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P RO P05AL FOR THC MOtITANn POWER Cant BuSl NE55 <br />E, l;eeal Identity of Acauirina_>Yntities. <br />WCC is a Delaware corporation and would acquire the stark of wECt], SynCosl, Rosin, <br />NCE; and Horizon. WCC is a publicly traded entity (AMEX:WLB). <br />F. Interest in and Plans for the Coal Business. <br />WCC's interest in WBCO is etrategie, and we plan to operate the huciness in a manner <br />that enhances its value in conjunction with vur existing Westmoreland Resources, Ina. <br />opcrations at the Absaloka mine at Sarpy Creels Montana, and with mines at Savage, <br />Montana, and Beulah, North Dakota, that we are currently in the process of acquiring <br />from Y,szifc River Corp. Acquisitions o£ WFCO and of the Knife River coal assets are a <br />fundamental part of WCC's growth strategy following our recent reorganization. <br />WCC places a high value on the WECO personnel, who will play a vitai~ole in our <br />growth ~tratagy. We plan to retain substantially all of the WECO employees at <br />substantially similar benefits and will rely on their expertise and experience to imptnve <br />our other operationr.. Our continued growth sbm~ld result in continued opportunities for <br />W8C0 personnel. We also note that WECO's Rosebud mine is represented by floe <br />):ntcrnational Union of Operating Engineers ("lYl'OE"}, which also represents the <br />world'orce at our Absaloka mine and the worl~orce of the Savage mine. We therefore <br />anticipate a broader relationship and greater opportunities foi cooperation with the IUOE. <br />WCC closed its longstanding Rillin~s office several years ago ixt a cost reduction e$'ort, <br />moving those functions to oux Absaloka mine site. While we have arrived at no <br />conclusions regarding the Coal Business Billings office location, our growing presence in <br />Montana (which tray also include the on-going acquisition ofcertain n`~n-coal energy <br />assets) and the (mown advantages of a $illings office would weigh heaJily ;n any <br />decision. This growth would also serve to benefit those personnel locat~d at the Billings <br />nffice_ <br />Basin, NCE, and Horizon are essentially defunct corporations, and WCC would have no <br />plans to revive them or to conduct business through them other than to fulfill or receive <br />existing obligations. As to the summary judgment and pending final decision against <br />Basin under Aguilar v. Basin, WCC has not determined whether we would appeal or <br />accept the Court's decision. Any WCC determination on this issue would be weighed <br />against our ongoing obligations to the UMWA retirement funds through our Eastern <br />operations and against our relationship with the UMWA workforce at the Beulah none. <br />Q/.t253 <br />WESTMORELAND COAL CO <br />60 39Cd <br />AND THE N00.TN AMERICAN <br />Wflltll WIC <br />CORL{CORPORAYJON <br />1 <br />65Z09b86IL 55:bT <br />L00Z/9Z/£0 <br />