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Westmoreland Coal Company announced that the Company's Texas Westmoreland Coal Co. subsidiary ("Texas Westmoreland") has entered into a new agreement with NRG Texas, LLC to continue to supply lignite from the Company's Jewett Mine to NRG Texas' Limestone Electric Generating Station.

The agreement will commence January 1, 2008 for a nominal term of ten years and Texas Westmoreland will supply approximately 6.7 million tons for 2008, provided that it meets certain conditions set forth in the agreement. The agreement provides NRG Texas with the option to determine the amount, if any, of future year purchases.

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