Knoxville, Tennessee (Platts)--6Mar2008

The US over-the-counter coal market breached the $100/short ton mark at
about 3:30 pm EST Thursday, when Q2 2008 Norfolk Southern-origin coal
containing 12,500 Btu/lb -1% sulfur (1.6 lbs SO2/MMBtu) traded in a one
train/month transaction at $101.35/st.

"I don't know if it will stay up there, but I wouldn't be surprised to
see more Q2 $100 NS coal" deals, said the broker who reported the deal.

He added that the traded NS product normally moves into the northeast
market, but that pricing can be volatile whenever international coal traders
become involved in the US coal market.

In addition, in the past few minutes, a back-half 2008 NS deal went
through at $100/st, the same broker said.

The coal ships out of the railroad's Kenova/Thacker region.

--Steve Thomas, steve_thomas@platts.com