EXHIBIT 99.1
PRESS RELEASE
CONTACT:
Brian L. Cantrell
(ALLIANCE RESOURCE PARTNERS, L.P. LOGO) Alliance Resource Partners, L.P.
1717 South Boulder Avenue, Suite 600
Tulsa, Oklahoma 74119
(918) 295-7673
FOR IMMEDIATE RELEASE
ALLIANCE RESOURCE PARTNERS, L.P.
Dotiki Mine Temporarily Idled Following Underground Fire; Efforts Underway to
Contain and Extinguish Fire
Tulsa, Oklahoma, February 12, 2004 - Alliance Resource Partners, L.P. (NASDAQ:
ARLP) today announced that its wholly-owned Webster County Coal, LLC subsidiary
has temporarily idled the Dotiki mine located near Providence, Kentucky,
following the occurrence of a mine fire early yesterday morning. The fire
originated from a diesel supply tractor located in an area near two of the
mine's six active mining areas. After detection of the fire, Webster County
immediately implemented fire suppression efforts and, with the exception of fire
fighting personnel, evacuated the mine. All employees are accounted for and no
injuries were incurred during the evacuation.
Working closely and cooperatively with federal and state safety officials, which
have representatives on site, Webster County is implementing a plan to isolate
and extinguish the fire and determine when coal production can be resumed at the
mine. Webster County is temporarily sealing two main underground passageways and
one of four mine portals in order to cut off oxygen to the fire. In addition,
crews are drilling multiple boreholes into the mine. These holes will be used to
take air readings, assess atmospheric conditions and pump carbon dioxide and
nitrogen into the mine to extinguish the fire. Once the fire is extinguished and
the atmosphere is inert, mine rescue teams will re-enter the mine to begin the
process of recovering the mine and returning it to production.
"The safety of our employees is always our highest priority," said Charles R.
Wesley III, Senior Vice President of Operations. "Our Dotiki employees responded
quickly and appropriately to this situation and are working tirelessly to resume
safe operations at the earliest possible date. Despite these best efforts,
however, it is possible that normal operations will remain suspended for some
time. Even though Alliance had just achieved record financial results last
month, the Partnership's results will be adversely impacted until production
resumes at the Dotiki mine. We do not believe, however, that the current
circumstances will have a material long-term impact on the Dotiki mine or the
Partnership."
Alliance is initiating an analysis of all possible alternatives to mitigate
potential losses arising from the fire. This analysis will include a review of
its commercial property (including business interruption) insurance policy,
which provides for a deductible of $3.5 million and ten percent coinsurance.
Until such analysis is completed, however, it is premature to determine the
specific impact the Dotiki mine fire incident may have on the financial
performance of Alliance.
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The Dotiki mine is an underground mining complex that employs approximately 360
workers. The mine produces low moisture, high sulfur coal from the Kentucky No.
9 coal seam utilizing continuous mining units and room-and-pillar techniques.
Production from the mine during 2003 was approximately 4.9 million tons.
The statements and projections used throughout this release are based on current
expectations. These statements and projections are forward-looking, and actual
results may differ materially. These projections do not include the potential
impact of any mergers, acquisitions or other business combinations that may
occur after the date of this release. At the end of this release, we have
included more information regarding the business risks that could affect our
results.
Alliance Resource Partners is the nation's only publicly traded master limited
partnership involved in the production and marketing of coal. Alliance Resource
Partners currently operates mining complexes in Illinois, Indiana, Kentucky and
Maryland.
FORWARD-LOOKING STATEMENTS: WITH THE EXCEPTION OF HISTORICAL MATTERS, ANY
MATTERS DISCUSSED IN THIS PRESS RELEASE ARE FORWARD-LOOKING STATEMENTS THAT
INVOLVE RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY FROM PROJECTED RESULTS. THESE RISKS, UNCERTAINTIES AND CONTINGENCIES
INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING: COMPETITION IN COAL MARKETS AND
OUR ABILITY TO RESPOND TO THE COMPETITION; FLUCTUATION IN COAL PRICES, WHICH
COULD ADVERSELY AFFECT OUR OPERATING RESULTS AND CASH FLOWS; DEREGULATION OF THE
ELECTRIC UTILITY INDUSTRY OR THE EFFECTS OF ANY ADVERSE CHANGES IN THE DOMESTIC
COAL INDUSTRY, ELECTRIC UTILITY INDUSTRY, OR GENERAL ECONOMIC CONDITIONS;
DEPENDENCE ON SIGNIFICANT CUSTOMER CONTRACTS, INCLUDING RENEWING CUSTOMER
CONTRACTS UPON EXPIRATION OF EXISTING CONTRACTS; CUSTOMER BANKRUPTCIES AND/OR
CANCELLATIONS OF, OR BREACHES TO, EXISTING CONTRACTS; CUSTOMER DELAYS OR
DEFAULTS IN MAKING PAYMENTS; FLUCTUATIONS IN COAL DEMAND, PRICES AND
AVAILABILITY DUE TO LABOR AND TRANSPORTATION COSTS AND DISRUPTIONS, EQUIPMENT
AVAILABILITY, GOVERNMENTAL REGULATIONS AND OTHER FACTORS; OUR PRODUCTIVITY
LEVELS AND MARGINS THAT WE EARN ON OUR COAL SALES; ANY UNANTICIPATED INCREASES
IN LABOR COSTS, ADVERSE CHANGES IN WORK RULES, OR UNEXPECTED CASH PAYMENTS
ASSOCIATED WITH POST-MINE RECLAMATION AND WORKERS' COMPENSATION CLAIMS; ANY
UNANTICIPATED INCREASES IN TRANSPORTATION COSTS AND RISK OF TRANSPORTATION
DELAYS OR INTERRUPTIONS; GREATER THAN EXPECTED ENVIRONMENTAL REGULATIONS, COSTS
AND LIABILITIES; A VARIETY OF OPERATIONAL, GEOLOGIC, PERMITTING, LABOR AND
WEATHER-RELATED FACTORS; RISKS OF MAJOR MINE-RELATED ACCIDENTS OR INTERRUPTIONS;
RESULTS OF LITIGATION; DIFFICULTY MAINTAINING OUR SURETY BONDS FOR MINE
RECLAMATION AS WELL AS WORKERS' COMPENSATION AND BLACK LUNG BENEFITS; DIFFICULTY
OBTAINING COMMERCIAL PROPERTY INSURANCE; AND RISKS ASSOCIATED WITH OUR 10.0%
PARTICIPATION (EXCLUDING ANY APPLICABLE DEDUCTIBLE) IN THE COMMERCIAL PROPERTY
PROGRAM.
ADDITIONAL INFORMATION CONCERNING THESE AND OTHER FACTORS CAN BE FOUND IN THE
PARTNERSHIP'S PUBLIC PERIODIC FILINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION ("SEC"), INCLUDING THE PARTNERSHIP'S ANNUAL REPORT ON FORM 10-K FOR
THE YEAR ENDED DECEMBER 31, 2002 FILED ON MARCH 20, 2003 WITH THE SEC. EXCEPT AS
REQUIRED BY APPLICABLE SECURITIES LAWS, THE PARTNERSHIP DOES NOT INTEND TO
UPDATE ITS FORWARD-LOOKING STATEMENTS.
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