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Board of Commissioners Meetings

Regular Meeting

Henderson, KY · February 28, 2022

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Minutes

31 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Special Called Meeting on February 28, 2022 A special called meeting of the Board of Commissioners of the City of Henderson, Kentucky, was held on Monday, February 28, 2022, at 12:00 noon, in the third floor Assembly Room of the Municipal Center, 222 First Street, Henderson, Kentucky, designated as the primary location for this video teleconference meeting as the result of the state of emergency declared by the President of the United States, the Governor of Kentucky, and the Mayor of the city of Henderson due to the global COVID-19 pandemic, and in accordance with recommended and mandated precautions related to COVID-19 per the Kentucky Attorney General Opinion 20-05. The meeting was conducted in accordance with KRS 61.826 and SB150 There were present Mayor Steve Austin presiding: PRESENT: Commissioner Bradley S. Staton Commissioner Rodney Thomas Commissioner Austin P. Vowels Commissioner Robert N. Pruitt, Sr. ALSO PRESENT: Mr. William L. “Buzzy” Newman, Jr., City Manager Mrs. Dawn Kelsey, City Attorney Ms. Maree Collins, City Clerk Mrs. Donna Stinnett, Community Relations Manager/Public Information Officer Mrs. Theresa Richey, Legal Secretary (via Zoom) Mr. Bill Raleigh, IT Support Specialist Mr. Victor Carson, IT Network Administrator Mr. Travis Owens, IT Programmer/Analyst Mr. Tom Williams, Henderson Water Utility General Manager Ms. Whitney Risley, HED Existing Industry & Workforce Development Director Mr. Kevin Patton, the Gleaner (via Zoom) ________________________ MUNICIPAL ORDER NO. 14-22: MUNICIPAL ORDER APPROVING DEED OF CONVEYANCE BETWEEN THE CITY OF HENDERSON AND HENDERSON COAL RESERVES, LLC; AND DEED OF CONVEYANCE BETWEEN THE CITY OF HENDERSON AND ALLIANCE RESOURCE PROPERTIES, LLC, BOTH FOR COAL RIGHTS ON PROPERTY LOCATED ON KY HWY 425 (HENDERSON BY-PASS); AND AUTHORIZING MAYOR TO EXECUTE DEEDS ON BEHALF OF THE CITY MOTION by Commissioner Staton, seconded by Commissioner Pruitt, authorizing the Deeds of Conveyance with Henderson Coal Reserves, LLC and Alliance Resource Properties, LLC, for coal rights on property located on the KY 425 Bypass. These mineral rights are in addition to the rights conveyed in the original deeds and previous mineral deeds for the property recently acquired by the City. MAYOR AUSTIN indicated that a lot of hard work has gone into this project, and he would like to extend a formal thanks to Alliance Coal and the Craft family for their generosity and assistance. The vote was called. On roll call, the vote stood: Commissioner Staton ---- Aye: Commissioner Thomas --- Aye: Commissioner Vowels --- Aye: Commissioner Pruitt ----- Aye: Mayor Austin ------------- Aye: 32 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Special Called Meeting on February 28, 2022 WHEREUPON, Mayor Austin declared the municipal order adopted, affixed his signature and the date thereto, and ordered that the same be recorded. /s/ Steve Austin Steve Austin, Mayor ATTEST: February 28, 2022 Maree Collins, CKMC, City Clerk ________________________ MEETING ADJOURN: MOTION by Commissioner Staton, seconded by Commissioner Thomas, to adjourn the meeting. The vote was called. On roll call, the vote stood: Commissioner Staton ---- Aye: Commissioner Thomas --- Aye: Commissioner Vowels --- Aye: Commissioner Pruitt ----- Aye: Mayor Austin ------------- Aye: WITHOUT OBJECTION, Mayor Austin declared the Meeting adjourned at approximately 12:05 p.m. ___________________________ Steve Austin, Mayor ATTEST: November 22, 2022 ______________________ Maree Collins, CKMC City Clerk

Agenda

City of Henderson, Kentucky NOTICE OF SPECIAL CALLED MEETING FOR MONDAY, FEBRUARY 28, 2022 BEGINNING AT NOON February 24, 2022 Commissioner Robert N. Pruitt Commissioner Bradly S. Staton Commissioner Rodney Thomas Commissioner Austin P. Vowels Dear Board Members: As a result of the state of emergency declared by the President of the United States, the Governor of Kentucky, and the Mayor of the city of Henderson due to the global COVID-19 pandemic, and in accordance with recommended precautions related to COVID-19, the following Meeting Notice is issued: Please take notice that as Mayor of the City of Henderson, Kentucky, I hereby call a meeting of the Board of Commissioners to be held on Monday, February 28, 2022, at Noon in the third- floor assembly room, 222 First Street, Henderson, Kentucky. The meeting will be broadcast live to the public on Zoom (call in number/webinar ID – 1 312 626 6799 / 822 9760 6004 Password: 8311200) or https://us02web.zoom.us/j/82297606004 Password: 8311200; live streamed on the city’s website: https://www.cityofhendersonky.org/CivicMedia; Facebook and Twitter. The purpose of this called meeting is for the following: 1. Roll Call: 2. Municipal Order: Authorizing Execution of Deeds of Conveyance for Coal Rights on Property at KY 425 Bypass 3. Adjournment: Respectfully, __________________________ Steve Austin, Mayor A copy of the foregoing notice received, and service thereof waived this 28th day of February 2022. _________________________________ Commissioner Robert N. Pruitt Sr. _________________________________ Commissioner Bradley S. Staton _________________________________ Commissioner Rodney Thomas _________________________________ Commissioner Austin P. Vowels City Commission Memorandum 22-36 February 24, 2022 TO: Mayor Steve Austin and the Board of Commissioners FROM: William L. "Buzzy" Newman, Jr., City Manager / v v(/J SUBJECT: Deeds for Coal Rights - Highway 425 Bypass Property The accompanying municipal order approves the execution of two Deeds of Conveyance for coal rights on property located on KY HWY 425 (Henderson Bypass). The Deeds of Conveyance from Alliance Resource Properties, LLC and Henderson Coal Reserves, LLC to the City of Henderson for coal rights and are in addition to the rights conveyed in the original deeds and previous mineral deeds for the property recently acquired by the City. There is no monetary consideration paid for this conveyance. Your approval of the attached municipal order is requested. c: Dawn Kelsey MUNICIPAL ORDER NO. _ __ MUNICIPAL ORDER APPROVING DEED OF CONVEYANCE BETWEEN THE CITY OF HENDERSON AND HENDERSON COAL RESERVES, LLC; AND, DEED OF CONVEYANCE BETWEEN THE CITY OF HENDERSON AND ALLIANCE RESOURCE PROPERTIES, LLC, BOTH FOR COAL RIGHTS ON PROPERTY LOCATED ON KY HWY 425 (HENDERSON BY-PASS); AND AUTHORIZING MAYOR TO EXECUTE DEEDS ON BEHALF OF THE CITY WHEREAS, for and in consideration of the public benefit to be derived by the citizens of the City of Henderson, Kentucky, by the construction and operation of the new Pratt Paper (Ky) LLC facility, Henderson Coal Reserves, LLC and Alliance Resource Properties, LLC, collectively referred herein as "Granters" desire to convey their respective Coal, together will all mining rights, easements, privileges and appurtenances thereunto on real property located on KY 425 (Henderson By-Pass); and WHEREAS, the "Granters" certify there are no monetary considerations paid for the Coal rights herein, rather being an in-kind donation by the Granters to the City of Henderson for economic development purposes. NOW, THEREFORE, BE IT ORDERED by the City of Henderson, Kentucky, that the Deed of Conveyance between the City of Henderson and Henderson Coal Reserves, LLC, 1717 South Boulder Avenue, Tulsa, Oklahoma 74119, contained herein and marked as "Exhibit l ", and the Deed of Conveyance between the City of Henderson and Alliance Resource Properties, LLC, 1146 Monarch Street, Suite 350, Lexington, Kentucky 40513, contained herein and marked as "Exhibit 2", are hereby approved, and the Mayor is authorized to execute the Deeds on behalf of the City. On motion of Commissioner _ _ _ _, seconded by Commissioner _ _ __, that the foregoing Municipal Order be adopted, the vote was called. On roll call the vote stood: Commissioner Staton: Commissioner Pruitt: - - - Commissioner Thomas: Mayor Austin: Commissioner Vowels: INTRODUCED, PUBLICLY READ AND FINALLY APPROVED ON ONE READING, this the _ _ _ day of February 2022. Steve Austin, Mayor Date: ---------- MUNICIPAL ORDER NO. MUNICIPAL ORDER NO. CONT.) ATTEST: By: Dawn S. Kelsey City Attorney 2 MUNICIPAL ORDER NO. DEED OF CONVEYANCE THIS DEED OF CONVEYANCE is made and entered into on the __ day of 2022, by and between HENDERSON COAL RESERVES, LLC, a Delaware limited liability company, with a mailing address of 1717 South Boulder Avenue, Tulsa, Oklahoma 74119 (the "Grantor"), and the CITY OF HENDERSON, KENTUCKY, a Kentucky municipal corporation, with a mailing address of P.O. Box 716, Henderson, Kentucky 42419 (the "Grantee"). The "in care of' tax mailing address for Grantee is P.O. Box 716, Henderson, Kentucky 42419. WITNESS ETH: That for and in consideration of the public benefit to be derived by the citizens of the City of Henderson, Kentucky, the receipt and sufficiency of such consideration being hereby acknowledged by the Grantee, and for no monetary consideration, the Grantor does hereby convey, release, and quitclaim unto the Grantee, its successors and assigns forever, in fee simple, the coal No. 9 seam of coal in and underlying certain real property located in Henderson County, Kentucky, and more particularly described on Exhibit A attached hereto and incorporated herein by reference (such No. 9 seam of coal together with all other minerals lying within, embedded within or associated with the coal, including, but not limited to coalbed methane, coal mine methane, and gob gas, to the extent owned by Grantor, hereinafter the "Coal"). TO HAVE AND TO HOLD all of the Coal, in fee simple, together with all mining rights, easements, privileges and appurtenances thereunto belonging, unto the Grantee, its successors and assigns, forever, without warranty of title of any kind or nature, it being understood and agreed between the parties that this conveyance is intended to merely QUITCLAIM unto the Grantee any and all right, title and interest of the Grantor in and to said surface property. The Grantor acknowledges that it shall pay all county and state ad valorem and school property taxes assessed against the above-described property up to and including the current tax year, if any. "Exhibit 1" Consideration Certificate of Grantor The Grantor does hereby certify, pursuant to KRS Chapter 382, that that there is no monetary consideration paid for the property herein (there being $1,949,000.00 of in-kind donation by the Grantor for economic development purposes). The Grantee further certifies that the foregoing transfer is exempt from the real estate transfer tax imposed by KRS 142.050 by virtue of the exemption set forth in KRS 142.050(7)(b). IN TESTIMONY WHEREOF, the Grantor has executed this Deed, including the Consideration Certificate of the Grantors, this __ day of _ _ _ _ _ _ _ 2022. GRANTOR: Henderson Coal Reserves, LLC By: WKY CoalPlay LLC Sole Member By: _ _ _ _ _ _ _ _ _ _ __ Printed Name: - - - - - - - - - - Title:------------- Certificate of Acknowledgement COMMONWEALTH OF KENTUCKY ) ) COUNTY OF _FAYETTE ) I, the undersigned, certify that the foregoing Deed, including the Consideration Certificate of the Grantor, was produced before me in my said County and State and duly signed, sworn to and acknowledged by _ _ _ _ _, as _ _ _ _ _ _ _ of WKY Coal Play LLC, sole member of Henderson Coal Reserves, LLC, for and on behalf of said entity, this __ day of - - - - - - - 2022. Notary Public, State at Large Notary ID (if any): _ _ _ _ _ _ _ _ _ __ My commission expires: _ _ _ _ _ _ _ __ Consideration Certificate of Grantee The Grantee does hereby certify, pursuant to KRS Chapter 382, that that there is no monetary consideration paid for the property herein (there being $1,949,000.00 of in-kind donation by the Granter for economic development purposes). The Grantee further certifies that the foregoing transfer is exempt from the real estate transfer tax imposed by KRS 142.050 by virtue of the exemption set forth in KRS 142.050(7)(b). IN TESTIMONY WHEREOF, the Grantee has executed Consideration Certificate on this __ day of _ _ _ _ _ _ 2022. GRANTEE: City of Henderson, Kentucky By: _ _ _ _ _ _ _ _ _ _ _ _ __ Steve Austin, Mayor ATTEST: By:-------------- Maree Collins, City Clerk Certificate of Acknowledgement COMMONWEALTH OF KENTUCKY ) ) COUNTY OF HENDERSON ) I, the undersigned, certify that the foregoing Consideration Certificate of Grantee was produced before me in my said County and State and duly signed, sworn to and acknowledged by Steve Austin, as Mayor of the City of Henderson, Kentucky, and attested to by Maree Collins, City Clerk, on this __ day of _ _ _ _ _ _ _ 2022. Notary Public, State at Large Notary ID (if any): _ _ _ _ _ _ _ _ _ __ My commission expires: _ _ _ _ _ _ _ __ This Instrument Prepared By: John H. Henderson Alliance Resource Properties, LLC 1146 Monarch Street, Suite 350 Lexington, Kentucky 40513 (859) 685-6310 Exhibit A All right, title, and interest in the Kentucky #9 seam of coal only, and the mining rights and privileges appurtenant thereto in, on, and underlying the following described real property lying and being in Henderson County, Kentucky, to-wit: T.50 (f/k/a 137-055) The coal under the following tracts conveyed to Ohio Valley Banking and Trust Company by deed from James L. Lambert, et ux dated June 30, 1927, ofrecord in Deed Book 75 page 150, Henderson County Court Clerk's Office. Less 198.31 acres and other exceptions listed below. Tract 1: 15.06 acres conveyed by Mrs. Barbara Schlamp to L. P. Kleiderer by deed dated September 1, 1905, and recorded in Deed Book 37 page 27, Henderson County Court Clerk's Office. Tract 2: 36 acres conveyed by Mrs. Rosina Eckert to L. P. Kleiderer by deed dated September 1, 1905, and recorded in Deed Book 37 page 23, Henderson County Court Clerk's Office. Tract 3: 90 acres conveyed by A. S. Nunn, Marion Duncan, Juliett E. Duncan, Wm. Elliott, Trustee for Mary Nunn Elliott, &c, Win. Elliott and Mary N. Elliott to L. P. Kleiderer by deed dated August 26, 1905, recorded in Deed Book 37 page 17, Henderson County Court Clerk's Office. Tract 4: 9 acres conveyed by Malcolm Yeaman and John W. Lockett to L. P. Kleiderer by deed dated October 27, 1905, and recorded in Deed Book 37 page 31, Henderson County Court Clerk's Office. Tract 5: 20 acres conveyed by Robert F. Mabrey to L. P. Kleiderer by deed dated September 20, 1905, recorded in Deed Book 37 page 26, Henderson County Court Clerk's Office. Tract 6: 21.73 acres conveyed by G. R. Williams to L. P. Kleiderer by deed dated September 1, 1905, and recorded in Deed Book 37 page 25, Henderson County Court Clerk's Office. Tract 7: 7 acres conveyed by Jacob Bonenberher to L. P. Kleiderer by deed dated September 6, 1905, and recorded in Deed Book 37 page 32, Henderson County Court Clerk's Office. Tract 8: 1.05 acres conveyed by Jacob Bonenberher to L. P. Kleiderer by deed dated September 6, 1905 and not recorded. Tract 9: 4.46 acres conveyed by C.H. Trent to L. P. Kleiderer by deed dated September 15, 1905, and recorded in Deed Book 37 page 33, Henderson County Court Clerk's Office. Tract 10: 3 acres conveyed by Stewart Bennett to L. P. Kleiderer by deed dated September 12, 1905, and recorded In Deed Book 37 page 35, Henderson County Court Clerk's Office. Tract 11: 3.66 acres conveyed to L. P. Kleiderer by W. K. Baker by deed dated August 31, 1905, and recorded in Deed Book 37 page 34, Henderson County Court Clerk's Office. Tract 12: 2.33 acres conveyed to L. P. Kleiderer by Montgomery Merritt by deed dated September 12, 1905, and recorded in Deed Book 37 page 36, Henderson County Court Clerk's Office. Tract 13: 2.68 acres conveyed to L. P. Kleiderer by Mary Beroset by deed dated October 26, 1905, and recorded in Deed Book 37 page 36, Henderson County Court Clerk's Office. Tract 14: 2 acres conveyed to L. P. Kleiderer by Robert L. Rhea by deed dated July 6, 1906 and recorded in Deed Book 37 page 594, Henderson County Court Clerk's Office. Tract 15: 2.44 acres conveyed to L. P. Kleiderer by Mrs. Marie Deicken by deed dated March 16, 1907, and recorded in Deed Book 40 page 307, Henderson County Court Clerk's Office. Tract 16: 3.66 acres conveyed by Mrs. Emma C. Jordan to L. P. Kleiderer by deed dated October 24, 1906, and recorded in Deed Book 40 page 316, Henderson County Court Clerk's Office. Tract 17: 0.61 acres conveyed to L. P. Kleiderer by Giles Alves and Galvin Winteres by deed dated June 17, 1907, and recorded in Deed Book 40 page 313, Henderson County Court Clerk's Office. Tract 18: 0.61 acres conveyed to L. P. Kleiderer by W. C. and Paul Farley by deed dated April 25, 1907, and recorded in Deed Book 40 page 314, Henderson County Court Clerk's Office. Tract 19: 1.22 acres conveyed to L. P. Kleiderer by R. E. Smith by deed dated April 1, 1907, and recorded in Deed Book 40 page 316, Henderson County Court Clerk's Office. Tract 20: 2.36 acres conveyed to L. P. Kleiderer by J. T. Span by deed dated September 10, 1917, and recorded in Deed Book 56 page 344, Henderson County Court Clerk's Office. Tract 21: 90 acres conveyed to L. P. Kleiderer by J. H. Pierce &c by deed dated May 22, 1918, and recorded in Deed Book 57 page 279, Henderson County Court Clerk's Office. Tract 22: 30.54 acres conveyed to L. P. Kleiderer by Settle Arvin &C by deed dated July 22, 1905, and recorded in Deed Book 37 page 24, Henderson County Court Clerk's Office. Tract 23: 95 acres conveyed to L. P. Kleiderer by Selle & Friederich by deed dated July 5, 1905, and recorded in Deed Book 37 page 16, Henderson County Court Clerk's Office. Tract 24: 45.49 acres conveyed to L. P. Kleiderer by Margaret Goffey &c by deed dated October 23, 1905, and recorded in Deed Book 37 page 21, Henderson County Court Clerk's Office. Tract 25: 13.75 acres conveyed by Emma C. U. Smith &c to L.P. Kleiderer by deed dated August 31, 1905, and recorded in Deed Book 37 page 28, Henderson County Court Clerk's Office. Tract 27: 64 acres conveyed to L. P. Kleiderer by Salvator Gimini &c by deed dated July 7, 1905, and recorded in Deed Book 37 page 20, Henderson County Court Clerk's Office. Tract 28: 514.55 acres conveyed to L. P. Kleiderer by Unverzagt and Smith by deed dated July 3, 1905, and recorded in Deed Book 37 page 5, Henderson County Court Clerk's Office. Tract 29: 264 acres conveyed to L. P. Kleiderer by James S. Alves and wife by deed dated October 6, 1905, and recorded in Deed Book 37 page 12, Henderson County Court Clerk's Office. Tract 32: 150 acres conveyed to L. P. Kleiderer by Rufus Sellars, &c by deed dated December 2, 1905, and recorded in Deed Book 37 page 15, Henderson County Court Clerk's Office. Tract 33: 328.50 acres conveyed by ELizah Sellars and wife to L. P. Kleiderer by deed dated December 11, 1905, and recorded in Deed Book 37 page 10, Henderson County Court Clerk's Office. Tract 35: 168 acres conveyed to L. P. Kleiderer by Chris Linden burg and wife by deed dated March 11, 1909, and recorded in Deed Book42 page 559, Henderson County Court Clerk's Office. Tract 37: 60 acres conveyed to L. P. Kleiderer by Z. H. Littlepage by deed dated August 3, 1905, and recorded in Deed Book 37 page 19, on January 2, 1906 In the Henderson County Court Clerk's Office. Tract 38: - OMITTED. Tract 39: - OMITTED. Tract 40: 6 acres conveyed to L. P. Kleiderer by Mary Marshall by deed dated December 7, 1907, and recorded in Deed Book 40 page 308, Henderson County Court Clerk's Office. Tract 41: 18 acres conveyed to L. P. Kleiderer by W. T. Shoemaker by deed dated May 8, 1905, and recorded in Deed Book 36 page 226, Henderson County Court Clerk's Office. Tract 42: 67.81 acres conveyed to L. P. Kleiderer by J. C. Gardner by deed dated January 21, 1907, and recorded in Deed Book 40 page 315, Henderson County Court Clerk's Office. Tract 43: 21.02 acres conveyed to L. P. Kleiderer by J. T. Span by deed dated August 15, 1907, and recorded in Deed Book 40 page 317, Henderson County Court Clerk's Office. Tract 44: - OMITTED. Tract 45: - OMITTED. Tract 46: 28.20 acres conveyed to L. P. Kleiderer by Barber Allen by deed dated October 5, 1907, and recorded in Deed Book 41 page 426, Henderson County Court Clerk's Office. Tract 47: 145.67 acres conveyed to L. P. Kleiderer by C. F. Kleiderer by deed dated December 8, 1903, and recorded in Deed Book 34 page 149, Henderson County Court Clerk's Office. Tract 48: 9.03 acres conveyed to L. P. Kleiderer by C. F. Kleiderer by deed dated December 8, 1903 and recorded in Deed Book 34 page 149, Henderson County Court Clerk's Office. There is excepted from the above coal rights the following conveyances by Ohio Valley Banking and Trust Company: By deed dated July 24, 1922, Deed Book 66 page 188, Ohio Valley Banking and Trust Company conveyed to R. A. Culver and Dick Culver 19 acres with no exceptions or reservations of the minerals. By deed dated October 29, 1941, Deed Book 102 page 11, Ohio Valley Trust Company conveyed to Margaret W. McCormick 9 acres, with no exceptions or reservations. By deed dated December 21, 1926, Deed Book 85 page 257, James L. Lambert and wife, Ann W. Lambert conveyed to Noah Thompson and wife, Mae Thompson, 3 parcels. By deed dated December 5, 1942, Deed Book 105 page 475, Peter B. Muir, Special Commissioner of the District Court of the United States of America conveyed to the United States of America 2.31 acres with no exceptions or reservations; By deed dated December 5, 1942, Deed Book 105 page 479, Peter B. Muir Special Commissioner, conveyed to United States of America 2.23 acres with no exceptions or reservations. By deed dated April 8, 1944, Deed Book 113 page 343, Peter B. Muir, Special Commissioner, conveyed to the United States of America 5.99 acres with no exceptions or reservations. By deed dated May 29, 1943, Deed Book 108 page 316, Peter B. Muir, Commissioner for the United States District Court conveyed to United States of America 11.33 acres with no exceptions or reservations. By deed dated July 23, 1951, Deed Book 153 page 265, Ohio Valley Trust Company, successor in title to Ohio Valley Banking and Trust Company conveyed to Spencer Chemical Company all the coal in and underlying 170 acres, with no exceptions or reservations. By deed dated January 24, 1957, Deed Book 182 page 444, Ohio Valley Trust Company in voluntary liquidation, conveyed to E. A. Whitledge and wife, Betty Neel Whitledge all of its right, title and interest in the minerals underlying about 7 acres. By deed dated May 20, 1944, Deed Book 144 page 163, Peter B. Muir Special Commissioner conveyed to United States of America 61.4 acres, with no exceptions or reservations. By deed dated November 10, 1948, Deed Book 150 at page 359, United States of America by the Federal Farm Mortgage Corporation reconveyed to Ohio Valley Trust Company all the coal in and under the above 61.4 acres. AND BEING the same property conveyed to Peabody Coal Company by Ohio Valley Trust Company by deed dated November 9, 1971, recorded in Deed Book 255, page 594, Henderson County Clerk's office. NOTWITHSTANDING anything to the contrary contained herein, Grantee intends to convey all of its interest in and to the Coal in and underlying the tracts depicted on Exhibit B, whether or not said tracts are described above, and Grantee does not intend to convey any interest in and to the Coal other than those tracts depicted on Exhibit B, even if such tracts are described above. Source of Title Being a portion of the same property conveyed to Henderson Coal Reserves, LLC, by deed from Midwest Coal Reserves of Kentucky, LLC, dated December 8, 2014, and of record in Deed Book 607, at Page 548, in the office of the Henderson County Clerk. DEED OF CONVEYANCE THIS DEED OF CONVEYANCE is made and entered into on the __ day of _ _ _ _ _ _ 2022, by and between ALLLIANCE RESOURCE PROPERTIES, LLC, a Delaware limited liability company, with a mailing address of 1146 Monarch Street, Suite 350, Lexington, Kentucky 40513 (the "Grantor"), and the CITY OF HENDERSON, KENTUCKY, a Kentucky municipal corporation, with a mailing address of P. 0. Box 716, Henderson, Kentucky 42419 (the "Grantee"). The "in care of' tax mailing address for Grantee is P.O. Box 716, Henderson, Kentucky 42419. WITNESSETH: That for and in consideration of the public benefit to be derived by the citizens of the City of Henderson, Kentucky, the receipt and sufficiency of such consideration being hereby acknowledged by the Grantee, and for no monetary consideration, the Grantor does hereby convey, release, and quitclaim unto the Grantee, its successors and assigns forever, in fee simple, all of the coal except the No. 7 and No. 9 seams of coal in and underlying certain real property located in Henderson County, Kentucky, and more particularly described on Exhibit A attached hereto and incorporated herein by reference (such coal, except the No. 7 and No. 9 seams of coal, hereinafter the "Coal"). TO HAVE AND TO HOLD all of the Coal, in fee simple, together with all mining rights, easements, privileges and appurtenances thereunto belonging, unto the Grantee, its successors and assigns, forever, without warranty of title of any kind or nature, it being understood and agreed between the parties that this conveyance is intended to merely QUITCLAIM unto the Grantee any and all right, title and interest of the Grantor in and to said Coal. Consideration Certificate of Grantor The Grantor does hereby certify, pursuant to KRS Chapter 382, that that there is no monetary consideration paid for the property herein (there being $6,931,000.00 of in-kind donation by the Grantor for economic development purposes). The Grantee further certifies that the foregoing transfer is exempt from the real estate transfer tax imposed by KRS 142.050 by virtue of the exemption set forth in KRS 142.050(7)(b). IN TESTIMONY WHEREOF, the Grantor has executed this Deed, including the Consideration Certificate of the Grantor, this __ day of _ _ _ _ _ _ _ 2022. "Exhibit 2" GRANTOR: Alliance Resource Properties, LLC By: _ _ _ _ _ _ _ _ _ _ _ _ __ John H. Henderson Vice President - Land Management Certificate of Acknowledgement COMMONWEALTH OF KENTUCKY ) ) COUNTY OF.FAYETTE ) I, the undersigned, certify that the foregoing Deed, including the Consideration Certificate of the Grantor, was produced before me in my said County and State and duly signed, sworn to and acknowledged by John H. Henderson, as Vice President - Land Management of Alliance Resource Properties, LLC, the Grantor, this __ day of _ _ _ _ _ _ _ 2022. Notary Public, State at Large Notary ID (if any): _ _ _ _ _ _ _ _ _ __ My commission expires: _ _ _ _ _ _ _ __ Consideration Certificate of Grantee The Grantee does hereby certify, pursuant to KRS Chapter 382, that that there is no monetary consideration paid for the property herein (there being $6,931,000.00 of in-kind donation by the Grantor for economic development purposes). The Grantee further certifies that the foregoing transfer is exempt from the real estate transfer tax imposed by KRS 142.050 by virtue of the exemption set forth in KRS 142.050(7)(b). IN TESTIMONY WHEREOF, the Grantee has executed Consideration Certificate on this _ _ day of _ _ _ _ _ _ 2022. GRANTEE: City of Henderson, Kentucky By:----------------- Steve Austin, Mayor ATTEST: By: _ _ _ _ _ _ _ _ _ _ _ _ __ Maree Collins, City Clerk Certificate of Acknowledgement COMMONWEALTH OF KENTUCKY ) ) COUNTY OF HENDERSON ) I, the undersigned, certify that the foregoing Consideration Certificate of Grantee was produced before me in my said County and State and duly signed, sworn to and acknowledged by Steve Austin, as Mayor of the City of Henderson, Kentucky, and attested to by Maree Collins, City Clerk, on this _ _ day of _ _ _ _ _ _ _ 2022. Notary Public, State at Large Notary ID (if any): _ _ _ _ _ _ _ _ __ My commission expires: _ _ _ _ _ _ _ __ This Instrument Prepared By: John H. Henderson Alliance Resource Properties, LLC 1146 Monarch Street, Suite 350 Lexington, Kentucky 40513 (859) 685-6310 Exhibit A All right, title, and interest in all veins or seams of coal except the Kentucky #7 and #9 seams of coal only, and the mining rights and privileges appurtenant thereto in, on, and underlying the following described real property lying and being in Henderson County, Kentucky, to-wit: T.50 (f/k/a 137-055) The coal under the following tracts conveyed to Ohio Valley Banking and Trust Company by deed from James L. Lambert, et ux dated June 30, 1927, ofrecordin Deed Book 75 page 150, Henderson County Court Clerk's Office. Less 198.31 acres and other exceptions listed below. Tract 1: 15.06 acres conveyed by Mrs. Barbara Schlamp to L. P. Kleiderer by deed dated September 1, 1905, and recorded in Deed Book 37 page 27, Henderson County Court Clerk's Office. Tract 2: 36 acres conveyed by Mrs. Rosina Eckert to L. P. Kleiderer by deed dated September 1, 1905, and recorded in Deed Book 37 page 23, Henderson County Court Clerk's Office. Tract 3: 90 acres conveyed by A. S. Nunn, Marion Duncan, Juliett E. Duncan, Wm. Elliott, Trustee for Mary Nunn Elliott, &c, Win. Elliott and Mary N. Elliott to L. P. Kleiderer by deed dated August 26, 1905, recorded in Deed Book 37 page 17, Henderson County Court Clerk's Office. Tract 4: 9 acres conveyed by Malcolm Yeaman and John W. Lockett to L. P. Kleiderer by deed dated October 27, 1905, and recorded in Deed Book 37 page 31, Henderson County Court Clerk's Office. Tract 5: 20 acres conveyed by Robert F. Mabrey to L. P. Kleiderer by deed dated September 20, 1905, recorded in Deed Book 37 page 26, Henderson County Court Clerk's Office. Tract 6: 21.73 acres conveyed by G. R. Williams to L. P. Kleiderer by deed dated September 1, 1905, and recorded in Deed Book 37 page 25, Henderson County Court Clerk's Office. Tract 7: 7 acres conveyed by Jacob Bonenberher to L. P. Kleiderer by deed dated September 6, 1905, and recorded in Deed Book 37 page 32, Henderson County Court Clerk's Office. Tract 8: 1.05 acres conveyed by Jacob Bonenberher to L. P. Kleiderer by deed dated September 6, 1905 and not recorded. Tract 9: 4.46 acres conveyed by C.H. Trent to L. P. Kleiderer by deed dated September 15, 1905, and recorded in Deed Book 37 page 33, Henderson County Court Clerk's Office. Tract 10: 3 acres conveyed by Stewart Bennett to L. P. Kleiderer by deed dated September 12, 1905, and recorded In Deed Book 37 page 35, Henderson County Court Clerk's Office. Tract 11: 3.66 acres conveyed to L. P. Kleiderer by W. K. Baker by deed dated August 31, 1905, and recorded in Deed Book 37 page 34, Henderson County Court Clerk's Office. Tract 12: 2.33 acres conveyed to L. P. Kleiderer by Montgomery Merritt by deed dated September 12, 1905, and recorded in Deed Book 37 page 36, Henderson County Court Clerk's Office. Tract 13: 2.68 acres conveyed to L. P. Kleiderer by Mary Beroset by deed dated October 26, 1905, and recorded in Deed Book 37 page 36, Henderson County Court Clerk's Office. Tract 14: 2 acres conveyed to L. P. Kleiderer by Robert L. Rhea by deed dated July 6, 1906 and recorded in Deed Book 37 page 594, Henderson County Court Clerk's Office. Tract 15: 2.44 acres conveyed to L. P. Kleiderer by Mrs. Marie Deicken by deed dated March 16, 1907, and recorded in Deed Book 40 page 307, Henderson County Court Clerk's Office. Tract 16: 3.66 acres conveyed by Mrs. Emma C. Jordan to L. P. Kleiderer by deed dated October 24, 1906, and recorded in Deed Book 40 page 316, Henderson County Court Clerk's Office. Tract 17: 0.61 acres conveyed to L. P. Kleiderer by Giles Alves and Galvin Winteres by deed dated June 17, 1907, and recorded in Deed Book 40 page 313, Henderson County Court Clerk's Office. Tract 18: 0.61 acres conveyed to L. P. Kleiderer by W. C. and Paul Farley by deed dated April 25, 1907, and recorded in Deed Book 40 page 314, Henderson County Court Clerk's Office. Tract 19: 1.22 acres conveyed to L. P. Kleiderer by R. E. Smith by deed dated April 1, 1907, and recorded in Deed Book 40 page 316, Henderson County Court Clerk's Office. Tract 20: 2.36 acres conveyed to L. P. Kleiderer by J. T. Span by deed dated September 10, 1917, and recorded in Deed Book 56 page 344, Henderson County Court Clerk's Office. Tract 21: 90 acres conveyed to L. P. Kleiderer by J. H. Pierce &c by deed dated May 22, 1918, and recorded in Deed Book 57 page 279, Henderson County Court Clerk's Office. Tract 22: 30.54 acres conveyed to L. P. Kleidererby Settle Arvin&C by deed dated July 22, 1905, and recorded in Deed Book 37 page 24, Henderson County Court Clerk's Office. Tract 23: 95 acres conveyed to L. P. Kleiderer by Selle & Friederich by deed dated July 5, 1905, and recorded in Deed Book 37 page 16, Henderson County Court Clerk's Office. Tract 24: 45.49 acres conveyed to L. P. Kleiderer by Margaret Goffey &c by deed dated October 23, 1905, and recorded in Deed Book 37 page 21, Henderson County Court Clerk's Office. Tract 25: 13. 75 acres conveyed by Emma C. U. Smith &c to L.P. Kleiderer by deed dated August 31, 1905, and recorded in Deed Book 37 page 28, Henderson County Court Clerk's Office. Tract 27: 64 acres conveyed to L. P. Kleiderer by Salvator Gimini &c by deed dated July 7, 1905, and recorded in Deed Book 37 page 20, Henderson County Court Clerk's Office. Tract 28: 514.55 acres conveyed to L. P. Kleiderer by Unverzagt and Smith by deed dated July 3, 1905, and recorded in Deed Book 37 page 5, Henderson County Court Clerk's Office. Tract 29: 264 acres conveyed to L. P. Kleiderer by James S. Alves and wife by deed dated October 6, 1905, and recorded in Deed Book 37 page 12, Henderson County Court Clerk's Office. Tract 32: 150 acres conveyed to L. P. Kleiderer by Rufus Sellars, &c by deed dated December 2, 1905, and recorded in Deed Book 37 page 15, Henderson County Court Clerk's Office. Tract 33: 328.50 acres conveyed by ELizah Sellars and wife to L. P. Kleiderer by deed dated December 11, 1905, and recorded in Deed Book 37 page 10, Henderson County Court Clerk's Office. Tract 35: 168 acres conveyed to L. P. Kleiderer by Chris Linden burg and wife by deed dated March 11, 1909, and recorded in Deed Book 42 page 559, Henderson County Court Clerk's Office. Tract 37: 60 acres conveyed to L. P. Kleiderer by Z. H. Littlepage by deed dated August 3, 1905, and recorded in Deed Book 37 page 19, on January 2, 1906 In the Henderson County Court Clerk's Office. Tract 38: - OMITTED. Tract 39: - OMITTED. Tract 40: 6 acres conveyed to L. P. Kleiderer by Mary Marshall by deed dated December 7, 1907, and recorded in Deed Book 40 page 308, Henderson County Court Clerk's Office. Tract 41: 18 acres conveyed to L. P. Kleiderer by W. T. Shoemaker by deed dated May 8, 1905, and recorded in Deed Book 36 page 226, Henderson County Court Clerk's Office. Tract 42: 67.81 acres conveyed to L. P. Kleiderer by J. C. Gardner by deed dated January 21, 1907, and recorded in Deed Book 40 page 315, Henderson County Court Clerk's Office. Tract 43: 21.02 acres conveyed to L. P. Kleiderer by J. T. Span by deed dated August 15, 1907, and recorded in Deed Book 40 page 317, Henderson County Court Clerk's Office. Tract 44: - OMITTED. Tract 45: - OMITTED. Tract 46: 28.20 acres conveyed to L. P. Kleiderer by Barber Allen by deed dated October 5, 1907, and recorded in Deed Book 41 page 426, Henderson County Court Clerk's Office. Tract 47: 145.67 acres conveyed to L. P. Kleiderer by C. F. Kleiderer by deed dated December 8, 1903, and recorded in Deed Book 34 page 149, Henderson County Court Clerk's Office. Tract 48: 9.03 acres conveyed to L. P. Kleiderer by C. F. Kleiderer by deed dated December 8, 1903 and recorded in Deed Book 34 page 149, Henderson County Court Clerk's Office. There is excepted from the above coal rights the following conveyances by Ohio Valley Banking and Trust Company: By deed dated July 24, 1922, Deed Book 66 page 188, Ohio Valley Banking and Trust Company conveyed to R. A. Culver and Dick Culver 19 acres with no exceptions or reservations of the minerals. By deed dated October 29, 1941, Deed Book 102 page 11, Ohio Valley Trust Company conveyed to Margaret W. McCormick 9 acres, with no exceptions or reservations. By deed dated December 21, 1926, Deed Book 85 page 257, James L. Lambert and wife, Ann W. Lambert conveyed to Noah Thompson and wife, Mae Thompson, 3 parcels. By deed dated December 5, 1942, Deed Book 105 page 475, Peter B. Muir, Special Commissioner of the District Court of the United States of America conveyed to the United States of America 2.31 acres with no exceptions or reservations; By deed dated December 5, 1942, Deed Book 105 page 479, Peter B. Muir Special Commissioner, conveyed to United States of America 2.23 acres with no exceptions or reservations. By deed dated April 8, 1944, Deed Book 113 page 343, Peter B. Muir, Special Commissioner, conveyed to the United States of America 5.99 acres with no exceptions or reservations. By deed dated May 29, 1943, Deed Book 108page316, Peter B. Muir, Commissioner for the United States District Court conveyed to United States of America 11.33 acres with no exceptions or reservations. By deed dated July 23, 1951, Deed Book 153 page 265, Ohio Valley Trust Company, successor in title to Ohio Valley Banking and Trust Company conveyed to Spencer Chemical Company all the coal in and underlying 170 acres, with no exceptions or reservations. By deed dated January 24, 1957, Deed Book 182 page 444, Ohio Valley Trust Company in voluntary liquidation, conveyed to E. A. Whitledge and wife, Betty Neel Whitledge all of its right, title and interest in the minerals underlying about 7 acres. By deed dated May 20, 1944, Deed Book 144 page 163, Peter B. Muir Special Commissioner conveyed to United States of America 61.4 acres, with no exceptions or reservations. By deed dated November 10, 1948, Deed Book 150 at page 359, United States of America by the Federal Farm Mortgage Corporation reconveyed to Ohio Valley Trust Company all the coal in and under the above 61.4 acres. AND BEING the same property conveyed to Peabody Coal Company by Ohio Valley Trust Company by deed dated November 9, 1971, recorded in Deed Book 255, page 594, Henderson County Clerk's office. NOTWITHSTANDING anything to the contrary contained herein, Grantee intends to convey all of its interest in and to the Coal in and underlying the tracts depicted on Exhibit B, whether or not said tracts are described above, and Grantee does not intend to convey any interest in and to the Coal other than those tracts depicted on Exhibit B, even if such tracts are described above. Source of Title Being a portion of the same property conveyed to Alliance Resource Properties, LLC, by deed from Henderson Coal Reserves, LLC, dated December 30, 2014, and ofrecord in Deed Book 608, at Page 713, in the office of the Henderson County Clerk.

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