD) preparation plant for processing for shipment into the metallurgical coal market or otherwise, or directly to the coal blending facility at the Virginia Electric and Power Company Mt. Storm Power Station.
Our subsidiary, MC Mining, LLC ("MC Mining"), through our subsidiary, Excel Mining, LLC ("Excel") operates the Excel Mine No. 5. Excel completed the development of Mine No. 5 in May 2020 and transitioned its employees and equipment from Mine No. 4 in July 2020. The underground operation utilizes continuous mining units employing room-and-pillar mining techniques to produce low-sulfur coal.
Excel completed the development of Mine No. 5 in May 2020 and transitioned its employees and equipment from Mine No. 4 in July 2020. The underground operation utilizes continuous mining units employing room-and-pillar mining techniques to produce low-sulfur coal.
The Partnership also administers our medical plan, which allows us to control costs and work directly on behalf of our employees with healthcare providers. To date, we have been able to continue providing health benefits with no out-of-pocket premiums for our employees. ​ 28 Table of Contents
The Partnership also administers our medical plan, which allows us to control costs and work directly on behalf of our employees with healthcare providers. To date, we have been able to continue providing health and welfare benefits with no out-of-pocket premiums for our employees and 100% coverage with direct contract providers. ​ 27 Table of Contents
As of December 31, 2022, we have 2,067 employees, and we operate four active mining complexes in the Illinois Basin. ​ Gibson Complex. Our subsidiary, Gibson County Coal, LLC ("Gibson County Coal"), operates the Gibson South mine, located near the city of Princeton in Gibson County, Indiana.
As of December 31, 2023, we have 2,189 employees and we operate four active mining complexes in the Illinois Basin. ​ Gibson Complex ​ Our subsidiary, Gibson, operates the Gibson South mine, located near the city of Princeton in Gibson County, Indiana.
Our sales into the international coal market are considered exports and are made through brokered transactions. During the years ended December 31, 2022, 2021, and 2020, export tons represented approximately 12.5%, 12.5% and 3.3% of tons sold, respectively.
Our sales into the international coal market are considered exports and the majority are made through brokered transactions. During the years ended December 31, 2023, 2022, and 2021, export tons represented approximately 15.7%, 12.5%, and 12.5% of tons sold, respectively.
Because title to our export shipments typically transfers to our brokerage customers at a point that does not necessarily reflect the end-usage point, we attribute export tons to the country with the end-usage point, if known. ​ Reliance on Major Customers ​ In 2022, we derived more than 10% of our total revenue from each of Duke Energy, Louisville Gas and Electric Company, and Tennessee Valley Authority.
Because title to our export shipments typically transfers to our brokerage customers at a point that does not necessarily reflect the end-usage point, we attribute export tons to the country with the end-usage point, if known. ​ Reliance on Major Customers ​ In 2023, we derived more than 10% of our total revenue from each of American Electric Power and Tennessee Valley Authority.
Substantially, all of our measured, indicated and inferred coal mineral resources and 464.8 million tons of our coal mineral reserves are owned or leased by Alliance Resource Properties, which are (a) leased or subleased to internal mining complexes or (b) near other internal and external coal mining operations but not yet leased.
Substantially, all of our coal mineral resources and 557.7 million tons of our coal mineral reserves are owned or leased by Alliance Resource Properties, which are (a) leased or subleased to internal mining complexes or (b) near other internal and external coal mining operations but not yet leased.
Financial Statements and Supplementary Data—Note 20 - Asset Retirement Obligations." Although more stringent permitting requirements may be imposed in the future, we are not able to accurately predict the impact, if any, of such permitting requirements. ​ For us or the operators of the properties in which we hold oil & gas mineral interests to conduct certain activities, an operator may need to obtain a permit for the discharge of fill material from the U.S.
Financial Statements and Supplementary Data—Note 18 - Asset Retirement Obligations." Although more stringent permitting requirements may be imposed in the future, we are not able to accurately predict the impact, if any, of such permitting requirements. ​ For us or the operators of the properties in which we hold oil & gas mineral interests to conduct certain activities, an operator may need to obtain a permit for the discharge of fill material from the Corps of Engineers and/or a discharge permit from the state regulatory authority under the state counterpart to the CWA.
As of January 1, 2022, the trust fund was funded by an excise tax on production of up to $0.50 per ton for underground-mined coal and up to $0.25 per ton for surface-mined coal, but not to exceed 2% of the applicable sales price.
The Federal government established such a trust fund and as of January 1, 2022, the trust fund was funded by an excise tax on industry-wide production of up to $0.50 per ton for underground-mined coal and up to $0.25 per ton for surface-mined coal, but not to exceed 2% of the applicable gross sales price.
Tunnel Ridge coal production in 2022 was 8.3 million tons. ​ Coal Marketing and Sales ​ We sell coal to an established customer base through opportunities as a result of existing business relationships or through formal bidding processes. As is customary in the coal industry, we have entered into long-term coal supply agreements with many of our customers.
MC Mining coal production in 2023 was 1.2 million tons. ​ Coal Marketing and Sales ​ We sell coal to an established customer base through opportunities as a result of existing business relationships or through formal bidding processes. As is customary in the coal industry, we have entered into long-term coal supply agreements with many of our customers.
Substantially, all of our measured, indicated and inferred coal mineral resources and 464.8 million tons of our coal mineral reserves are owned or leased by Alliance Resource Properties and are currently leased or subleased or held for lease or sublease to our mining operations or others.
Substantially, all of our coal mineral resources and 557.7 million tons of our coal mineral reserves are owned or leased by Alliance Resource Properties and are currently leased or subleased or held for lease or sublease to our mining operations or others.
In 2022, we sold 82.4% of our total tons to electric utilities in the United States, substantially all of which was sold to utility plants with installed pollution control devices.
In 2023, we sold 80.9% of our total tons to electric utilities in the United States, substantially all of which was sold to utility plants with installed pollution control devices.
The costs of compliance with these regulations should not have a material adverse effect on our business, financial condition, or results of operations. ​ Human Capital ​ To conduct our operations, as of December 31, 2022, we employed 3,371 full-time employees, including 2,901 employees involved in active coal mining operations, 230 employees in other operations, and 240 corporate employees.
The costs of compliance with these regulations should not have a material adverse effect on our business, financial condition, or results of operations. ​ Human Capital ​ To conduct our operations, as of December 31, 2023, we employed 3,595 full-time employees, including 3,038 employees involved in active coal mining operations, 408 employees in other operations, and 193 corporate employees.
In addition, we seek to export a portion of our coal into the international coal markets and we compete with companies that produce coal from one or more foreign countries. ​ The prices we are able to obtain for our export coal have been influenced by many factors, such as global economic conditions, weather patterns, and global supply and demand, among others.
In addition, we seek to export a portion of our coal into the international coal markets and we compete with companies that produce coal from one or more foreign countries. ​ The price per ton for our export coal sales is influenced by many factors, such as global economic conditions, weather patterns, and global supply and demand, among others.
Compliance with these rules can result in increased costs on our operations, including, but not limited to, the purchasing of new equipment and the hiring of additional personnel to assist with monitoring, reporting, and recordkeeping obligations.
These requirements impose a number of dust monitoring obligation and mine ventilation requirements on our operations. Compliance with these rules can result in increased costs on our operations, including, but not limited to, the purchasing of new equipment and the hiring of additional personnel to assist with monitoring, reporting, and recordkeeping obligations.
Although some utility customers have appeared to favor a shorter-term contracting strategy, in 2022 approximately 85.0% and 65.6% of our sales tonnage and total coal sales, respectively, were sold under long-term contracts with committed term expirations ranging from 2022 to 2029. Our initial 2023 guidance includes 34.7 million priced and committed tons for delivery in 2023.
Although some utility customers have appeared to favor a shorter-term contracting strategy, in 2023 approximately 93.4% and 92.0% of our sales tonnage and total coal sales, respectively, were sold under long-term contracts with committed term expirations ranging from 2024 to 2029. Our initial 2024 guidance includes 32.5 million priced and committed tons for delivery in 2024.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThese supply chain disruptions have previously caused and may continue to or again cause some of our suppliers to fail to deliver the quantities of supplies we need or fail to deliver such supplies in a timely manner. ​ The extent to which COVID-19 or another future pandemic may adversely impact our results of operations, cash flows and financial condition depends on future developments, which are highly uncertain and unpredictable. ​ ​ Growing our business could require significant amounts of financing that may not be available to us on acceptable terms, or at all. ​ We plan to fund capital expenditures for our growth initiatives with existing cash balances, future cash flows from operations, borrowings under revolving credit and securitization facilities, and cash provided from the issuance of debt or equity.
Biggest changeThe global or national outbreak of an illness or other communicable disease, or any other public health crisis, such as COVID-19, may cause disruptions to our business and operations, which may include (i) shortages of employees, (ii) unavailability of contractors or subcontractors, (iii) interruption of supplies from third parties upon which we rely, (iv) restrictions recommended or imposed by government and health authorities, including quarantines, to address an outbreak and (v) restrictions that we and our contractors, subcontractors and our customers impose, including facility shutdowns, to ensure the safety of employees. ​ The extent to which COVID-19 or another future pandemic may adversely impact our results of operations, cash flows and financial condition depends on future developments, which are highly uncertain and unpredictable. ​ Growing our business could require significant amounts of financing that may not be available to us on acceptable terms, or at all. ​ We plan to fund capital expenditures for our growth initiatives with existing cash balances, future cash flows from operations, borrowings under revolving credit and securitization facilities, and cash provided from the issuance of debt or equity.
Compliance with these laws and regulations can be burdensome and expensive for our operators, and failure to comply could result in our operators incurring significant liabilities, either of which could impact our operators' willingness to develop our interests. ​ Our operators' operations on the properties in which we hold interests are subject to various federal, state, and local governmental regulations that may change from time to time in response to economic and political conditions.
Compliance with these laws and regulations can be burdensome and expensive for the Operators, and failure to comply could result in the Operators incurring significant liabilities, either of which could impact the Operators' willingness to develop our interests. ​ The Operators' operations on the properties in which we hold interests are subject to various federal, state, and local governmental regulations that may change from time to time in response to economic and political conditions.
Failure to comply with these laws and regulations may result in the assessment of sanctions on our operators, including administrative, civil, or criminal penalties, permit revocations, requirements for additional pollution controls, and injunctions limiting or prohibiting some or all of our operators' operations on our properties.
Failure to comply with these laws and regulations may result in the assessment of sanctions on the Operators, including administrative, civil, or criminal penalties, permit revocations, requirements for additional pollution controls, and injunctions limiting or prohibiting some or all of the Operators' operations on our properties.
Such physical risks may result in damage to our facilities or our operators' facilities or otherwise adversely impact operations which could decrease the production attributable to our mineral interests.
Such physical risks may result in damage to our facilities or the Operators' facilities or otherwise adversely impact operations which could decrease the production attributable to our mineral interests.
In addition, if we are able to enter into a new lease with a new operator, the replacement operator may not achieve the same levels of production or sell oil or natural gas at the same price as the operator it replaced. ​ If the operators of our oil & gas properties suspend our right to receive royalty payments due to title or other issues, our business, financial condition, and/or results of operations could be adversely affected. ​ Upon a change in ownership of mineral interests, and at regular intervals pursuant to routine audit procedures at each of our operators otherwise at its discretion, the operator of the underlying property has the right to investigate and verify the title and ownership of mineral interests with respect to the properties it operates.
In addition, if we are able to enter into a new lease with a new operator, the replacement operator may not achieve the same levels of production or sell oil or natural gas at the same price as the operator it replaced. ​ If the operators of our oil & gas properties suspend our right to receive royalty payments due to title or other issues, our business, financial condition, and/or results of operations could be adversely affected. ​ Upon a change in ownership of mineral interests, and at regular intervals pursuant to routine audit procedures at each of the Operators otherwise at its discretion, the operator of the underlying property has the right to investigate and verify the title and ownership of mineral interests with respect to the properties it operates.
If these facilities are unavailable, our operators' operations could be interrupted and our results of operations and cash available for distribution could be materially adversely affected. ​ The marketability of our operators' oil & gas production will depend in part upon the availability, proximity, and capacity of transportation facilities, including gathering systems, trucks, and pipelines, owned by third parties.
If these facilities are unavailable, the Operators' operations could be interrupted and our results of operations and cash available for distribution could be materially adversely affected. ​ The marketability of the Operators' oil & gas production will depend in part upon the availability, proximity, and capacity of transportation facilities, including gathering systems, trucks, and pipelines, owned by third parties.
Neither we nor, in general, the operators of our properties control these third-party transportation facilities and our operators' access to them may be limited or denied.
Neither we nor, in general, the operators of our properties control these third-party transportation facilities and the Operators' access to them may be limited or denied.
Insufficient production from the wells on our acreage or a significant disruption in the availability of third-party transportation facilities or other production facilities could adversely impact our operators' ability to deliver to market or produce oil & gas and thereby cause a significant interruption in our operators' operations.
Insufficient production from the wells on our acreage or a significant disruption in the availability of third-party transportation facilities or other production facilities could adversely impact the Operators' ability to deliver to market or produce oil & gas and thereby cause a significant interruption in the Operators' operations.
In addition, the amount of oil & gas that can be produced and sold may be subject to curtailment in certain other circumstances outside of our or our operators' control, such as pipeline interruptions due to maintenance, excessive pressure, the inability of downstream processing facilities to accept unprocessed gas, physical damage to the gathering system or transportation system or lack of contracted capacity on such systems.
In addition, the amount of oil & gas that can be produced and sold may be subject to curtailment in certain other circumstances outside of our or the Operators' control, such as pipeline interruptions due to maintenance, excessive pressure, the inability of downstream processing facilities to accept unprocessed gas, physical damage to the gathering system or transportation system or lack of contracted capacity on such systems.
The IRS may challenge this treatment, which could change the allocation of items of income, gain, loss and deduction among our unitholders. ​ We generally prorate our items of income, gain, loss and deduction between transferors and transferees of our units each month based on the ownership of our units on the first day of each month (the "Allocation Date"), instead of on the basis of the date a particular unit is transferred.
The IRS may challenge this treatment, which could change the allocation of items of income, gain, loss and deduction among our unitholders. ​ We generally prorate our items of income, gain, loss and deduction between transferors and transferees of our units each month based on the ownership of our units on the first day of each month, instead of on the basis of the date a particular unit is transferred.
In the event state, local, or municipal legal restrictions are adopted in areas where our operators conduct operations, our operators could incur substantial costs to comply with these requirements, which could be significant in nature, experience delays, or curtailment in the pursuit of exploration, development, or production activities and perhaps even be precluded from the drilling of wells. ​ There has been increasing public controversy regarding hydraulic fracturing about increased risks of induced seismicity, the use of fracturing fluids, impacts on drinking water supplies, use of water, and the potential for impacts to surface water, groundwater, and the environment generally.
In the event state, local, or municipal legal restrictions are adopted in areas where the Operators conduct operations, the Operators could incur substantial costs to comply with these requirements, which could be significant in nature, experience delays, or curtailment in the pursuit of exploration, development, or production activities and perhaps even be precluded from the drilling of wells. ​ There has been increasing public controversy regarding hydraulic fracturing about increased risks of induced seismicity, the use of fracturing fluids, impacts on drinking water supplies, use of water, and the potential for impacts to surface water, groundwater, and the environment generally.
Future expansions or acquisitions could result in us assuming more long-term liabilities relative to the value of the acquired assets than we have assumed in our previous expansions and/or acquisitions. ​ The integration of any expansions or acquisitions that we complete will be subject to substantial risks. ​ Even if we make expansions or acquisitions that we believe will increase our coal or mineral revenue, any expansion or acquisition involves potential risks, including, among other things: ​ ● the validity of our assumptions about estimated proved reserves, future production, prices, revenues, capital expenditures, the operating expenses, and costs our operators would incur to develop the minerals; ● a decrease in our liquidity by using a significant portion of our cash generated from operations or borrowing capacity to finance acquisitions; ● a significant increase in our interest expense or financial leverage if we incur debt to finance acquisitions; ● the assumption of unknown liabilities, losses or costs for which we are not indemnified or for which any indemnity we receive is inadequate; ● mistaken assumptions about the overall cost of equity or debt; ● our ability to obtain satisfactory title to the assets we acquire; ● an inability to hire, train or retain qualified personnel to manage and operate our growing mineral assets; and ● the occurrence of other significant changes, such as impairment of properties, goodwill or other intangible assets, asset devaluation, or restructuring charges. ​ We may not be able to effectively identify investment opportunities in the advancement of energy and related infrastructure on favorable terms, or at all, and failure to do so may limit our future growth. ​ Part of our strategy includes positioning ourselves as a reliable energy provider for the future by pursuing strategic investments that leverage our core competencies and relationships with electric utilities, industrial customers, and federal and state governments.
Future expansions or acquisitions could result in us assuming more long-term liabilities relative to the value of the acquired assets than we have assumed in our previous expansions and/or acquisitions. ​ The integration of any expansions or acquisitions that we complete will be subject to substantial risks. ​ Even if we make expansions or acquisitions that we believe will increase our coal or mineral revenue, any expansion or acquisition involves potential risks, including, among other things: ​ ● the validity of our assumptions about estimated proved reserves, future production, prices, revenues, capital expenditures, the operating expenses, and costs the Operators would incur to develop the minerals; ● a decrease in our liquidity by using a significant portion of our cash generated from operations or borrowing capacity to finance acquisitions; ● a significant increase in our interest expense or financial leverage if we incur debt to finance acquisitions; ● the assumption of unknown liabilities, losses or costs for which we are not indemnified or for which any indemnity we receive is inadequate; ● mistaken assumptions about the overall cost of equity or debt; ● our ability to obtain satisfactory title to the assets we acquire; ● an inability to hire, train or retain qualified personnel to manage and operate our growing mineral assets; and ● the occurrence of other significant changes, such as impairment of properties, goodwill or other intangible assets, asset devaluation, or restructuring charges. 52 Table of Contents ​ We may not be able to effectively identify investment opportunities in the advancement of energy and related infrastructure on favorable terms, or at all, and failure to do so may limit our future growth. ​ Part of our strategy includes positioning ourselves as a reliable energy provider for the future by pursuing strategic investments that leverage our core competencies and relationships with electric utilities, industrial customers, and federal and state governments.
Our operators must comply with federal and state laws and regulations governing conservation matters, including: ​ ● provisions related to the unitization or pooling of the oil & gas properties; ● the establishment of maximum rates of production from wells; ● the spacing of wells; ● the plugging and abandonment of wells; and ● the removal of related production equipment. ​ Additionally, federal and state regulatory authorities may expand or alter applicable pipeline-safety laws and regulations, compliance with which could require increased capital costs for third-party oil & gas transporters.
The Operators must comply with federal and state laws and regulations governing conservation matters, including: ​ ● provisions related to the unitization or pooling of the oil & gas properties; ● the establishment of maximum rates of production from wells; ● the spacing of wells; ● the plugging and abandonment of wells; and ● the removal of related production equipment. ​ Additionally, federal and state regulatory authorities may expand or alter applicable pipeline-safety laws and regulations, compliance with which could require increased capital costs for third-party oil & gas transporters.
The success and timing of drilling and development activities on our oil & gas properties, and whether the operators elect to drill any additional wells on our acreage, depends on a number of factors that will be largely outside of our control, including: ​ ● the capital costs required for drilling activities by the operators of our oil & gas properties, which could be significantly more than anticipated; ● the ability of the operators of our properties to access capital; ● prevailing commodity prices; ● the availability of suitable drilling equipment, production and transportation infrastructure, and qualified operating personnel; ● the operators' expertise, operating efficiency, and financial resources; ● approval of other participants in drilling wells; ● the operators' expected return on investment in wells drilled on our acreage as compared to opportunities in other areas; ● the selection of technology; ● the selection of counterparties for the marketing and sale of production; and ● the rate of production of the reserves. ​ The operators may elect not to undertake development activities or may undertake these activities in an unanticipated fashion, which could result in significant fluctuations in our oil & gas revenues. ​ 49 Table of Contents We have little to no control over the timing of future drilling with respect to our oil & gas mineral interests. ​ All of our oil & gas mineral interests may not ultimately be developed or produced by the operators of our properties.
The success and timing of drilling and development activities on our oil & gas properties, and whether the operators elect to drill any additional wells on our acreage, depends on a number of factors that will be largely outside of our control, including: 48 Table of Contents ​ ● the capital costs required for drilling activities by the operators of our oil & gas properties, which could be significantly more than anticipated; ● the ability of the operators of our properties to access capital; ● prevailing commodity prices; ● the availability of suitable drilling equipment, production and transportation infrastructure, and qualified operating personnel; ● the operators' expertise, operating efficiency, and financial resources; ● approval of other participants in drilling wells; ● the operators' expected return on investment in wells drilled on our acreage as compared to opportunities in other areas; ● the selection of technology; ● the selection of counterparties for the marketing and sale of production; and ● the rate of production of the reserves. ​ The Operators may elect not to undertake development activities or may undertake these activities in an unanticipated fashion, which could result in significant fluctuations in our oil & gas revenues. ​ We have little to no control over the timing of future drilling with respect to our oil & gas mineral interests. ​ All of our oil & gas mineral interests may not ultimately be developed or produced by the operators of our properties.
The full impact of these actions is uncertain at this time and it is unclear what additional initiatives may be adopted or implemented that may have adverse effects on us and our operators' operations. ​ Governmental, scientific, and public concern over climate change has also resulted in increased political risks, including certain climate-related pledges made by certain candidates now in political office.
The full impact of these actions is uncertain at this time and it is unclear what additional initiatives may be adopted or implemented that may have adverse effects on us and the Operators' operations. ​ Governmental, scientific, and public concern over climate change has also resulted in increased political risks, including certain climate-related pledges made by certain candidates now in political office.
A number of lawsuits and enforcement actions have been initiated across the country implicating hydraulic-fracturing practices. If new laws or regulations are adopted that significantly restrict hydraulic fracturing, those laws could make it more difficult or costly for our operators to perform fracturing to stimulate production from tight formations.
A number of lawsuits and enforcement actions have been initiated across the country implicating hydraulic-fracturing practices. If new laws or regulations are adopted that significantly restrict hydraulic fracturing, those laws could make it more difficult or costly for the Operators to perform fracturing to stimulate production from tight formations.
If any of these events occur, the resulting political instability and societal disruption could reduce overall demand for products, causing a reduction in our revenues or an increase in our costs and thereby materially and adversely affecting our results of operations. 39 Table of Contents ​ Changes in consumption patterns by utilities regarding the use of coal, including plans by utilities to shut down or move away from coal-fired generation, have affected our ability to sell the coal we produce and may do so in the future. ​ Our business is closely linked to the demand for electricity, and any changes in coal consumption by domestic or international electric power generators would likely impact our business over the long term.
If any of these events occur, the resulting political instability and societal disruption could reduce overall demand for products, causing a reduction in our revenues or an increase in our costs and thereby materially and adversely affecting our results of operations. 38 Table of Contents ​ Changes in consumption patterns by utilities regarding the use of coal, including plans by utilities to shut down or move away from coal-fired generation, have affected our ability to sell the coal we produce and may do so in the future. ​ Our business is closely linked to the demand for electricity, and any changes in coal consumption by domestic or international electric power generators would likely impact our business over the long term.
Our operators may be required to make significant expenditures to comply with the governmental laws and regulations described above and may be subject to potential fines and penalties if they are found to have violated these laws and regulations. We believe the trend of more expansive and stricter environmental legislation and regulations will continue.
The Operators may be required to make significant expenditures to comply with the governmental laws and regulations described above and may be subject to potential fines and penalties if they are found to have violated these laws and regulations. We believe the trend of more expansive and stricter environmental legislation and regulations will continue.
Any subsequent refinancing of our current indebtedness or any new indebtedness could have similar or greater restrictions. Please see "Item 8. Financial Statements and Supplementary Data—Note 8 – Long-Term Debt" for further discussion. ​ We depend on the leadership and involvement of Joseph W.
Any subsequent refinancing of our current indebtedness or any new indebtedness could have similar or greater restrictions. Please see "Item 8. Financial Statements and Supplementary Data—Note 6 – Long-Term Debt" for further discussion. ​ We depend on the leadership and involvement of Joseph W.
Recovery of undeveloped reserves requires significant capital expenditures and successful drilling operations, and the decision to pursue the development of an undeveloped drilling location will be made by the operator and not by us. We generally do not have access to the estimated costs of development of these reserves or the scheduled development plans of our operators.
Recovery of undeveloped reserves requires significant capital expenditures and successful drilling operations, and the decision to pursue the development of an undeveloped drilling location will be made by the operator and not by us. We generally do not have access to the estimated costs of development of these reserves or the scheduled development plans of the Operators.
Disputes could occur in the future and we may not be able to resolve those disputes in a satisfactory manner, which could have a material adverse effect on our business, financial condition, and results of operations. ​ 40 Table of Contents Our profitability could decline due to unanticipated mine operating conditions and other events that are not within our control and that may not be fully covered under our insurance policies. ​ Our coal mining operations are influenced by changing conditions or events that can affect production levels and costs at particular mines for varying lengths of time and, as a result, can diminish our profitability.
Disputes could occur in the future and we may not be able to resolve those disputes in a satisfactory manner, which could have a material adverse effect on our business, financial condition, and results of operations. ​ 39 Table of Contents Our profitability could decline due to unanticipated mine operating conditions and other events that are not within our control and that may not be fully covered under our insurance policies. ​ Our coal mining operations are influenced by changing conditions or events that can affect production levels and costs at particular mines for varying lengths of time and, as a result, can diminish our profitability.
Our insurance may not protect us against such occurrences. Consequently, it is possible that any of these occurrences, or a combination of them, could have a material adverse effect on our business, financial condition, results of operations, and cash flows.
Our insurance may not protect us against such occurrences. Consequently, it is possible that any of these occurrences, or a combination of them, could have a material adverse effect on our business, financial condition, results of operations, cash flows and reputation.
These transporters may attempt to pass on such costs to our operators, which in turn could affect profitability on the properties in which we own mineral interests. ​ Our operators must also comply with laws and regulations prohibiting fraud and market manipulations in energy markets.
These transporters may attempt to pass on such costs to the Operators, which in turn could affect profitability on the properties in which we own mineral interests. ​ The Operators must also comply with laws and regulations prohibiting fraud and market manipulations in energy markets.
The curtailments arising from these and similar circumstances could last from a few days to several months. In many cases, we and our operators are provided with limited notice, if any, as to when these curtailments will arise and the duration of such curtailments.
The curtailments arising from these and similar circumstances could last from a few days to several months. In many cases, we and the Operators are provided with limited notice, if any, as to when these curtailments will arise and the duration of such curtailments.
A unitholder's share of our taxable income may be increased as a result of the IRS successfully contesting any of the federal income tax positions we take. ● Tax gain or loss on the disposition of our units could be more than expected and create tax liabilities for our unitholders ● Limitation on unitholders' ability to deduct interest expense incurred by us could create tax liabilities for our unitholders ● Tax Exempt entities and non-U.S. unitholders face unique tax issues from owning our common units that may result in adverse tax consequences for them ● IRS challenging our allocation of depreciation and amortization deductions could cause adverse tax consequences ● IRS challenging methods of prorating items of income, gain, loss, and deduction could cause adverse tax consequences ● Unitholders with units subject to securities loans could face adverse tax consequences ● Certain U.S. federal income tax deductions currently available with respect to coal mining and production may be eliminated as a result of future legislation ● Unitholders could be subject to state and local taxes and income tax return filing due to their status as a unitholder ​ 30 Table of Contents Risks Inherent in an Investment in Us ​ Cash distributions to unitholders are not guaranteed. ​ The payment and amount of any future distribution will be subject to the sole discretion of the board of directors of our general partner ("Board of Directors") and will depend upon many factors, including our financial condition and prospects, our capital requirements and access to financing, covenants associated with our debt obligations, and other factors that our Board of Directors may deem relevant, and there can be no assurance that we will pay a distribution in the future.
A unitholder's share of our taxable income may be increased as a result of the IRS successfully contesting any of the federal income tax positions we take. ● Tax gain or loss on the disposition of our units could be more than expected and create tax liabilities for our unitholders ● Limitation on unitholders' ability to deduct interest expense incurred by us could create tax liabilities for our unitholders ● Tax Exempt entities and non-U.S. unitholders face unique tax issues from owning our common units that may result in adverse tax consequences for them ● IRS challenging our allocation of depreciation and amortization deductions could cause adverse tax consequences ● IRS challenging methods of prorating items of income, gain, loss, and deduction could cause adverse tax consequences ● Unitholders with units subject to securities loans could face adverse tax consequences ● Certain U.S. federal income tax deductions currently available with respect to coal mining and production may be eliminated as a result of future legislation ● Unitholders could be subject to state and local taxes and income tax return filing due to their status as a unitholder ​ 29 Table of Contents Risks Inherent in an Investment in Us ​ Cash distributions to unitholders are not guaranteed. ​ The payment and amount of any future distribution will be subject to the sole discretion of the Board of Directors and will depend upon many factors, including our financial condition and prospects, our capital requirements and access to financing, covenants associated with our debt obligations, and other factors that our Board of Directors may deem relevant, and there can be no assurance that we will pay a distribution in the future.
At this time, it is not possible to estimate the impact on our business of newly enacted or potential federal or state legislation governing hydraulic fracturing. ​ Legislation or regulatory initiatives intended to address seismic activity could restrict our operators ' drilling and production activities, as well as their ability to dispose of produced water gathered from such activities, which could have a material adverse effect on our business. ​ State and federal regulatory agencies have recently focused on a possible connection between the hydraulic-fracturing related activities, particularly the underground injection of wastewater into disposal wells, and the increased occurrence of seismic activity, and regulatory agencies at all levels are continuing to study the possible linkage between oil & gas activity and induced seismicity. ​ In addition, a number of lawsuits have been filed in other states, including in Oklahoma, alleging that disposal well operations have caused damage to neighboring properties or otherwise violated state and federal rules regulating waste disposal.
At this time, it is not possible to estimate the impact on our business of newly enacted or potential federal or state legislation governing hydraulic fracturing. ​ Legislation or regulatory initiatives intended to address seismic activity could restrict the Operators' drilling and production activities, as well as their ability to dispose of produced water gathered from such activities, which could have a material adverse effect on our business. ​ State and federal regulatory agencies have recently focused on a possible connection between the hydraulic-fracturing related activities, particularly the underground injection of wastewater into disposal wells, and the increased occurrence of seismic activity, and regulatory agencies at all levels are continuing to study the possible linkage between oil & gas activity and induced seismicity. ​ In addition, a number of lawsuits have been filed in other states, including in Oklahoma, alleging that disposal well operations have caused damage to neighboring properties or otherwise violated state and federal rules regulating waste disposal.
Liabilities to partners on account of their partnership interest and liabilities that are non-recourse to the partnership are not counted for purposes of determining whether a distribution is permitted. ​ 32 Table of Contents Our partnership agreement limits our general partner ' s fiduciary duties to our unitholders and restricts the remedies available to unitholders for actions taken by our general partner that may otherwise constitute breaches of fiduciary duty. ​ Our partnership agreement contains provisions that waive or consent to conduct by our general partner and its affiliates and which reduce the obligations to which our general partner would otherwise be held by state-law fiduciary duty standards.
Liabilities to partners on account of their partnership interest and liabilities that are non-recourse to the partnership are not counted for purposes of determining whether a distribution is permitted. ​ 31 Table of Contents Our partnership agreement limits our general partner ' s fiduciary duties to our unitholders and restricts the remedies available to unitholders for actions taken by our general partner that may otherwise constitute breaches of fiduciary duty. ​ Our partnership agreement contains provisions that waive or consent to conduct by our general partner and its affiliates and which reduce the obligations to which our general partner would otherwise be held by state-law fiduciary duty standards.
These current laws and regulations and other potential regulations could increase the operating costs of our operators and delay production and could ultimately impact our operators' ability and willingness to develop our properties. ​ 45 Table of Contents Federal and state legislative and regulatory initiatives relating to hydraulic fracturing could result in increased costs, additional operating restrictions or delays, and fewer potential drilling locations, which could adversely affect revenues from our mineral interests. ​ Oil & gas production on the properties in which we hold mineral interests utilizes hydraulic fracturing.
These current laws and regulations and other potential regulations could increase the operating costs of the Operators and delay production and could ultimately impact the Operators' ability and willingness to develop our properties. ​ 44 Table of Contents Federal and state legislative and regulatory initiatives relating to hydraulic fracturing could result in increased costs, additional operating restrictions or delays, and fewer potential drilling locations, which could adversely affect revenues from our mineral interests. ​ Oil & gas production on the properties in which we hold mineral interests utilizes hydraulic fracturing.
This is because our general partner can exercise significant influence or control over our business activities, including our cash distribution policy, acquisition strategy, and business risk profile. ​ 31 Table of Contents Our unitholders do not elect our general partner or vote on our general partner's officers or directors. ​ Unlike the holders of common stock in a corporation, our unitholders have only limited voting rights on matters affecting our business and, therefore, limited ability to influence management's decisions regarding our business.
This is because our general partner can exercise significant influence or control over our business activities, including our cash distribution policy, acquisition strategy, and business risk profile. ​ 30 Table of Contents Our unitholders do not elect our general partner or vote on our general partner's officers or directors. ​ Unlike the holders of common stock in a corporation, our unitholders have only limited voting rights on matters affecting our business and, therefore, limited ability to influence management's decisions regarding our business.
Additionally, we could face increasing costs as we attempt to comply with and navigate further ESG-related focus and scrutiny. 34 Table of Contents ​ Risks Related to our Business ​ Global economic conditions or economic conditions in any of the industries in which our customers operate as well as sustained uncertainty in financial markets could have material adverse impacts on our business and financial condition that we currently cannot predict. ​ Weakness in global economic conditions or economic conditions in any of the industries we serve or in the financial markets could materially adversely affect our business and financial condition.
Additionally, we could face increasing costs as we attempt to comply with and navigate further ESG-related focus and scrutiny. 33 Table of Contents ​ Risks Related to our Business ​ Global economic conditions or economic conditions in any of the industries in which our customers operate as well as sustained uncertainty in financial markets could have material adverse impacts on our business and financial condition that we currently cannot predict. ​ Weakness in global economic conditions or economic conditions in any of the industries we serve or in the financial markets could materially adversely affect our business and financial condition.
These risks are discussed more fully below and include but are not limited to risks related to: ​ Risks Inherent in an Investment in Us ● Cash distributions are not guaranteed ● Ownership of limited partner interests could be diluted ● Sales of our common units could cause decline in the market price of our common units ● Increase in interest rates could cause decline in the market price of our common units ● The credit risk of our general partner could adversely impact us ● Our unitholders do not elect the general partner ● The control of our general partner may be transferred to a third party ● Unitholders may be required to sell their units to our general partner ● Cost reimbursements due to our general partner could be substantial ● Your liability as a limited partner may not be limited under certain circumstances ● Our general partner's fiduciary duties are limited ● Our general partner has discretion in determining the level of cash reserves ● Our general partner has potential conflicts of interest ● Some executive officers and directors face potential conflicts of interest ● ESG scores could adversely impact our securities ​ Risks Related to Our Business ● Declining global economic conditions could adversely impact us ● Material adverse effects on our financial condition as a result of future pandemic outbreaks could adversely impact us ● Financing may not be available to us on favorable terms or at all ● Our indebtedness could adversely impact us ● We depend upon the leadership of key personnel ● Legal proceedings could adversely impact us ● Our customers may not honor their contracts or may not enter into new contracts for our products ● Some of our contracts may be renegotiated or terminated ● We depend upon a few customers for significant portions of our revenues ● The credit risk of our customers could adversely impact us ● Cyber or terrorist attacks could adversely impact us ● Establishment of labor unions at our operations could adversely affect our profitability ​ Risks Related to Our Industries ● Changes in coal prices and/or oil & gas prices could impact our results of operations ● Competition within the coal industry could adversely affect our ability to sell coal ● Changes in taxes or tariffs and trade measures could adversely impact us ● The Russian-Ukrainian conflict, and sanctions brought against Russia, have caused significant market disruptions that may lead to increased volatility in the price of commodities ● Changes in consumption patterns by utilities could affect our ability to sell coal and/or impact the price of our natural gas ● Tort claims based on climate change ● Litigation resulting from disputes with customers could result in costs and liabilities ● Unanticipated mine operating conditions could affect our profitability ● Inability to obtain and renew permits necessary for operations could limit our ability to continue or expand our operations ● Fluctuations in transportation costs and availability could reduce demand for our products ● Unexpected increases in raw material costs could impact the profitability of our operations 29 Table of Contents ● The ability to recruit, hire and retain skilled labor could impact the profitability of our operations ● Disruptions in supply chains could impact the profitability of our operations ● Inflationary pressures could impact the profitability of our operations ● Unavailability of economic coal mineral reserves and resources could limit our ability to continue or expand our operations ● Estimates of our coal mineral reserves and resources could be inaccurate and could result in decreased profitability ● Coal mining in certain areas could be difficult and involve regulatory constraints which could impact our operations ● Extensive environmental laws and regulations could reduce demand for coal as a fuel source ● Legislative and regulatory compliance is costly ● Legislative and regulatory compliance could impact our business ● Legislative and regulatory initiatives relating to hydraulic fracturing could impact our mineral interests ● Legislative and regulatory initiatives relating to seismic activity could impact our business ● Legislative and regulatory initiatives relating to climate change could impact demand for our products ● Mine facilities may be located in a leased portion of the surface properties which introduces a risk of disruption to our operations ● Inability to acquire or failure to maintain surety bonds could limit our ability to continue or expand our operations ● Dependency on unaffiliated operators to explore and drill on our oil & gas properties limits our ability to control the timing and quantity of production ● Delays in royalty payments and optional royalty payments could impact our business ● Suspension of the right to receive royalty payments could impact our business ● Estimates of our oil & gas reserves could be inaccurate and could result in decreased profitability ● Uncertainties involved in drilling for and producing oil & gas could impact our business ● Availability of transportation and facilities for the products could impact our business ● Lack of hedging arrangements exposes us to the impact of commodity prices ● Expansions and acquisitions have inherent risks that could adversely impact us ● Integration of expansions or acquisitions has inherent risks that could adversely impact us ● Inability to obtain commercial insurance at acceptable rates could have a negative impact on our business ​ Tax Risks to Our Common Unitholders ● Our tax treatment depends on our status as a partnership for U.S. federal income tax purposes, and not being subject to a material amount of entity-level taxation.
These risks are discussed more fully below and include but are not limited to risks related to: ​ Risks Inherent in an Investment in Us ● Cash distributions are not guaranteed ● Ownership of limited partner interests could be diluted ● Sales of our common units could cause decline in the market price of our common units ● Increase in interest rates could cause decline in the market price of our common units ● The credit risk of our general partner could adversely impact us ● Our unitholders do not elect the general partner ● The control of our general partner may be transferred to a third party ● Unitholders may be required to sell their units to our general partner ● Cost reimbursements due to our general partner could be substantial ● Your liability as a limited partner may not be limited under certain circumstances ● Our general partner's fiduciary duties are limited ● Our general partner has discretion in determining the level of cash reserves ● Our general partner has potential conflicts of interest ● Some executive officers and directors face potential conflicts of interest ● ESG scores could adversely impact our securities ​ Risks Related to Our Business ● Declining global economic conditions could adversely impact us ● Material adverse effects on our financial condition as a result of future pandemic outbreaks could adversely impact us ● Financing may not be available to us on favorable terms or at all ● Our indebtedness could adversely impact us ● We depend upon the leadership of key personnel ● Legal proceedings could adversely impact us ● Our customers may not honor their contracts or may not enter into new contracts for our products ● Some of our contracts may be renegotiated or terminated ● We depend upon a few customers for significant portions of our revenues ● The credit risk of our customers could adversely impact us ● Cyber or terrorist attacks could adversely impact us ● Establishment of labor unions at our operations could adversely affect our profitability ​ Risks Related to Our Industries ● Changes in coal prices and/or oil & gas prices could impact our results of operations ● Competition within the coal industry could adversely affect our ability to sell coal ● Changes in taxes or tariffs and trade measures could adversely impact us ● Global geopolitical tensions which have caused, and may cause in the future, significant market disputes that may lead to increased volatility in the price of commodities ● Changes in consumption patterns by utilities could affect our ability to sell coal and/or impact the price of our natural gas ● Tort claims based on climate change ● Litigation resulting from disputes with customers could result in costs and liabilities ● Unanticipated mine operating conditions could affect our profitability ● Inability to obtain and renew permits necessary for operations could limit our ability to continue or expand our operations ● Fluctuations in transportation costs and availability could reduce demand for our products ● Unexpected increases in raw material costs could impact the profitability of our operations 28 Table of Contents ● The ability to recruit, hire and retain skilled labor could impact the profitability of our operations ● Disruptions in supply chains could impact the profitability of our operations ● Inflationary pressures could impact the profitability of our operations ● Unavailability of economic coal mineral reserves and resources could limit our ability to continue or expand our operations ● Estimates of our coal mineral reserves and resources could be inaccurate and could result in decreased profitability ● Coal mining in certain areas could be difficult and involve regulatory constraints which could impact our operations ● Extensive environmental laws and regulations could reduce demand for coal as a fuel source ● Legislative and regulatory compliance is costly ● Legislative and regulatory compliance could impact our business ● Legislative and regulatory initiatives relating to hydraulic fracturing could impact our mineral interests ● Legislative and regulatory initiatives relating to seismic activity could impact our business ● Legislative and regulatory initiatives relating to climate change could impact demand for our products ● Mine facilities may be located in a leased portion of the surface properties which introduces a risk of disruption to our operations ● Inability to acquire or failure to maintain surety bonds could limit our ability to continue or expand our operations ● Dependency on unaffiliated operators to explore and drill on our oil & gas properties limits our ability to control the timing and quantity of production ● Delays in royalty payments and optional royalty payments could impact our business ● Suspension of the right to receive royalty payments could impact our business ● Estimates of our oil & gas reserves could be inaccurate and could result in decreased profitability ● Uncertainties involved in drilling for and producing oil & gas could impact our business ● Availability of transportation and facilities for the products could impact our business ● Lack of hedging arrangements exposes us to the impact of commodity prices ● Expansions and acquisitions have inherent risks that could adversely impact us ● Integration of expansions or acquisitions has inherent risks that could adversely impact us ● Inability to obtain commercial insurance at acceptable rates could have a negative impact on our business ​ Tax Risks to Our Common Unitholders ● Our tax treatment depends on our status as a partnership for U.S. federal income tax purposes, and not being subject to a material amount of entity-level taxation.
One or more of these developments, as well as concerted conservation and efficiency efforts that result in reduced electricity consumption, and consumer and corporate preferences for non-fossil-fuel sources, including alternative energy sources, could cause prices and sales of our coal and/or oil & gas to materially decline and could cause our costs to increase and adversely affect our revenues and results of operations. ​ Climate change may also result in various physical risks, such as the increased frequency or intensity of extreme weather events or changes in meteorological and hydrological patterns that could adversely impact our operations, as well as those of our operators and their supply chain.
One or more of these developments, as well as concerted conservation and efficiency efforts that result in reduced electricity consumption, and consumer and corporate preferences for non-fossil-fuel sources, including alternative energy sources, 47 Table of Contents could cause prices and sales of our coal and/or oil & gas to materially decline and could cause our costs to increase and adversely affect our revenues and results of operations. ​ Climate change may also result in various physical risks, such as the increased frequency or intensity of extreme weather events or changes in meteorological and hydrological patterns that could adversely impact our operations, as well as those of the Operators and their supply chain.
Expansion and acquisition transactions involve various inherent risks, including: ​ ● uncertainties in assessing the value, strengths, and potential profitability of expansion and acquisition opportunities ; ● uncertainties in identifying the extent of all weaknesses, risks, contingent and other liabilities of, expansion and acquisition opportunities; 52 Table of Contents ● the ability to achieve identified operating and financial synergies anticipated to result from an expansion or an acquisition; ● problems that could arise from the integration of the new operations; and ● unanticipated changes in business, industry, or general economic conditions that affect the assumptions underlying our rationale for pursuing the expansion or acquisition opportunity. ​ Any one or more of these factors could cause us not to realize the benefits anticipated to result from an expansion or acquisition.
Expansion and acquisition transactions involve various inherent risks, including: ​ ● uncertainties in assessing the value, strengths, and potential profitability of expansion and acquisition opportunities ; ● uncertainties in identifying the extent of all weaknesses, risks, contingent and other liabilities of, expansion and acquisition opportunities; ● the ability to achieve identified operating and financial synergies anticipated to result from an expansion or an acquisition; ● problems that could arise from the integration of the new operations; and ● unanticipated changes in business, industry, or general economic conditions that affect the assumptions underlying our rationale for pursuing the expansion or acquisition opportunity. ​ Any one or more of these factors could cause us not to realize the benefits anticipated to result from an expansion or acquisition.
We have no reason to believe that there exists any risk of loss of these leasehold rights given the terms and provisions of the subject leases and the nature and identity of the third-party lessors; however, in the unlikely event of any loss of these leasehold 48 Table of Contents rights, operations could be disrupted or otherwise adversely impacted as a result of increased costs associated with retaining the necessary land use. ​ Federal and state laws require bonds to secure our obligations related to statutory reclamation requirements and workers ' compensation and black lung benefits.
We have no reason to believe that there exists any risk of loss of these leasehold rights given the terms and provisions of the subject leases and the nature and identity of the third-party lessors; however, in the unlikely event of any loss of these leasehold rights, operations could be disrupted or otherwise adversely impacted as a result of increased costs associated with retaining the necessary land use. ​ Federal and state laws require bonds to secure our obligations related to statutory reclamation requirements and workers ' compensation and black lung benefits.
Although we have not experienced any material adverse effect on our results of operations, financial condition or cash flows as a result of the war or the resulting volatility, such volatility, may significantly affect prices for our coal and oil & gas or the cost of supplies and equipment, as well as the prices of competing sources of energy for our electric power plant customers. ​ The war, trade and monetary sanctions, as well as any escalation of the conflict and future developments, could significantly affect worldwide market prices and demand for our coal and oil & gas and cause turmoil in the capital markets and generally in the global financial system.
Although we have not experienced any material adverse effect on our results of operations, financial condition or cash flows as a result of such conflicts or the resulting volatility, such volatility, may significantly affect prices for our coal and oil & gas or the cost of supplies and equipment, as well as the prices of competing sources of energy for our electric power plant customers. ​ Global geopolitical conflicts, trade and monetary sanctions, as well as any escalation of the conflict and future developments, could significantly affect worldwide market prices and demand for our coal and oil & gas and cause turmoil in the capital markets and generally in the global financial system.
You are urged to consult with your own tax advisor with respect to the 54 Table of Contents status of regulatory or administrative developments and proposals and their potential effect on your investment in our common units. ​ If the IRS were to contest the U.S. federal income tax positions we take, it may adversely impact the market for our common units, and the costs of any such contest would reduce cash available for distribution to our unitholders. ​ We have not requested a ruling from the IRS with respect to our treatment as a partnership for U.S. federal income tax purposes.
You are urged to consult with your own tax advisor with respect to the status of regulatory or administrative developments and proposals and their potential effect on your investment in our common units. ​ If the IRS were to contest the U.S. federal income tax positions we take, it may adversely impact the market for our common units, and the costs of any such contest would reduce cash available for distribution to our unitholders. ​ We have not requested a ruling from the IRS with respect to our treatment as a partnership for U.S. federal income tax purposes.
In the taxable period in which a unitholder sells 55 Table of Contents its units, such unitholder may recognize ordinary income from our allocations of income and gain to such unitholder prior to the sale and from recapture items that generally cannot be offset by any capital loss recognized upon the sale of units. ​ Unitholders may be subject to limitation on their ability to deduct interest expense incurred by us. ​ In general, we are entitled to a deduction for interest paid or accrued on indebtedness properly allocable to our trade or business during our taxable year.
In the taxable period in which a unitholder sells its units, such unitholder may recognize ordinary income from our allocations of income and gain to such unitholder prior to the sale and from recapture items that generally cannot be offset by any capital loss recognized upon the sale of units. ​ Unitholders may be subject to limitation on their ability to deduct interest expense incurred by us. ​ In general, we are entitled to a deduction for interest paid or accrued on indebtedness properly allocable to our trade or business during our taxable year.
Certain Relationships and Related Transactions, and Director Independence—Omnibus Agreement"). ● Our general partner determines the amount and timing of our asset purchases and sales, capital expenditures, borrowings, and reserves, each of which can affect the amount of cash that is distributed to unitholders. ● Our general partner determines whether to issue additional units or other equity securities in us. ● Our general partner determines which costs are reimbursable by us. ● Our general partner controls the enforcement of obligations owed to us by it. ● Our general partner decides whether to retain separate counsel, accountants, or others to perform services for us. 33 Table of Contents ● Our general partner is not restricted from causing us to pay it or its affiliates for any services rendered on terms that are fair and reasonable to us or from entering into additional contractual arrangements with any of these entities on our behalf. ● In some instances, our general partner may direct us to borrow funds to permit the payment of distributions. ​ Some of our executive officers and directors face potential conflicts of interest in managing our business. ​ Certain of our executive officers and directors are also officers and/or directors of Alliance GP, LLC ("AGP").
Certain Relationships and Related Transactions, and Director Independence—Omnibus Agreement"). ● Our general partner determines the amount and timing of our asset purchases and sales, capital expenditures, borrowings, and reserves, each of which can affect the amount of cash that is distributed to unitholders. ● Our general partner determines whether to issue additional units or other equity securities in us. ● Our general partner determines which costs are reimbursable by us. ● Our general partner controls the enforcement of obligations owed to us by it. ● Our general partner decides whether to retain separate counsel, accountants, or others to perform services for us. 32 Table of Contents ● Our general partner is not restricted from causing us to pay it or its affiliates for any services rendered on terms that are fair and reasonable to us or from entering into additional contractual arrangements with any of these entities on our behalf. ● In some instances, our general partner may direct us to borrow funds to permit the payment of distributions. ​ Some of our executive officers and directors face potential conflicts of interest in managing our business. ​ Certain of our executive officers and directors are also officers and/or directors of AGP.
For example, both Texas and Oklahoma have imposed certain limits on the permitting or operation of disposal wells in areas with increased instances of induced seismic events. In September 2021, the Texas Railroad Commission ("TRRC") issued a notice to operators in the Midland area to reduce saltwater disposal well activities and provide certain data to the TRRC.
For example, both Texas and Oklahoma have imposed certain limits on the permitting or operation of disposal wells in areas with increased instances of induced seismic events. In September 2021, the TRRC issued a notice to operators in the Midland area to reduce saltwater disposal well activities and provide certain data to the TRRC.
Unitholders desiring to assure their status as partners and avoid the risk of gain recognition from a securities loan are urged to consult a tax advisor to determine whether it is advisable to modify any applicable brokerage account agreements to prohibit their brokers from borrowing their units. ​ Certain U.S. federal income tax deductions currently available with respect to coal mining and production may be eliminated as a result of future legislation. ​ In past years, members of the U.S.
Unitholders desiring to assure their status as partners and avoid the risk of gain recognition from a securities loan are urged 56 Table of Contents to consult a tax advisor to determine whether it is advisable to modify any applicable brokerage account agreements to prohibit their brokers from borrowing their units. ​ Certain U.S. federal income tax deductions currently available with respect to coal mining and production may be eliminated as a result of future legislation. ​ In past years, members of the U.S.
Business—Environmental, Health and Safety Regulations— Mining Permits and Approvals ." ​ 41 Table of Contents The EPA has begun reviewing permits required for the discharge of overburden from mining operations under Section 404 of the CWA. Various initiatives by the EPA regarding these permits have increased the time required to obtain and the costs of complying with such permits.
Business—Environmental, Health and Safety Regulations— Mining Permits and Approvals ." ​ 40 Table of Contents The EPA has begun reviewing permits required for the discharge of overburden from mining operations under Section 404 of the CWA. Various initiatives by the EPA regarding these permits have increased the time required to obtain and the costs of complying with such permits.
Inflationary pressures have and could continue to lead to price increases affecting many of the components of our operating expenses such as fuel, steel, and maintenance expenses. There could be acts of nature or terrorist attacks or threats that could also impact 42 Table of Contents the future costs of raw materials.
Inflationary pressures have and could continue to lead to price increases affecting many of the components of our operating expenses such as fuel, steel, and maintenance expenses. There could be acts of nature or terrorist attacks or threats that could also impact the future 41 Table of Contents costs of raw materials.
Certain of these laws and regulations may impose strict liability without regard to fault or legality of the original conduct. Failure to comply with these laws and regulations may result in 44 Table of Contents the assessment of administrative, civil, and criminal penalties, the imposition of remedial liabilities, and the issuance of injunctions limiting or prohibiting the performance of operations.
Certain of these laws and regulations may impose strict liability without regard to fault or legality of the original conduct. Failure to comply with these laws and regulations may result in 43 Table of Contents the assessment of administrative, civil, and criminal penalties, the imposition of remedial liabilities, and the issuance of injunctions limiting or prohibiting the performance of operations.
Accordingly, we may not be able to continue to obtain long-term sales contracts with reliable customers as existing contracts expire, which could subject a portion of our revenue stream to the increased volatility of the spot market. ​ 36 Table of Contents Some of our long-term sales contracts contain provisions allowing for the renegotiation of prices and, in some instances, the termination of the contract or the suspension of purchases by customers. ​ Some of our long-term sales contracts contain provisions that allow the purchase price to be renegotiated at periodic intervals.
Accordingly, we may not be able to continue to obtain long-term sales contracts with reliable customers as existing contracts expire, which could subject a portion of our revenue stream to the increased volatility of the spot market. ​ Some of our long-term sales contracts contain provisions allowing for the renegotiation of prices and, in some instances, the termination of the contract or the suspension of purchases by customers. ​ Some of our long-term sales contracts contain provisions that allow the purchase price to be renegotiated at periodic intervals.
Our cash available for distribution to unitholders may be substantially reduced if we become subject to entity-level taxation as a result of the Internal Revenue Service ("IRS") treating us as a corporation or legislative, judicial, or administrative changes, and may also be reduced by any audit adjustments if imposed directly on the Partnership. ● Even if unitholders do not receive any cash distributions from us, unitholders will be required to pay taxes on their share of our taxable income.
Our cash available for distribution to unitholders may be substantially reduced if we become subject to entity-level taxation as a result of the IRS treating us as a corporation or legislative, judicial, or administrative changes, and may also be reduced by any audit adjustments if imposed directly on the Partnership. ● Even if unitholders do not receive any cash distributions from us, unitholders will be required to pay taxes on their share of our taxable income.
In January 2021, President 47 Table of Contents Biden issued an executive order that commits to substantial action on climate change, calling for, among other things, the increased use of zero-emissions vehicles by the federal government, the elimination of subsidies provided to the fossil-fuel industry, a doubling of electricity generated by offshore wind by 2030, and increased emphasis on climate-related risks across governmental agencies and economic sectors.
In January 2021, President Biden issued an executive order that commits to substantial action on climate change, calling for, among other things, the increased use of zero-emissions vehicles by the federal government, the elimination of subsidies provided to the fossil-fuel industry, a doubling of electricity generated by offshore wind by 2030, and increased emphasis on climate-related risks across governmental agencies and economic sectors.
In addition, even if we remain union-free, our operations could still be adversely affected by work stoppages at unionized companies, particularly if union workers were to orchestrate boycotts against our operations. ​ Risks Related to Our Industries ​ Prices for oil & gas, as well as coal, are volatile and can fluctuate widely based on a number of factors beyond our control.
In addition, even if we remain union-free, our operations could still be adversely affected by work stoppages at unionized companies, particularly if union workers were to orchestrate boycotts against our operations. 36 Table of Contents ​ Risks Related to Our Industries ​ Prices for oil & gas, as well as coal, are volatile and can fluctuate widely based on a number of factors beyond our control.
Further, as cyber incidents continue to evolve, we could be required to expend additional resources to continue to modify or enhance our protective measures or to investigate and remediate any vulnerability to cyber incidents. ​ 37 Table of Contents Although none of our employees are members of unions, our workforce may not remain union-free in the future. ​ None of our employees are represented under collective bargaining agreements.
Further, as cyber incidents continue to evolve, we could be required to expend additional resources to continue to modify or enhance our protective measures or to investigate and remediate any vulnerability to cyber incidents. ​ Although none of our employees are members of unions, our workforce may not remain union-free in the future. ​ None of our employees are represented under collective bargaining agreements.
These factors could materially adversely affect the mining operations and cost structures of, and our customers' ability to use coal produced by, our mines. ​ Extensive environmental laws and regulations affect coal consumers and have corresponding effects on the demand for coal as a fuel source. ​ Federal, state, and local laws and regulations extensively regulate the amount of sulfur dioxide, particulate matter, nitrogen oxides, mercury, and other compounds emitted into the air from coal-fired electric power plants, which are the ultimate consumers of much of our coal.
These factors could materially adversely affect the mining operations and cost structures of, and our customers' ability to use coal produced by, our mines. ​ Extensive environmental laws and regulations affect coal consumers and could affect the demand for coal as a fuel source. ​ Federal, state, and local laws and regulations extensively regulate the amount of sulfur dioxide, particulate matter, nitrogen oxides, mercury, and other compounds emitted into the air from coal-fired electric power plants, which are the ultimate consumers of much of our coal.
Deliberate attacks on, or security breaches in, our systems or infrastructure, or the systems or infrastructure of third parties could lead to corruption or loss of our proprietary data and potentially sensitive data, delays in production or delivery, difficulty in completing and settling transactions, challenges in maintaining our books and records, environmental damage, communication interruptions, other operational disruptions, and third-party liability.
Deliberate attacks on, or security breaches in, our systems or infrastructure, or the systems or infrastructure of third parties could lead to corruption or loss of our proprietary data and potentially sensitive data, delays in production or delivery, difficulty in completing and settling transactions, misdirected wire transfers, challenges in maintaining our books and records, environmental damage, communication interruptions, other operational disruptions, and third-party liability.
If an operator of our properties is not satisfied with the documentation we provide to validate our ownership, it may place our royalty payment in suspense until such issues are resolved, at which time we would receive in full payments that would have been made during the suspense period, without interest.
If an operator of our properties is not satisfied with the documentation we provide to validate our ownership, it may place our royalty payment in suspense until such issues are resolved, at which time we 49 Table of Contents would receive in full payments that would have been made during the suspense period, without interest.
If, as a result of any such audit adjustment, we are required to pay taxes, penalties and interest, our cash available for distribution to our unitholders might be substantially reduced and our current and former unitholders may be required to indemnify us for any taxes (including any applicable penalties and interest) resulting from such audit adjustments that were paid on such unitholders' behalf.
If, as a result of 54 Table of Contents any such audit adjustment, we are required to pay taxes, penalties and interest, our cash available for distribution to our unitholders might be substantially reduced and our current and former unitholders may be required to indemnify us for any taxes (including any applicable penalties and interest) resulting from such audit adjustments that were paid on such unitholders' behalf.
The prices of and demand for our coal could significantly decline, which could have a material adverse effect on our business, financial condition, results of operations, and cash flows, and could reduce our revenues and cash available for distribution. 38 Table of Contents ​ In addition, we face competition from foreign producers that sell their coal in the export market.
The prices of and demand for our coal could significantly decline, which could have a material adverse effect on our business, financial condition, results of operations, and cash flows, and could reduce our revenues and cash available for distribution. ​ In addition, we face competition from foreign producers that sell their coal in the export market.
Further, our operators' drilling and producing operations could be curtailed, delayed, canceled, or otherwise negatively impacted as a result of other factors, including: ​ ● unusual or unexpected geological formations or earthquakes; ● loss of drilling fluid circulation; ● title problems; ● facility or equipment malfunctions; ● unexpected operational events; ● shortages or delivery delays of equipment and services; ● compliance with environmental and other governmental requirements; and ● adverse weather conditions. ​ Any of these risks can cause substantial losses, including personal injury or loss of life, damage to or destruction of property, natural resources, and equipment, pollution, environmental contamination or loss of wells, and other regulatory penalties.
Further, the Operators' drilling and producing operations could be curtailed, delayed, canceled, or otherwise negatively impacted as a result of other factors, including: ​ ● unusual or unexpected geological formations or earthquakes; ● loss of drilling fluid circulation; ● title problems; ● facility or equipment malfunctions; ● unexpected operational events; ● shortages or delivery delays of equipment and services; ● compliance with environmental and other governmental requirements; and ● adverse weather conditions. ​ 50 Table of Contents Any of these risks can cause substantial losses, including personal injury or loss of life, damage to or destruction of property, natural resources, and equipment, pollution, environmental contamination or loss of wells, and other regulatory penalties.
As a result, distributions to a non-U.S. unitholder will be subject to withholding at the highest applicable effective tax rate and a non-U.S. unitholder who sells or otherwise disposes of a unit will also be subject to U.S. federal income tax on the gain realized from the sale or disposition of that unit.
As a result, distributions to 55 Table of Contents a non-U.S. unitholder will be subject to withholding at the highest applicable effective tax rate and a non-U.S. unitholder who sells or otherwise disposes of a unit will also be subject to U.S. federal income tax on the gain realized from the sale or disposition of that unit.
Estimates of coal mineral reserves and 43 Table of Contents resources necessarily depend upon a number of variables and assumptions, any one of which could vary considerably from actual results.
Estimates of coal mineral reserves and 42 Table of Contents resources necessarily depend upon a number of variables and assumptions, any one of which could vary considerably from actual results.
In accordance with rules established by the SEC and the Financial Accounting Standards Board ("FASB"), we base the estimated discounted future net cash flows from our proved reserves on the twelve-month average oil & gas index prices, calculated as the unweighted arithmetic average for the first day-of-the-month price for each month, and costs in effect on the date of the estimate, holding the prices and costs constant throughout the life of the properties.
In accordance with rules established by the SEC and the FASB, we base the estimated discounted future net cash flows from our proved reserves on the twelve-month average oil & gas index prices, calculated as the unweighted arithmetic average for the first day-of-the-month price for each month, and costs in effect on the date of the estimate, holding the prices and costs constant throughout the life of the properties.
Over time, we may make material changes to reserve estimates taking into account the results of actual drilling, testing, and production. In addition, certain assumptions regarding future oil & gas prices, production levels, and 50 Table of Contents operating costs could prove incorrect.
Over time, we may make material changes to reserve estimates taking into account the results of actual drilling, testing, and production. In addition, certain assumptions regarding future oil & gas prices, production levels, and operating costs could prove incorrect.
If the IRS were to treat us as a corporation for U.S. federal income tax purposes, or we become subject to entity-level taxation for state tax purposes, our cash available for distribution to you would be substantially reduced. ​ The anticipated after-tax benefit of an investment in our common units depends largely on our being treated as a partnership for U.S. federal income tax purposes. ​ Despite the fact that we are organized as a limited partnership under Delaware law, we would be treated as a corporation for U.S. federal income tax purposes unless we satisfy a "qualifying income" requirement.
If the IRS were to treat us as a corporation for U.S. federal income tax purposes, or we become subject to entity-level taxation for state tax purposes, our cash available for distribution to you would be substantially reduced. ​ The anticipated after-tax benefit of an investment in our common units depends largely on our being treated as a partnership for U.S. federal income tax purposes. ​ Even though we are organized as a limited partnership under Delaware law, we would be treated as a corporation for U.S. federal income tax purposes unless we satisfy a "qualifying income" requirement.
As a result, unitholders may be subject to limitation on their ability to deduct interest expense incurred by us. ​ Tax-exempt entities face unique tax issues from owning our common units that may result in adverse tax consequences to them. ​ Investment in our common units by tax-exempt entities, such as employee benefit plans and individual retirement accounts (known as "IRAs") raises issues unique to them.
As a result, unitholders may be subject to limitation on their ability to deduct interest expense incurred by us. ​ Tax-exempt entities face unique tax issues from owning our common units that may result in adverse tax consequences to them. ​ Investment in our common units by tax-exempt entities, such as employee benefit plans and IRAs raises issues unique to them.
In addition, for certain types or levels of risk, such as risks associated with certain natural disasters or terrorist attacks, we may 53 Table of Contents determine that we cannot obtain commercial insurance at acceptable rates, if at all.
In addition, for certain types or levels of risk, such as risks associated with certain natural disasters or terrorist attacks, we may determine that we cannot obtain commercial insurance at acceptable rates, if at all.
Certain of our operators impose significant documentation requirements for title transfer and may keep royalty payments in suspense for significant periods of time.
Certain of the Operators impose significant documentation requirements for title transfer and may keep royalty payments in suspense for significant periods of time.
These price reopener provisions may automatically set a new price based on the prevailing market price or, in some instances, require the parties to the contract to agree on a new price. Any adjustment or renegotiation leading to a significantly lower contract price could adversely affect our operating profit margins.
These price reopener provisions may automatically set a new price based on the prevailing market price or, in 35 Table of Contents some instances, require the parties to the contract to agree on a new price. Any adjustment or renegotiation leading to a significantly lower contract price could adversely affect our operating profit margins.
Further, our unitholders may be subject to penalties for failure to comply with those requirements. ​ 57 Table of Contents We currently own assets and conduct business in multiple states that currently impose a personal income tax on individuals, corporations and other entities.
Further, our unitholders may be subject to penalties for failure to comply with those requirements. ​ We currently own assets and conduct business in multiple states that currently impose a personal income tax on individuals, corporations and other entities.
Distributions to our unitholders would generally be taxed again as corporate distributions, and no income, gains, losses, deductions or credits would flow through to our unitholders. Because taxes would be imposed upon us as a corporation, our cash available for distribution to our unitholders would be substantially reduced.
Distributions to our unitholders would generally be taxed again as corporate distributions, and no income, gains, losses, deductions, or credits would flow through to our unitholders. Because taxes would be imposed upon us as a corporation, our cash available 53 Table of Contents for distribution to our unitholders would be substantially reduced.
The prices for oil & gas and coal depend upon factors beyond our control, including: ​ ● overall domestic and global economic conditions; ● the adverse impact of the COVID-19 pandemic due to the reduction in demand; ● the supply of and demand for domestic and foreign coal; ● the supply of and demand for oil & gas; ● weather conditions and patterns that affect demand for coal and oil & gas, or our ability to produce coal or the ability of operators to produce oil & gas from our mineral interests; ● supply chain and cost of raw materials for coal and oil & gas operations; ● the proximity to and capacity of transportation facilities; ● competition from other coal suppliers; ● domestic and foreign governmental regulations and taxes; ● the price and availability of alternative fuels; ● the effect of worldwide energy consumption, including the impact of technological advances on energy consumption; ● international developments impacting the supply of coal; ● international developments impacting the supply of oil & gas; and ● the impact of domestic and foreign governmental laws and regulations. ​ Any adverse change in these factors could result in weaker demand and lower prices for our products.
The prices for oil & gas and coal depend upon factors beyond our control, including: ​ ● overall domestic and global economic conditions; ● the supply of and demand for domestic and foreign coal; ● the supply of and demand for oil & gas; ● weather conditions and patterns that affect demand for coal and oil & gas, or our ability to produce coal or the ability of operators to produce oil & gas from our mineral interests; ● supply chain and cost of raw materials for coal and oil & gas operations; ● the adverse impact of pandemics, outbreaks and other public health events; ● the proximity to and capacity of transportation facilities; ● competition from other coal suppliers; ● domestic and foreign governmental regulations and taxes; ● the price and availability of alternative fuels; ● the effect of worldwide energy consumption, including the impact of technological advances on energy consumption; ● international developments impacting the supply of coal; ● international developments impacting the supply of oil & gas; and ● the impact of domestic and foreign governmental laws and regulations. ​ Any adverse change in these factors could result in weaker demand and lower prices for our products.
Our future growth could be limited if we are unable to continue to make acquisitions in either our coal operations or our royalties segments, or if we are unable to successfully integrate the companies, businesses, or properties we acquire.
Our future growth could be limited if we are unable to continue to make acquisitions in either our coal operations or our royalties 51 Table of Contents segments, or if we are unable to successfully integrate the companies, businesses, or properties we acquire.
In the event of early termination of any of our long-term sales contracts, if we are unable to enter into new contracts on similar terms, our business, financial condition, and results of operations could be adversely affected. ​ We depend on a few customers for a significant portion of our revenues, and the loss of one or more significant customers could affect our ability to maintain the sales volume and price of the coal we produce. ​ In 2022, we derived more than 10% of our total revenues from each of Duke Energy, Louisville Gas and Electric Company, and Tennessee Valley Authority.
In the event of early termination of any of our long-term sales contracts, if we are unable to enter into new contracts on similar terms, our business, financial condition, and results of operations could be adversely affected. ​ We depend on a few customers for a significant portion of our revenues, and the loss of one or more significant customers could affect our ability to maintain the sales volume and price of the coal we produce. ​ In 2023, we derived more than 10% of our total revenues from each of American Electric Power and Tennessee Valley Authority.
Financial Statements and Supplementary Data—Note 23 – Commitments and Contingencies" for further discussion. ​ The stability and profitability of our operations could be adversely affected if our customers do not honor existing contracts or do not extend existing or enter into new long-term contracts for coal. ​ In 2022, we sold approximately 85.0% of our coal sales tonnage under contracts having a term greater than one year, which we refer to as long-term sales contracts.
Financial Statements and Supplementary Data—Note 21 – Commitments and Contingencies" for further discussion. ​ The stability and profitability of our operations could be adversely affected if our customers do not honor existing contracts or do not extend existing or enter into new long-term contracts for coal. ​ In 2023, we sold approximately 93.4% of our coal sales tonnage under contracts having a term greater than one year, which we refer to as long-term sales contracts.
In addition, the outgoing operator could be subject to a proceeding under Title 11 of the United States Code (the "Bankruptcy Code"), in which case our right to enforce or terminate the lease for any defaults, including non-payment, could be substantially delayed or otherwise impaired.
In addition, the outgoing operator could be subject to a proceeding under Bankruptcy Code, in which case our right to enforce or terminate the lease for any defaults, including non-payment, could be substantially delayed or otherwise impaired.
However, given the long-term trend toward increasing regulation, future federal GHG regulations of the oil and gas industry remain a significant possibility. ​ Separately, various states and groups of states have adopted or are considering adopting legislation, regulations, or other regulatory initiatives that are focused on such areas as GHG cap-and-trade programs, carbon taxes, reporting and tracking programs, and restriction of emissions.
However, given the long-term trend toward increasing regulation, future federal GHG regulations of the oil and gas industry remain a significant possibility and may have an impact on drilling operations on our oil & gas mineral interests. ​ Separately, various states and groups of states have adopted or are considering adopting legislation, regulations, or other regulatory initiatives that are focused on such areas as GHG cap-and-trade programs, carbon taxes, reporting and tracking programs, and restriction of emissions.
A successful IRS challenge to the use of these methods could adversely affect the amount of tax benefits available to our 56 Table of Contents unitholders.
A successful IRS challenge to the use of these methods could adversely affect the amount of tax benefits available to our unitholders.
If we are unable to finance our growth initiatives as expected, we could be required to seek alternative financing, the terms of which may not be attractive to us, or to revise or cancel our plans. 35 Table of Contents ​ Our indebtedness could limit our ability to borrow additional funds, make distributions to unitholders, or capitalize on business opportunities. ​ We had long-term indebtedness of $427.0 million as of December 31, 2022.
If we are unable to finance our growth initiatives as expected, we could be required to seek alternative financing, the terms of which may not be attractive to us, or to revise or cancel our plans. ​ 34 Table of Contents Our indebtedness could limit our ability to borrow additional funds, make distributions to unitholders, or capitalize on business opportunities. ​ We had long-term indebtedness of $347.6 million as of December 31, 2023.
If they are unable, for any sustained period, to implement acceptable delivery or transportation arrangements or encounter 51 Table of Contents production-related difficulties, they may be required to shut-in or curtail production.
If they are unable, for any sustained period, to implement acceptable delivery or transportation arrangements or encounter production-related difficulties, they may be required to shut-in or curtail production.
Additionally, relating to our oil & gas mineral interests, the U.S. Congress approved, and President Biden signed into law, a resolution under the Congressional Review Act to repeal September 2020 revisions to methane standards, effectively reinstating the more stringent 2016 standards.
Additionally, the U.S. Congress approved, and President Biden signed into law, a resolution under the Congressional Review Act to repeal September 2020 revisions to methane standards, effectively reinstating the more stringent 2016 standards.
The maximum limit in the commercial property program is $100.0 million per occurrence, excluding a $1.5 million deductible for property damage, a 75 or 90 day waiting period for underground business interruption depending on the mining complex, and an additional $25.0 million overall aggregate deductible.
The maximum limit in the commercial property program is $100.0 million per occurrence, excluding a $1.5 million deductible for property damage, a 75 or 90 day waiting period for underground business interruption depending on the mining complex and an additional $25.0 million overall aggregate deductible. We retained a 7.25% participating interest in our current commercial property insurance program.
As a result, estimated quantities of proved reserves and projections of future production rates could be incorrect. Our estimates of proved reserves and related valuations as of December 31, 2022, were audited by Netherland, Sewell & Associates, Inc. ("NSAI"), which conducted a detailed review of all of our properties at that time using the information provided by us.
As a result, estimated quantities of proved reserves and projections of future production rates could be incorrect. Our estimates of proved reserves and related valuations as of December 31, 2023, were audited by CGA, which conducted a detailed review of all of our properties at that time using the information provided by us.
Prolonged disruption of production at any of our mines would result in a decrease in our revenues and profitability, which could materially adversely impact our quarterly or annual results. ​ Effective December 1, 2022, we renewed our annual property and casualty insurance program. Our property insurance was procured from our wholly owned captive insurance company, Wildcat Insurance, LLC ("Wildcat Insurance").
Prolonged disruption of production at any of our mines would result in a decrease in our revenues and profitability, which could materially adversely impact our quarterly or annual results. ​ Effective October 1, 2023, we renewed our property and casualty insurance program through September 30, 2024. Our property insurance was procured from our wholly owned captive insurance company, Wildcat Insurance.
Additionally, the geopolitical and macroeconomic consequences of the war and associated sanctions cannot be predicted, but could severely impact the world economy.
Additionally, the geopolitical and macroeconomic consequences of such conflicts and any associated sanctions cannot be predicted but could severely impact the world economy.
The amount of surety bonding we are required to maintain may be increased by the governmental agencies holding the bond. ​ We could have difficulty acquiring or maintaining surety bonds for a variety of reasons, including: ​ ● substantial increases in the amount of bonding required; ● lack of availability, higher expense, or unreasonable terms of new surety bonds, including as a result of external pressures related to fossil-fuel companies; ● the ability of current and future surety bond issuers to increase required collateral, or limitations on the availability of collateral for surety bond issuers due to the terms of our credit agreements; and ● the exercise by third-party surety bondholders of their rights to refuse to renew the surety. ​ Failure to acquire or maintain the required bonds could subject us to fines and penalties, result in the loss of our mining permits, or imperil our ability to self-insure workers compensation and pneumoconiosis obligations, and could have a material adverse effect on us. ​ We depend on unaffiliated operators for all of the exploration, development, and production of the oil & gas properties in which we own mineral interests. ​ Because we depend on our third-party operators for all of the exploration, development, and production of our oil & gas properties, we have little to no control over the operations related to our oil & gas properties.
For example, federal and state regulators are considering making financial assurance requirements more stringent and costly with respect to self-insured coal workers' pneumoconiosis, mine closure and reclamation security amounts. ​ We could have difficulty acquiring or maintaining surety bonds for a variety of reasons, including: ​ ● substantial increases in the amount of bonding required; ● lack of availability, higher expense, or unreasonable terms of new surety bonds, including as a result of external pressures related to fossil-fuel companies; ● the ability of current and future surety bond issuers to increase required collateral, or limitations on the availability of collateral for surety bond issuers due to the terms of our credit agreements; and ● the exercise by third-party surety bondholders of their rights to refuse to renew the surety. ​ Failure to acquire or maintain the required bonds could subject us to fines and penalties, result in the loss of our mining permits, or imperil our ability to self-insure workers compensation and pneumoconiosis obligations, and could have a material adverse effect on us. ​ We depend on unaffiliated Operators for all of the exploration, development, and production of the oil & gas properties in which we own mineral interests. ​ Because we depend on unaffiliated third-party operators for all of the exploration, development, and production of our oil & gas properties, we have little to no control over the operations related to our oil & gas properties.

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Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThere is no certainty that all or any part of the mineral resources will be converted into mineral reserves. ​ The following table sets forth our coal mineral resources, exclusive of coal mineral reserves, at December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Heat ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Content (Btus ​ Pounds SO2 per MMBtu ​ Resource Classification ​ Ownership ​ ​ ​ Resources (tons in millions) per pound) 1.2-2.5 >2.5 Measured Indicated Combined Inferred Owned Leased Total ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dotiki (KY) 12,100 — 2.3 73.7 51.2 24.8 76.0 — 27.6 48.4 76.0 ​ Henderson/Union (KY) 11,450 — 3.2 517.6 175.4 284.0 459.4 61.4 74.9 445.9 520.8 ​ Sebree South (KY) 11,750 — — 43.5 22.1 16.8 38.9 4.6 0.3 43.2 43.5 ​ Gibson South (IN) ​ 11,500 ​ — — 0.3 — ​ — — 0.3 — 0.3 0.3 ​ Hamilton County (IL) 11,650 5.1 33.8 400.4 188.1 240.0 428.1 11.2 32.5 406.8 439.3 ​ Region Total ​ ​ 5.1 ​ 39.3 ​ 1,035.5 ​ 436.8 ​ 565.6 ​ 1,002.4 ​ 77.5 ​ 135.3 ​ 944.6 ​ 1,079.9 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Appalachian Basin ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mountain View (WV) 13,200 — 0.4 6.3 2.1 4.4 6.5 0.2 1.8 4.9 6.7 ​ Tunnel Ridge (WV) ​ 12,600 ​ — — 0.7 — — — 0.7 0.7 — 0.7 ​ Penn Ridge (PA) 12,500 — — 78.0 21.9 53.2 75.1 2.9 78.0 — 78.0 ​ Region Total ​ ​ — ​ 0.4 ​ 85.0 ​ 24.0 ​ 57.6 ​ 81.6 ​ 3.8 ​ 80.5 ​ 4.9 ​ 85.4 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ 5.1 ​ 39.7 ​ 1,120.5 ​ 460.8 ​ 623.2 ​ 1,084.0 ​ 81.3 ​ 215.8 ​ 949.5 ​ 1,165.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ % of Total ​ ​ ​ 0.4% ​ 3.4% ​ 96.2% ​ 39.5% ​ 53.5% ​ 93.0% ​ 7.0% ​ 18.5% ​ 81.5% ​ 100.0% ​ (1) Combined resources are defined as measured plus indicated resources. ​ At December 31, 2022, we had approximately 1.165 billion tons of coal mineral resources.
Biggest changeThere is no certainty that all or any part of the mineral resources will be converted into mineral reserves. ​ The following table sets forth our coal mineral resources, exclusive of coal mineral reserves, at December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Heat ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Content (Btus ​ Pounds SO2 per MMBtu ​ Resource Classification ​ Ownership ​ ​ ​ Resources (tons in millions) per pound) 1.2-2.5 >2.5 Measured Indicated Combined Inferred Owned Leased Total ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dotiki (KY) 12,100 — 2.3 73.7 51.2 24.8 76.0 — 27.6 48.4 76.0 ​ Henderson/Union (KY) 11,450 — 3.0 409.7 127.3 227.9 355.2 57.5 74.0 338.7 412.7 ​ River View (KY) 11,450 ​ — ​ — ​ 0.3 ​ — ​ — ​ — ​ 0.3 ​ — ​ 0.3 ​ 0.3 ​ Sebree South (KY) 11,750 — — 43.5 22.1 16.8 38.9 4.6 0.3 43.2 43.5 ​ Hamilton County (IL) 11,650 5.1 33.8 405.8 191.2 242.3 433.5 11.2 32.8 411.9 444.7 ​ Region Total ​ ​ 5.1 ​ 39.1 ​ 933.0 ​ 391.8 ​ 511.8 ​ 903.6 ​ 73.6 ​ 134.7 ​ 842.5 ​ 977.2 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Appalachian Basin ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mountain View (WV) 13,200 — 0.4 8.3 4.1 4.4 8.5 0.2 1.8 6.9 8.7 ​ Tunnel Ridge (WV) ​ 12,600 ​ — — 0.9 — 0.2 0.2 0.7 0.7 0.2 0.9 ​ Penn Ridge (PA) 12,500 — — 78.0 21.9 53.2 75.1 2.9 78.0 — 78.0 ​ Region Total ​ ​ — ​ 0.4 ​ 87.2 ​ 26.0 ​ 57.8 ​ 83.8 ​ 3.8 ​ 80.5 ​ 7.1 ​ 87.6 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ 5.1 ​ 39.5 ​ 1,020.2 ​ 417.8 ​ 569.6 ​ 987.4 ​ 77.4 ​ 215.2 ​ 849.6 ​ 1,064.8 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ % of Total ​ ​ ​ 0.5% ​ 3.7% ​ 95.8% ​ 39.2% ​ 53.5% ​ 92.7% ​ 7.3% ​ 20.2% ​ 79.8% ​ 100.0% ​ (1) Combined resources are defined as measured plus indicated resources. ​ At December 31, 2023, we had approximately 1.065 billion tons of coal mineral resources.
Coal sales prices vary based on coal quality, access to transportation, and other factors at each location.
Coal sales prices vary based on coal quality, access to transportation, and other factors at each location.
In addition to the following information, TRSs for these material properties with additional information are included as exhibits to this Annual Report on Form 10-K. ​ Henderson/Union ​ The Henderson/Union Resources are located in Henderson and Union counties, Kentucky at 37°44'30"N, -87°46'07"W and we currently have control in over 1,600 tracts encompassing over 127,000 acres.
In addition to the following information, TRSs for these material properties with additional information are included as exhibits to this Annual Report on Form 10-K. ​ Henderson/Union Resources ​ The Henderson/Union Resources are located in Henderson and Union counties, Kentucky at 37°44'30"N, -87°46'07"W and we currently have control in over 1,600 tracts encompassing over 127,000 acres.
In addition to state mining and reclamation laws, operators must comply with various federal laws relevant to mining.
In addition to state mining and reclamation laws, operators must comply with various federal laws relevant to mining.
In addition to state mining and reclamation laws, operators must comply with various federal laws relevant to mining.
In addition to state mining and reclamation laws, operators must comply with various federal laws relevant to mining.
Financial Statements and Supplementary Data—Note 8 – Long-term Debt" for more information on our credit facility. ​ Accounts receivable generated from the sale of coal mined from this property are collateral for our accounts receivable securitization facility, evidenced by financing statements of record in the Office of the Recorder of Gibson County, Indiana. Please read "Item 8.
Financial Statements and Supplementary Data—Note 6 – Long-term Debt" for more information on our credit facility. ​ Accounts receivable generated from the sale of coal mined from this property are collateral for our accounts receivable securitization facility, evidenced by financing statements of record in the Office of the Recorder of Gibson County, Indiana. Please read "Item 8.
Financial Statements and Supplementary Data — Note 8 – Long-term Debt" for more information on our credit facility. ​ Accounts receivable generated from the sale of coal mined from this property are collateral for our accounts receivable securitization facility, evidenced by financing statements of record in the Office of the Union County Clerk. Please read "Item 8.
Financial Statements and Supplementary Data—Note 6 – Long-term Debt" for more information on our credit facility. ​ Accounts receivable generated from the sale of coal mined from this property are collateral for our accounts receivable securitization facility, evidenced by financing statements of record in the Office of the Union County Clerk. Please read "Item 8.
All applicable permits for underground mining, coal preparation and related facilities, and other incidental activities have been obtained and remain in good standing. ​ Geology and Reserves ​ River View extracts coal underground from the West Kentucky No. 11 and No. 9 seams with depths ranging from 200 to 500 feet across the reserve.
All applicable permits for underground mining, coal preparation and related facilities, and other incidental activities have been obtained and remain in good standing. ​ Geology and Reserves ​ The River View complex extracts coal underground from the West Kentucky No. 11 and No. 9 seams with depths ranging from 200 to 500 feet across the reserve.
In general, all drilling has shown a highly consistent coal seam of mineable thickness and quality for the high-sulfur thermal utility market. ​ Encumbrances ​ Our credit facility is secured by, among other things, liens against certain Gibson County Coal surface properties, coal leases and owned coal.
In general, all drilling has shown a highly consistent coal seam of mineable thickness and quality for the high-sulfur thermal utility market. ​ Encumbrances ​ Our credit facility is secured by, among other things, liens against certain Gibson surface properties, coal leases and owned coal.
In addition, beginning in or around 2006, the leases originally acquired from Old Ben began to expire by their terms, and Alliance Properties/Gibson County Coal began a program of either amending the expiring leases or entering into new, direct leases with the coal owners.
In addition, beginning in or around 2006, the leases originally acquired from Old Ben began to expire by their terms, and Alliance Properties/Gibson began a program of either amending the expiring leases or entering into new, direct leases with the coal owners.
Within the WVDEP, the Division of Mining and Reclamation is responsible for review and issuance of all permits relative to coal mining and reclamation activities, and financial assurance of comprehensive environmental protection performance standards related to surface and underground coal mining operations. ​ For operations in Pennsylvania, the Pennsylvania Department of Environmental Protection ("PADEP") is the regulatory authority over mining activities.
Within the WVDEP, the Division of Mining and Reclamation is responsible for review and issuance of all permits relative to coal mining and reclamation activities, and financial assurance of comprehensive environmental protection performance standards related to surface and underground coal mining operations. ​ For operations in Pennsylvania, the PADEP is the regulatory authority over mining activities.
Please read "Item 8. Financial Statements and Supplementary Data — Note 8 – Long-term Debt" for more information on our accounts receivable securitization facility. ​ Tunnel Ridge is located on the West Virginia / Pennsylvania State boundary, operating in each state.
Please read "Item 8. Financial Statements and Supplementary Data — Note 6 – Long-term Debt" for more information on our accounts receivable securitization facility. ​ Tunnel Ridge is located on the West Virginia / Pennsylvania State boundary, operating in each state.
The mine property is controlled through both fee ownership and leases of the coal. The coal mineral reserves and resources are leased or held for lease to Hamilton by Alliance WOR Properties, LLC ("Alliance WOR Properties"), a subsidiary of Alliance Resource Properties.
The mine property is controlled through both fee ownership and leases of the coal. The coal mineral reserves and resources are leased or held for lease to Hamilton by Alliance WOR Properties, a subsidiary of Alliance Resource Properties.
Local infrastructure is as follows: ​ Major Roads: Interstates 69 and US-60, Railroads: None, Airport: Evansville Regional Airport (EVV), Town: Morganfield, Docks: River View, Hamilton 1, UC Processing, on the Ohio River, Water: Local municipalities and mine sources, Electricity: Kentucky Utilities (KU), Personnel: Regional. 62 Table of Contents ​ Description ​ The potential underground mine(s) would utilize room-and-pillar methods operating a heavy media, float/sink style preparation plant.
Local infrastructure is as follows: ​ Major Roads: Interstates 69 and US-60, Railroads: None, Airport: Evansville Regional Airport (EVV), Town: Morganfield, Docks: River View, Hamilton 1, UC Processing, on the Ohio River, Water: Local municipalities and mine sources, Electricity: Kentucky Utilities (KU), Personnel: Regional. ​ 63 Table of Contents ​ Description ​ The potential underground mine(s) would utilize room-and-pillar methods operating a heavy media, float/sink style preparation plant.
Financial Statements and Supplementary Data — Note 22 – Related-Party Transactions" for more information about advanced royalties that Henderson/Union has with WKY CoalPlay. ​ Though there is geographic overlap between the Henderson-Union and River View properties, the resources and reserves of each are associated with different coal seams or, if in the same seam, are separated by existing mine works or geologic features into distinct areas.
Financial Statements and Supplementary Data — Note 20 – Related-Party Transactions" for more information about advanced royalties that Henderson/Union has with WKY CoalPlay. ​ Though there is geographic overlap between the Henderson/Union and River View properties, the resources and reserves of each are associated with different coal seams or, if in the same seam, are separated by existing mine works or geologic features into distinct areas.
More specifically, it is the economically mineable part of a measured or indicated mineral resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted. ​ The coal mineral resource and reserve estimates included in this Annual Report on Form 10-K were prepared by an independent, qualified engineering firm, RESPEC Company, LLC ("RESPEC").
More specifically, it is the economically mineable part of a measured or indicated mineral resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted. ​ The coal mineral resource and reserve estimates included in this Annual Report on Form 10-K were prepared by an independent, qualified engineering firm, RESPEC.
(2) Natural gas reserve volumes are converted to BOE based on a 6:1 ratio: 6 Mcf of natural gas converts to one BOE. ​ Estimates of reserves as of December 31, 2022 were prepared using product prices equal to the unweighted arithmetic average of the first-day-of-the-month market price for each month in the period from January through December 2022.
(2) Natural gas reserve volumes are converted to BOE based on a 6:1 ratio: 6 Mcf of natural gas converts to one BOE. ​ Estimates of reserves as of December 31, 2023 were prepared using product prices equal to the unweighted arithmetic average of the first-day-of-the-month market price for each month in the period from January through December 2023.
Our geologists and engineers also met with RESPEC periodically during the year to discuss the assumptions and methods used in the coal mineral resource and reserve estimation process. 59 Table of Contents ​ RESPEC, an independent third-party engineering firm, does not own an interest in any of our properties and is not employed on a contingent basis.
Our geologists and engineers also met with RESPEC periodically during the year to discuss the assumptions and methods used in the coal mineral resource and reserve estimation process. 60 Table of Contents ​ RESPEC, an independent third-party engineering firm, does not own an interest in any of our properties and is not employed on a contingent basis.
Financial Statements and Supplementary Data — Note 8 – Long-term Debt" for more information on our credit facility. ​ Accounts receivable generated from the sale of coal mined from this property are collateral for our accounts receivable securitization facility, evidenced by financing statements of record in the Office of the County Commission of Ohio County, West Virginia and the Office of the Recorder of Deeds of Washington County, Pennsylvania.
Financial Statements and Supplementary Data — Note 6 – Long-term Debt" for more information on our credit facility. ​ Accounts receivable generated from the sale of coal mined from this property are collateral for our accounts receivable securitization facility, evidenced by financing statements of record in the Office of the County Commission of Ohio County, West Virginia and the Office of the Recorder of Deeds of Washington County, Pennsylvania.
Financial Statements and Supplementary Data — Note 8 – Long-term Debt" for more information on our accounts receivable securitization facility. ​ The KYDNR, DMP is responsible for review and issuance of all permits relative to coal mining and reclamation activities, and financial assurance of comprehensive environmental protection performance standards related to surface and underground coal mining operations.
Financial Statements and Supplementary Data—Note 6 – Long-term Debt" for more information on our accounts receivable securitization facility. ​ The KYDNR, DMP is responsible for review and issuance of all permits relative to coal mining and reclamation activities, and financial assurance of comprehensive environmental protection performance standards related to surface and underground coal mining operations.
Financial Statements and Supplementary Data — Note 8 – Long-term Debt" for more information on our accounts receivable securitization facility. ​ The Indiana Department of Natural Resources, Division of Reclamation is responsible for oversight of active coal mining and reclamation activities, and financial assurance of comprehensive environmental protection performance standards related to surface and underground coal mining operations.
Financial Statements and Supplementary Data — Note 6 – Long-term Debt" for more information on our accounts receivable securitization facility. ​ The Indiana Department of Natural Resources, Division of Reclamation is responsible for oversight of active coal mining and reclamation activities, and financial assurance of comprehensive environmental protection performance standards related to surface and underground coal mining operations.
We do not incur any capital expenditures or lease operating expenses in connection with the development of our PUDs, which costs are borne entirely by our operators. As a result, during the year ended December 31, 2022, we did not have any expenditures to convert PUDs to proved developed producing reserves.
We do not incur any capital expenditures or lease operating expenses in connection with the development of our PUDs, which costs are borne entirely by the Operators. As a result, during the year ended December 31, 2023, we did not have any expenditures to convert PUDs to proved developed producing reserves.
Financial Statements and Supplemental Data - Note 22 – Related-Party Transactions" for additional information on related-party leases. Tunnel Ridge either owns or controls the surface properties upon which its facilities are located, including the preparation plant, refuse areas, mine offices, conveyor systems, shafts and slopes.
Financial Statements and Supplemental Data - Note 20 – Related-Party Transactions" for additional information on related-party leases. Tunnel Ridge either owns or controls the surface properties upon which its facilities are located, including the preparation plant, refuse areas, mine offices, conveyor systems, shafts and slopes.
These procedures, which are intended to ensure reliability of reserve estimations, include the following: ​ 74 Table of Contents ● review and verification of historical data, which is based on actual production as reported by our operators; ● verification of property ownership by our land department; ● review of all our reported proved reserves semi-annually including the review of all significant reserve changes and proved undeveloped reserves additions by our internal petroleum engineer; ● internally prepared reserve estimates compared to reserves audit by NSAI; ● review of changes in reserves semi-annually by our internal petroleum engineer and by senior management; and ● no employee ' s compensation is tied to the amount of reserves booked. ​ NSAI, an independent third-party petroleum engineering firm, does not own an interest in any of our properties and is not employed on a contingent basis.
These procedures, which are intended to ensure reliability of reserve estimations, include the following: 75 Table of Contents ​ ● review and verification of historical data, which is based on actual production as reported by the Operators; ● verification of property ownership by our land department; ● review of all our reported proved reserves semi-annually including the review of all significant reserve changes and proved undeveloped reserves additions by our internal petroleum engineer; ● internally prepared reserve estimates compared to reserves audit by CGA; ● review of changes in reserves semi-annually by our internal petroleum engineer and by senior management; and ● no employee ' s compensation is tied to the amount of reserves booked. ​ CGA, an independent third-party petroleum engineering firm, does not own an interest in any of our properties and is not employed on a contingent basis.
Exploration continues as needed to fulfill possible permitting and development requirements. Multiple access points are available for development. Access is available from the active River View mine, which began production in 2009. All equipment, facilities, infrastructure, and underground development are in good working order and maintained to industry standards.
Exploration continues as needed to fulfill possible permitting and development requirements. Multiple access points are available for development. Access is available from the active River View complex, which began production in 2009. All equipment, facilities, infrastructure, and underground development are in good working order and maintained to industry standards.
If deterministic methods are used, the SEC has defined reasonable certainty for proved reserves as a "high degree of confidence that the quantities will be recovered." All of our proved reserves as of December 31, 2022 were estimated using a deterministic method. The estimation of reserves involves two distinct determinations.
If deterministic methods are used, the SEC has defined reasonable certainty for proved reserves as a "high degree of confidence that the quantities will be recovered." All of our proved reserves as of December 31, 2023 were estimated using a deterministic method. The estimation of reserves involves two distinct determinations.
Please see Coal Mineral Resources and Coal Mineral Reserves sections above for information about the coal mineral resources and reserves held by these material properties.
Please see Coal Mineral Resources and Coal Mineral Reserves above for information about the coal mineral resources and reserves held by these material properties.
Both the WKY9 and WKY11 seams were mined at these locations. In general, all drilling has shown highly consistent coal seams of mineable thickness and quality for the high-sulfur thermal utility market. ​ 65 Table of Contents Encumbrances ​ Our credit facility is secured by, among other things, liens against certain River View surface properties and coal leases.
Both the WKY9 and WKY11 seams were mined at these locations. In general, all drilling has shown highly consistent coal seams of mineable thickness and quality for the high-sulfur thermal utility market. ​ 66 Table of Contents Encumbrances ​ Our credit facility is secured by, among other things, liens against certain River View complex surface properties and coal leases.
Financial Statements and Supplementary Data — Note 22 – Related-Party Transactions" for more information about our WKY CoalPlay transactions. These base leases generally provide for a term that can be extended until exhaustion of the leased coal.
Financial Statements and Supplementary Data — Note 20 – Related-Party Transactions" for more information about our WKY CoalPlay transactions. These base leases generally provide for a term that can be extended until exhaustion of the leased coal.
The table below summarizes mineral reserves as of December 31, 2022 using a cut off thickness of 4.00 feet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quality, Washed, Dry Basis ​ % Recovery ​ Reserves Tons (in millions) Thickness (ft) % Ash % Sulfur Btu lbs.
The table below summarizes mineral reserves as of December 31, 2023 using a cut off thickness of 4.00 feet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quality, Washed, Dry Basis ​ % Recovery ​ Reserves Tons (in millions) Thickness (ft) % Ash % Sulfur Btu lbs.
The table below summarizes mineral reserves as of December 31, 2022 using a cut off thickness of 4.00 feet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quality, Washed, Dry Basis ​ % Recovery ​ Reserves Tons (in millions) Thickness (ft) % Ash % Sulfur Btu lbs.
The table below summarizes mineral reserves as of December 31, 2023 using a cut off thickness of 4.00 feet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quality, Washed, Dry Basis ​ % Recovery ​ Reserves Tons (in millions) Thickness (ft) % Ash % Sulfur Btu lbs.
The table below summarizes mineral reserves as of December 31, 2022 using a cut off thickness of 4.00 feet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quality, Washed, Dry Basis ​ % Recovery ​ Reserves Tons (in millions) Thickness (ft) % Ash % Sulfur Btu lbs.
The table below summarizes mineral reserves as of December 31, 2023 using a cut off thickness of 4.00 feet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quality, Washed, Dry Basis ​ % Recovery ​ Reserves Tons (in millions) Thickness (ft) % Ash % Sulfur Btu lbs.
The table below summarizes mineral reserves as of December 31, 2022 using a cut off thickness of 4.00 feet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quality, Washed, Dry Basis ​ % Recovery ​ Reserves Tons (in millions) Thickness (ft) % Ash % Sulfur Btu lbs.
The table below summarizes mineral reserves as of December 31, 2023 using a cut off thickness of 4.00 feet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quality, Washed, Dry Basis ​ % Recovery ​ Reserves Tons (in millions) Thickness (ft) % Ash % Sulfur Btu lbs.
In addition to state mining and reclamation laws, operators must comply with various federal laws relevant to mining. ​ Geology and Reserves ​ Henderson/Union contains coal resources in four seams ranging in depths from about 100 to 750 feet.
In addition to state mining and reclamation laws, operators must comply with various federal laws relevant to mining. ​ Geology and Reserves ​ Henderson/Union contains coal resources in three seams ranging in depths from about 100 to 750 feet.
The underlying base coal leases are with private owners and are comprised of a large number of leases originally taken by AMAX Coal Company and Old Ben Coal Company ("Old Ben") in the mid to late 1970's and early 1980's (the "Old Ben Leases"), leases acquired by Consolidation Coal Company in the late 1980's (the "Consol Leases"), and subsequent leases 66 Table of Contents taken directly by White Oak Resources, LLC or affiliated companies and/or Alliance WOR Properties.
The underlying base coal leases are with private owners and are comprised of a large number of leases originally taken by AMAX Coal Company and Old Ben in the mid to late 1970's and early, leases acquired by 67 Table of Contents Consolidation Coal Company in the late 1980's, and subsequent leases taken directly by White Oak Resources, LLC or affiliated companies and/or Alliance WOR Properties.
The property associated with Henderson/Union has no book value as of December 31, 2022 but does have outstanding advanced royalties with WKY CoalPlay or its subsidiaries. See "Item 8.
The property associated with Henderson/Union has no book value as of December 31, 2023 but does have outstanding advanced royalties with WKY CoalPlay or its subsidiaries. See "Item 8.
Exploration continues as needed to fulfill mining and permitting requirements. The mine began production in 2009. All equipment, facilities, infrastructure, and underground development are in good working order and maintained to industry standards.
Exploration continues as needed to fulfill mining and permitting requirements. The complex began production in 2009. All equipment, facilities, infrastructure, and underground development are in good working order and maintained to industry standards.
In general, all drilling has shown highly consistent coal seams of mineable thickness and quality for the high-sulfur thermal utility market for the Herrin and Springfield seams. ​ Encumbrances ​ Our credit facility is secured by, among other things, liens against certain Hamilton surface properties, coal leases and owned coal.
In general, all drilling has shown highly consistent coal seams of mineable thickness and quality for the high-sulfur thermal utility market for the Herrin and Springfield seams. ​ 68 Table of Contents Encumbrances ​ Our credit facility is secured by, among other things, liens against certain Hamilton surface properties, coal leases and owned coal.
Total book value of the property and any associated plant and equipment for Gibson South as of December 31, 2022 was $118.0 million. ​ History ​ In November 1997, pursuant to (a) Assignment of Underground Coal Leases, (b) Partial Assignment of Underground Coal Leases and (c) Special Corporate Warranty Deed, Old Ben conveyed to MAPCO Land & Development Corporation various coal leases and fee coal interests within a large property boundary located in Gibson County, Indiana.
Total book value of the property and any associated plant and equipment for Gibson South as of December 31, 2023 was $117.0 million. ​ History ​ In November 1997, pursuant to (a) Assignment of Underground Coal Leases, (b) Partial Assignment of Underground Coal Leases and (c) Special Corporate Warranty Deed, Old Ben conveyed to MAPCO Land & Development Corporation various coal leases and fee coal interests within a large property boundary located in Gibson County, Indiana.
We consolidated control of the property through multiple transactions from 2005 through 2015. Island Creek operated the Ohio #11 and Uniontown #9 mines to the west of River View. Island Creek also operated the Hamilton #1 and #2 mines to the southwest. Peabody and later Patriot operated the Camp complex and Highland mines to the southeast and east.
We consolidated control of the property through multiple transactions from 2005 through 2015. Island Creek operated the Ohio #11 and Uniontown #9 mines to the west of River View. Island Creek also operated the Hamilton #1 and #2 mines to the southwest. Peabody and later Patriot operated the Camp mines and Highland mines adjacent to the complex.
All reserves are classified as underground mineable in the production stage. ​ Mining Operations ​ The following table sets forth production and other data about our mining operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tons Produced ​ ​ ​ ​ Operations Location 2022 2021 2020 Transportation Equipment ​ ​ ​ (in millions) ​ ​ ​ ​ ​ Illinois Basin Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Warrior Kentucky 4.1 4.1 3.6 CSX, NS, PAL, truck, barge CM ​ River View Kentucky 10.2 9.9 9.4 Truck, barge CM ​ Hamilton County Illinois 4.7 4.9 2.6 CSX, EVW, NS, barge LW, CM ​ Gibson (South) Indiana 5.3 3.3 2.3 CSX, NS, truck, barge CM ​ Region Total ​ ​ 24.3 22.2 17.9 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Appalachian Basin Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ MC Mining/Excel Kentucky 1.5 1.3 0.5 CSX, truck, barge CM ​ Mountain View West Virginia 1.4 1.5 1.8 CSX, truck LW, CM ​ Tunnel Ridge West Virginia 8.3 7.2 6.8 CSX, NS, barge LW, CM ​ Region Total ​ ​ 11.2 10.0 9.1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ TOTAL ​ ​ 35.5 32.2 27.0 ​ ​ ​ ​ ​ CSX - CSX Railroad EVW - Evansville Western Railroad NS - Norfolk Southern Railroad PAL - Paducah & Louisville Railroad CM - Continuous Miner LW - Longwall 61 Table of Contents ​ Individual Property Disclosures ​ We consider the following properties to be material based on multiple factors including, but not limited to, the property's contribution to our overall business and financial condition.
All reserves are classified as underground mineable in the development or production stage. ​ Mining Operations ​ The following table sets forth production and other data about our mining operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tons Produced ​ ​ ​ ​ Operations Location 2023 2022 2021 Transportation Equipment ​ ​ ​ (in millions) ​ ​ ​ ​ ​ Illinois Basin Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Warrior Kentucky 4.4 4.1 4.1 CSX, NS, PAL, truck, barge CM ​ River View Kentucky 9.9 10.2 9.9 Truck, barge CM ​ Hamilton County Illinois 5.6 4.7 4.9 CSX, EVW, NS, barge LW, CM ​ Gibson South Indiana 5.3 5.3 3.3 CSX, NS, truck, barge CM ​ Region Total ​ ​ 25.2 24.3 22.2 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Appalachian Basin Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ MC Mining/Excel Kentucky 1.2 1.5 1.3 CSX, truck, barge CM ​ Mountain View West Virginia 0.8 1.4 1.5 CSX, truck LW, CM ​ Tunnel Ridge West Virginia 7.7 8.3 7.2 CSX, NS, barge LW, CM ​ Region Total ​ ​ 9.7 11.2 10.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ TOTAL ​ ​ 34.9 35.5 32.2 ​ ​ ​ ​ ​ CSX - CSX Railroad EVW - Evansville Western Railroad NS - Norfolk Southern Railroad PAL - Paducah & Louisville Railroad CM - Continuous Miner LW - Longwall 62 Table of Contents ​ Individual Property Disclosures ​ We consider the following properties to be material based on multiple factors including, but not limited to, the property's contribution to our overall business and financial condition.
Within NSAI, the technical persons primarily responsible for auditing the estimates meet or exceed the education, training, and experience requirements set forth in the Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information promulgated by the Society of Petroleum Engineers; both are proficient in judiciously applying industry-standard practices to engineering and geoscience evaluations as well as applying SEC and other industry reserves definitions and guidelines. ​ Acreage Concentration ​ Our mineral interests, which include both proved reserves discussed above and unproved reserves, are primarily located in three basins, which are also our areas of focus for future operator development.
Within CGA, the technical person primarily responsible for auditing the estimates meets or exceed the education, training, and experience requirements set forth in the Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information promulgated by the Society of Petroleum Engineers and is proficient in judiciously applying industry-standard practices to engineering and geoscience evaluations as well as applying SEC and other industry reserves definitions and guidelines. ​ Acreage Concentration ​ Our mineral interests, which include both proved reserves discussed above and unproved reserves, are primarily located in three basins, which are also our areas of focus for future operator development.
The year over year reconciliation is as follows: ​ ​ ​ ​ ​ Hamilton County Yearly Reserve Reconciliation (in millions) Tons as of December 31, 2021 128.5 Production ​ (4.7) ​ Mineral Acquisition / Deletion ​ 2.3 ​ Mine Plan Adjustment ​ (1.8) ​ Normal Course Adjustments ​ 1.6 ​ Tons as of December 31, 2022 ​ 125.9 ​ ​ Normal course adjustments are associated with numerous slight changes in the geologic model. ​ Gibson South ​ Gibson South is located in Gibson County, Indiana at 38°18'22"N, 87°42'30"W and currently has approximately 23,350 underground acres permitted.
The year over year reconciliation is as follows: ​ ​ ​ ​ ​ Hamilton County Yearly Reserve Reconciliation (in millions) Tons as of December 31, 2022 125.9 Production ​ (5.6) ​ Mineral Acquisition / Deletion ​ 4.1 ​ Mine Plan Adjustment ​ (4.9) ​ Normal Course Adjustments ​ 0.3 ​ Tons as of December 31, 2023 ​ 119.8 ​ ​ Normal course adjustments are associated with numerous slight changes in the geologic model. ​ Gibson South Mine ​ Gibson South is located in Gibson County, Indiana at 38°18'22"N, 87°42'30"W and currently has approximately 23,350 underground acres permitted.
RESPEC prepared the initial Technical Report Summary ("TRS") for each of our material mining properties. The TRSs will be updated when there are material changes to the coal mineral reserve or resource estimates.
RESPEC prepared the initial TRS for each of our material mining properties. The TRSs will be updated when there are material changes to the coal mineral reserve or resource estimates.
As of December 31, 2022, approximately 14.17% of our total proved reserves were classified as PUDs. ​ Evaluation and Review of Reserves ​ Numerous uncertainties are inherent in estimating reserve volumes and values, and the estimates are subject to change as additional information becomes available.
As of December 31, 2023, approximately 14.16% of our total proved reserves were classified as PUDs. ​ Evaluation and Review of Reserves ​ Numerous uncertainties are inherent in estimating reserve volumes and values, and the estimates are subject to change as additional information becomes available.
When compared on a well-by-well basis, some of our estimates are greater and some are less than the NSAI estimates.
When compared on a well-by-well basis, some of our estimates are greater and some are less than the CGA estimates.
NSAI is satisfied with our methods and procedures used to prepare the December 31, 2022 reserve estimates and future revenue, and noted nothing of an unusual nature that would cause NSAI to take exception with the estimates, in the aggregate, prepared by us.
CGA is satisfied with our methods and procedures used to prepare the December 31, 2023 reserve estimates and future revenue, and noted nothing of an unusual nature that would cause CGA to take exception with the estimates, in the aggregate, prepared by us.
The table below summarizes mineral resources as of December 31, 2022, using a cut off thickness of 4.00 feet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quality, Washed, Dry Basis ​ % Recovery ​ Resources Tons (millions) Thickness (ft) % Ash % Sulfur Btu lbs.
The table below summarizes mineral resources as of December 31, 2023, using a cut off thickness of 4.00 feet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quality, Washed, Dry Basis ​ % Recovery ​ Resources (1) Tons (in millions) Thickness (ft) % Ash % Sulfur Btu lbs.
Total book value of the property and any associated plant and equipment for River View as of December 31, 2022 was $229.0 million. ​ Though there is geographic overlap between River View and the Henderson-Union properties, the reserves and resources of each are associated with different coal seams or, if in the same seam, are separated by existing mine works or geologic features into distinct areas.
Total book value of the property and any associated plant and equipment for the River View Complex as of December 31, 2023 was $312.7 million. ​ Though there is geographic overlap between the River View complex and the Henderson/Union properties, the reserves and resources of each are associated with different coal seams or, if in the same seam, are separated by existing mine works or geologic features into distinct areas.
As such, regulatory requirements must be met pertaining to mining facilities located in each state. ​ For operations in West Virginia, the West Virginia Department of Environmental Protection ("WVDEP") is the regulatory authority over mining activities.
As such, regulatory requirements must be met pertaining to mining facilities located in each state. ​ For operations in West Virginia, the WVDEP is the regulatory authority over mining activities.
Tonnages are reported on a clean recoverable basis with average long-term pricing based on available third-party forecasts and historical pricing adjusted for quality at the end of 2022 in a range from approximately $62 to $68 per short ton in the Illinois Basin and from approximately $71 to $98 per short ton in the Appalachian Basin, which are the prices used by RESPEC to estimate the amount of coal mineral resources.
Tonnages are reported on a clean recoverable basis with average long-term pricing based on available third-party forecasts and historical pricing adjusted for quality at the end of 2023 in a range from approximately $53 to $59 per short ton in the Illinois Basin and from approximately $62 to $119 per short ton in the Appalachian Basin, which are the prices used by RESPEC to estimate the amount of coal mineral resources.
Tonnages are reported on a clean recoverable basis with average long-term pricing based on available third-party forecasts and historical pricing adjusted for quality at the end of 2022 in a range from approximately $62 to $68 per short ton in the Illinois Basin and from approximately $71 to $98 per short ton in the Appalachian Basin, which are the prices used by RESPEC to estimate the amount of coal mineral reserves.
Tonnages are reported on a clean recoverable basis with average long-term pricing based on available third-party forecasts and historical pricing adjusted for quality at the end of 2023 in a range from approximately $53 to $59 per short ton in the Illinois Basin and from approximately $62 to $119 per short ton in the Appalachian Basin, which are the prices used by RESPEC to estimate the amount of coal mineral reserves.
The year over year reconciliation is as follows: ​ ​ ​ ​ ​ Gibson South Yearly Reserve Reconciliation (in millions) Tons as of December 31, 2021 52.6 Production ​ (5.3) ​ Mineral Acquisition / Deletion ​ 1.5 ​ Normal Course Adjustments ​ 0.2 ​ Tons as of December 31, 2022 ​ 49.0 ​ ​ Normal course adjustments are associated with numerous slight changes in the geologic model. ​ 70 Table of Contents Tunnel Ridge ​ Tunnel Ridge, located at 40°09'17" N, -80°39'26"W, is an underground longwall mine in the Pittsburgh No. 8 seam of coal, and currently has approximately 20,890 underground acres permitted.
The year over year reconciliation is as follows: ​ ​ ​ ​ ​ Gibson South Yearly Reserve Reconciliation (in millions) Tons as of December 31, 2022 49.0 Production ​ (5.3) ​ Mineral Acquisition / Deletion ​ 1.5 ​ Tons as of December 31, 2023 ​ 45.2 ​ ​ Normal course adjustments are associated with numerous slight changes in the geologic model. ​ 71 Table of Contents Tunnel Ridge Mine ​ Tunnel Ridge, located at 40°09'17" N, -80°39'26"W, is an underground longwall mine in the Pittsburgh No. 8 seam of coal, and currently has approximately 22,345 underground acres permitted.
Local infrastructure is as follows: ​ Major Roads: Interstates 69 and US-60, Railroads: None, Airport: Evansville Regional Airport (EVV), Town: Morganfield, Docks: River View on the Ohio River, Water: Uniontown Water Department and mine sources, Electricity: Kentucky Utilities (KU), Personnel: Regional. 64 Table of Contents ​ Description ​ The underground mine is currently in production using room-and-pillar methods utilizing a heavy media, float/sink style preparation plant.
Local infrastructure is as follows: ​ Major Roads: Interstates 69 and US-60, Railroads: None, Airport: Evansville Regional Airport (EVV), Town: Morganfield, Docks: River View on the Ohio River, Water: Union and Henderson County water districts and mine sources, Electricity: Kentucky Utilities (KU), Personnel: Regional. ​ 65 Table of Contents ​ Description ​ The underground mines are currently in production using room-and-pillar methods utilizing a heavy media, float/sink style preparation plant.
MAPCO Land & Development Corporation changed its name to MAPCO Coal Land & Development Corporation, and MAPCO Coal Land & Development Corporation merged into Alliance Properties, LLC ("Alliance Properties") effective August 4, 1999. 69 Table of Contents ​ After the original Old Ben acquisition, Alliance Properties and Gibson County Coal continued to acquire additional coal leases and fee coal interests in the area.
MAPCO Land & Development Corporation changed its name to MAPCO Coal Land & Development Corporation, and MAPCO Coal Land & Development Corporation merged into Alliance Properties effective August 4, 1999. ​ After the original Old Ben acquisition, Alliance Properties and Gibson continued to acquire additional coal leases and fee coal interests in the area.
Of our productive horizontal wells, 1,175 are considered natural gas wells, while the remaining 7,028 primarily produce oil. Productive wells consist of producing wells and wells capable of production, including natural gas wells awaiting pipeline connections to commence deliveries and oil wells awaiting connection to production facilities. We do not own any material working interests in any wells.
Of our productive horizontal wells, 992 are considered natural gas wells, while the remaining 9,803 primarily produce oil. Productive wells consist of producing wells and wells capable of production, including natural gas wells awaiting pipeline connections to commence deliveries and oil wells awaiting connection to production facilities. We do not own any material working interests in any wells.
NSAI's audit report with the respect to our proved reserve estimates as of December 31, 2022 is included as an exhibit to this Annual Report on Form 10-K. ​ NSAI was founded in 1961 and performs consulting petroleum engineering services under Texas Board of Professional Engineers Registration No. F-2699.
CGA's audit report with the respect to our proved reserve estimates as of December 31, 2023 is included as an exhibit to this Annual Report on Form 10-K. ​ CGA was founded in 1961 and performs consulting petroleum engineering services under Texas Board of Professional Engineers Registration No. F-693.
To establish reasonable certainty with respect to our estimated proved reserves, the technologies and economic data used in the estimation of our proved reserves included production and well test data, downhole completion information, geologic data, electrical logs, and radioactivity logs. ​ Our 2022 year-end proved reserves were prepared by our internal engineering team.
To establish reasonable certainty with respect to our estimated proved reserves, the technologies and economic data used in the estimation of our proved reserves included production and well test data, downhole completion information, geologic data, electrical logs, and radioactivity logs. ​ Excluding our share of proved reserves held by AllDale III, our 2023 year-end estimate of proved reserves were prepared by our internal engineering team.
Total book value of the property and any associated plant and equipment for Hamilton as of December 31, 2022 was $336.3 million. ​ 67 Table of Contents History ​ There were no previous operations on the Hamilton reserves property prior to our predecessor, White Oak Resources LLC, who began construction of the mine in 2011.
Total book value of the property and any associated plant and equipment for Hamilton as of December 31, 2023 was $332.4 million. ​ History ​ There were no previous operations on the Hamilton reserves property prior to our predecessor, White Oak Resources LLC, who began construction of the mine in 2011.
The reserve report has been prepared in accordance with the rules and regulations of the SEC.
The reserve report and reserve information have been prepared in accordance with the rules and regulations of the SEC.
Financial Statements and Supplementary Data — Note 8 – Long-term Debt" for more information on our credit facility. ​ The Kentucky Department of Natural Resources ("KYDNR"), Division of Mine Permits ("DMP") is responsible for the review and issuance of all permits relative to coal mining and reclamation activities, and financial assurance of comprehensive environmental protection performance standards related to surface and underground coal mining operations.
Please read "Item 8. Financial Statements and Supplementary Data — Note 6 – Long-term Debt" for more information on our credit facility. ​ The KYDNR, DMP is responsible for the review and issuance of all permits relative to coal mining and reclamation activities, and financial assurance of comprehensive environmental protection performance standards related to surface and underground coal mining operations.
These include the Permian (Delaware and Midland), Anadarko (SCOOP/STACK) and Williston (Bakken) Basins. At December 31, 2022, we had approximately 45,157 developed and undeveloped net acres held at a weighted average royalty of 17.0%.
These include the Permian (Delaware and Midland), Anadarko (SCOOP/STACK) and Williston (Bakken) Basins. At December 31, 2023, we had 49,794 developed and undeveloped net acres held at a weighted average royalty of 17.0%.
Alliance Properties merged into Gibson County Coal on February 19, 2018. ​ The King's Mine operated to the east and the Wabash Mine operated to the west of the reserve area.
Alliance Properties merged into Gibson on February 19, 2018. ​ 70 Table of Contents The King's Mine operated to the east and the Wabash Mine operated to the west of the reserve area.
Total book value of the property and any associated plant and equipment for Tunnel Ridge as of December 31, 2022 was $271.2 million. ​ History ​ Valley Camp Coal Company operated mines on the property prior to Tunnel Ridge's operations.
Total book value of the property and any associated plant and equipment for Tunnel Ridge as of December 31, 2023 was $301.7 million. 72 Table of Contents ​ History ​ Valley Camp Coal Company operated mines on the property prior to Tunnel Ridge's operations.
The mine property is controlled through both fee ownership and leases of the coal. Gibson South holds rights to over 21,000 gross acres of coal. Leases generally have an initial term with automatic extensions for as long as mining operations are conducted within a described area.
The mine property is controlled through both fee ownership and leases of the coal. Leases generally have an initial term with automatic extensions for as long as mining operations are conducted within a described area.
The average realized product prices weighted by production over the remaining lives of the properties are $92.50/Bbl for oil, $5.43/Mcf of natural gas and $35.87 per barrel of NGL. These prices are adjusted for energy content, associated average differential and transportation deducts by producing area to arrive at the net realized prices by product.
The average realized product prices weighted by production over the remaining lives of the properties are $77.61/Bbl for oil, $1.55/Mcf of natural gas and $22.63 per barrel of NGL. These prices are adjusted for energy content, associated average differential and transportation deducts by producing area to arrive at the net realized prices by product.
Our net acres standardized to 1/8th royalty equates to approximately 61,400 net royalty acres, including approximately 3,968 net royalty acres owned through our equity interest in AllDale III. ​ The following table presents our estimated net proved oil & gas reserves, including our share of reserves owned through our equity interest in AllDale III, as of December 31, 2022 based on the reserve report prepared by our internal engineering team.
Our net acres standardized to 1/8th royalty equates to 67,745 net royalty acres, including 3,969 net royalty acres owned through our equity interest in AllDale III. ​ The following table presents our estimated net proved oil & gas reserves, including our share of reserves attributable to our equity interest in AllDale III, as of December 31, 2023 based on the reserve report prepared by our internal engineering team and reserve information provided by AllDale III.
The year over year reconciliation is as follows: ​ ​ ​ ​ ​ River View Yearly Reserve Reconciliation (in millions) Tons as of December 31, 2021 214.6 Production ​ (10.2) ​ Mineral Acquisition / Deletion ​ 0.7 ​ Normal Course Adjustments ​ (0.4) ​ Tons as of December 31, 2022 ​ 204.7 ​ ​ Normal course adjustments are associated with numerous slight changes in the geologic model. ​ Hamilton ​ Hamilton, a longwall mine located in Hamilton County, Illinois at 38°10'12"N, -88°36'47"W, currently has approximately 10,500 underground acres and 1,300 surface acres permitted.
The year over year reconciliation is as follows: ​ ​ ​ ​ ​ River View Complex Yearly Reserve Reconciliation (in millions) Tons as of December 31, 2022 204.7 Production ​ (9.9) ​ Mineral Acquisition / Deletion (1) ​ 115.2 ​ Normal Course Adjustments ​ 0.4 ​ Tons as of December 31, 2023 ​ 310.4 ​ ​ (1) See updated TRS for River View complex at Exhibit 96.2 to this Annual Report on Form 10-K reflecting the material change to reserves for 2023. ​ Normal course adjustments are associated with numerous slight changes in the geologic model. ​ Hamilton Mine ​ Hamilton, a longwall mine located in Hamilton County, Illinois at 38°10'12"N, -88°36'47"W, currently has approximately 23,000 underground acres and 1,300 surface acres permitted.
Local infrastructure is as follows: ​ Major Roads: Interstate 70, Railroads: None, Airport: Pittsburgh International Airport (PIT), Town: Wheeling, Docks: Tunnel Ridge on the Ohio River, Water: Municipal water districts and mine sources, Electricity: American Electric Power (AEP), West Penn Power (WPP) Personnel: Regional. ​ Description ​ The underground mine is currently in production using longwall and room-and-pillar methods utilizing a heavy media, float/sink style preparation plant.
Local infrastructure is as follows: ​ Major Roads: Interstate 70, Railroads: None, Airport: Pittsburgh International Airport (PIT), Town: Wheeling, Docks: Tunnel Ridge on the Ohio River, Water: Municipal water districts and mine sources, Electricity: American Electric Power (AEP), West Penn Power (WPP) Personnel: Regional.
("Sustainable") in the amount of the greater of $0.25 per ton or 0.75% of the average sales realization price received per ton, which sums can be credited against approximately $481,000 previously paid to Sustainable for the assignment of the Consol Leases. ​ The Illinois Department of Natural Resources, Land Reclamation Division is responsible for review and issuance of all permits relative to coal mining and reclamation activities, and financial assurance of comprehensive environmental protection performance standards related to surface and underground coal mining operations.
Financial Statements and Supplementary Data — Note 6 – Long-term Debt" for more information on our credit facility. ​ Certain leases originally acquired by Consolidation Coal Company are encumbered by an overriding royalty payable to Sustainable Conservation, Inc. in the amount of the greater of $0.25 per ton or 0.75% of the average sales realization price received per ton, which sums can be credited against approximately $481,000 previously paid to Sustainable Conservation, Inc. for the assignment of these leases. ​ The Illinois Department of Natural Resources, Land Reclamation Division is responsible for review and issuance of all permits relative to coal mining and reclamation activities, and financial assurance of comprehensive environmental protection performance standards related to surface and underground coal mining operations.
Local infrastructure is as follows: ​ 68 Table of Contents Major Roads: Interstates 69 and 64, Railroads: CSX and NS, Airport: Evansville Regional Airport (EVV), Town: Princeton, Docks: Mount Vernon on the Ohio River, Water: Gibson Water, Inc. and well water, Electricity: Western Indiana Energy REMC, Personnel: Regional. ​ Description ​ The underground mine is currently in production using room-and-pillar methods utilizing a heavy media, float/sink style preparation plant.
Local infrastructure is as follows: ​ Major Roads: Interstates 69 and 64, Railroads: CSX and NS, Airport: Evansville Regional Airport (EVV), Town: Princeton, Docks: Mount Vernon on the Ohio River, 69 Table of Contents Water: Gibson Water, Inc. and well water, Electricity: Western Indiana Energy REMC, Personnel: Regional.
The year over year reconciliation is as follows: ​ ​ ​ ​ ​ Tunnel Ridge Yearly Reserve Reconciliation (in millions) Tons as of December 31, 2021 53.7 Production ​ (8.3) ​ Mineral Acquisition / Deletion (1) ​ 71.0 ​ Mine Plan Adjustment ​ 2.2 ​ Normal Course Adjustments ​ 1.4 ​ Tons as of December 31, 2022 ​ 120.0 ​ (1) See updated TRS for Tunnel Ridge at Exhibit 96.5 to this Annual Report on Form 10-K reflecting the material change to reserves during 2022. ​ Oil & Gas Reserves ​ Our mineral interests are primarily located in three basins, which are also our areas of focus for future development.
The year over year reconciliation is as follows: ​ ​ ​ ​ ​ Tunnel Ridge Yearly Reserve Reconciliation (in millions) Tons as of December 31, 2022 120.0 Production ​ (7.7) ​ Mineral Acquisition / Deletion ​ (1.2) ​ Mine Plan Adjustment ​ 6.8 ​ Normal Course Adjustments ​ 0.3 ​ Tons as of December 31, 2023 ​ 118.2 ​ ​ OIL & GAS RESERVES ​ Summary of Oil & Gas Reserves ​ Our mineral interests are primarily located in three basins, which are also our areas of focus for future development.
All resources are classified as underground mineable in the exploration stage. ​ Coal Mineral Reserves ​ Reserves are assigned to our active operations and are (1) currently in production, (2) economically viable, and (3) meet the other requirements to be considered reserves as defined by the SEC. ​ 60 Table of Contents The following table sets forth coal mineral reserve information, exclusive of the coal mineral resources above, at December 31, 2022, about our coal operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Heat ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Content (Btus ​ Pounds SO2 per MMBtu ​ Classification ​ Ownership ​ ​ ​ Reserves (tons in millions) per pound) 1.2-2.5 >2.5 Proven Probable Owned Leased Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Warrior (KY) 12,300 — — 59.7 46.0 13.7 14.4 45.3 59.7 ​ River View (KY) 11,450 — — 204.7 112.6 92.1 60.2 144.5 204.7 ​ Hamilton County (IL) 11,650 — — 125.9 55.0 70.9 21.5 104.4 125.9 ​ Gibson (South) (IN) 11,500 0.7 10.9 37.4 39.6 9.4 17.0 32.0 49.0 ​ Region Total ​ ​ 0.7 ​ 10.9 ​ 427.7 ​ 253.2 ​ 186.1 ​ 113.1 ​ 326.2 ​ 439.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Appalachian Basin Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ MC Mining (KY) 12,800 10.0 1.1 — 8.1 3.0 — 11.1 11.1 ​ Mountain View (WV) 13,200 — 3.8 6.5 9.1 1.2 — 10.3 10.3 ​ Tunnel Ridge (WV) 12,600 — — 120.0 61.7 58.3 11.1 108.9 120.0 ​ Region Total ​ ​ 10.0 ​ 4.9 ​ 126.5 ​ 78.9 ​ 62.5 ​ 11.1 ​ 130.3 ​ 141.4 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ 10.7 ​ 15.8 ​ 554.2 ​ 332.1 ​ 248.6 ​ 124.2 ​ 456.5 ​ 580.7 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ % of Total ​ ​ ​ 1.8% ​ 2.7% ​ 95.4% ​ 57.2% ​ 42.8% ​ 21.4% ​ 78.6% ​ 100.0% ​ ​ On December 31, 2022, we had approximately 580.7 million tons of coal mineral reserves.
All resources are classified as underground mineable in the exploration stage. ​ Coal Mineral Reserves ​ Reserves are assigned to our active operations and are (1) currently in production, (2) economically viable, and (3) meet the other requirements to be considered reserves as defined by the SEC. ​ 61 Table of Contents The following table sets forth coal mineral reserve information, exclusive of the coal mineral resources above, at December 31, 2023, about our coal operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Heat ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Content (Btus ​ Pounds SO2 per MMBtu ​ Classification ​ Ownership ​ ​ ​ Reserves (tons in millions) per pound) 1.2-2.5 >2.5 Proven Probable Owned Leased Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Warrior (KY) 12,300 — — 50.0 39.5 10.5 13.0 37.0 50.0 ​ River View (KY) 11,450 — — 310.4 169.1 141.3 58.0 ​ 252.4 310.4 ​ Hamilton County (IL) 11,650 — — 119.8 54.5 65.3 20.3 ​ 99.5 119.8 ​ Gibson South (IN) 11,500 0.9 9.5 34.8 35.6 9.6 15.3 29.9 45.2 ​ Region Total ​ ​ 0.9 ​ 9.5 ​ 515.0 ​ 298.7 ​ 226.7 ​ 106.6 ​ 418.8 ​ 525.4 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Appalachian Basin Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ MC Mining (KY) 12,800 9.6 0.5 — 7.8 2.3 — 10.1 10.1 ​ Mountain View (WV) 13,200 — 4.4 5.1 9.1 0.4 — 9.5 9.5 ​ Tunnel Ridge (WV) 12,600 — — 118.2 64.5 53.7 11.7 106.5 118.2 ​ Region Total ​ ​ 9.6 ​ 4.9 ​ 123.3 ​ 81.4 ​ 56.4 ​ 11.7 ​ 126.1 ​ 137.8 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ 10.5 ​ 14.4 ​ 638.3 ​ 380.1 ​ 283.1 ​ 118.3 ​ 544.9 ​ 663.2 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ % of Total ​ ​ ​ 1.6% ​ 2.2% ​ 96.2% ​ 57.3% ​ 42.7% ​ 17.8% ​ 82.2% ​ 100.0% ​ ​ On December 31, 2023, we had approximately 663.2 million tons of coal mineral reserves.
Exploration continues as needed to fulfill mining and permitting requirements. The mine began production in 2014. All equipment, facilities, infrastructure, and underground development are in good working order and maintained to industry standards.
Description ​ The underground mine is currently in production using room-and-pillar methods utilizing a heavy media, float/sink style preparation plant. Exploration continues as needed to fulfill mining and permitting requirements. The mine began production in 2014. All equipment, facilities, infrastructure, and underground development are in good working order and maintained to industry standards.
We consolidated control of the property through multiple transactions from 2005 through 2015. Island Creek operated the 63 Table of Contents Ohio #11 and Uniontown #9 mines. Island Creek also operated the Hamilton #1 and #2 mines in Kentucky. Peabody and later Patriot operated the Camp complex and Highland mines to the southeast and east.
Lastly, Peabody and Patriot operated mines in the area and controlled a portion of the reserves. We consolidated control of the property through multiple transactions from 2005 through 2015. Island Creek operated the Ohio #11 mine. Peabody and later Patriot operated the Camp complex and Highland #11 mine to the southeast and east.
Both the WKY9 and WKY11 seams were mined at these locations. No mining has occurred on the property in the WKY7 or WKY6 seams.
The WKY11 seam was mined at these locations. No mining has occurred on the property in the 64 Table of Contents WKY7 or WKY6 seams.
SO2 In-Seam ​ ​ ​ ​ ​ ​ ​ ​ ​ Hamilton County ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves 55.0 6.38 8.03 2.82 13,410 4.21 86.86 ​ Probable Mineral Reserves 70.9 6.60 7.99 2.84 13,422 4.23 86.82 ​ Total Mineral Reserves ​ 125.9 ​ 6.51 8.01 ​ 2.83 ​ 13,416 ​ 4.22 ​ 86.84 ​ ​ Resources associated with Hamilton County are included in the Coal Mineral Resources table above. ​ The Hamilton mine had 128.5 million tons of coal mineral reserves at the end of 2021.
SO2 In-Seam ​ ​ ​ ​ ​ ​ ​ ​ ​ Hamilton County ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves 54.5 6.38 8.07 2.82 13,414 4.21 86.65 ​ Probable Mineral Reserves 65.3 6.60 7.98 2.85 13,422 4.24 86.77 ​ Total Mineral Reserves ​ 119.8 ​ 6.50 8.02 ​ 2.83 ​ 13,419 ​ 4.23 ​ 86.71 ​ ​ Resources associated with Hamilton County are included in the Coal Mineral Resources table above. ​ The Hamilton mine had 125.9 million tons of coal mineral reserves at the end of 2022.
Exploration continues as needed to fulfill mining and permitting requirements. The mine began production in 2010. All equipment, facilities, infrastructure, and underground development are in good 71 Table of Contents working order and maintained to industry standards.
Description ​ The underground mine is currently in production using longwall and room-and-pillar methods utilizing a heavy media, float/sink style preparation plant. Exploration continues as needed to fulfill mining and permitting requirements. The mine began production in 2010. All equipment, facilities, infrastructure, and underground development are in good working order and maintained to industry standards.
Hamilton either owns or controls the surface properties upon which its facilities are located including the preparation plant, refuse areas, mine offices, conveyor systems, shafts and slopes. Hamilton (or Alliance WOR Properties) currently holds rights to over 67,000 gross acres of coal mineral reserves and resources and subsidence rights, and 1,400 acres of surface properties.
Hamilton either owns or controls the surface properties upon which its facilities are located including the preparation plant, refuse areas, mine offices, conveyor systems, shafts and slopes.
SO2 In-Seam ​ ​ ​ ​ ​ ​ ​ ​ ​ Tunnel Ridge ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves 61.7 7.24 7.97 3.11 13,724 4.54 68.85 ​ Probable Mineral Reserves 58.3 7.25 8.28 3.46 13,659 5.07 68.06 ​ Total Mineral Reserves ​ 120.0 ​ 7.24 8.12 ​ 3.28 ​ 13,692 ​ 4.79 ​ 68.47 ​ ​ Resources associated with Tunnel Ridge are included in the Coal Mineral Resources table above. ​ 72 Table of Contents The Tunnel Ridge mine had 53.7 million tons of coal mineral reserves at the end of 2021.
SO2 In-Seam ​ ​ ​ ​ ​ ​ ​ ​ ​ Tunnel Ridge ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves 64.5 7.12 7.92 3.10 13,711 4.52 67.88 ​ Probable Mineral Reserves 53.7 7.26 8.30 3.49 13,618 5.13 68.06 ​ Total Mineral Reserves ​ 118.2 ​ 7.18 8.09 ​ 3.28 ​ 13,669 ​ 4.79 ​ 67.96 ​ ​ Resources associated with Tunnel Ridge are included in the Coal Mineral Resources table above. ​ 73 Table of Contents The Tunnel Ridge mine had 120.0 million tons of coal mineral reserves at the end of 2022.

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Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeSubsequently, four additional lawsuits making similar allegations were initiated against certain of our subsidiaries: filed March 4, 2021 in the Circuit Court for Hopkins County, Kentucky ( Johnson v. Hopkins County Coal, LLC, et al. ); filed April 6, 2021 in the U.S. District Court for the Northern District of West Virginia ( Rettig v.
Biggest changeA similar lawsuit was initiated in March 2020 in the U.S. District Court for the Eastern District of Kentucky (Brewer v. Alliance Coal, LLC, et al.). Subsequently, four additional lawsuits making similar allegations were initiated against certain of our subsidiaries: filed March 4, 2021 in the Circuit Court for Hopkins County, Kentucky (Johnson v.
Financial Statements and Supplementary Data—Note 23 – Commitments and Contingencies" is incorporated herein by this reference. ​ Litigation was initiated in November 2019 in the U.S. District Court for the Western District of Kentucky ( Branson v.
Financial Statements and Supplementary Data—Note 21 – Commitments and Contingencies" is incorporated herein by this reference. ​ Litigation was initiated in November 2019 in the U.S. District Court for the Western District of Kentucky (Branson v.
Webster County Coal, LLC et al. ) against certain of our subsidiaries in which the plaintiffs allege violations of the Fair Labor Standards Act and Kentucky Wage and Hour Act due to alleged failure to compensate for time "donning" and "doffing" equipment and to account for certain bonuses in the calculation of overtime rates and pay.
Webster County Coal, LLC et al.) against certain of our subsidiaries in which the plaintiffs allege violations of the Fair Labor Standards Act and state law due to alleged failure to compensate for time "donning" and "doffing" equipment and to account for certain bonuses in the calculation of overtime rates and pay.
Mettiki Coal WV, LLC, et al. ); filed April 9, 2021 in the U.S. District Court for the Southern District of Illinois ( Cates v. Hamilton County Coal, LLC, et al. ); and filed April 13, 2021 in the U.S. District Court for the Southern District of Indiana ( Prater v. Gibson County Coal, LLC, et al. ).
Hamilton County Coal, LLC, et al.) ; and filed April 13, 2021 in the U.S. District Court for the Southern District of Indiana (Prater v. Gibson County Coal, LLC, et al.).
The plaintiffs in these 76 Table of Contents cases seek to recover alleged compensatory, liquidated and/or exemplary damages for the alleged underpayment, and costs and fees that potentially may be recoverable under applicable law. We believe the claims made in these lawsuits are without merit and we are defending the litigation vigorously.
The plaintiffs in these cases seek class and collective action certification, which we oppose, and the courts have not yet made 77 Table of Contents definitive final rulings on these issues. The plaintiffs seek to recover alleged compensatory, liquidated and/or exemplary damages for the alleged underpayment, and costs and fees that potentially may be recoverable under applicable law.
Removed
The plaintiffs seek class and collective action certification. A similar lawsuit was initiated in March 2020 in the U.S. District Court for the Eastern District of Kentucky ( Brewer v. Alliance Coal, LLC, et al. ). Collectively, the plaintiffs of these two lawsuits allege damages ranging from approximately $22.2 million to $143.7 million.
Added
Hopkins County Coal, LLC, et al.) ; filed April 6, 2021 in the U.S. District Court for the Northern District of West Virginia (Rettig v. Mettiki Coal WV, LLC, et al.); filed April 9, 2021 in the U.S. District Court for the Southern District of Illinois (Cates v.
Removed
We do not believe this litigation will have a material adverse effect on our business, financial position, or results of operations. ​
Added
We believe our ultimate exposure, if any, will not be material to our results of operations or financial position; however, if our current belief as to the merit of the claims in these lawsuits is not upheld, it is reasonably possible that the ultimate resolution of these matters could result in a potential loss that may be material to our results of operations. ​

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeITEM 4. MINE SAFETY DISCLOSURES ​ Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104) is included in Exhibit 95.1 to this Annual Report on Form 10-K. ​ 77 Table of Contents PART II ​
Biggest changeITEM 4. MINE SAFETY DISCLOSURES ​ Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104) is included in Exhibit 95.1 to this Annual Report on Form 10-K. ​ 78 Table of Contents PART II ​

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe remaining authorized amount for unit repurchases under this program was $6.5 million at December 31, 2022. ​ In January 2023, the Board of Directors authorized a $93.5 million increase to the unit repurchase program. As a result, we are authorized to repurchase up to a total of $100.0 million of ARLP's limited partner common units.
Biggest changeIn January 2023, the Board of Directors authorized a $93.5 million increase to the unit purchase program, which had $6.5 million of available capacity at the time.
The unit repurchase program authorization does not obligate ARLP to repurchase any dollar amount or number of units, and repurchases may be commenced or suspended from time to time without prior notice. ​ During the three months ended December 31, 2022, we did not repurchase and retire any units.
The unit repurchase program authorization does not obligate ARLP to repurchase any dollar amount or number of units, and repurchases may be commenced or suspended from time to time without prior notice. ​ During the three months ended December 31, 2023, we did not repurchase and retire any units.
There were approximately 37,516 record holders of common units at December 31, 2022. ​ Available cash with respect to each quarter may, at the discretion of our general partner, be distributed to the limited partners as of a record date selected by the general partner.
There were approximately 53,108 record holders of common units at December 31, 2023. ​ Available cash with respect to each quarter may, at the discretion of our general partner, be distributed to the limited partners as of a record date selected by the general partner.
As of February 24, 2023, we have repurchased and retired 856,629 units at an average unit price of $21.15 for an aggregate purchase price of $18.1 million since we increased the amount authorized under the unit repurchase program. ​ ​ ​ 78 Table of Contents ITEM 6. [ Reserved] ​
Since the inception of the unit repurchase program, we have repurchased and retired 6,390,446 units at an average unit price of $17.67 for an aggregate purchase price of $112.9 million. The remaining authorized amount for unit repurchases under this program was $80.6 million at December 31, 2023. ​ ​ ​ 79 Table of Contents ITEM 6. [ Reserved] ​
Removed
Since the inception of the unit repurchase program, we have repurchased and retired 5,460,639 units at an average unit price of $17.12 for an aggregate purchase price of $93.5 million.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeLong-Term Debt ​ 119 ​ ​ 9. Income Taxes ​ 121 ​ ​ 10. Leases ​ 123 ​ ​ 11. Fair Value Measurements ​ 124 ​ ​ 12. Partners' Capital ​ 125 ​ ​ 13. Variable Interest Entities ​ 125 ​ ​ 14. Investments ​ 127 ​ ​ 15. Revenue From Contracts With Customers ​ 128 ​ ​ 16.
Biggest changeFair Value Measurements ​ 127 ​ ​ 10. Partners' Capital ​ 127 ​ ​ 11. Variable Interest Entities ​ 128 ​ ​ 12. E quity Investments ​ 130 ​ ​ 13. Revenue From Contracts With Customers ​ 131 ​ ​ 14. Earnings Per Limited Partner Unit ​ 132 ​ ​ 15. Employee Benefit Plans ​ 133 ​ ​ 16.
Item 6. ​ [Reserved] ​ 79 Item 7. ​ Management's Discussion and Analysis of Financial Condition and Results of Operations ​ 79 Item 7A. ​ Quantitative and Qualitative Disclosures about Market Risk ​ 93 Item 8. ​ Financial Statements and Supplementary Data ​ 96 ​ ​ Report of Independent Registered Public Accounting Firm-Grant Thornton LLP (PCAOB ID Number 248) ​ 97 ​ ​ Report of Independent Registered Public Accounting Firm-Ernst & Young LLP (PCAOB ID Number 42) ​ 99 ​ ​ Consolidated Balance Sheets ​ 100 ​ ​ Consolidated Statements of Operations ​ 101 ​ ​ Consolidated Statements of Comprehensive Income (Loss) ​ 102 ​ ​ Consolidated Statements of Cash Flows ​ 103 ​ ​ Consolidated Statement of Partners' Capital ​ 104 ​ ​ Notes to Consolidated Financial Statements ​ 105 ​ ​ 1.
Item 6. ​ [Reserved] ​ 80 Item 7. ​ Management's Discussion and Analysis of Financial Condition and Results of Operations ​ 80 Item 7A. ​ Quantitative and Qualitative Disclosures about Market Risk ​ 97 Item 8. ​ Financial Statements and Supplementary Data ​ 99 ​ ​ Report of Independent Registered Public Accounting Firm-Grant Thornton LLP (PCAOB ID Number 248) ​ 100 ​ ​ Consolidated Balance Sheets ​ 102 ​ ​ Consolidated Statements of Income ​ 103 ​ ​ Consolidated Statements of Comprehensive Income ​ 104 ​ ​ Consolidated Statements of Cash Flows ​ 105 ​ ​ Consolidated Statement of Partners' Capital ​ 106 ​ ​ Notes to Consolidated Financial Statements ​ 107 ​ ​ 1.
Earnings Per Limited Partner Unit ​ 129 ​ ​ 17. Employee Benefit Plans ​ 129 ​ ​ 18. Common Unit-Based Compensation Plans ​ 133 ​ ​ 19. Supplemental Cash Flow Information ​ 134 ​ ​ 20. Asset Retirement Obligations ​ 135 ​ ​ 21. Accrued Workers' Compensation and Pneumoconiosis Benefits ​ 136 ​ ​ 22.
Common Unit-Based Compensation Plans ​ 137 ​ ​ 17. Supplemental Cash Flow Information ​ 138 ​ ​ 18. Asset Retirement Obligations ​ 139 ​ ​ 19. Accrued Workers' Compensation and Pneumoconiosis Benefits ​ 140 ​ ​ 20. Related-Party Transactions ​ 142 ​ ​ 21. Commitments and Contingencies ​ 144 ​ ​ 22.
Organization and Presentation ​ 105 ​ ​ 2. Summary of Significant Accounting Policies ​ 106 ​ ​ 3. Acquisitions ​ 114 ​ ​ 4. Long-Lived Asset Impairments ​ 116 ​ ​ 5. Goodwill Impairment ​ 117 ​ ​ 6. Inventories ​ 117 ​ ​ 7. Property, Plant and Equipment ​ 118 ​ ​ 8.
Organization and Presentation ​ 107 ​ ​ 2. Summary of Significant Accounting Policies ​ 109 ​ ​ 3. Acquisitions ​ 117 ​ ​ 4. Inventories ​ 120 ​ ​ 5. Property, Plant and Equipment ​ 121 ​ ​ 6. Long-Term Debt ​ 122 ​ ​ 7. Income Taxes ​ 124 ​ ​ 8. Leases ​ 126 ​ ​ 9.
Subsequent Events ​ 143 ​ ​ Supplemental Oil & Gas Reserve Information (Unaudited) ​ 144 ​ ​ Schedule I – Condensed Financial Information of Registrant ​ 150
Concentration of Credit Risk and Major Customers ​ 144 ​ ​ 23. Segment Information ​ 145 ​ ​ Supplemental Oil & Gas Reserve Information (Unaudited) ​ 148 ​ ​ Schedule I – Condensed Financial Information of Registrant ​ 153
Removed
Related-Party Transactions ​ 138 ​ ​ 23. Commitments and Contingencies ​ 140 ​ ​ 24. Concentration of Credit Risk and Major Customers ​ 140 ​ ​ 25. Segment Information ​ 141 ​ ​ 26.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeSegment Adjusted EBITDA, tons sold, coal sales, other revenues, Segment Adjusted EBITDA Expense, oil & gas royalties, BOE volume, coal royalties and coal royalties tons sold by segment are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ Increase (Decrease) ​ (in thousands) ​ Segment Adjusted EBITDA ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Coal Operations ​ $ 420,684 ​ $ 265,292 ​ $ 155,392 ​ 58.6 % Appalachia Coal Operations ​ 426,402 ​ 172,601 ​ 253,801 ​ 147.0 % Oil & Gas Royalties ​ ​ 131,168 ​ ​ 68,774 ​ ​ 62,394 ​ 90.7 % Coal Royalties ​ ​ 38,809 ​ ​ 33,202 ​ ​ 5,607 ​ 16.9 % Other, Corporate and Elimination (1) ​ 3,495 ​ 9,383 ​ (5,888) (62.8) % Total Segment Adjusted EBITDA (2) ​ $ 1,020,558 ​ $ 549,252 ​ $ 471,306 ​ 85.8 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coal - Tons sold ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Coal Operations ​ 24,110 ​ 22,264 ​ 1,846 ​ 8.3 % Appalachia Coal Operations ​ 11,479 ​ 10,004 ​ 1,475 ​ 14.7 % Total tons sold ​ 35,589 ​ 32,268 ​ 3,321 ​ 10.3 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coal sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Coal Operations ​ $ 1,219,943 ​ $ 873,930 ​ $ 346,013 ​ 39.6 % Appalachia Coal Operations ​ 882,286 ​ 512,993 ​ 369,293 ​ 72.0 % Total coal sales ​ $ 2,102,229 ​ $ 1,386,923 ​ $ 715,306 ​ 51.6 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Coal Operations ​ $ 6,822 ​ $ 4,666 ​ $ 2,156 ​ 46.2 % Appalachia Coal Operations ​ 1,481 ​ 3,940 ​ (2,459) ​ (62.4) % Oil & Gas Royalties ​ ​ 3,039 ​ ​ 2,197 ​ ​ 842 ​ 38.3 % Coal Royalties ​ ​ 56 ​ ​ 69 ​ ​ (13) ​ (18.8) % Other, Corporate and Elimination ​ 40,622 ​ 27,586 ​ 13,036 ​ 47.3 % Total other revenues ​ $ 52,020 ​ $ 38,458 ​ $ 13,562 ​ 35.3 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment Adjusted EBITDA Expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Coal Operations ​ $ 806,080 ​ $ 613,303 ​ $ 192,777 ​ 31.4 % Appalachia Coal Operations ​ 464,029 ​ 344,332 ​ 119,697 ​ 34.8 % Oil & Gas Royalties ​ ​ 13,950 ​ ​ 9,943 ​ ​ 4,007 ​ 40.3 % Coal Royalties ​ ​ 21,871 ​ ​ 18,269 ​ ​ 3,602 ​ 19.7 % Other, Corporate and Elimination (1) ​ (23,497) ​ (33,198) ​ 9,701 29.2 % Total Segment Adjusted EBITDA Expense (2) ​ $ 1,282,433 ​ $ 952,649 ​ $ 329,784 ​ 34.6 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oil & Gas Royalties ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Volume - BOE (3) ​ ​ 2,208 ​ ​ 1,663 ​ ​ 545 ​ 32.8 % Oil & gas royalties ​ $ 138,402 ​ $ 74,988 ​ $ 63,414 84.6 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coal Royalties ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Volume - Tons sold (4) ​ $ 21,780 ​ ​ 20,247 ​ $ 1,533 ​ 7.6 % Intercompany coal royalties ​ 60,624 ​ $ 51,402 ​ 9,222 ​ 17.9 % (1) Other, Corporate and Elimination includes the elimination of intercompany coal royalty revenues and expenses between our Coal Royalties Segment and our Coal Operations Segments in addition to the expenses for the other miscellaneous activities included in this category.
Biggest changeTransportation revenues are recognized when title to the coal passes to the customer and recognized in an amount equal to the corresponding transportation expenses. ​ Segment Adjusted EBITDA ​ Our 2022 Segment Adjusted EBITDA increased $475.2 million, or 85.2%, to $1.03 billion from 2021 Segment Adjusted EBITDA of $557.4 million primarily as a result of increased revenues, partially offset by higher operating expenses. ​ 88 Table of Contents Segment Information ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ ​ ​ ​ ​ 2022 (1) ​ 2021 (1) ​ Increase (Decrease) ​ (in thousands) ​ Segment Adjusted EBITDA ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Coal Operations ​ $ 420,684 ​ $ 265,292 ​ $ 155,392 ​ 58.6 % Appalachia Coal Operations ​ 426,402 ​ 172,601 ​ 253,801 147.0 % Oil & Gas Royalties ​ ​ 143,179 ​ ​ 76,920 ​ ​ 66,259 86.1 % Coal Royalties ​ ​ 38,809 ​ ​ 33,202 ​ ​ 5,607 16.9 % Other, Corporate and Elimination (2) ​ 3,495 ​ 9,383 ​ (5,888) ​ (62.8) % Total Segment Adjusted EBITDA (3) ​ $ 1,032,569 ​ $ 557,398 ​ $ 475,171 ​ 85.2 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coal - Tons sold ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Coal Operations ​ 24,110 ​ 22,264 ​ 1,846 ​ 8.3 % Appalachia Coal Operations ​ 11,479 ​ 10,004 ​ 1,475 ​ 14.7 % Total tons sold ​ 35,589 ​ 32,268 ​ 3,321 ​ 10.3 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coal sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Coal Operations ​ $ 1,219,943 ​ $ 873,930 ​ $ 346,013 ​ 39.6 % Appalachia Coal Operations ​ 882,286 ​ 512,993 ​ 369,293 ​ 72.0 % Total coal sales ​ $ 2,102,229 ​ $ 1,386,923 ​ $ 715,306 ​ 51.6 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Coal Operations ​ $ 6,822 ​ $ 4,666 ​ $ 2,156 46.2 % Appalachia Coal Operations ​ 1,481 ​ 3,940 ​ (2,459) (62.4) % Oil & Gas Royalties ​ ​ 3,837 ​ ​ 2,256 ​ ​ 1,581 70.1 % Coal Royalties ​ ​ 56 ​ ​ 69 ​ ​ (13) (18.8) % Other, Corporate and Elimination ​ 40,622 ​ 27,586 ​ 13,036 ​ 47.3 % Total other revenues ​ $ 52,818 ​ $ 38,517 ​ $ 14,301 ​ 37.1 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment Adjusted EBITDA Expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Coal Operations ​ $ 806,080 ​ $ 613,303 ​ $ 192,777 ​ 31.4 % Appalachia Coal Operations ​ 464,029 ​ 344,332 ​ 119,697 ​ 34.8 % Oil & Gas Royalties ​ ​ 15,395 ​ ​ 11,051 ​ ​ 4,344 ​ 39.3 % Coal Royalties ​ ​ 21,871 ​ ​ 18,269 ​ ​ 3,602 ​ 19.7 % Other, Corporate and Elimination (2) ​ (23,497) ​ (33,198) ​ 9,701 ​ 29.2 % Total Segment Adjusted EBITDA Expense (3) ​ $ 1,283,878 ​ $ 953,757 ​ $ 330,121 ​ 34.6 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oil & Gas Royalties ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Volume - BOE (4) ​ ​ 2,405 ​ ​ 1,877 ​ ​ 528 ​ 28.1 % Oil & gas royalties ​ $ 151,060 ​ $ 84,183 ​ $ 66,877 79.4 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coal Royalties ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Volume - Tons sold (5) ​ ​ 21,780 ​ ​ 20,247 ​ ​ 1,533 ​ 7.6 % Intercompany coal royalties ​ $ 60,624 ​ $ 51,402 ​ $ 9,222 17.9 % (1) Recast for the JC Resources Acquisition.
Interest is payable quarterly, with principal of the Term Loan due in quarterly installments equal to 6.25% of the original principal amount of the Term Loan beginning with the quarter ending June 30, 2023 and the balance payable at maturity.
Interest is payable quarterly, with principal of the Term Loan due in quarterly installments equal to 6.25% of the original principal amount beginning with the quarter ending June 30, 2023 and the balance payable at maturity.
The Credit Agreement is guaranteed by ARLP and certain of its subsidiaries, including the Intermediate Partnership and most of the direct and indirect subsidiaries of Alliance Coal (the "Subsidiary Guarantors"). The Credit Agreement also is secured by substantially all of the assets of the Subsidiary Guarantors and Alliance Coal. For additional information on the Credit Agreement, please see "Item 8.
The Credit Agreement is guaranteed by ARLP and certain of its subsidiaries, including the Intermediate Partnership and most of the direct and indirect subsidiaries of Alliance Coal. The Credit Agreement also is secured by substantially all of the assets of the Subsidiary Guarantors and Alliance Coal. For additional information on the Credit Agreement, please see "Item 8.
Financial Statements and Supplementary Data" where you can find more detailed information in "Note 1 – Organization and Presentation" and "Note 2 – Summary of Significant Accounting Policies" regarding the basis of presentation supporting the following financial information. ​ Executive Overview ​ We are a diversified natural resource company that generates operating and royalty income from the production and marketing of coal to major domestic and international utilities and industrial users as well as royalty income from oil & gas mineral interests located in strategic producing regions across the United States.
Financial Statements and Supplementary Data" where you can find more detailed information in "Note 1 – Organization and Presentation" and "Note 2 – Summary of Significant Accounting Policies" regarding the basis of presentation supporting the following financial information. ​ Executive Overview ​ Organization ​ We are a diversified natural resource company that generates operating and royalty income from the production and marketing of coal to major domestic utilities, industrial users and international customers, as well as royalty income from oil & gas mineral interests located in strategic producing regions across the United States.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ​ General ​ The following discussion of our financial condition and results of operations should be read in conjunction with the historical financial statements and notes thereto included in "Item 8.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ​ The following discussion of our financial condition and results of operations should be read in conjunction with the historical financial statements and notes thereto included in "Item 8.
We believe that the presentation of EBITDA provides useful information to investors regarding our performance and results of operations because EBITDA, when used in conjunction with related GAAP financial measures, (i) provides additional information about our core operating performance and ability to generate and distribute cash flow, (ii) provides investors with the financial analytical framework upon which we base financial, operational, compensation 85 Table of Contents and planning decisions and (iii) presents a measurement that investors, rating agencies and debt holders have indicated is useful in assessing us and our results of operations. ​ Segment Adjusted EBITDA is also used as a supplemental financial measure by our management for reasons similar to those stated in the previous explanation of EBITDA.
We believe that the presentation of EBITDA provides useful information to investors regarding our performance and results of operations because EBITDA, when used in conjunction with related GAAP financial measures, (i) provides additional information about our core operating performance and ability to generate and distribute cash flow, (ii) provides investors with the financial analytical framework upon which we base financial, operational, compensation and planning decisions and (iii) presents a measurement that investors, rating agencies and debt holders have indicated is useful in assessing us and our results of operations. ​ Segment Adjusted EBITDA is also used as a supplemental financial measure by our management for reasons similar to those stated in the previous explanation of EBITDA.
If our assumptions differ from actual experiences, or if changes in the regulatory environment occur, our actual cash expenditures and costs that we incur could be materially different than currently estimated. ​ Shelf Registration Statement ​ In February 2022, we filed with the SEC a universal shelf registration statement which allowed us to issue from time to time an indeterminate amount of debt or equity securities ("2022 Registration Statement").
If our assumptions differ from actual experiences, or if changes in the regulatory environment occur, our actual cash expenditures and costs that we incur could be materially different than currently estimated. ​ Shelf Registration Statement ​ In February 2022, we filed with the SEC a universal shelf registration statement which allows us to issue from time to time an indeterminate amount of debt or equity securities.
Segment Adjusted EBITDA Expense per ton increased $5.88 per ton sold to $33.43 from $27.55 per ton sold in 2021 primarily as a result of inflationary pressures on numerous expense items, including labor-related expenses and supply and maintenance costs, increased sales-related expenses due to higher price realizations, reduced recoveries across the region and lost production due to an unexpected outage caused by a thermal event which lasted approximately four weeks in addition to increased longwall move days at our Hamilton mine during 2022.
Segment Adjusted EBITDA Expense per ton increased 21.3% or $5.88 per ton sold to $33.43 from $27.55 per ton sold in 2021 primarily as a result of inflationary pressures on numerous expense items, including labor-related expenses and supply and maintenance costs, increased sales-related expenses due to higher price realizations, reduced recoveries across the region and lost production due to an unexpected outage caused by a thermal event which lasted approximately four weeks in addition to increased longwall move days at our Hamilton mine during 2022.
Financial Statements and Supplementary Data—Note 8 – Long-Term Debt" for a discussion of our debt obligations. ​ Critical Accounting Policies and Estimates ​ Our discussion and analysis of our financial condition, results of operations, liquidity and capital resources is based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States.
Financial Statements and Supplementary Data—Note 6 – Long-Term Debt" for a discussion of our debt obligations. ​ Critical Accounting Policies and Estimates ​ Our discussion and analysis of our financial condition, results of operations, liquidity and capital resources is based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States.
The following critical accounting policies are materially impacted by judgments, assumptions and estimates used in the preparation of our consolidated financial statements: ​ Business Combinations and Goodwill ​ We account for business acquisitions using the purchase method of accounting. See "Item 8. Financial Statements and Supplementary Data—Note 3 – Acquisitions" for more information on the Belvedere and Jase Acquisitions.
The following critical accounting policies are materially impacted by judgments, assumptions and estimates used in the preparation of our consolidated financial statements: ​ Business Combinations ​ We account for business acquisitions using the purchase method of accounting. See "Item 8. Financial Statements and Supplementary Data—Note 3 – Acquisitions" for more information on the Belvedere, Jase and Skyland Acquisitions.
Financial Statements and Supplementary Data—Note 1 – Organization and Presentation," "—Note 3 – Acquisitions" and "—Note 26 – Subsequent Events" of this Annual Report on Form 10-K. ​ Liquidity and Capital Resources ​ Liquidity ​ We have historically satisfied our working capital requirements and funded our capital expenditures, investments, contractual obligations and debt service obligations with cash generated from operations, cash provided by the issuance of debt or equity, borrowings under credit and securitization facilities and other financing transactions.
Financial Statements and Supplementary Data—Note 1 – Organization and Presentation" and "—Note 3 – Acquisitions" of this Annual Report on Form 10-K. ​ Liquidity and Capital Resources ​ Liquidity ​ We have historically satisfied our working capital requirements and funded our capital expenditures, investments, contractual obligations and debt service obligations with cash generated from operations, cash provided by the issuance of debt or equity, borrowings under credit and securitization facilities and other financing transactions.
Depreciation is generally determined on a units-of-production basis and accretion is generally recognized over the life of the producing assets. ​ On at least an annual basis, we review our entire asset retirement obligation liability and make necessary adjustments for permit changes approved by state authorities, changes in the timing of reclamation activities, and revisions to cost 92 Table of Contents estimates and productivity assumptions, to reflect current experience.
Depreciation is generally determined on a units-of-production basis and accretion is generally recognized over the life of the producing assets. ​ On at least an annual basis, we review our entire asset retirement obligation liability and make necessary adjustments for permit changes approved by state authorities, changes in the timing of reclamation activities, and revisions to cost estimates and productivity assumptions, to reflect current experience.
See "Item 8. Financial Statements and Supplementary Data—Note 20 – Asset Retirement Obligations" for additional information. The liability for asset retirement and closing procedures is sensitive to changes in cost estimates, estimated mine lives and timing of post-mine reclamation activities.
See "Item 8. Financial Statements and Supplementary Data—Note 18 – Asset Retirement Obligations" for additional information. The liability for asset retirement and closing procedures is sensitive to changes in cost estimates, estimated mine lives and timing of post-mine reclamation activities.
Under the service cost method used to estimate our pneumoconiosis benefits liability, actuarial gains or losses attributable to changes in actuarial assumptions, such as the discount rate, are amortized over the remaining service period of active miners. ​ The discount rate for workers' compensation and pneumoconiosis is derived by applying the Financial Times Stock Exchange Pension Discount Curve to the projected liability payout.
Under the service cost method used to 95 Table of Contents estimate our pneumoconiosis benefits liability, actuarial gains or losses attributable to changes in actuarial assumptions, such as the discount rate, are amortized over the remaining service period of active miners. ​ The discount rate for workers' compensation and pneumoconiosis is derived by applying the Financial Times Stock Exchange Pension Discount Curve to the projected liability payout.
Following are examples of how these estimates affect financial results: ​ 90 Table of Contents ● an increase (decrease) in estimated proved oil & gas reserves can reduce (increase) our units of production depreciation, depletion and amortization rates; and ● changes in oil & gas reserves and estimated market prices both impact projected future cash flows from our mineral interests.
Following are examples of how these estimates affect financial results: ​ ● an increase (decrease) in estimated proved oil & gas reserves can reduce (increase) our units of production depreciation, depletion and amortization rates; and ● changes in oil & gas reserves and estimated market prices both impact projected future cash flows from our mineral interests.
A one-percentage-point reduction in the discount rate would have increased operating expense by approximately $2.6 million at December 31, 2022. We limit our exposure to traumatic injury claims by purchasing a high deductible insurance policy that starts paying benefits after deductibles for a particular claim year have been met.
A one-percentage-point reduction in the discount rate would have increased operating expense by approximately $2.4 million at December 31, 2023. We limit our exposure to traumatic injury claims by purchasing a high deductible insurance policy that starts paying benefits after deductibles for a particular claim year have been met.
The Credit Agreement provides for a $425 million revolving credit facility, which includes a sublimit of $15.0 million for swingline borrowings and permits the issuance of letters of credit of up to the full amount of $425 million (the "Revolving Credit Facility"), and for a term loan in an aggregate principal amount of $75 million (the "Term Loan").
The Credit Agreement provides for a $425 million revolving credit facility, which includes a sublimit of $15.0 million for swingline 92 Table of Contents borrowings and permits the issuance of letters of credit of up to the full amount of $425 million, and for a term loan in an aggregate principal amount of $75 million.
We also have an "all other" category referred to as Other, Corporate and Elimination. Our two Coal Operations reportable segments correspond to major coal producing regions in the eastern United States with similar economic characteristics including coal quality, geology, coal marketing opportunities, mining 80 Table of Contents and transportation methods and regulatory issues.
We also have an "all other" category referred to as Other, Corporate and Elimination. Our two coal operations reportable segments correspond to major coal producing regions in the eastern United States with similar economic characteristics including coal quality, geology, coal marketing opportunities, mining and transportation methods and regulatory issues.
Segment Adjusted EBITDA Expense per ton increased 17.4% to $40.42 compared to $34.42 per ton sold in 2021, as a result of inflationary pressures on numerous expense items, including labor-related expenses and supply and maintenance costs, increased sales-related expenses due to higher price realizations, reduced recoveries at our Mettiki and MC Mining operations and increased longwall move days at our Tunnel Ridge and Mettiki mines during 2022. ​ Oil & Gas Royalties – Segment Adjusted EBITDA increased to $131.2 million for 2022 from $68.8 million in 2021.
Segment Adjusted EBITDA Expense per ton increased 17.4% to $40.42 compared to $34.42 per ton sold in 2021, as a result of inflationary pressures on numerous expense items, including labor-related expenses and supply and maintenance costs, increased sales-related expenses due to higher price realizations, reduced recoveries at our Mettiki and MC Mining operations and increased longwall move days at our Tunnel Ridge and Mettiki mines during 2022. ​ Oil & Gas Royalties – Segment Adjusted EBITDA increased to $143.2 million for 2022 from $76.9 million in 2021.
Volumes increased by 32.8% to 2.2 million BOE sold in 2022 compared to 1.7 million BOE sold in 2021 as a result of increased drilling and completion activities and additional volumes from oil & gas mineral interest acquisitions completed during 2022. ​ Coal Royalties – Segment Adjusted EBITDA increased 16.9% to $38.8 million for 2022 from $33.2 million in 2021.
Volumes increased by 28.1% to 2.4 million BOE sold in 2022 compared to 1.9 million BOE sold in 2021 as a result of increased drilling and completion activities and additional volumes from oil & gas mineral interest acquisitions completed during 2022. ​ Coal Royalties – Segment Adjusted EBITDA increased 16.9% to $38.8 million for 2022 from $33.2 million in 2021.
The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date. ​ For the Belvedere and Jase Acquisitions, we determined a fair value for the acquired mineral interests using an income approach consisting of discounted cash flow models.
The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date. ​ 94 Table of Contents For the Belvedere, Jase and Skyland Acquisitions, we determined a fair value for the acquired mineral interests using an income approach consisting of discounted cash flow models.
Market for Registrant's Common Equity, Related Unitholder Matters and Issuer Purchases of Equity Securities" for more information on the unit repurchase program. ​ 87 Table of Contents Revolving Credit Facility — On January 13, 2023, Alliance Coal entered into a Credit Agreement (the "Credit Agreement") with various financial institutions.
Market for Registrant's Common Equity, Related Unitholder Matters and Issuer Purchases of Equity Securities" for more information on the unit repurchase program. ​ Revolving Credit Facility ​ On January 13, 2023, Alliance Coal entered into the Credit Agreement with various financial institutions.
The increase of $0.87 per ton produced was primarily as a result of inflationary cost pressures. ​ ● Production taxes and royalty expenses per ton incurred as a percentage of coal sales prices and volumes increased $0.68 per produced ton sold in 2022 compared to 2021 primarily as a result of higher price realizations, partially offset by a temporary decrease in the federal black lung excise tax, from January 1, 2022 to September 30, 2022, a favorable mix of tons sold mined in states with severance taxes and decreased excise taxes per ton resulting from a greater mix of export shipments . ​ Oil & gas royalties .
The increase of $0.85 per ton produced was primarily as a result of inflationary cost pressures. ​ ● Production taxes and royalty expenses per ton incurred as a percentage of coal sales prices and volumes increased $0.68 per produced ton sold in 2022 compared to 2021 primarily as a result of higher price realizations, partially offset by a temporary decrease in the federal black lung excise tax, from January 1, 2022 to September 30, 2022, a favorable mix of tons sold mined in states with severance taxes and decreased excise taxes per ton resulting from a greater mix of export shipments . ​ Oil & gas royalties ​ Oil & gas royalty revenues increased to $151.1 million in 2022 compared to $84.2 million for 2021.
Examples of these types of costs, common to both types of mining, include, but are not limited to, removing or covering refuse piles and settling ponds, water treatment obligations, and dismantling preparation plants, other facilities and roadway infrastructure. Accrued liabilities of $149.8 million and $131.1 million for these costs are recorded at December 31, 2022 and 2021, respectively.
Examples of these types of costs, common to both types of mining, include, but are not limited to, removing or covering refuse piles and settling ponds, water treatment obligations, and dismantling preparation plants, other facilities and roadway infrastructure. Accrued liabilities of $150.4 million and $149.8 million for these costs are recorded at December 31, 2023 and 2022, respectively.
The increase of $3.60 per ton produced primarily reflects inflationary cost pressures including increases of $1.11 per ton for roof support, $0.47 per ton for ventilation related expenses, $0.47 per ton for power and fuel, $0.39 per ton for contract labor used in the mining process, $0.37 per ton for various preparation plant expenses and $0.26 per ton for environmental and reclamation expenses other than longwall subsidence. ​ ● Maintenance expenses per ton produced increased 31.4% to $3.64 per ton in 2022 from $2.77 per ton in 2021.
The increase of $3.38 per ton produced primarily reflects inflationary cost pressures including increases of $1.11 per ton for roof support, $0.47 per ton for ventilation related expenses, $0.43 per ton for power and fuel, $0.39 per ton for contract labor used in the mining process, $0.37 per ton for various preparation plant expenses and $0.26 per ton for environmental and reclamation expenses other than longwall subsidence. ​ ● Maintenance expenses per ton produced increased 30.7% to $3.62 per ton in 2022 from $2.77 per ton in 2021.
We had accrued liabilities of $104.3 million and $111.3 million for the pneumoconiosis benefits at December 31, 2022 and 2021, respectively. A one-percentage-point reduction in the discount rate would have increased the expense recognized for the year ended December 31, 2022 by approximately $3.0 million.
We had accrued liabilities of $132.4 million and $104.3 million for the pneumoconiosis benefits at December 31, 2023 and 2022, respectively. A one-percentage-point reduction in the discount rate would have increased the expense recognized for the year ended December 31, 2023 by approximately $1.4 million.
The maximum limit in the commercial property program is $100.0 million per occurrence, excluding a $1.5 million deductible for property damage, a 75 or 90 day waiting period for underground business interruption depending on the mining complex and an additional $25.0 million overall aggregate deductible.
The maximum limit in the commercial property program is $100.0 million per occurrence, excluding a $1.5 million deductible for property damage, a 75 or 90 day waiting period for underground business interruption depending on the mining complex and an additional $25.0 million overall aggregate deductible. We retained a 7.25% participating interest in our current commercial property insurance program.
The preparation of our consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements. We base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances.
The preparation of our consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements. We base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances. We discuss these estimates and judgments with the Audit Committee periodically.
The availability and cost of additional capital will depend upon prevailing market conditions, the market price of our common units and several other factors over which we have limited control, as well as our financial condition and results of operations. ​ 88 Table of Contents We use a combination of surety bonds and letters of credit to secure our financial obligations for reclamation, workers' compensation and other obligations as follows as of December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Workers' ​ ​ ​ ​ ​ ​ ​ ​ Reclamation ​ Compensation ​ ​ ​ ​ ​ ​ ​ ​ Obligation ​ Obligation ​ Other ​ Total ​ ​ (in millions) Surety bonds $ 174.3 $ 58.8 $ 11.3 $ 244.4 ​ Letters of credit ​ — ​ 41.0 ​ 16.8 ​ 57.8 ​ ​ Insurance ​ Effective December 1, 2022, we renewed our property and casualty insurance program through October 1, 2023.
The availability and cost of additional capital will depend upon prevailing market conditions, the market price of our common units and several other factors over which we have limited control, as well as our financial condition and results of operations. ​ We use a combination of surety bonds and letters of credit to secure our financial obligations for reclamation, workers' compensation and other obligations as follows as of December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Workers' ​ ​ ​ ​ ​ ​ ​ ​ Reclamation ​ Compensation ​ ​ ​ ​ ​ ​ ​ ​ Obligation ​ Obligation ​ Other ​ Total ​ ​ (in millions) Surety bonds $ 173.5 $ 58.4 $ 15.0 $ 246.9 ​ Letters of credit ​ — ​ 41.0 ​ 16.8 ​ 57.8 ​ ​ Insurance ​ Effective October 1, 2023, we renewed our property and casualty insurance program through September 30, 2024.
Discounting resulted in reducing the accrual for asset retirement obligations by $110.4 million and $98.3 million at December 31, 2022 and 2021. We estimate that the aggregate undiscounted cost of final mine closure is approximately $260.2 million and $229.4 million at December 31, 2022 and 2021, respectively.
Discounting resulted in reducing the accrual for asset retirement obligations by $116.2 million and $110.4 million at December 31, 2023 and 2022. We estimate that the aggregate undiscounted cost of final mine closure is approximately $266.6 million and $260.2 million at December 31, 2023 and 2022, respectively.
See "Item 8. Financial Statements and Supplementary Data—Note 21 – Accrued Workers' Compensation and Pneumoconiosis Benefits" for additional discussion. We had accrued liabilities for workers' compensation of $49.5 million and $53.4 million for these costs at December 31, 2022 and 2021, respectively.
See "Item 8. Financial Statements and Supplementary Data—Note 19 – Accrued Workers' Compensation and Pneumoconiosis Benefits" for additional discussion. We had accrued liabilities for workers' compensation of $48.0 million and $49.5 million for these costs at December 31, 2023 and 2022, respectively.
We provide for these claims through self-insurance programs. Our pneumoconiosis benefits liability is calculated using the service cost method based on the actuarial present value of the estimated pneumoconiosis benefits obligation. Our actuarial calculations are based on numerous assumptions including disability incidence, medical costs, mortality, death benefits, dependents and discount rates.
Our pneumoconiosis benefits liability is calculated using the service cost method based on the actuarial present value of the estimated pneumoconiosis benefits obligation. Our actuarial calculations are based on numerous assumptions including disability incidence, medical costs, mortality, death benefits, dependents and discount rates.
Financial Statements and Supplementary Data—Note 8 – Long-Term Debt," "—Note 10 – Leases," "—Note 17 – Employee Benefit Plans," "—Note 20 – Asset Retirement Obligations," "—Note 21 – Accrued Workers' Compensation and Pneumoconiosis Benefits" and "—Note 23 – Commitments and Contingencies." We will continue to have significant cash requirements over the long term, which may require us to incur debt or seek additional equity capital.
Financial Statements and Supplementary Data—Note 6 – Long-Term Debt," "—Note 8 – Leases," "—Note 15 – Employee Benefit Plans," "—Note 18 – Asset Retirement Obligations," "—Note 19 – Accrued Workers' Compensation and Pneumoconiosis Benefits" and "—Note 21 – Commitments and Contingencies." We will 93 Table of Contents continue to have significant cash requirements over the long term, which may require us to incur debt or seek additional equity capital.
There were no material adjustments to the liability associated with these assumptions for the year ended December 31, 2021. ​ While the precise amount of these future costs cannot be determined with certainty, we have estimated the costs and timing of future asset retirement obligations escalated for inflation, then discounted and recorded at the present value of those estimates.
Adjustments to the liability associated with these assumptions resulted in an increase of $17.4 million for the year ended December 31, 2022. ​ While the precise amount of these future costs cannot be determined with certainty, we have estimated the costs and timing of future asset retirement obligations escalated for inflation, then discounted and recorded at the present value of those estimates.
On a per ton basis, Segment Adjusted EBITDA Expense for our coal operations increased 21.5% to $36.73 per ton sold in 2022 compared to $30.24 per ton in 2021, primarily due to certain cost increases, which are discussed below by category: ​ ● Labor and benefit expenses per ton produced, excluding workers' compensation, increased 14.9% to $10.95 per ton in 2022 from $9.53 per ton in 2021.
On a per ton basis, Segment Adjusted EBITDA Expense for our coal operations increased 20.8% to $35.91 per ton sold in 2022 compared to $29.73 per ton in 2021, primarily due to certain cost increases, which are discussed below by category: ​ ● Labor and benefit expenses per ton produced, excluding workers' compensation, increased 14.6% to $10.65 per ton in 2022 from $9.29 per ton in 2021.
The increase of $62.4 million was primarily due to higher sales price realizations, which increased 39.1% to $62.70 per BOE, and increased volumes in 2022.
The increase of $66.3 million was primarily due to higher sales price realizations, which increased 40.1% to $62.83 per BOE, and increased volumes in 2022.
We monitor and analyze our coal royalty sales volumes from our various mining subsidiaries for coal leased by Alliance Resource Properties for consistency with our Coal Operations segments and for trend analysis. ​ 81 Table of Contents Coal Royalty Revenue per Ton. We define coal royalty revenue per ton as total coal royalties divided by royalty tons sold.
We review price per BOE to evaluate performance against budget and for trend analysis. ​ Coal Royalty Tons sold ​ We monitor and analyze our coal royalty sales volumes from our various mining subsidiaries for coal leased by Alliance Resource Properties for consistency with our coal operations segments and for trend analysis. ​ Coal Royalty Revenue per Ton ​ We define coal royalty revenue per ton as total coal royalties divided by royalty tons sold.
Financial Statements and Supplementary Data—Note 22 – Related-Party Transactions" for a discussion of our related-party transactions. ​ Accruals of Other Liabilities ​ We had accruals for other liabilities, including current obligations, totaling $395.3 million and $318.9 million at December 31, 2022 and 2021, respectively.
Financial Statements and Supplementary Data—Note 20 – Related-Party Transactions" for a discussion of our related-party transactions. ​ 96 Table of Contents Accruals of Other Liabilities ​ We had accruals for other liabilities, including current obligations, totaling $398.4 million and $395.3 million at December 31, 2023 and 2022, respectively.
We discuss these estimates and judgments with the audit committee of the Board of Directors ("Audit Committee") periodically. Actual results may differ from these estimates. We have provided a description of all significant accounting policies in the notes to our consolidated financial statements.
Actual results may differ from these estimates. We have provided a description of all significant accounting policies in the notes to our consolidated financial statements.
Our Coal Royalties reportable segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties, which are either a) leased to our mining complexes or (b) near our coal mining operations but not yet leased. ​ ● The Illinois Basin Coal Operations reportable segment includes (a) the Gibson County Coal mining complex, (b) the Warrior mining complex, (c) the River View mining complex and (d) the Hamilton mining complex.
Our Coal Royalties reportable segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties. ​ ● The Illinois Basin Coal Operations reportable segment includes (a) the Gibson mining complex, (b) the Warrior mining complex, (c) the River View mining complex and (d) the Hamilton mining complex. The segment also includes our Mt.
We believe that the presentation of EBITDA provides useful information to investors regarding our performance and results of operations because EBITDA, when used in conjunction with related Generally Accepted Accounting Principles ("GAAP") financial measures, (i) provides additional information about our core operating performance and ability to generate and distribute cash flow, (ii) provides investors with the financial analytical framework upon which we base financial, operational, compensation and planning decisions and (iii) presents a measurement that investors, rating agencies and debt holders have indicated is useful in assessing us and our results of operations. ​ Segment Adjusted EBITDA.
We believe that the presentation of EBITDA provides useful information to investors regarding our performance and results of operations because EBITDA, when used in conjunction with related GAAP financial measures, (i) provides additional information about our core operating performance and ability to generate and distribute cash flow, (ii) provides investors with the financial analytical framework upon which we base financial, operational, compensation and planning decisions and (iii) presents a measurement that investors, rating agencies and debt holders have indicated is useful in assessing us and our results of operations. ​ 82 Table of Contents Segment Adjusted EBITDA ​ We define Segment Adjusted EBITDA (a non-GAAP financial measure) as net income attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization and general and administrative expense.
The exclusion of corporate general and administrative expenses from Segment Adjusted EBITDA Expense allows management to focus solely on the evaluation of segment operating performance as it primarily relates to our operating expenses. ​ The following is a reconciliation of operating expenses, the most comparable GAAP financial measure, to consolidated Segment Adjusted EBITDA Expense: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2022 2021 ​ ​ (in thousands) ​ Operating expenses (excluding depreciation, depletion and amortization) ​ $ 1,286,635 ​ $ 943,257 ​ Outside coal purchases ​ 151 ​ 6,372 ​ Other expense (income) ​ (4,353) ​ 3,020 ​ Segment Adjusted EBITDA Expense ​ $ 1,282,433 ​ $ 952,649 ​ ​ 86 Table of Contents Ongoing Acquisition Activities ​ Consistent with our business strategy, from time to time we engage in discussions with potential sellers regarding our possible acquisitions of certain assets and/or companies of the sellers.
The exclusion of corporate general and administrative expenses from Segment Adjusted EBITDA Expense allows management to focus solely on the evaluation of segment operating performance as it primarily relates to our operating expenses. ​ The following is a reconciliation of operating expenses, the most comparable GAAP financial measure, to consolidated Segment Adjusted EBITDA Expense: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2023 2022 2021 ​ ​ (in thousands) ​ Operating expenses (excluding depreciation, depletion and amortization) ​ $ 1,368,787 ​ $ 1,288,082 ​ $ 944,419 ​ Outside coal purchases ​ 36,149 ​ 151 ​ 6,372 ​ Other expense (income) ​ (218) ​ (4,355) ​ 2,966 ​ Segment Adjusted EBITDA Expense ​ $ 1,404,718 ​ $ 1,283,878 ​ $ 953,757 ​ ​ 91 Table of Contents Ongoing Acquisition Activities ​ Consistent with our business strategy, from time to time we engage in discussions with potential sellers regarding our possible acquisitions of certain assets and/or companies of the sellers.
The increase of $1.42 per ton was primarily due to higher labor costs at several mines. ​ ● Material and supplies expenses per ton produced increased 34.3% to $14.10 per ton in 2022 from $10.50 per ton in 2021.
The increase of $1.36 per ton was primarily due to higher labor costs at several mines. ​ ● Material and supplies expenses per ton produced increased 32.8% to $13.67 per ton in 2022 from $10.29 per ton in 2021.
Primary measurements include the following: (1) raw and saleable tons produced per unit shift; (2) coal sales price per ton; (3) BOE sold; (4) price per BOE; (5) coal royalty tons sold; (6) coal royalty revenue per ton; (7) Segment Adjusted EBITDA Expense per ton; (8) EBITDA; and (9) Segment Adjusted EBITDA. ​ Raw and Saleable Tons Produced per Unit Shift.
Primary measurements include the following: (1) coal sales price per ton; (2) BOE sold; (3) price per BOE; (4) coal royalty tons sold; (5) coal royalty revenue per ton; (6) Segment Adjusted EBITDA Expense per ton; (7) EBITDA; and (8) Segment Adjusted EBITDA. ​ Coal Sales Price per Ton ​ We define coal sales price per ton as total coal sales divided by tons sold.
We also regularly compare projected volumes to actual volumes reported and investigate unexpected variances. ​ Price per BOE. We define price per BOE as total oil & gas royalties divided by BOE produced. We review price per BOE to evaluate performance against budget and for trend analysis. ​ Coal Royalty Tons sold .
We also regularly compare projected volumes to actual volumes reported and investigate unexpected variances. ​ Price per BOE ​ We define price per BOE as total oil & gas royalties divided by BOE produced.
Improved coal demand in both the domestic and export markets during 2022 drove coal sales volumes higher by 10.3% to 35.6 million tons sold compared to 32.3 million tons sold in 2021. ​ Coal - Segment Adjusted EBITDA Expense .
Improved coal demand in both the domestic and export markets during 2022 drove coal sales volumes higher by 10.3% to 35.6 million tons sold compared to 32.3 million tons sold in 2021. ​ Coal - Segment Adjusted EBITDA Expense ​ Segment Adjusted EBITDA Expense for our coal operations increased 33.2% to $1.28 billion, as a result of higher coal sales volumes and inflationary cost pressures.
Oil & gas royalty revenues increased to $138.4 million in 2022 compared to $75.0 million for 2021. The increase of $63.4 million was primarily due to significantly higher sales price realizations per BOE and volumes in 2022. ​ Other revenues . Other revenues principally comprised Matrix Design sales, Mt. Vernon transloading revenues and other miscellaneous sales and revenue activities.
The increase of $66.9 million was primarily due to significantly higher sales price realizations per BOE and volumes in 2022. ​ Other revenues ​ Other revenues principally comprised Matrix Design sales, Mt. Vernon transloading revenues and other miscellaneous sales and revenue activities. Other revenues increased to $52.8 million in 2022 from $38.5 million in 2021.
For our coal royalty interests business, the principal expenses are royalty expenses and production and ad valorem taxes. ​ Our primary business strategy is to create sustainable, capital-efficient growth in available cash to maximize unitholder returns by: ​ ● expanding our operations by adding and developing mines and coal mineral reserves and resources in existing, adjacent or neighboring properties; ● extending the lives of our current mining operations through the acquisition and development of coal mineral reserves and resources using our existing infrastructure; ● continuing to make productivity improvements to remain a low-cost producer in each region in which we operate; ● strengthening our position with existing and future customers by offering a broad range of coal qualities, transportation alternatives and customized services; ● developing strategic relationships to take advantage of opportunities within the coal and oil & gas industries and in other industries inside and outside of the Maser Limited Partnership sector; ● continuing to make investments in oil & gas mineral interests and coal royalty interests in various geographic locations within producing basins in the continental United States; and ● continuing to identify and make strategic investments in the advancement of energy and related infrastructure opportunities to leverage our core competencies. ​ As of December 31, 2022, we had four reportable segments: Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties and Coal Royalties.
Risk Factors". ​ Business Strategy ​ Our primary business strategy is to create sustainable, capital-efficient growth in available cash to maximize unitholder returns by: ​ ● expanding our coal operations by adding and developing mines and coal mineral reserves and resources in existing, adjacent or neighboring properties; ● extending the lives of our current mining operations through the acquisition and development of coal mineral reserves and resources using our existing infrastructure; ● continuing to make productivity improvements to remain a low-cost coal producer in each region in which we operate; ● strengthening our position with existing and future customers by offering a broad range of coal qualities, transportation alternatives and customized services; ● developing strategic relationships to take advantage of opportunities within the coal and oil & gas industries and in other industries inside and outside of the Master Limited Partnership sector; ● continuing to make investments in oil & gas mineral interests in various geographic locations within producing basins in the continental United States; 81 Table of Contents ● strengthen and expand our technology company, Matrix Group, as we continue to develop and market industrial, mining and technology products and services worldwide; and ● continuing to identify and make strategic investments in the advancement of energy and related infrastructure opportunities to leverage our core competencies and build platforms for future lines of business with long-term growth and cash flow generation. ​ How We Evaluate Our Performance ​ Our management uses a variety of financial and operational measurements to analyze our performance.
Our receivables for traumatic injury claims under this policy as of December 31, 2022 and 2021 are $4.1 million and $5.7 million, respectively. ​ Coal mining companies are subject to Federal Coal Mine Health and Safety Act of 1969, as amended, and various state statutes for the payment of medical and disability benefits to eligible recipients related to coal worker's pneumoconiosis, or black lung.
Our receivables for traumatic injury claims under this policy as of December 31, 2023 and 2022 were $4.1 million. ​ Coal mining companies are subject to FMSHA and various state statutes for the payment of medical and disability benefits to eligible recipients related to coal worker's pneumoconiosis, or black lung. We provide for these claims through self-insurance programs.
Thus, from time to time, our results of operations may be significantly affected by changes to these liabilities. Please see "Item 8. Financial Statements and Supplementary Data—Note 20 – Asset Retirement Obligations" and "—Note 21 – Accrued Workers' Compensation and Pneumoconiosis Benefits." ​ Inflation ​ Any future inflationary or deflationary pressures could adversely affect the results of our operations.
Thus, from time to time, our results of operations may be significantly affected by changes to these liabilities. Please see "Item 8. Financial Statements and Supplementary Data—Note 18 – Asset Retirement Obligations" and "—Note 19 – Accrued Workers' Compensation and Pneumoconiosis Benefits." ​ New Accounting Standards ​ See "Item 8.
Income tax expense increased to $54.0 million for 2022 compared to $0.4 million for 2021 as a result of Alliance Minerals' election during 2022 to be treated as a taxable entity for federal and state income tax purposes.
The increase of $14.3 million was primarily due to increased sales of mining technology products by our Matrix Design subsidiary. ​ Income tax expense ​ Income tax expense increased to $54.0 million for 2022 compared to $0.4 million for 2021 as a result of Alliance Minerals' election during 2022 to be treated as a taxable entity for federal and state income tax purposes.
Adjustments to the liability associated with these assumptions resulted in an increase of $17.4 million for the year ended December 31, 2022.
Adjustments to the liability associated with these assumptions resulted in a decrease of $1.5 million for the year ended December 31, 2023.
We recognized a one-time non-cash income tax charge of $37.3 million and income tax expense of $17.5 million during 2022 related to Alliance Minerals. Please read "Item 8. Financial Statements and Supplementary Data—Note 9 – Income Taxes." ​ Transportation revenues and expenses . Transportation revenues and expenses were $113.9 million and $69.6 million for 2022 and 2021, respectively.
We recognized a one-time non-cash income tax charge of $37.3 million and income tax expense of $17.5 million during 2022 related to Alliance Minerals. Please read "Item 8.
As of February 24, 2023, we had not utilized any amounts available under the 2022 Registration Statement. ​ Related – Party Transactions ​ See "Item 8.
As of February 23, 2024, we had not issued any debt or equity under the 2022 Registration Statement. ​ Related – Party Transactions ​ See "Item 8.
Financial Statements and Supplementary Data—Note 3 – Acquisitions" for more information on the Boulders, Belvedere and Jase Acquisitions. ​ Net cash used in financing activities was $214.9 million for 2022 compared to $215.7 million for 2021.
See "Item 8. Financial Statements and Supplementary Data—Note 3 – Acquisitions" for more information on the Belvedere, Jase, JC Resources and Skyland Acquisitions. ​ Net cash used in financing activities was $507.1 million for 2023 compared to $225.4 million for 2022.
In addition, we continue to position ourselves as a reliable energy provider for the future as we pursue opportunities that support the advancement of energy and related infrastructure. We intend to pursue strategic investments that leverage our core competencies and relationships with electric utilities, industrial customers, and federal and state governments.
In addition, we continue to position ourselves as a reliable energy provider for the future as we pursue opportunities that support the advancement of energy and related infrastructure.
Vernon coal-loading terminal in Indiana which operates on the Ohio River, Mid-America Carbonates, LLC ("MAC") and other support services, and our non-operating mining complexes. ​ ● The Appalachia Coal Operations reportable segment includes (a) the Mettiki mining complex, (b) the Tunnel Ridge mining complex and (c) the MC Mining mining complex. ​ ● The Oil & Gas Royalties reportable segment includes oil & gas mineral interests held by AR Midland and AllDale I & II and includes Alliance Minerals' equity method investment in AllDale III. ​ ● The Coal Royalties reportable segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties that are (a) leased to certain of our mining complexes in both the Illinois Basin Coal Operations and Appalachia Coal Operations reportable segments or (b) located near our operations and external mining operations.
Vernon coal-loading terminal in Indiana which operates on the Ohio River, MAC and other support services, and our idled or closed mining complexes. ​ 80 Table of Contents ● The Appalachia Coal Operations reportable segment includes (a) the Mettiki mining complex, (b) the Tunnel Ridge mining complex and (c) the MC Mining mining complex. ​ ● The Oil & Gas Royalties reportable segment includes oil & gas mineral interests held by Alliance Minerals as well as our equity interests in AllDale III. ​ ● The Coal Royalties reportable segment includes substantially all of our coal mineral resources and the majority of our coal mineral reserves owned or leased by Alliance Resource Properties.
Financial Statements and Supplementary Data—Note 8 – Long-Term Debt," ​ Mine Development Project — In 2022, we began development of River View's Mine No. 2 and continued in 2023. We currently anticipate deploying capital of approximately $42.0 million in 2023 and $24.0 million in 2024 to complete the project.
Financial Statements and Supplementary Data—Note 6 – Long-Term Debt". ​ Mine Development Project ​ In 2022, we began development of the Henderson County mine which continued through 2023 and into 2024. We have deployed capital of $69.3 million through 2023 and currently anticipate deploying capital of approximately $36.5 million in 2024 to complete the project.
The increase in cash provided by operating activities was primarily due to an increase in net income adjusted for non-cash items, partially offset by unfavorable working capital changes primarily related to trade receivables. ​ Net cash used in investing activities was $403.3 million for 2022 compared to $142.7 million for 2021.
The increase in cash provided by operating activities was primarily due to increases in net income adjusted for non-cash items and favorable working capital changes primarily related to trade receivables.
In addition, the exclusion of corporate general and administrative expenses from consolidated Segment Adjusted EBITDA allows management to focus solely on the evaluation of segment operating profitability as it relates to our revenues and operating expenses, which are primarily controlled by our segments. ​ The following is a reconciliation of net income, the most comparable GAAP financial measure, to consolidated Segment Adjusted EBITDA: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2022 2021 ​ ​ (in thousands) ​ Net income ​ $ 579,148 ​ $ 178,755 ​ Noncontrolling interest ​ ​ (1,958) ​ ​ (598) ​ Net income attributable to ARLP ​ $ 577,190 ​ $ 178,157 ​ General and administrative ​ 80,334 ​ 70,160 ​ Depreciation, depletion and amortization ​ 273,759 ​ 261,377 ​ Interest expense, net ​ 35,297 ​ 39,141 ​ Income tax expense ​ 53,978 ​ 417 ​ Consolidated Segment Adjusted EBITDA ​ $ 1,020,558 ​ $ 549,252 ​ ​ Segment Adjusted EBITDA Expense (a non-GAAP financial measure) includes operating expenses, coal purchases and other expense (income).
In addition, the exclusion of corporate general and administrative expenses from consolidated Segment Adjusted EBITDA allows management to focus solely on the evaluation of segment operating profitability as it relates to our revenues and operating expenses, which are primarily controlled by our segments. ​ 90 Table of Contents The following is a reconciliation of net income, the most comparable GAAP financial measure, to consolidated Segment Adjusted EBITDA: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2023 2022 2021 ​ ​ (in thousands) ​ Net income ​ $ 636,170 ​ $ 588,158 ​ $ 183,369 ​ Noncontrolling interest ​ ​ (6,052) ​ ​ (1,958) ​ ​ (598) ​ Net income attributable to ARLP ​ $ 630,118 ​ $ 586,200 ​ $ 182,771 ​ General and administrative ​ 79,096 ​ 80,425 ​ 70,275 ​ Depreciation, depletion and amortization ​ 267,982 ​ 276,670 ​ 264,794 ​ Interest expense, net ​ 26,697 ​ 35,296 ​ 39,141 ​ Income tax expense ​ 8,280 ​ 53,978 ​ 417 ​ Consolidated Segment Adjusted EBITDA ​ $ 1,012,173 ​ $ 1,032,569 $ 557,398 ​ ​ Segment Adjusted EBITDA Expense (a non-GAAP financial measure) includes operating expenses, coal purchases and other expense (income).
We expect to fund the project with cash from operations or borrowings under our credit facilities. We anticipate the new mine will enable us to access an additional 109.5 million clean recoverable tons of coal. ​ Cash Flows ​ Cash provided by operating activities was $791.8 million for 2022 compared to $425.2 million for 2021.
We anticipate the new mine will enable us to access an additional 109.5 million clean recoverable tons of coal. ​ Cash Flows ​ Cash provided by operating activities was $830.6 million for 2023 compared to $802.3 million for 2022.
Coal sales price realizations increased by 37.4% in 2022 to a record $59.07 per ton sold, compared to $42.98 per ton sold during 2021, due to favorable market conditions.
The increase was attributable to a price variance of $572.6 million due to higher average coal sales prices and a volume variance of $142.7 million resulting from increased tons sold. Coal sales price realizations increased by 37.4% in 2022 to $59.07 per ton sold, compared to $42.98 per ton sold during 2021, due to favorable market conditions.
Approximately two-thirds of the coal sold by our Coal Operations' mines is leased from our Coal Royalties entities. ​ ● Other, Corporate and Elimination includes marketing and administrative activities, the Matrix Group, our investments in Francis, Infinitum and NGP ETP IV (see "Item 8.
Approximately 60% of the coal sold by our coal operations' mines was leased from our Coal Royalties entities. ​ ● Other, Corporate and Elimination includes marketing and administrative activities, the Matrix Group , our investments in Francis, Infinitum, NGP ET IV and Ascend, Wildcat Insurance, which assists the ARLP Partnership with its insurance requirements, AROP Funding and Alliance Resource Finance Corporation (both discussed in "Item 8.
The decrease in cash used in financing activities was primarily attributable to reduced net borrowings and payments on equipment financings, and on the revolving credit and securitization facilities, mostly offset by increased distributions to partners. ​ Cash Requirements ​ We currently estimate our 2023 annual cash requirements, including capital expenditures, scheduled payments on long-term debt, lease obligations, asset retirement obligation costs and workers' compensation and pneumoconiosis, to be in a range of $757.0 million to $807.0 million.
The increase in cash used in financing activities was primarily attributable to increased cash distributions paid to unitholders, increased net payments on long-term debt, purchases of units under our unit repurchase program, debt issuance costs, and payments for purchase of units and tax withholdings related to settlements under deferred compensation plans. ​ Cash Requirements ​ We currently estimate our 2024 annual cash requirements, including capital expenditures, scheduled payments on long-term debt, lease obligations, asset retirement obligation costs and workers' compensation and pneumoconiosis, to be in a range of $728.0 million to $778.0 million.
(2) For definitions of Segment Adjusted EBITDA and Segment Adjusted EBITDA Expense and related reconciliations to their respective comparable GAAP financial measures, please see below under "—Reconciliation of GAAP 'net income' to non-GAAP 'Segment Adjusted EBITDA' and reconciliation of GAAP 'Operating Expenses' to non-GAAP 'Segment Adjusted EBITDA Expense.'" 84 Table of Contents (3) BOE for natural gas is calculated on a 6:1 basis (6,000 cubic feet of natural gas to one barrel).
(3) For definitions of Segment Adjusted EBITDA and Segment Adjusted EBITDA Expense and related reconciliations to their respective comparable GAAP financial measures, please see below under "— Reconciliation of Non-GAAP Financial Measures." (4) BOE for natural gas is calculated on a 6:1 basis (6,000 cubic feet of natural gas to one barrel). 85 Table of Contents (5) Represents tons sold by our coal operations segments associated with coal reserves leased from our Coal Royalties Segment. ​ Illinois Basin Coal Operations – Segment Adjusted EBITDA increased 22.2% to $514.1 million in 2023 from $420.7 million in 2022.
The increase in cash used in investing activities was primarily attributable to an increase in capital expenditures, purchases of equity securities, payments for the Belvedere and Jase Acquisitions in 2022 and contributions to equity method investments, partially offset by payments for the Boulders Acquisition in 2021. See "Item 8.
The increase in cash used in investing activities was primarily attributable to increases in capital expenditures, acquisitions of oil & gas reserves including the JC Resources and Skyland Acquisitions, and changes in accounts payable and accrued liabilities. These increases were partially offset by payments for the Belvedere and Jase Acquisitions, and contributions to equity method investments in 2022.
For additional information about our energy and infrastructure investments, please see "Business — New Venture Investments." ​ Unit Repurchase Program — In May 2018, the Board of Directors approved the establishment of a unit repurchase program authorizing us to repurchase up to $100 million of ARLP common units.
For additional information about our energy and infrastructure investments, please see "Business — Growth Investments and Opportunities." ​ Unit Repurchase Program ​ In January 2023, the Board of Directors authorized a $93.5 million increase to the unit repurchase program. As a result, we were authorized to repurchase up to a total of $100.0 million of ARLP's limited partner common units.
We are currently the second largest coal producer in the eastern United States with seven operating underground mining complexes in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia, as well as a coal-loading terminal in Indiana.
We intend to pursue strategic investments that leverage our core competencies and relationships with electric utilities, industrial customers, and federal and state governments. ​ We are currently the largest coal producer in the eastern United States with seven operating underground mining complexes near many of the major eastern utility generating plants and on major coal hauling railroads in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia, as well as a coal-loading terminal in Indiana.
We define Segment Adjusted EBITDA (a non-GAAP financial measure) as net income attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization and general and administrative expense.
The increase of $5.6 million was a result of increased royalty tons sold and higher average royalty rates per ton. ​ Reconciliation of Non-GAAP Financial Measures ​ Segment Adjusted EBITDA (a non-GAAP financial measure) is defined as net income attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization and general and administrative expenses.
The increase of $44.3 million was primarily attributable to increased average third-party transportation rates in 2022 and increased coal shipments for which we arrange third-party transportation. Transportation revenues are recognized when title to the coal passes to the customer and recognized in an amount equal to the corresponding transportation expenses. ​ 83 Table of Contents Segment Information .
Financial Statements and Supplementary Data—Note 7 – Income Taxes." ​ 87 Table of Contents Transportation revenues and expenses ​ Transportation revenues and expenses were $113.9 million and $69.6 million for 2022 and 2021, respectively. The increase of $44.3 million was primarily attributable to increased average third-party transportation rates in 2022 and increased coal shipments for which we arrange third-party transportation.
Management anticipates having sufficient cash flow to meet 2023 cash requirements with our December 31, 2022 cash and cash equivalents of $296.0 million and cash flows from operations, or borrowings under revolving credit and securitization facilities if necessary. We currently project average estimated annual maintenance capital expenditures over the next five years of approximately $7.05 per ton produced.
Management anticipates having sufficient cash flow to meet 2024 cash requirements with our December 31, 2023 cash and cash equivalents of $59.8 million and cash flows from operations, or borrowings under revolving credit and securitization facilities or other sources of financing that we expect to have available if necessary.
Financial Statements and Supplementary Data—Note 5 – Goodwill Impairment." ​ Oil & Gas Reserve Values ​ Estimated oil & gas reserves and estimated market prices for oil & gas are a significant part of our depletion calculations, impairment analyses, and other estimates.
The assumptions used in the discounted cash flow models included estimated production, projected cash flows, forward oil & gas prices and risk adjusted discount rates. ​ Oil & Gas Reserve Values ​ Estimated oil & gas reserves and estimated market prices for oil & gas are a significant part of our depletion calculations, impairment analyses, and other estimates.
Risk Factors." ​ Oil & Gas Acquisitions — During 2022, through the Belvedere and Jase Acquisitions, we acquired approximately 4,322 oil & gas net royalty acres in the Permian Basin for an aggregate purchase price of $92.6 million.
Risk Factors." ​ Oil & Gas Acquisitions ​ During 2023, through the JC Resources and Skyland Acquisitions and other ground game acquisitions we acquired approximately 6,443 oil & gas net royalty acres in the Anadarko, Williston and Delaware Basins for an aggregate purchase price of $110.9 million. We funded these acquisitions with cash on hand.
For additional information on our future cash requirements other than capital expenditures, please see "Item 8.
We currently project average estimated annual maintenance capital expenditures over the next five years of approximately $7.76 per ton produced. For additional information on our future cash requirements other than capital expenditures, please see "Item 8.
Management therefore is able to focus solely on the evaluation of segment operating profitability as it relates to our revenues and operating expenses, which are primarily controlled by our segments. ​ Analysis of Historical Results of Operations ​ 2022 Compared with 2021 ​ Total revenues increased 53.3% to a record $2.41 billion in 2022 compared to $1.57 billion in 2021 primarily due to substantial increases in prices and volumes from coal operations and royalties and oil & gas royalties.
Management therefore is able to focus solely on the evaluation of segment operating profitability as it relates to our revenues and operating expenses, which are primarily controlled by our segments. ​ Analysis of Historical Results of Operations – 2023 Compared with 2022 ​ Consolidated Information ​ Total Revenues ​ Total revenues increased 6.1% to a record $2.57 billion in 2023 compared to $2.42 billion in 2022 primarily due to higher coal sales revenues. ​ Total operating expenses ​ Total operating expenses increased to $1.89 billion in 2023 compared to $1.72 billion in 2022 due primarily to the sale of higher cost purchased coal and increased per ton costs on certain expense items discussed in more detail below. ​ Net income attributable to ARLP ​ Increased revenues and lower income tax expense more than offset higher total operating expenses in 2023, resulting in record net income attributable to ARLP of $630.1 million, or $4.81 per basic and diluted limited partner unit for 2023, compared to $586.2 million, or $4.39 per basic and diluted limited partner unit, for 2022. ​ Coal sales ​ Coal sales increased $108.0 million or 5.1% to $2.21 billion for 2023 from $2.10 billion for 2022.
(4) Represents tons sold by our Coal Operations Segments associated with coal mineral reserves leased from our Coal Royalties Segment. ​ Illinois Basin Coal Operations – Segment Adjusted EBITDA increased to $420.7 million in 2022 from $265.3 million in 2021.
(3) For definitions of Segment Adjusted EBITDA and Segment Adjusted EBITDA Expense and related reconciliations to their respective comparable GAAP financial measures, please see below under "—Reconciliation of Non-GAAP Financial Measures.'" (4) BOE for natural gas is calculated on a 6:1 basis (6,000 cubic feet of natural gas to one barrel). 89 Table of Contents (5) Represents tons sold by our coal operations segments associated with coal reserves leased from our Coal Royalties Segment. ​ Illinois Basin Coal Operations – Segment Adjusted EBITDA increased 58.6% to $420.7 million in 2022 from $265.3 million in 2021.
The eliminations included in Other, Corporate and Elimination primarily represent the intercompany coal royalty transactions described above between our Coal Royalties reportable segment and our coal operations' mines. ​ How We Evaluate Our Performance ​ Our management uses a variety of financial and operational measurements to analyze our performance.
The eliminations included in Other, Corporate and Elimination primarily represent the intercompany coal royalty transactions described above between our Coal Royalties reportable segment and our coal operations' mines. ​ Oil & Gas Acquisitions ​ During 2023, through the JC Resources and Skyland Acquisitions and other ground game acquisitions, we acquired approximately 6,443 oil & gas net royalty acres in the Delaware, Anadarko and Williston basins.
Segment Adjusted EBITDA Expense for our coal operations increased 34.0% to $1.31 billion, as a result of higher coal sales volumes and inflationary cost pressures.
We have retrospectively adjusted Coal - Segment Adjusted EBITDA Expense in prior periods to be on the same basis. ​ Segment Adjusted EBITDA Expense for our coal operations increased 8.8% to $1.39 billion, as a result of higher per ton costs.
Other revenues increased to $52.0 million in 2022 from $38.5 million in 2021. The increase of $13.5 million was primarily due to increased sales of mining technology products by our Matrix Design subsidiary. ​ Income tax expense.
The increase of $23.7 million was primarily due to increased sales of mining technology products by our Matrix Design subsidiary. ​ Income tax expense ​ Income tax expense decreased to $8.3 million for 2023 compared to $54.0 million for 2022 primarily as a result of our recognition of a one-time non-cash income tax charge of $37.3 million during 2022 in connection with the Tax Election. ​ Transportation revenues and expenses ​ Transportation revenues and expenses were $142.3 million and $113.9 million for 2023 and 2022, respectively.
We review all actuarial assumptions periodically for reasonableness and consistency and update such factors when underlying assumptions, such as discount rates, change or when sustained changes in our historical experiences indicate a shift in our trend assumptions are warranted. ​ 91 Table of Contents Impairment of Long-Lived Assets ​ In addition to oil & gas reserves discussed above in the Oil & Gas Reserve Values section, we review the carrying value of long-lived assets and certain identifiable intangibles whenever events or changes in circumstances indicate that the carrying amount may not be recoverable based on estimated undiscounted future cash flows.
We review all actuarial assumptions periodically for reasonableness and consistency and update such factors when underlying assumptions, such as discount rates, change or when sustained changes in our historical experiences indicate a shift in our trend assumptions are warranted. ​ Asset Retirement Obligations ​ SMCRA and similar state statutes require that mined property be restored in accordance with specified standards and an approved reclamation plan.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeA one percentage point increase in interest rates would result in a decrease of approximately $9.0 million in the estimated fair value of these borrowings. ​ The table below provides information about our market sensitive financial instruments and constitutes a "forward-looking statement." The fair values of long-term debt are estimated using discounted cash flow analyses, based on our incremental borrowing rates for similar types of borrowing arrangements as of December 31, 2022 and 2021. ​ 94 Table of Contents The carrying amounts and fair values of financial instruments are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Expected Maturity Dates ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, as of December 31, 2022 ​ 2023 ​ ​ 2024 ​ ​ 2025 ​ ​ 2026 ​ ​ 2027 ​ ​ Total ​ ​ 2022 ​ (dollars in thousands) ​ Fixed rate debt ​ $ 24,970 ​ ​ $ 2,039 ​ ​ $ 400,000 ​ ​ $ — ​ ​ $ — ​ ​ $ 427,009 ​ ​ $ 424,420 ​ Weighted-average interest rate ​ ​ 7.40 % ​ 7.50 % ​ 7.50 % ​ — % ​ — % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value ​ Expected Maturity Dates ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ as of December 31, 2021 ​ 2022 ​ ​ 2023 ​ ​ 2024 ​ ​ 2025 ​ ​ 2026 ​ ​ Total ​ ​ 2021 ​ ​ ​ (dollars in thousands) ​ Fixed rate debt ​ $ 16,071 ​ ​ $ 24,970 ​ ​ $ 2,039 ​ ​ $ 400,000 ​ ​ $ — ​ ​ $ 443,080 ​ ​ $ 457,758 ​ Weighted-average interest rate ​ ​ 7.31 % ​ ​ 7.40 % ​ 7.50 % ​ 7.50 % ​ — % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 95 Table of Contents
Biggest changeA one percentage point increase in interest rates would result in a decrease of approximately $3.7 million in the estimated fair value of these borrowings. ​ The table below provides information about our market sensitive financial instruments and constitutes a "forward-looking statement." The fair values of long-term debt are estimated using discounted cash flow analyses, based on our incremental borrowing rates for similar types of borrowing arrangements as of December 31, 2023 and 2022. ​ The carrying amounts and fair values of financial instruments are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Expected Maturity Dates ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, as of December 31, 2023 ​ 2024 ​ ​ 2025 ​ ​ 2026 ​ ​ 2027 ​ ​ 2028 ​ ​ Total ​ ​ 2023 ​ (dollars in thousands) ​ Fixed rate debt ​ $ 2,039 ​ ​ $ 284,607 ​ ​ $ — ​ ​ $ — ​ ​ $ — ​ ​ $ 286,646 ​ ​ $ 286,179 ​ Weighted-average interest rate ​ ​ 7.50 % ​ 7.50 % ​ — % ​ — % ​ — % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variable rate debt ​ $ 18,750 ​ ​ $ 18,750 ​ ​ $ 18,750 ​ ​ $ 4,688 ​ ​ $ — ​ ​ $ 60,938 ​ ​ $ 60,938 ​ Weighted-average interest rate (1) ​ ​ 8.50 % ​ ​ 8.50 % ​ 8.50 % ​ 8.50 % ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value ​ Expected Maturity Dates ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ as of December 31, 2022 ​ 2023 ​ ​ 2024 ​ ​ 2025 ​ ​ 2026 ​ ​ 2027 ​ ​ Total ​ ​ 2022 ​ ​ ​ (dollars in thousands) ​ Fixed rate debt ​ $ 24,970 ​ ​ $ 2,039 ​ ​ $ 400,000 ​ ​ $ — ​ ​ $ — ​ ​ $ 427,009 ​ ​ $ 424,420 ​ Weighted-average interest rate ​ ​ 7.40 % ​ 7.50 % ​ 7.50 % ​ — % ​ — % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Interest rate of variable rate debt equal to the rate effective at December 31, 2023, held constant for the remaining term of the outstanding borrowing. ​ ​ ​ 98 Table of Contents
Most of the long-term sales contracts are subject to price adjustment provisions, which periodically permit an increase or decrease in the contract price, typically to reflect changes in specified indices or changes in production costs resulting from regulatory changes, or both. For additional discussion of coal supply agreements, please see "Item 1. Business—Coal Marketing and Sales" and "Item 8.
Many of the long-term sales contracts are subject to price adjustment provisions, which periodically permit an increase or decrease in the contract price, typically to reflect changes in specified indices or changes in production costs resulting from regulatory changes, or both. For additional discussion of coal supply agreements, please see "Item 1. Business—Coal Marketing and Sales" and "Item 8.
However, because coal is sold internationally in United States dollars, general economic conditions in foreign markets and changes in foreign currency exchange rates may provide our foreign competitors with a competitive advantage.
However, because coal is sold internationally in United States dollars, general economic conditions in foreign markets and changes in foreign currency exchange rates may provide our foreign 97 Table of Contents competitors with a competitive advantage.
Financial Statements and Supplementary Data—Note 8 – Long-Term Debt" for more information on our Securitization Facility. ​ Exchange Rate Risk ​ Almost all of our transactions are denominated in United States dollars, and as a result, we do not have material exposure to currency exchange-rate risks.
Financial Statements and Supplementary Data—Note 6 – Long-Term Debt" for more information on our Securitization Facility. ​ Exchange Rate Risk ​ The vast majority of our transactions are denominated in United States dollars, and as a result, we do not have material exposure to currency exchange-rate risks.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK ​ Commodity Price Risk ​ We have significant long-term sales contracts as evidenced by approximately 85.0% of our sales tonnage being sold under long-term sales contracts in 2022.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK ​ Commodity Price Risk ​ We have significant long-term sales contracts as evidenced by approximately 93.4% of our sales tonnage being sold under long-term sales contracts in 2023.
Historically, we have not utilized any commodity price-hedges or other derivatives related to either our sales price or supply cost risks but may do so in the future. ​ Credit Risk ​ In 2022, approximately 82.4% of our tons sold were purchased by U.S. electric utilities and 12.5% were sold into the international markets through brokered transactions.
Historically, we have not utilized any commodity price-hedges or other derivatives related to either our sales price or supply cost risks but may do so in the future. ​ Credit Risk ​ In 2023, approximately 80.9% of our tons sold were purchased by U.S. electric utilities and 15.7% were sold into the international markets through brokered transactions.
Financial Statements and Supplementary Data—Note 24 – Concentration of Credit Risk and Major Customers." Our initial 2023 guidance includes 34.7 million priced and committed tons for delivery in 2023. 93 Table of Contents ​ Our results of operations are highly dependent upon the prices we receive for our coal, oil and natural gas.
Financial Statements and Supplementary Data—Note 22 – Concentration of Credit Risk and Major Customers." Our initial 2024 guidance includes 32.5 million priced and committed tons for delivery in 2024. ​ Our results of operations are highly dependent upon the prices we receive for our coal, oil and natural gas.
With respect to our fixed-rate borrowings, we had $400.0 million in borrowings under our Senior Notes and $27.0 million in borrowings under our equipment financings at December 31, 2022.
With respect to our fixed-rate borrowings, we had $284.6 million in borrowings under our Senior Notes and $2.0 million in borrowings under our equipment financings at December 31, 2023.
Consequently, currency fluctuations could adversely affect the competitiveness of our coal in international markets. ​ Interest Rate Risk ​ Borrowings under the Revolving Credit Facility and Securitization Facility, as well as borrowings under the Replaced Credit Facility until it was terminated, are at variable rates and, as a result, we have interest rate exposure on any amounts drawn under these facilities.
Consequently, currency fluctuations could adversely affect the competitiveness of our coal in international markets. ​ Interest Rate Risk ​ Borrowings under the Revolving Credit Facility, Term Loan and Securitization Facility are at variable rates and, as a result, we have interest rate exposure.
We experienced this during 2020 as lower sales price realizations, caused by lower global energy demand during the COVID-19 pandemic and actions of major oil producing countries, had a significant impact on our royalty revenues. ​ We have exposure to coal and oil & gas sales prices and price risk for supplies that are used directly or indirectly in the normal course of coal and oil & gas production such as steel, electricity and other supplies.
Also, a significant decline in oil & gas prices would have a significant impact on our oil & gas royalty revenues. ​ We have exposure to coal and oil & gas sales prices and price risk for supplies that are used directly or indirectly in the normal course of coal and oil & gas production such as steel, electricity and other supplies.
Regarding coal, the short-term sales contracts favored by some of our coal customers leave us more exposed to risks of declining coal price periods. Also, a significant decline in oil & gas prices would have a significant impact on our oil & gas royalty revenues.
Regarding coal, the short-term sales contracts favored by some of our coal customers leave us more exposed to risks of declining coal price periods.
Historically, our earnings have not been materially affected by changes in interest rates and we have not utilized interest rate derivative instruments related to our outstanding debt. We did not have any outstanding borrowings on either the Replaced Credit Facility or the Securitization Facility at December 31, 2022.
Historically, our earnings have not been materially affected by changes in interest rates and we have not utilized interest rate derivative instruments related to our outstanding debt. We had $60.9 million in borrowings under Term Loan at December 31, 2023.
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We did not have any outstanding borrowings on either the Revolving Credit Facility or the Securitization Facility at December 31, 2023. A one percentage point increase in the interest rates related to the Term Loan would result in an annualized increase in interest expense of $0.6 million, based on borrowing levels at December 31, 2023.

Other ARLP 10-K year-over-year comparisons