corresp
June 29, 2010
Mr. H. Roger Schwall
Assistant Director
Division of Corporation Finance
Securities and Exchange Commission
Mail Stop 3720
100 F Street, NE
Washington, DC 20549
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Re: |
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Arch Coal, Inc.
Registration Statement on Form S-4
File No. 333-165934 |
Dear Mr. Schwall:
We are providing this letter in response to the request of the staff of the Securities and
Exchange Commission (the Staff) communicated to Jeffrey W. Acre of K&L Gates LLP by Tracey L.
McNeil on June 29, 2010 regarding the Registration Statement on Form S-4 filed by Arch Coal, Inc.
(the Company) and the additional registrants named therein (File No. 333-165934).
Pursuant to the Staffs request, attached to this letter are two blacklined documents. The
document attached as Exhibit A shows changes between the K&L Gates LLP opinion letter filed as
Exhibit 5.1 to the Form S-4/A filed by the Company on May 13, 2010 and the similar opinion letter
filed as Exhibit 5.1 to the Form S-4/A filed by the Company on June 18, 2010. The document
attached as Exhibit B shows changes between the Jackson Kelly PLLC opinion letter filed as Exhibit
5.2 to the Form S-4/A filed by the Company on May 13, 2010 and the similar opinion letter filed as
Exhibit 5.2 to the Form S-4/A filed by the Company on June 18, 2010.
Thank you for your consideration. If you have any questions regarding our response, please
contact me at 314-994-2700 at your earliest convenience.
Sincerely,
ARCH COAL, INC.
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By: |
/s/ John T. Drexler
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John T. Drexler |
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Senior Vice President and
Chief Financial Officer |
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EXHIBIT A
May 13,June 18, 2010
Arch Coal, Inc.
One CityPlace Drive
Suite 300
St. Louis, Missouri 63141
Ladies and Gentlemen:
We have acted as counsel to (i) Arch Coal, Inc., a Delaware corporation (the Company), and
(ii) Allegheny Land Company, Arch Coal Sales Company, Inc., Arch Coal Terminal, Inc., Arch
Development, LLC, Arch Energy Resources, LLC, Arch Reclamation Services, Inc., Ark Land Company,
Ark Land KH, Inc., Ark Land LT, Inc., Ark Land WR, Inc., Ashland Terminal, Inc., Catenary Coal
Holdings, Inc., Coal-Mac, Inc. (Coal-Mac), Cumberland River Coal
Company, Lone Mountain Processing, Inc., Mingo Logan Coal Company, Mountain Gem Land,
Inc. (Mountain Gem), Mountain Mining, Inc., Mountaineer Land
Company, Otter Creek Coal, LLC, Prairie Holdings, Inc. and Western Energy Resources, Inc.
(collectively, the Subsidiary Guarantors) in connection with the Registration Statement on Form
S-4 (File No. 333-165934) (the Registration Statement) filed by the Company and the Subsidiary
Guarantors with the Securities and Exchange Commission under the Securities Act of 1933, as amended
(the Securities Act), relating to the registration by the Company of (i) $600,000,000 aggregate
principal amount of its 8 3/4% Senior Notes due 2016 (the Exchange Notes) to be
offered in exchange for a like principal amount of the Companys issued and outstanding
unregistered 8 3/4% Senior Notes due 2016 and (ii) the guarantees of the Exchange Notes
by the Subsidiary Guarantors (the Guarantees). The Exchange Notes and the Guarantees are proposed
to be issued in accordance with the terms of the Indenture (the Indenture), dated as of July 31,
2009, by and among the Company, certain of the Subsidiary Guarantors party thereto and U.S. Bank
National Association, as trustee (the Trustee), as supplemented by the First Supplemental
Indenture, dated as of February 8, 2010, by and among the Company, certain of the Subsidiary
Guarantors party thereto and the Trustee (the First Supplemental Indenture), the Second
Supplemental Indenture, dated as of March 12, 2010, by and among the Company, the Subsidiary
Guarantors party thereto and the Trustee (the Second Supplemental Indenture), and the Third
Supplemental Indenture, dated as of May 7, 2010, by and among the Company, the Subsidiary
Guarantors and the Trustee (the Third Supplemental Indenture). The Subsidiary
Guarantors other than Coal-Mac and Mountain Gem are referred to in this opinion letter as the
Designated Subsidiary Guarantors.
In connection with rendering the opinions set forth below, we have examined the Registration
Statement, the Prospectus contained therein, the Indenture, the First Supplemental Indenture, the
Second Supplemental Indenture, the Third Supplemental Indenture, the respective Certificates of
Incorporation or Certificates of Formation, as applicable, and the respective bylaws or limited
liability company agreements, as applicable, of the Company and the
Subsidiary Guarantors, and resolutions adopted by the respective boards of directors or
Arch Coal, Inc.
May 13,June 18, 2010
Page 2
managers,
as applicable, of the Company and the Subsidiary Guarantors, and we have made such other
investigation as we have deemed appropriate. We have examined and relied upon certificates of
public officials. We have not independently established any of the facts so relied on.
For the purposes of this opinion letter, we further have made the assumptions that (i) each
document submitted to us is accurate and complete; (ii) each such document that is an original is
authentic; (iii) each such document that is a copy conforms to an authentic original; and (iv) all
signatures (other than signatures on behalf of the Company or any Subsidiary Guarantor) on each
such document are genuine. We also have assumed for purposes of this opinion letter the legal
capacity of natural persons and that each party to the documents we have examined or relied on
(other than the Company and each Subsidiary Guarantor) has the legal capacity or authority and has
satisfied all legal requirements that are applicable to that party to the extent necessary to make
such documents enforceable against it. We have not verified any of the foregoing
assumptions. Furthermore, we have relied upon, insofar as the opinions expressed
herein relate to or are dependent upon matters governed by the law of the
Commonwealth of Kentucky or the State of West Virginia, the opinion of Jackson Kelly PLLC, dated
the date hereof and filed as Exhibit 5.2 to the Registration Statement.
The opinions expressed in this opinion letter are limited to the laws of the State of New
York, including the applicable provisions of the New York Constitution and reported judicial
decisions interpreting those laws, the General Corporation Law of the State of Delaware and the
Limited Liability Company Act of the State of Delaware, including the applicable provisions of the
Delaware Constitution and reported judicial decisions interpreting those laws. We are not opining
on, and we assume no responsibility for, the applicability to or effect on any of the matters
covered herein of any other laws, the laws of any county, municipality or other political
subdivision or local governmental agency or authority.
Based on and subject to the foregoing and to the additional qualifications and other matters
set forth below, it is our opinion that the Exchange Notes and the Guarantees, when (a) the
Companys outstanding unregistered 8
3/4% Senior Notes due 2016 have been exchanged in
the manner described in the Registration Statement, (b) the Exchange Notes and the Guarantees have
been duly executed, authenticated, issued and delivered in accordance with the terms of the
Indenture, as supplemented by the First Supplemental Indenture, the Second Supplemental Indenture
and the Third Supplemental Indenture, and (c) all applicable provisions of blue sky laws have
been complied with, will constitute valid and binding obligations of the Company and the
Designated Subsidiary Guarantors, respectively, enforceable against
the Company and the Designated Subsidiary Guarantors, respectively, in
accordance with their terms, under the laws of the State of New York, except as the enforcement
thereof may be limited by bankruptcy, insolvency, reorganization, moratorium (including,
without limitation, all laws relating to fraudulent transfers), other similar laws relating to or
affecting enforcement of creditors rights
Arch Coal, Inc.
May 13,June 18, 2010
Page 3
generally, general principles of equity (regardless of
whether enforcement is considered a proceeding in equity or at law) and limitations of the waiver
of rights under usury laws, and will be entitled to the benefits of the Indenture, as supplemented
by the First Supplemental Indenture, the Second Supplemental Indenture and the Third Supplemental
Indenture.
The foregoing opinions are rendered as of the date hereof, and we have not undertaken to
supplement this opinion with respect to factual matters or changes in law which may hereafter
occur.
We hereby consent to the reference to us in the Registration Statement under the caption
Legal Matters.
Yours truly,
/s/ K&L Gates LLP
EXHIBIT B
May 13,June 18, 2010
Arch Coal, Inc.
One CityPlace Drive
Suite 300
St. Louis, Missouri 63141
Ladies and Gentlemen:
We have acted as special Kentucky counsel to Coal-Mac, Inc., a Kentucky corporation
(Coal-Mac), and as special West Virginia counsel to Mountain Gem Land, Inc., a West Virginia
corporation (Mountain Gem and, together with Coal-Mac, the Designated Subsidiary Guarantors),
in connection with the Registration Statement on Form S-4 (File No. 333-165934) (the Registration
Statement) filed by Arch Coal, Inc., a Delaware corporation (the Company), and the subsidiary
guarantors named therein (the Subsidiary Guarantors), including the Designated Subsidiary
Guarantors, with the Securities and Exchange Commission (the Commission)
under the Securities Act of 1933, as amended (the Securities Act), relating to the
registration by the Company of (i) $600,000,000 aggregate principal amount of its 8
3/43/4% Senior Notes due 2016 (the Exchange
Notes) to be offered in exchange for a like principal amount of the Companys issued and
outstanding unregistered 8
3/43/4% Senior Notes due 2016 and (ii) the
guarantees of the Exchange Notes by the Subsidiary Guarantors (the Guarantees). The Exchange
Notes and the Guarantees are proposed to be issued in accordance with the terms of the Indenture
(the Indenture), dated as of July 31, 2009, by and among the Company, certain of the Subsidiary
Guarantors party thereto and U.S. Bank National Association, as trustee (the Trustee), as
supplemented by the First Supplemental Indenture, dated as of February 8, 2010, by and among the
Company, certain of the Subsidiary Guarantors party thereto and the Trustee (the First
Supplemental Indenture), the Second Supplemental Indenture, dated as of March 12, 2010, by and
among the Company, the Subsidiary Guarantors party thereto and the Trustee (the Second
Supplemental Indenture), and the Third Supplemental Indenture, dated as of May 7, 2010, by and
among the Company, the Subsidiary Guarantors and the Trustee (the Third Supplemental
Indenture and together with the First Supplemental Indenture and the Second
Supplemental Indenture, the Supplemental Indentures).
In connection with rendering the opinions set forth below, we have examined the Registration
Statement, the Prospectus contained therein, the Indenture, the First
Supplemental Indenture, the Second Supplemental Indenture, the Third
Supplemental IndentureIndentures, the respective
Certificates of Incorporation and the respective bylaws of the Designated Subsidiary Guarantors,
and resolutions adopted by the respective boards of directors of the Designated Subsidiary
Guarantors, and we have made such other investigation as we have deemed appropriate. We have
examined and relied upon certificates of public officials and of officers of the Designated
Subsidiary Guarantors. We have not independently established any of the facts so relied on.
For the purposes of this opinion letter, we further have made the assumptions that (i) each
document submitted to us is accurate and complete; (ii) each such document that is an original is
authentic; (iii) each such document that is a copy conforms to an authentic original; and (iv) all
signatures (other than signatures on behalf of the Designated Subsidiary Guarantors) on each such
document are genuine. We also have assumed for purposes of this opinion letter the legal capacity
of natural persons and that each party to the documents we have examined or relied on (other than
the Designated Subsidiary Guarantors) has the legal capacity or authority and has satisfied all
legal requirements that are applicable to that party to the extent necessary to make such documents
enforceable against it. We have not verified any of the foregoing assumptions.
The opinions expressed in this opinion letter are limited to the laws of the Commonwealth of
Kentucky (insofar as the opinions relate to Coal-Mac) and the State of West Virginia (insofar as
the opinions relate to Mountain Gem), including the applicable provisions of the Kentucky and West
Virginia Constitutions, respectively, and reported judicial decisions interpreting those laws. We
are not opining on, and we assume no responsibility for, the applicability to or effect on any of
the matters covered herein of federal law, the laws of any states other than Kentucky or West
Virginia or the laws of any county, municipality or other political subdivision or local
governmental agency or authority.
Based on and subject to the foregoing and to the additional qualifications and other matters
set forth below, it is our opinion that the Guarantees
issued:
1. Coal-Mac is validly existing as a corporation under the laws of the
Commonwealth of Kentucky, and Mountain Gem is validly existing as a corporation under the laws of
the State of West Virginia.
2. The Designated Subsidiary Guarantors have the requisite corporate power
and authority to execute and deliver, and to incur and perform their obligations under the
Guarantees to which they are a party.
3. The execution and delivery of the Guarantees by the
Designated Subsidiary Guarantors, whenand the incurrence
and performance by the Designated Subsidiary Guarantors of their obligations thereunder in
accordance with the Indenture and the Supplemental Indentures have been duly authorized by all
requisite corporate action by the Designated Subsidiary Guarantors.
4. The execution and delivery by the Designated Subsidiary Guarantors of the
Guarantees (to which each is a party) in accordance with the Indenture and the Supplemental
Indentures do not violate any provision of the organizational documents of the Designated
Subsidiary Guarantors or the applicable law of the Commonwealth of Kentucky, in the case of
Coal-Mac, or the State of West Virginia, in the case of Mountain Gem.
5. No governmental approval by any governmental authority of the
Commonwealth of Kentucky or the State of West Virginia is required to authorize, or is required
for, the execution and delivery of the Guarantees to which the Designated Subsidiary Guarantors are
parties.
6. When (a) the Companys outstanding unregistered
8 3/43/4% Senior Notes due 2016
have been exchanged in the manner described in the Registration Statement, (b) the Exchange Notes
and the Guarantees have been duly executed, authenticated, issued and delivered in accordance with
the terms of the Indenture, as supplemented by the First Supplemental
Indenture, the Second Supplemental Indenture and the Third Supplemental
IndentureIndentures, and (c) all applicable provisions
of blue sky laws have been complied with, will constitute valid and binding
obligations ofthe Guarantees to which the Designated
Subsidiary Guarantors, enforceable against the Designated Subsidiary Guarantors in
accordance with their terms and will be entitled to the benefits of the Indenture, as supplemented
by the First Supplemental Indenture, the Second Supplemental Indenture and the Third Supplemental
Indenture are parties will be validly issued.
In addition to the assumptions, qualifications and limitations set forth
elsewhere herein, this opinion is subject to the following: A. Although attorneys in
our firm are licensed to practice law in a variety of jurisdictions, only those admitted to the
bars in the Commonwealth of Kentucky and the State of West Virginia have been involved in the
issuance of this opinion, and we express no opinion as to the laws of any jurisdiction other than
the Commonwealth of Kentucky and the State of West Virginia. Insofar as the opinions
expressed herein relate to matters governed by laws other than those set forth in the preceding
sentence, we have assumed, without having made any independent investigation, that such laws are
substantively identical in all material respects to the laws of the Commonwealth of Kentucky and
the State of West Virginia and do not affect any of the opinions set forth herein.
The opinions expressed herein are based on laws in effect on the date hereof, which
laws are subject to change with possible retroactive effect.
B. The enforcement of the Exchange Notes and the Guarantees may be limited by
bankruptcy, insolvency, reorganization, moratorium (including, without limitation, all laws
relating to fraudulent transfers), other similar laws relating to or affecting enforcement of
creditors rights generally, general principles of equity (regardless of whether enforcement is
considered a proceeding in equity or at law), public policy and the exercise of judicial
discretion.
C. We express no opinion herein in respect of the legality, validity or
enforceability of provisions in any document for the recovery of legal fees, precluding oral
waivers or modifications of provisions of the document, relating to waivers of equitable rights and
defenses by the Designated Subsidiary Guarantors, precluding the Designated Subsidiary Guarantors
from asserting certain claims or defenses or from obtaining certain rights and remedies, or
purporting to waive the right to trial by jury or any rights under usury laws, The
foregoing opinions are rendered as of the date hereof, and we have not undertaken to supplement
this opinion with respect to factual matters or changes in law which may hereafter occur.
The opinions expressed in this letter are provided as legal opinions only and not as
guaranties or warranties of the matters discussed herein. Subject to the qualifications,
limitations, exceptions, restrictions and assumptions set forth herein, K&L Gates LLP may rely on
this opinion letter as if it were an addressee hereof on this date for the sole purpose of
rendering its opinion letter to the Company, as filed with the Commission as Exhibit 5.1 to the
Registration Statement.
The limitations inherent in the role of special local counsel are such that we cannot and have
not independently verified and are not passing upon, and do not assume any responsibility for, the
accuracy, completeness or fairness of the information included in the Registration Statement or the
Prospectus and, except for the opinions contained herein and as specifically provided below, we
have not participated in the preparation of any material in connection with the filing by the
Company and the Guarantors with the Securities and Exchange
Commission (the Commission) of the Registration
Statement with respect to the registration of the Exchange Notes and assume no responsibility for
the contents of any such material.
We hereby consent to the reference to Jackson Kelly PLLC under the caption Legal Matters in
the Prospectus constituting a part of the Registration Statement. In giving such consent, we do not
thereby admit that we are included in the category of persons whose consent is required under
Section 7 of the Act or the rules and regulations of the Commission promulgated thereunder.
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Yours truly,
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/s/ Jackson Kelly PLLC
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Yours truly,
/s/ JACKSON KELLY PLLC
JACKSON KELLY PLLC |
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