Related Party Transactions and Outside Related Director Information

Westmoreland Coal Company (WLB)

4/17/2006 Proxy Information

Mr. Mark Seglem, the brother of Christopher Seglem, the Company’s Chairman of the Board, President, and Chief Executive Officer, is the Vice President and General Manager of Texas Westmoreland Coal Co., an indirect subsidiary of the Company. In 2005, Mr. Mark Seglem was paid $283,597 in total compensation and granted 5,100 stock appreciation rights. Mr. Mark Seglem’s total compensation includes an annual incentive bonus as described in “Annual Incentive Compensation” on pages 35-36. Scoring for Mr. Mark Seglem’s annual inventive bonus is based on the performance of Texas Westmoreland Coal Co. The stock appreciation rights were valued based on the average of the high and low stock price on the date of the award, $20.975, and may be exercised over a ten year period. On December 30, 2005 the Company accelerated the vesting of all unvested SARs including those grated in 2005. The granted stock appreciation rights will be settled with Company stock available under the 2002 Long-Term Incentive Stock Plan. The stock appreciation rights are exercisable over a ten year period. Mr. Mark Seglem was also awarded 423 performance units.