Item 2.02. Results of Operations and Financial Condition

On May 9, 2008, Westmoreland Coal Company reported its first quarter 2008 financial results. Operating income for the quarter ended March 31, 2008, was $2.3 million compared to operating income of $12.1 million for the quarter ended March 31, 2007. Operating income was negatively impacted during the first quarter 2008 by a $0.6 million restructuring charge, while the first quarter 2007 was favorably impacted by a $5.8 million gain on our Combined Benefit Fund settlement, a $5.6 million gain on the sale of a coal royalty interest, offset by $0.8 million of expense from the Absaloka mining contract buyout.

Net loss applicable to common shareholders was $11.5 million (($1.21) per basic and diluted common share) for the quarter ended March 31, 2008, compared to net income of $7.4 million ($0.79 per diluted common share) for the quarter ended March 31, 2007. Net income was negatively impacted during first quarter 2008 by $7.7 million of interest expense attributable to the beneficial conversion feature of our new convertible notes, a $1.3 million loss on extinguishment of debt resulting from our ROVA debt refinancing, and a $0.6 million restructuring charge. Net income was favorably impacted during first quarter 2007 by a $5.8 million gain plus $0.6 million of interest income from the Combined Benefit Fund settlement, a $5.6 million gain on the sale of a coal royalty interest, offset by $0.8 million of expense from the Absaloka mining contract buyout.

On May 9, 2008, the Company issued a press release announcing its financial results for the first quarter 2008. A copy of this press release is attached hereto as Exhibit 99.1.