Westmoreland Power to Join Montana-Dakota Utilities' Application for LV-21 Power Project

Apr 26, 2001, 01:00 ET from Westmoreland Coal Company

    COLORADO SPRINGS, Colo., April 26 /PRNewswire/ -- Westmoreland Coal
 Company ("Westmoreland"); (Amex:   WLB) and Montana-Dakota Utilities Co.
 ("MDU"), a Division of MDU Resources Group, Inc. (NYSE:   MDU), announced today
 that Westmoreland's wholly owned subsidiary Westmoreland Power, Inc. and MDU
 have entered into a non-binding Letter of Intent to seek a definitive joint
 venture development agreement ("Project Agreement") for a 500MW power project
 at the inactive Gascoyne mine site in southwest North Dakota.  Westmoreland
 Power will join MDU's application to the Lignite Energy Council and the North
 Dakota Industrial Commission ("Commission") for approval and funding for the
 development in conjunction with Lignite Vision 21 ("LV-21").  Westmoreland
 Power's separate application will remain open pending completion of the
 Project Agreement.
     LV-21 is a partnership between the State of North Dakota and the Lignite
 Energy Council designed to encourage construction of a new baseload power
 plant in North Dakota and includes up to $10 million in matching funds for
 such development.  The Lignite Energy Council has expressed support for a
 cooperative agreement between Westmoreland Power and MDU who believe that
 Gascoyne is a particularly attractive site for a power project.  Westmoreland
 Coal Company's subsidiary, Westmoreland Mining LLC, is acquiring the coal
 assets of Knife River Corp. (also a subsidiary of MDU Resources Group, Inc.).
 Westmoreland's power development subsidiary will acquire certain rights at the
 inactive Gascoyne Mine.  The Knife River Corp. closing is expected to be
 announced shortly.
     "The combined team of Westmoreland and MDU can provide a wealth of coal
 and power development and operations experience to the development of LV-21,"
 said Christopher K. Seglem, Westmoreland Coal Company's Chairman, President
 and CEO.  "We appreciate the support of the Lignite Energy Council and the
 collaboration of MDU on a joint effort to obtain available funding to
 determine the feasibility of this project which we believe will help serve
 growing energy needs in North Dakota and surrounding markets," he said.
 
     Westmoreland Coal Company, headquartered in Colorado Springs, is the
 oldest independent coal company in the United States.  The company's coal
 operations include Powder River Basin coal mining through its 80%-owned
 subsidiary, Westmoreland Resources, Inc., and operations in Montana, Texas and
 North Dakota being acquired from Montana Power Company and Knife River
 Corporation through its wholly owned subsidiary Westmoreland Mining LLC.  The
 Company also has interests in four operating independent power projects held
 by its wholly owned subsidiary, Westmoreland Energy, Inc. and holds a
 20% interest in Dominion Terminal Associates, a coal shipping and terminal
 facility in Newport News, Virginia.  Westmoreland is implementing a growth
 strategy dedicated to meeting America's dual goals of low-cost power and a
 clean environment through the acquisition and development of complementary,
 niche opportunities in coal, power and other segments of the energy sector.
 
     MDU Resources Group, Inc. provides energy, value-added natural resource
 products and related services that are essential to our country's energy,
 transportation and communication infrastructure.  MDU Resources includes
 electric and natural gas utilities, a natural gas pipeline, utility services,
 natural gas and oil production, construction materials and mining, and energy
 services.  For more information about MDU Resources, see the company's web
 site at www.mdu.com.
 
     As to Westmoreland Coal Company: Certain statements in this press release
 which are not historical facts or information are "forward-looking statements"
 within the meaning of Section 27A of the Securities Act of 1933 and Section
 21E of the Securities Exchange Act of 1934, including, but not limited to, the
 information set forth in Management's Discussion and Analysis of Financial
 Condition and Results of Operations.  Any statements contained herein that are
 not statements of historical fact may be deemed to be forward-looking
 statements.  For example, words such as "may," "will," "should," "estimates,"
 "predicts," "potential," "continue," "strategy," "believes," "anticipates,"
 "plans," "expects," "intends," and similar expressions are intended to
 identify forward-looking statements.  Such forward-looking statements involve
 known and unknown risks, uncertainties and other factors which may cause the
 actual results, levels of activity, performance or achievements of the
 Company, or industry results, to be materially different from any future
 results, levels of activity, performance or achievements expressed or implied
 by such forward-looking statements.  Such factors include, among others, the
 following: general economic and business conditions; the ability of the
 Company to implement its business strategy; the Company's access to financing;
 the Company's ability to successfully identify new business opportunities; the
 Company's ability to achieve anticipated cost savings and profitability
 targets; changes in the industry; competition; the Company's ability to
 utilize its tax net operating losses; the ability to reinvest excess cash at
 an acceptable rate of return; weather conditions; the availability of
 transportation; price of alternative fuels; costs of coal produced by other
 countries; demand for electricity; the effect of regulatory and legal
 proceedings, the announced liquidity issues for Washington Group International
 and other factors discussed in Item 1 and Item 7 of the Company's Form 10-K
 for the year ended December 31, 2000.  As a result of the foregoing and other
 factors, no assurance can be given as to the future results and achievement of
 the Company.  Neither the Company nor any other person assumes responsibility
 for the accuracy and completeness of these statements.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X58605581
 
 

SOURCE Westmoreland Coal Company
    COLORADO SPRINGS, Colo., April 26 /PRNewswire/ -- Westmoreland Coal
 Company ("Westmoreland"); (Amex:   WLB) and Montana-Dakota Utilities Co.
 ("MDU"), a Division of MDU Resources Group, Inc. (NYSE:   MDU), announced today
 that Westmoreland's wholly owned subsidiary Westmoreland Power, Inc. and MDU
 have entered into a non-binding Letter of Intent to seek a definitive joint
 venture development agreement ("Project Agreement") for a 500MW power project
 at the inactive Gascoyne mine site in southwest North Dakota.  Westmoreland
 Power will join MDU's application to the Lignite Energy Council and the North
 Dakota Industrial Commission ("Commission") for approval and funding for the
 development in conjunction with Lignite Vision 21 ("LV-21").  Westmoreland
 Power's separate application will remain open pending completion of the
 Project Agreement.
     LV-21 is a partnership between the State of North Dakota and the Lignite
 Energy Council designed to encourage construction of a new baseload power
 plant in North Dakota and includes up to $10 million in matching funds for
 such development.  The Lignite Energy Council has expressed support for a
 cooperative agreement between Westmoreland Power and MDU who believe that
 Gascoyne is a particularly attractive site for a power project.  Westmoreland
 Coal Company's subsidiary, Westmoreland Mining LLC, is acquiring the coal
 assets of Knife River Corp. (also a subsidiary of MDU Resources Group, Inc.).
 Westmoreland's power development subsidiary will acquire certain rights at the
 inactive Gascoyne Mine.  The Knife River Corp. closing is expected to be
 announced shortly.
     "The combined team of Westmoreland and MDU can provide a wealth of coal
 and power development and operations experience to the development of LV-21,"
 said Christopher K. Seglem, Westmoreland Coal Company's Chairman, President
 and CEO.  "We appreciate the support of the Lignite Energy Council and the
 collaboration of MDU on a joint effort to obtain available funding to
 determine the feasibility of this project which we believe will help serve
 growing energy needs in North Dakota and surrounding markets," he said.
 
     Westmoreland Coal Company, headquartered in Colorado Springs, is the
 oldest independent coal company in the United States.  The company's coal
 operations include Powder River Basin coal mining through its 80%-owned
 subsidiary, Westmoreland Resources, Inc., and operations in Montana, Texas and
 North Dakota being acquired from Montana Power Company and Knife River
 Corporation through its wholly owned subsidiary Westmoreland Mining LLC.  The
 Company also has interests in four operating independent power projects held
 by its wholly owned subsidiary, Westmoreland Energy, Inc. and holds a
 20% interest in Dominion Terminal Associates, a coal shipping and terminal
 facility in Newport News, Virginia.  Westmoreland is implementing a growth
 strategy dedicated to meeting America's dual goals of low-cost power and a
 clean environment through the acquisition and development of complementary,
 niche opportunities in coal, power and other segments of the energy sector.
 
     MDU Resources Group, Inc. provides energy, value-added natural resource
 products and related services that are essential to our country's energy,
 transportation and communication infrastructure.  MDU Resources includes
 electric and natural gas utilities, a natural gas pipeline, utility services,
 natural gas and oil production, construction materials and mining, and energy
 services.  For more information about MDU Resources, see the company's web
 site at www.mdu.com.
 
     As to Westmoreland Coal Company: Certain statements in this press release
 which are not historical facts or information are "forward-looking statements"
 within the meaning of Section 27A of the Securities Act of 1933 and Section
 21E of the Securities Exchange Act of 1934, including, but not limited to, the
 information set forth in Management's Discussion and Analysis of Financial
 Condition and Results of Operations.  Any statements contained herein that are
 not statements of historical fact may be deemed to be forward-looking
 statements.  For example, words such as "may," "will," "should," "estimates,"
 "predicts," "potential," "continue," "strategy," "believes," "anticipates,"
 "plans," "expects," "intends," and similar expressions are intended to
 identify forward-looking statements.  Such forward-looking statements involve
 known and unknown risks, uncertainties and other factors which may cause the
 actual results, levels of activity, performance or achievements of the
 Company, or industry results, to be materially different from any future
 results, levels of activity, performance or achievements expressed or implied
 by such forward-looking statements.  Such factors include, among others, the
 following: general economic and business conditions; the ability of the
 Company to implement its business strategy; the Company's access to financing;
 the Company's ability to successfully identify new business opportunities; the
 Company's ability to achieve anticipated cost savings and profitability
 targets; changes in the industry; competition; the Company's ability to
 utilize its tax net operating losses; the ability to reinvest excess cash at
 an acceptable rate of return; weather conditions; the availability of
 transportation; price of alternative fuels; costs of coal produced by other
 countries; demand for electricity; the effect of regulatory and legal
 proceedings, the announced liquidity issues for Washington Group International
 and other factors discussed in Item 1 and Item 7 of the Company's Form 10-K
 for the year ended December 31, 2000.  As a result of the foregoing and other
 factors, no assurance can be given as to the future results and achievement of
 the Company.  Neither the Company nor any other person assumes responsibility
 for the accuracy and completeness of these statements.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X58605581
 
 SOURCE  Westmoreland Coal Company