Westmoreland has entered a non-binding letter of intent with an undisclosed buyer for the contracts covering power plants at Altavista, Hopewell, Southampton and Gordonville, as well as certain fixed assets of Westmoreland Technical Services.

In addition, the letter of intent contemplates that the buyer will provide contract operation and maintenance services at Westmoreland’s 100%-owned ROVA power facility in North Carolina.

“The contemplated transactions allow Westmoreland to more narrowly focus our efforts on our core competency, coal mining,” Westmoreland interim chief Keith Alessi said.

“The buyer has the benefit of economies of scale that allow it to fully leverage its expertise and overhead in the operation of power plants, thereby allowing Westmoreland to enter into these contemplated transactions on economics that are basically neutral to us.”

Westmoreland did not disclose the terms of the deal.

It is anticipated the buyer will offer employment to all current employees at the plants.

The deal is subject to due diligence, board approval and attaining necessary consents and is expected to close August 2007.