Exhibit 99.1

                                  PRESS RELEASE


FOR IMMEDIATE RELEASE

   PEN HOLDINGS, INC. FILES VOLUNTARY PETITIONS FOR CHAPTER 11 REORGANIZATION

Nashville, TN, January 25, 2002 -- Pen Holdings, Inc. ("Pen Holdings") announced
today that on January 24, 2002 it and certain of its subsidiaries filed
voluntary petitions for Chapter 11 reorganization with the U.S. Bankruptcy Court
for the Middle District of Tennessee.

In conjunction with the company's Chapter 11 filings, Pen Holdings has obtained
the Court's interim approval to utilize cash collateral which will enable the
company to continue normal business operations.

Petitions for Chapter 11 reorganization have also been filed for five of Pen
Holdings' subsidiaries, including Pen Coal Corporation, The Elk Horn Coal
Corporation, River Marine Terminals, Inc., Marine Terminals Incorporated and Pen
Land Company.

In connection with the filings, Pen Holdings has gained Bankruptcy Court
approval of a variety of motions to support its employees, vendors, customers
and other constituents. The company expects to continue employee pay and
benefits without disruption. During the restructuring process, vendors and
suppliers will be paid under normal terms for goods or services provided to Pen
Holdings or its subsidiaries during the reorganization.

"The last year has been an extremely challenging one for our company. Our
liquidity position was severely impaired by the ultimate outcome of the Cheyenne
Resources, Inc. litigation, and compounded by adverse mining conditions at our
Fork Creek operations. We, along with our advisors, have worked vigorously to
explore various measures to remedy these circumstances, but have found no viable
alternative to date. A great deal of analysis and deliberation has gone into the
decision to seek relief under Chapter 11 and this was an extremely difficult
decision for us to make, as we have a talented, loyal and dedicated group of
employees. However, we intend to continue to explore scenarios that we believe
will be beneficial to our employees, vendors, customers and other interested
parties. This voluntary, but difficult, decision enables us to continue our
operations with a high level of commitment," said William E. Beckner, President
and Chief Executive Officer and majority shareholder of Pen Holdings.

Pen Holdings and its consolidated subsidiaries (the "Company") are primarily
engaged in the mining and sale of coal, selling predominantly to utility
companies. The Company also receives royalty income from coal reserves leased to
other companies. The Company's coal reserves and mining operations are located
in Kentucky and West Virginia.



The statements contained in this press release that are not historical facts are
"forward looking statements" (as such term is defined in the Private Securities
Litigation Reform Act of 1995), which statements can be identified by the use of
forward looking terminology such as "believes," "expects," "may," "will,"
"should," "intends," "anticipates," or "forecasts" or the negative thereof or
other variations thereon or comparable terminology, or by discussions of
strategy that involve risks and uncertainties. Management cautions the reader
that these forward looking statements are only predictions. No assurance can be
given that future results will be achieved; actual events or results may differ
materially as a result of risks facing the Company. Such risks include, but are
not limited to the outcome of the Chapter 11 process, the Company's reliance on
long-term sales contracts, the Company's reliance on long-term mineral leases,
the competitive environment in which the Company operates, the risks inherent to
the mining industry, acquisitions, government regulation, reclamation and mine
closure accruals, the effects of Clean Air Act Amendments on the coal industry,
replacement and recoverability of coal reserves, economic conditions in the coal
industry generally and technological developments. Such risks could cause actual
results to vary materially from the future results indicated, expressed or
implied, in such forward looking statements.

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For additional information please contact:
MARK A. OLDHAM, SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
(615) 371-7300