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Significant Acquisitions
 3 Months Ended
Mar. 31, 2012
Significant Acquisitions [Abstract]  
Significant Acquisitions

3. Significant Acquisitions

Sugar Camp. In March 2012, the Partnership acquired the rail loadout, associated infrastructure assets and a contractual overriding royalty interest on certain tonnage at the Sugar Camp mine in Illinois for total consideration of $58.9 million. The consideration for the rail loadout of $50.0 million included transportation equipment of $10.1 million together with a transportation contract asset of $39.9 million representing the above market portion of the transportation contract. The fair value of the equipment was based on professional estimates of market value and is considered to be a Level 2 value while the fair value of the transportation contract asset was based upon estimates of discounted future cash flows, a Level 3 fair value. The expected cash flows were developed using estimated annual tons and the contracted per ton fee less an estimated market portion of the fee. In a separate transaction, the Partnership acquired a contractual overriding royalty interest for $8.9 million, which does not represent an interest in coal reserves but will provide for cash payments based upon production from the Sugar Camp operations. This overriding royalty was recorded as a financing arrangement in the accompanying balance sheet. The cash payments the Partnership receives with respect to the overriding royalty will reduce the asset value, and associated revenue will be recorded as override royalty revenue over the life of the contract based upon estimated production and adjusted periodically for changes in projections of production and the mining plan. The rail loadout and infrastructure assets were purchased from Sugar Camp Energy, LLC and the contractual overriding royalty interest was purchased from Ruger, LLC, both affiliates of the Cline Group.

Colt. In September 2009, the Partnership signed a definitive agreement to acquire approximately 200 million tons of coal reserves related to the Deer Run Mine in Illinois from Colt, LLC, an affiliate of the Cline Group, through several separate transactions for a total purchase price of $255 million. As of March 31, 2012, the Partnership had acquired approximately 118.1 million tons of reserves for approximately $215 million, including $40.0 million paid during the first quarter 2012. The final closing is anticipated to occur in the third quarter of 2012 and will be associated with completion of certain milestones related to the new mine.