Case KRH Doc 1292 Filed 01/15/16 Entered 01/15/16 16:14:50 Desc Main Document Page 1 of 5

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1 Document Page 1 of 5 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF VIRGINIA Richmond Division In Re: ALPHA NATURAL RESOURCES, INC., et al, Debtors. Chapter 11 Case No (KRH) (Jointly Administered) WISE COUNTY TREASURER S LIMITED OBJECTION TO SALE OF CERTAIN MINING PROPERTIES AND RELATED ASSETS FREE AND CLEAR OF LIENS COMES NOW, the Wise County Treasurer ( Treasurer ), by and through counsel, and in objection to the proposed sale of assets states as follows: BACKGROUND 1. Alpha Natural Resources, Inc. and numerous of its direct and indirect subsidiaries ( the debtors ) filed for relief under Chapter 11 of the United States Bankruptcy Code on August 3, Pursuant to Code of Virginia the Treasurer is charged with issuing bills for and the collecting duly assessed local taxes in Wise County, Virginia. 3. As of the petition date, the debtor, Alpha Natural Resources, Inc. and certain of its affiliate co-debtors ( Wise County debtors ) had been assessed for real estate, personal property taxes for the year These taxes remain due and unpaid as Mark K. Ames, VSB #27409 Taxing Authority Consulting Services, P.C. P.O. Box Henrico, VA (804) FAX (804) mark@taxva.com

2 Document Page 2 of 5 of the date of this objection. Taxes for the year 2015 owed by the Wise County debtors are itemized in Exhibit A attached to and made a part of this pleading. ARGUMENT 4. On or about October 22, 2015, the Alpha Natural Resources, Inc. and its codebtors filed the Combined Motion for Entry of (A) an Order Establishing Bidding and Sale Procedures for the Potential Sale of Certain Mining Properties and Related Assets and Granting Related Relief and (B) One or More Orders Approving the Sale of Such Properties [Docket No. 707] (the motion ). Among other things, the motion sought approval of bidding procedures for the sale of certain mining properties and the personal property located at those mines. The Court granted the motion by its Order (I) Approving Bidding and Sale Procedures for Certain Mining Properties and Related Assets, (II) Approving the Form and Manner of Notice of the Related Assumption and Assignment of Executory Contracts and Unexpired Leases and (III) Scheduling an Auction and Sale Hearing [Docket No. 855] (the order ). The order authorizes an auction of certain real and personal property of the debtors free and clear of liens on January 27, 2016, and set January 20, 2016 as the deadline for objecting to the sale of any specific property at the auction. The order also requires the debtors to provide a schedule of the assets subject to the sale, and permits the debtors to revise the schedule of assets prior to the auction by giving notice to certain affected parties. 2

3 Document Page 3 of 5 5. Pursuant to Code of Virginia and 3340, there shall be a lien prior to all other encumbrances and security interests for local taxes assessed per item or in bulk against tangible personal property and for real estate taxes. Accordingly, the Treasurer holds a first priority lien upon any real or personal property under assessment to be transferred in the proposed auction. Under the terms of the proposed sale, liens of parties secured by the auctioned assets shall attach to the proceeds in the same order of priority as existed against the assets. 6. The debtors notice of sale describes a proposed auction of mining properties, assets and related infrastructure, as described in Annex A, attached to the sale notice. The annex specifies mine and mine related operation locations based on internal company nomenclature with no detail as to the exact description or location of the real and tangible property to be sold. As a substantial portion of the property taxes assessed against the Wise County debtors is mobile tangible personal property which could be at any of the locations subject to the sale, the Treasurer is unable to unable to make any meaningful or accurate evaluation of the auction process, or to protect her interests in this matter without specific information to identify which items of real and tangible personal property are to be sold. 7. The Treasurer objects to the auction of the debtors assets as proposed without first being provided further identifying information which would enable her to reconcile her tax assessments with the specific personal or real property subject to 3

4 Document Page 4 of 5 sale and secondly being provided with other adequate assurances as required by Bankruptcy Code 363(e) that her first priority lien status will be protected and recognized accordingly in the distribution of sales proceeds. WHEREFORE, for the foregoing reasons, Wise County Treasurer objects to the debtors proposed sale of property of the estate at the auction currently scheduled for January 27, Respectfully submitted, Treasurer Wise County, Virginia BY: /s/ Mark K. Ames Mark K. Ames, VSB #27409 Jeffrey A. Scharf. VSB #30591 Taxing Authority Consulting Services, P.C. P.O. Box Henrico, VA (804) mark@taxva.com 4

5 Document Page 5 of 5 CERTIFICATE OF SERVICE I hereby certify that a true copy of the Objection was transmitted on this 15th day of January 2016, via ECF to debtor s counsel, the office of the US Trustee and all parties requesting notice as well as through First Class mail to the following recipients: Alpha Natural Resources Sands Anderson PC Attn: Richard H. Verheij, Esq. Attn: William A. Gray, Esq. One Alpha Place, PO BOX East Main Street Bristol, Virginia Richmond, Virginia Jones Day Davis Polk & Wardell LLP Attn: Carl E. Black, Esq. Attn: Damian S. Schaible, Esq. 901 Lakeside Avenue Attn: Damon P. Meyer, Esq. Cleveland, Ohio Levington Avenue New York, New York Jones Day Attn: Jeffrey B. Ellman, Esq. McGuireWoods LLP North Point, 1420 Peachtreet St. NE Attn: Dion W. Hayes, Esq. Suite 800 Attn: Sarah B. Boehm, Esq. Atlanta, Georgia Attn: K. Elizabeth Sieg, Esq. Gateway Plaza Hunton & Williams LLP 800 East Canal Street Attn: Tyler Brown, Esq. Richmond, Virginia Riverfront Plaza, East Tower 951 East Byrd Street Kutak Rock LLP Richmond, Virginia Attn: Michael A Condyles, Esq East Main Street Milbank, Tweed, Hadley & McCloy LLP Richmond, Virginia Attn: Evan R. Fleck, Esq. Attn: Eric K. Stodola, Esq. Kirland & Ellis LLP 28 Liberty Street Attn: Paul M. Basta, Esq. New York, New York Attn: Stephen E. Hessler, Esq. Attn: Brian E. Schartz, Esq. 601 Lexington Ave. New York, New York /s/ Mark K, Ames 5

6 NAME CASE # ACCT # PARCEL # PROPERTY TYPE SECURED Alpha Coal Sales Co LLC Case KRH Doc Filed PP 01/15/16 Entered $ 01/15/ :14:50 Desc Exhibit(s) Page 1 of 3 Alpha Natural Resources LLC PP $ 440, Alpha Natural Resources Services L PP $ Black Mountain Cumberland Resou PP $ Cumberland Coal Resources LP PP $ 1, Dickenson Russell Coal Company LL PP $ Knox Creek Coal Corporation PP $ Maxxim Rebuild Co LLC PP $ 320, Maxxim Shared Services LLC PP $ 40, Mill Branch Coal Corporation PP $ 135, North Fork Coal Corporation PP $ 96, Paramont Coal Company Virginia LL PP $ Paramont Coal Company Virginia LL PP $ 331, Pigeon Creek Processing Corporatio PP $ 51, TOTAL PP $ 1,421, Alpha Land and Reserves LLC RE $ Alpha Land and Reserves LLC RE $ Alpha Land and Reserves LLC RE $ 2.10 Alpha Land and Reserves LLC RE $ 0.60 Alpha Land and Reserves LLC RE $ Alpha Land and Reserves LLC RE $ Alpha Land and Reserves LLC RE $ Alpha Land and Reserves LLC RE $ 0.90 Alpha Land and Reserves LLC RE $ 9.60 Alpha Land and Reserves LLC RE $ Alpha Land and Reserves LLC RE $ Alpha Land and Reserves LLC RE $ Alpha Land and Reserves LLC RE $ 0.60 Alpha Land and Reserves LLC RE $ Alpha Land and Reserves LLC RE $ Alpha Land and Reserves LLC RE $ Alpha Land and Reserves LLC RE $ Alpha Land and Reserves LLC RE $ 8.10 Alpha Land and Reserves LLC RE $ Alpha Land and Reserves LLC RE $ Alpha Land and Reserves LLC RE $ Alpha Land and Reserves LLC RE $ Alpha Land and Reserves LLC RE $ Alpha Land and Reserves LLC RE $ 5.10

7 Alpha Land and Reserves LLC RE $ 5.10 Alpha Land and Reserves LLC Case KRH Doc Filed RE 01/15/16 Entered $ 01/15/ :14:50 Desc Exhibit(s) Page 2 of 3 Alpha Land and Reserves LLC RE $ 9.00 Alpha Land and Reserves LLC RE $ Alpha Land and Reserves LLC RE $ Alpha Land and Reserves LLC RE $ Alpha Land and Reserves LLC RE $ 7.20 Maxxim Rebuild Co LLC RE $ 6.00 Maxxim Rebuild Co LLC RE $ Maxxim Rebuild Co LLC RE $ Maxxim Rebuild Co LLC RE $ Maxxim Rebuild Co LLC RE $ 3, Maxxim Rebuild Co LLC RE $ 2, Maxxim Shared Services LLC RE $ 10, Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ 17, Paramont Coal Company Virginia LL RE $ 8.40 Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ 6.30 Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ 9.00 Paramont Coal Company Virginia LL RE $ 6.30 Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $

8 Paramont Coal Company Virginia LL RE $ 3.00 Paramont Coal Company Virginia LL Case KRH Doc Filed RE 01/15/16 Entered $ 01/15/ :14:50 Desc Exhibit(s) Page 3 of 3 Paramont Coal Company Virginia LL RE $ 1.50 Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ Paramont Coal Company Virginia LL RE $ 4.80 Paramont Coal Company Virginia LL RE $ TOTAL RE $ 38,712.97