On November 20, 2008, Westmoreland Resources, Inc. ("WRI"), a wholly-owned subsidiary of Westmoreland Coal Company ("Westmoreland"), entered into a second amendment (the "Amendment") to the Business Loan Agreement dated October 29, 2007, as amended (the "Loan Agreement"), and a Change in Terms Agreement, with First Interstate Bank, Billings, Montana ("FIB"). Westmoreland Coal Company is guarantor of WRI's obligations under the Loan Agreement and has pledged 100% of WRI's common stock to FIB as collateral to secure such guaranty. The Loan Agreement provided WRI, as borrower, a $8,500,000 term loan and a $20,000,000 revolving line of credit. The revolving line of credit originally matured on October 28, 2008. On October 28, 2008, WRI entered into a 30-day extension of the revolving line of credit, and borrowings during this extension period were limited to $10,000,000.

Pursuant to the Amendment and the Changes in Terms Agreement, the revolving line of credit has been extended to November 19, 2009 and the amount of borrowings available under the revolving line of credit is restored to the original amount of $20,000,000. The interest rate will be the prime rate, subject to a floor of 6% per annum and a ceiling of 8% per annum.

A copy of the Amendment and Change in Terms Agreement are attached hereto as Exhibit 10.1 and 10.2 and are incorporated by reference herein. The foregoing description of the Amendment and Change in Terms Agreement do not purport to be complete and are qualified in their entirety by Exhibit 10.1 and Exhibit 10.2.

     Exhibit 10.1   Amendment No. 2 to Business Loan Agreement dated November 20,
                    2008 between Westmoreland Resources, Inc., Westmoreland Coal
                    Company and First Interstate Bank.

Exhibit 10.2 Change in Terms Agreement dated November 20, 2008 between Westmoreland Resources, Inc. and First Interstate Bank.