COAL MINING LEASE

EXHIBIT 10.51

COAL MINING LEASE — CROW TRIBAL LANDS — COAL LEASE

     This CROW TRIBAL LANDS COAL LEASE (hereinafter “Coal Lease”), made and entered into this 13 ^th day of February, 2004, to be effective thirty (30) days after the date upon which Westmoreland exercises its option under Section 3.2 of the Exploration Agreement (hereinafter referred to as the “Effective Date of this Coal Lease”), between the CROW TRIBE OF INDIANS , Crow Agency, Montana 59022 (hereinafter “Lessor”), and WESTMORELAND RESOURCES, INC ., a corporation organized under the laws of the state of Delaware, with its principal place of business at P.O. Box 449, Hardin, Big Horn County, Montana (hereinafter “Lessee”).

W I T N E S S E T H:

     Lessor and Lessee, in consideration of these premises and for other valuable consideration herein provided, hereby agree as follows:

ARTICLE 1 INDIAN MINERAL DEVELOPMENT ACT

     This Lease is entered into pursuant to the terms of the Indian Mineral Development Act of 1982.

ARTICLE 2 INCORPORATION OF EXPLORATION AGREEMENT

     This Coal Lease is executed pursuant to and is expressly made subject to the terms and conditions of that certain Exploration and Option to Lease Agreement (herein the “Exploration Agreement”) executed contemporaneously with this Coal Lease by and between Lessor and Lessee. The definitions, terms, and conditions set forth in the Exploration Agreement, and all provisions listed in Section 27.2 thereof, are incorporated herein by reference. Where there is a conflict between the terms of the Exploration Agreement and this Coal Lease, the terms of this Coal Lease shall prevail.

ARTICLE 3 LEASE OF INDIAN LAND

     Lessor, for and in consideration of the payments described in the Exploration Agreement, and in consideration of the rents and royalties to be paid by Lessee to Lessor hereunder, does hereby grant, demise, lease, and let exclusively to Lessee, its successors and assigns, for the sole purpose of mining Coal, all of Lessor’s right, title, and interest in that tract of land (hereinafter the “Leased Premises”) identified as the Mining Area in accordance with the terms and conditions of Section 8 of the Exploration Agreement, and the use of the surface and subsurface overlying the same, in, under and upon the Leased Premises, together with the right to exercise and conduct Mining Rights and Mining Activities thereon and therein.

ARTICLE 4 DEFINITION OF “MINING RIGHTS”

     “Mining Rights,” as used herein, shall mean all necessary or convenient rights and privileges incident to the mining, storing, processing, and shipping of Coal under this Coal Lease or any Coal acquired pursuant to Article 15, including, but not limited to, the right to mine, remove, transport, and process Coal in, on, or under the Leased Premises by any method; the right to market, sell, and ship coal removed; the right to use Tribal Lands leased hereunder to construct, maintain, and operate roadways, railroads, sidetracks, switches, haul ways, dams, substations, buildings, processing plants, tipples, water drainage courses and conveyors, and any other improvements or structures necessary or convenient to accomplish the purpose of this Coal Lease; the right to use and transport water developed by Lessee and any other water made available to the Lessee on the Leased Premises; the right to enter in accordance with applicable law upon the surface of the Leased Premises from time to time with tools, equipment, and machinery for the purpose of drilling, taking core samples, surveying, mapping, and performing environmental research; the right to pump and discharge water; the right to transport, without further charge, rent, or royalty, over and through the Leased Premises and over and through the Crow Reservation from the Leased Premises, personnel, materials, supplies, and Coal, including coal mined from other properties now or hereafter leased; the right to make such other use of the Leased Premises as shall be necessary and convenient for the mining, transporting, storage, and processing of Coal, Coal refuse, and by-products; the right to do all things necessary and convenient to satisfy all applicable legal requirements for environmental protection and reclamation during and after Mining Activities; the right to ingress and egress to the Leased Premises, including the right to construct, maintain, and operate access roads, power lines, telephone lines, pipelines, and railroads to and in the Leased Premises, the right to remove Lessee’s improvements, fixtures, and equipment at the conclusion of mining or reclamation, all without further charge, rent, or royalty, except as otherwise provided in the Exploration Agreement.

     Subject to the provisions of Article 17 of this Coal Lease, any rights-of-way across Crow Reservation land shall be granted in accordance with applicable federal laws and regulations governing rights-of-way across Indian land.

     The parties further agree that any off-lease Mining Rights to be exercised by the Lessee shall be reasonable and necessary and shall be utilized by Lessee in accordance with all applicable federal regulations, other than those waived by the Secretary where waiver is found to be in the best interests of the Lessor and is otherwise appropriate to effectuate the terms and conditions of this Coal Lease. The parties further agree that Lessee will take whatever measures it deems necessary to obtain whatever additional rights or interests may be necessary for the uses of lands described in this Article from the owner or owners of the surface estate other than the Lessor. The parties understand that the Lessor grants to the Lessee only those rights and interests in the surface estate within the Leased Premises that it owns or controls and will cooperate with Lessee in Lessee’s efforts to obtain additional surface rights as provided in the Exploration Agreement.

ARTICLE 5 COVENANT OF QUIET ENJOYMENT

     Lessor covenants that the Lessee, upon complying with the terms, conditions, covenants, and agreements hereof, shall have quiet and peaceful possession and enjoyment of the Leased Premises and the Mining Rights granted herein.

ARTICLE 6 TERM

     This Coal Lease is granted for a primary term of ten (10) years from the Effective Date of this Coal Lease, and for so long thereafter as the Coal is being produced by Lessee in “Paying Quantities,” but the period for mining shall not exceed twenty-five (25) years from the date of the first Coal delivery from the Leased Premises, plus any adjustment for Force Majeure. As used in this Article, the term “Paying Quantities” means that, by midnight of the last day of the primary term of the Exploration Lease, the Lessee has commenced and thereafter continues the primary removal of Coal intended for sale and upon which royalties will be paid, subject to the provisions of Force Majeure contained in Article 31 of this Coal Lease.

     No Coal may be mined from the Leased Premises after the end of such twenty-five (25) year period, as extended by Force Majeure. However, after the end of the twenty-five (25) year period for mining or, when prior thereto, mining on the Leased Premises otherwise ceases, this Coal Lease shall continue for as long as is necessary to allow Lessor to conduct activities necessary or appropriate to reclaim the land, salvage equipment, and comply with applicable laws and regulations. Reclamation shall be deemed complete at time of final bond release. If, at the end of twenty-five (25) years, there is mineable Coal remaining within the Leased Premises that would be sterilized, bypassed, or forever forsaken by the termination of mining of Coal by Lessee, adjustments to this termination date may be made by the mutual consent of Lessor and Lessee.

ARTICLE 7 ROYALTY PAYMENTS

     7.1 Minimum Royalty . Lessee shall pay, or cause to be paid, a royalty to the Superintendent for the use and benefit of Lessor, on or before the twenty-fifth (25th) day of each calendar month during the term hereof on all Coal mined and shipped from the Leased Premises during the preceding calendar month. The amount of minimum royalty, hereinafter “Minimum Royalty,” paid shall be an amount per ton equal to 6.5% of the sales price per ton sold and delivered F.O.B. Mine at loadout into or onto a Carrier, hereinafter “Sales Price.” The Minimum Royalty of 6.5% may be increased as provided in provision 7.3 below.

     7.2 Additional Royalty. Lessee shall pay, or cause to be paid, an additional royalty to the Superintendent for the use and benefit of Lessor, on or before the twenty-fifth (25th) day of the calendar month following each calendar quarter during the term hereof on all Coal mined and shipped from the Leased Premises during the preceding calendar quarter. The amount of additional royalty shall be determined as follows:

hereinafter “Initial Base Price.” The Initial Base Price was determined using the formula and methodology set forth in Appendix A for a Sales Price of $7.38 per ton.

     7.3 Royalty Offset . If the amount of taxes payable to the Crow Tribe is reduced for any reason (including, but not limited to, a reduction in the Montana tax rates) after this Coal Lease takes effect, the Minimum Royalty provided in Article 7.1 and payable to the Crow Tribe shall be increased by an amount necessary to offset the reduction in taxes, so that the total taxes and royalty paid to the Crow Tribe equals the current taxes in existence in 2003, plus the royalty otherwise payable under this Coal Lease; provided, however, that the maximum royalty rate shall not exceed 12.5% of the Sales Price; and provided further that if Westmoreland notifies the Crow Tribe that the increased royalty will result in serious difficulty in marketing the coal, or loss of sales under current long term coal sales agreements, the Crow Tribe will negotiate in good faith on reducing the amount of increase in the royalty rate. If a tax increase occurs, following a tax reduction and royalty increase per this section, then there will be a commensurate royalty reduction, so that the total taxes and royalty paid remains as provided in the first sentence of this Section 7.3.

     7.4 Royalty Cap and Additional Royalty Adjustment . Notwithstanding Sections 7.1, 7.2, or 7.3, the total royalty paid to Lessor from the mining operations under this Coal Lease shall never exceed 12.5% of the Sale Price.

     7.5 Measure of Quantity for Royalty Payment. The quantity of all Coal mined and shipped by the Lessee shall be determined by railroad or truck scales, belt weightometers, or other means mutually agreed upon.

     7.6 Royalty Payments . All royalty payments and reports shall be made according to the applicable federal regulations governing royalty payments for Indian coal. Where the express terms of this Agreement differ from any provisions of the applicable federal regulations, the terms of this Agreement shall control. This method of payment shall also apply to the Annual Rental and surface rental payable pursuant to Articles 9 and 10 of this Coal Lease, and to royalties payable under the Tract III Lease as provided in section 6.1 of the Exploration Agreement.

ARTICLE 8 TAX

     Lessee shall pay, or cause to be paid, to the Superintendent for the use and benefit of Lessor, a tax on its mining operations as follows:

     8.1 Exploration Agreement . All tax provisions in the Exploration Agreement, including, without limitation, Sections 15, 17, and 19, shall apply to all mining and Mining Activities undertaken pursuant to this Coal Lease.

     8.2 Tax Obligation and Calculation . On Coal mined and shipped from the Mining Area pursuant to this Coal Lease, Lessee will from time to time pay to the Lessor a tax equal to the Montana coal severance tax existing at the time the Exploration Agreement is executed and applicable to the mining of Coal generally within the state of Montana and a tax equal to the Montana state gross proceeds tax existing at that time and applicable to the mining of Coal generally within the state, less whatever amount is required to be paid in severance and gross proceeds taxes to the state of Montana or its political subdivisions. The tax shall be levied on the Sales Prices of Coal as defined in Section 7.1, less any applicable deductions.

          Compliance with the terms of this Coal Lease shall satisfy any obligation which Lessee may have now, or at any time hereafter, to pay any severance or other tax to Lessor pursuant to any tax ordinance which now exists or may be adopted by Lessor hereafter. Lessor shall not attempt to assess or collect any tax or other amount from Lessee except as provided for in this Coal Lease or the Exploration Agreement.

          Nothing in this Lease is to be construed as an admission that Montana has any right to tax coal on the Crow Reservation. In the event the Crow Tribe litigates this issue, Lessee will cooperate reasonably to provide information to the Lessor.

     8.3 Maximum Tax . The amount of tax payable to Lessor under provision 8.2 will not exceed the amount that otherwise would be payable by a Coal operator on non-tribal lands to Montana or its political subdivisions, giving effect to all allowable deductions and credits, if Lessor’s activities were fully taxable by Montana or its political subdivisions.

     8.4 Reporting and Payment . Lessee shall provide to the Lessor all of the information that Lessee may be, or otherwise would be, required to provide to the state of Montana or its political subdivisions in satisfaction of the requirements of Montana’s severance tax law and gross proceeds tax law at the same time that such information is, or otherwise would be, provided to the state of Montana or to its political subdivisions. Lessee shall pay any amounts due to the Lessor under this Article, and provide an accounting of, and explanation for, said amounts, at the same time

that Montana’s severance and gross proceeds taxes are being, or otherwise would be, paid. The confidentiality provisions of Article 18 shall apply equally to this Article. All tax payments shall be made according to the applicable federal regulations governing royalty payments for Indian coal. Where the express terms of this Agreement differ from any provisions of the applicable federal regulations, the terms of this Agreement shall control.

     8.5 Changes in Rate of Tax.

a. Tax Reduction. In the event that either the Montana state severance tax or gross proceeds tax should be repealed or reduced below its current level, then amounts paid by Lessee under Section 8.2 shall be reduced accordingly. Further, an adjustment to royalty will be made in accord with Article 7. In addition, the parties shall have the rights provided herein below:

b. Procedure for Renegotiation Impasse . In the event Lessor and Lessee are unable to reach an agreement on the amount of taxes to be paid to the Lessor within sixty (60) days of the commencement of negotiations provided for in 8.5a.(1) (excluding time required to seek approval of any such agreement at the next meeting of Lessor’s Tribal Legislature), then, unless otherwise agreed, either Lessor or Lessee may resolve the issue of the proper amount of taxes payable by Lessee to Lessor under this Coal Lease through binding arbitration. The arbitration procedure shall be that provided in the Exploration Agreement at Section 26. The arbitrators shall be asked to arrive at a reasonable rate of severance and gross proceeds tax which, when combined with the royalty received by the Crow Tribe, accomplishes the following goals: provision to Westmoreland of a reasonable profit and rate of return on its investment, when compared with similar (including non-tribal) mining operations located within Lessee’s market area; while providing a reasonable return to the Crow Tribe from the mining of its mineral assets in the form of royalty and severance and gross proceeds taxes.

ARTICLE 9 ANNUAL RENTAL

     Lessee shall pay, or cause to be paid, for the use and benefit of Lessor, in advance, beginning with the date of approval of this Coal Lease by the Secretary, as annual rental, One Dollar and 0/100 ($1.00) per acre for the first lease year, and subsequently One Dollar and 0/100 ($1.00) per acre per year, payable in advance on or before the first day of each lease year, for each and every year during the continuance of this Coal Lease. The rent is not to be credited on royalties accruing to Lessor under this Coal Lease. If this Coal Lease is surrendered or cancelled, no part of any advance rental shall be refunded to Lessee, nor shall the surrender or cancellation relieve Lessee from the obligation to pay the advance rental when it becomes due, on any portion of the Lease that is retained.

ARTICLE 10 SURFACE LEASE

     Lessee shall pay a separate surface rental on all surface property owned by Lessee within the Mining Area of one dollar and 0/100 cents ($1.00) per acre per year.

ARTICLE 11 PREVENTION OF WASTE

     Lessee shall carry on development and operations in a workmanlike manner and agrees to the following: to neither commit nor suffer waste to be committed upon the land leased; to comply with applicable laws of the United States; and to surrender and return promptly the premises upon the termination of this Coal Lease to whoever is lawfully entitled thereto. If Lessee is in compliance with applicable federal laws and regulations and mining in accord with approved mining plans and permits, including the Resource Recovery and Protection Plan, it shall be deemed to be in full compliance with its obligation to prevent waste and to mine in a workmanlike manner.

     If the payments agreed upon in this Coal Lease have been made and the other lease terms and applicable regulations have been complied with, the office fixtures and records, personal property, tools, pumping and drilling equipment, boilers, engines and mining machinery, facilities and equipment, and all other personal property and improvements on the leased land (except the Lessor’s property) may be removed by the Lessee as soon as practicable after the Coal Lease expires by forfeiture or otherwise.

ARTICLE 12 FORESTS, CROPS, AND GRAZING

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