What changed in this filing

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Item 2. Properties

2025-03-05 compared with 2024-03-06 · 99 added, 96 removed, 541 unchanged (26% of the section changed)

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1.0 INTRODUCTION

Information concerning the Company’s mining properties in this Form 10-K have been prepared in accordance with the requirements of subpart 1300 of Regulation S-K.

Information concerning our mining properties in this Form 10-K have been prepared in accordance with the requirements of subpart 1300 of Regulation S-K.

As used in this Report on Form 10-K, the terms mineral resource, measured mineral resource, indicated mineral resource, inferred mineral resource, mineral reserve, proven mineral reserve and probable mineral reserve are defined and used in accordance with subpart 1300 of Regulation S-K.

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The information that follows is derived, for the most part, from, and in some instances is an extract from, the technical report summary (TRS) prepared in compliance with the Item 601(b)(96) and subpart 1300 of Regulation S-K.

The TRS was prepared by employees of the Company.

The TRS was prepared by certain of our employees.

Portions of the following information are based on assumptions, qualifications and procedures that are not fully described herein.

Reference should be made to the full text of the TRS, incorporated herein by reference and made a part of this Report on Form 10-K.

The information regarding MLMC was reviewed by employees of the Company that are qualified persons as defined by subpart 1300 of Regulation S-K.

The information regarding MLMC was reviewed by our employees that are qualified persons as defined by subpart 1300 of Regulation S-K.

Coteau, Falkirk, Coyote Creek and MLMC, each wholly-owned subsidiaries of NACCO, operate surface coal mines under long-term contracts with power generation companies pursuant to a service-based business model.

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Tons (in millions)

2022 2023 2024

The Coteau Properties Company

13.4 11.4 11.9

The Falkirk Mining Company

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Mississippi Lignite Mining Company

26.0 22.9 23.2

Table 1.1 Production Summary

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Prior to MLMC, there were no previous mining operations on the Red Hills Mine property.

The MLMC contract is the only operating coal contract in which the Company is responsible for all operating costs, capital requirements and final mine reclamation;

therefore, MLMC is consolidated within NACCO’s financial statements.

The MLMC contract is the only operating coal contract in which we are responsible for all operating costs, capital requirements and final mine reclamation;

therefore, MLMC is consolidated within our financial statements.

MLMC sells coal to its customer at a contractually agreed-upon price which adjusts monthly, primarily based on changes in the level of established indices which reflect general U.S.

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Tons (in millions)

2022 2023 2024

Mississippi Lignite Mining Company

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The Red Hills Mine generally produces between 2 million and 3 million tons of lignite coal annually.

The Red Hills Mine started delivering coal in 2000.

All production from the mine is delivered to its customer's Red Hills Power Plant.

On December 18, 2023, MLMC received a force majeure event notice from its customer related to an issue that began on December 15, 2023 and impacted one of two boilers at the Red Hills Power Plant.

The notice did not provide a timeline for resolution of the issue.

As of March 6, 2024, the impacted boiler is still not operational.

The prolonged mechanical issue is expected to result in a reduction in customer demand and will have a significant impact on the Company's results of operations during 2024.

The Red Hills Mine started operations in 2000 for plant commissioning, with initial commercial deliveries starting in 2001, and full production and commercial deliveries starting in 2002.

All production from the mine is delivered to MLMC's customer's Red Hills Power Plant.

During 2023, MLMC received notice from its customer related to a boiler issue at the Red Hills Power Plant that began on December 15, 2023.

While this issue has been resolved, it resulted in a reduction in customer demand which had a significant impact on our 2024 results of operations.

The Red Hills Mine, operated by MLMC, is located approximately 120 miles northeast of Jackson, Mississippi (Figure 2.1).

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MLMC has a history of partnership with MSU as well as the local community colleges for science, technology, engineering, and mathematics (STEM) research and skilled trades training.

The Red Hills Mine sources power for mine office facilities and operations from 4-County Electric Power Association, and water for the mine office facilities from the Choctaw Water Association.

Fuel for equipment is supplied by Dickerson Petroleum located in Kosciusko.

The Red Hills Mine sources power for mine office facilities and operations from 4-County Electric Power Association, and water for the mine office facilities from the Reform Water Association.

Fuel for equipment is supplied by a local vendor.

The Red Hills Mine has, or is currently constructing, all supporting infrastructure for mining operations.

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Figure 2.1 – Red Hills Mine Location

Mineral Resources and Reserves have been summarized from the December 31, 2022 TRS for MLMC and have been modified from mining depletion.

Mineral Resources and Reserves have been summarized from the December 31, 2024 TRS for MLMC.

The Mineral Resources and Mineral Reserves as of December 31, 2024 are included as Table 2.2 and Table 2.3.

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Based on the December 31, 2024 TRS, prices in Table 2.2 are based on economic cut-off grades of $34.02 per ton at MLMC and prices in Table 2.3 are based on economic cut-off grades of $34.40 per ton at MLMC.

Material assumptions and criteria used in the determination of Mineral Resource and Mineral Reserves reported herein are provided within the filed TRS for the Mississippi Lignite Mining Company – Red Hills Mine dated December 31, 2022.

Material assumptions and criteria used in the determination of Mineral Resource and Mineral Reserves reported herein are provided within the filed TRS for the MLMC – Red Hills Mine dated December 31, 2024.

Section 11.0 of the TRS describes the key assumptions, parameters, and methods used for the estimation of Mineral Resources.

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Resource Classification

(Kiloton "Kt")

Grades/Qualities

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100 5,200 45.5 12.0 0.5

– Mineral Resources estimates have been prepared by a qualified person employed by NACCO Natural Resources as of December 31, 2024.

– Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability and there is no certainty that all or any part of such Mineral Resources will be converted into Mineral Reserves.

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– Mineral Resources are reported using an economic cutoff of $34.02 per ton.

– Resources are presented with a minimum 1 foot seam thickness, a maximum as received moisture basis ash content of 30%, and a minimum calorific value of 4000 BTUs on an as received moisture basis cutoff.

– Resources are presented with a minimum 1 foot seam thickness, a maximum as received moisture basis ash content of 30%, and a minimum calorific value of 4000 BTU/lb on an as received moisture basis cutoff.

– Resources are estimated using Vulcan Software.

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Mississippi Lignite Mining Company Total 22,900 5,090 43.3 14.9 0.6

– Mineral Reserves Estimates have been prepared by a qualified person employed by MLMC as of December 31, 2024.

– Mineral Reserves have been demonstrated to be economic based on a positive cash flow

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– Mineral Reserves are estimated using Vulcan Software.

– Tonnages and qualities have been rounded to an accuracy level deemed appropriate by the Qualified person ("QP").

– Tonnages and qualities have been rounded to an accuracy level deemed appropriate by the QP.

Summation errors due to rounding may exist.

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Net difference of reported Mineral Resources and Mineral Reserves from previous reporting period to current reporting period.

The Mineral Resources and Mineral Reserves as of December 31, 2023 reflect modifications from mining extraction of Mineral Reserves.

No updates to Mineral Resources were made for 2023.

Mineral Reserves have been exhausted in Mine Area 1 and mining extraction is occurring in Mine Area 3.

The Mineral Resources and Mineral Reserves as of December 31, 2024 reflect modifications from mining extraction of Mineral Reserves, acquisition of additional leased tracts which increased Mineral Reserves and an update to the resource model which allowed conversion of portions of Mineral Resources to Mineral Reserves.

The update to the resource model added 31 quality

core holes and 10 structural drill holes to the resource model.

Mining extraction is occurring solely in Mine Area 3.

Additionally, MLMC delivered 1.9 million tons during 2024.

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Coteau, Falkirk and Coyote Creek will continue to be classified as exploration stage properties until such time as proven or probable mineral reserves have been established in accordance with subpart 1300 of Regulation S-K, even though they continue to deliver lignite to their respective customers.

At Coteau, Coyote Creek and Falkirk, the Company is paid a management fee per ton of coal or heating unit (MMBtu) delivered.

At Coteau, Coyote Creek and Falkirk, we are paid a management fee per ton of coal or heating unit (MMBtu) delivered.

Each contract specifies the indices and mechanics by which fees change over time, generally in line with broad measures of U.S.

The customers are responsible for funding all mine operating cost, including final mine reclamation, and directly or indirectly providing all of the capital required to build and operate the mine.

This contract structure eliminates the Company's exposure to spot coal market price fluctuations.

This contract structure eliminates our exposure to spot coal market price fluctuations.

Coteau, Coyote Creek and Falkirk each have only one customer for which they extract and deliver coal.

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No other market exists for the lignite at Coteau, Coyote Creek and Falkirk as the cost of transportation makes sales to any entity other than the current mine-mouth operator unprofitable.

Coteau, Coyote Creek and Falkirk meet the definition of a variable interest entity (“VIE”).

Coteau, Coyote Creek and Falkirk meet the definition of a VIE.

In each case, NACCO is not the primary beneficiary of the VIE as it does not exercise financial control;

therefore, NACCO does not consolidate the results of these operations within its financial statements.

therefore, NACCO does not consolidate the results of these operations within our financial statements.

Instead, these contracts are accounted for as equity method investments.

The income before income taxes associated with these VIEs is reported as Earnings of unconsolidated operations on the

Consolidated Statements of Operations, and the Company’s investment is reported on the line Investments in unconsolidated subsidiaries in the Consolidated Balance Sheets.

The income before income taxes associated with these VIEs is reported as Earnings of unconsolidated operations on the Consolidated Statements of Operations, and our investment is reported on the line Investments in unconsolidated subsidiaries in the Consolidated Balance Sheets.

The Freedom Mine, operated by Coteau, generally produces between 11.5 million and 13.5 million tons of lignite coal annually.

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The Synfuels Plant is a coal gasification plant that manufactures synthetic natural gas and produces fertilizers, solvents, phenol, carbon dioxide, and other chemical products for sale.

Although the term of the existing lignite sales agreement terminates in 2027, the term may be extended for two additional periods of five years, or until 2037, at the option of Coteau.

In March 2025, the term of the existing lignite sales agreement was extended until 2032.

The term may be extended for an additional five year period, or until 2037, at the option of Coteau.

The Freedom Mine is located approximately 90 miles northwest of Bismarck, North Dakota (Figure 2.2).

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Coal Creek Station was owned by GRE until May 1, 2022 when it was purchased by Rainbow Energy.

The initial production period is expected to run through May 1, 2032, but the coal sales agreement may be extended or terminated early under certain circumstances.

The initial production period is expected to run through May 1,

2032, but the coal sales agreement may be extended or terminated early under certain circumstances.

In 2014, Falkirk began delivering coal to Spiritwood Station, another electric power generating station owned by GRE.

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Numerous employees also reside in Bismarck and Mandan, a distance of about 50 miles.

The Falkirk Mine receives both its power and water from Coal Creek Station.

The Falkirk Mine receives both power and water from Coal Creek Station.

However, Falkirk’s East shift change building receives water from McLean-Sheridan Rural Water.

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3.0 Internal Control Disclosure Over Mineral Resources and Reserves

The modeling and analysis of the Company’s resources and reserves has been developed by Company mine personnel and reviewed by several levels of internal management, including the QPs.

The modeling and analysis of our resources and reserves has been developed by our mine personnel and reviewed by several levels of internal management, including the QPs.

The development of such resources and reserves estimates, including related assumptions, was a collaborative effort between the QPs and Company staff.

This section summarizes the internal control considerations for the Company’s development of estimations, including assumptions, used in resource and reserve analysis and modeling.

This section summarizes the internal control considerations for our development of estimations, including assumptions, used in resource and reserve analysis and modeling.

When determining resources and reserves, as well as the differences between resources and reserves, management developed specific criteria, each of which must be met to qualify as a resource or reserve, respectively.

These criteria, such as demonstration of economic viability, points of reference and grade, are specific and attainable.

The QPs and Company management agree on the reasonableness of the criteria for the purposes of estimating resources and reserves.

The QPs and our management team agree on the reasonableness of the criteria for the purposes of estimating resources and reserves.

Calculations using these criteria are reviewed and validated by the QPs.

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These outputs have been prepared and reviewed by Company personnel.

Mine planning decisions are determined and agreed upon by Company management.

Mine planning decisions are determined and agreed upon by our management.

Management adjusts forward-looking models by reference to historic mining results, including by reviewing actual versus predicted levels of production from the mineral deposit, and if necessary, re-evaluating mining methodologies if production outcomes were not realized as predicted.

Ongoing mining of the mineral deposit, coupled with product quality validation pursuant to Company and customer expectations, provides further empirical evidence as to the homogeneity, continuity and characteristics of the deposit.

Geologic modeling assumptions are evaluated to historic mining

results and are adjusted if necessary to better reflect actual mining results.

Ongoing quality validation of production also provides a means to monitor for any potential changes in quality.

Ongoing mining of the mineral deposit, coupled with product quality validation pursuant to our and our customer expectations, provides further empirical evidence as to the homogeneity, continuity and characteristics of the deposit.

Geologic modeling assumptions are evaluated to historic mining results and are adjusted if necessary to better reflect actual mining results.

Ongoing quality validation of production also provides a means to monitor for

any potential changes in quality.

Also, ongoing monitoring of ground conditions within the mine, surveying for evidence of subsidence and other visible signs of deterioration that may signal the need to re-evaluate rock mechanics and structure of the mine ultimately inform extraction ratios and mine design, which underpin mineral reserve estimates.

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SWEPCO is an American Electric Power (AEP) company.

As a result of the early retirement of the Pirkey Plant, Sabine ceased deliveries in the first quarter of 2023 and final reclamation began on April 1, 2023.

As a result of the early retirement of the Pirkey Plant, Sabine ceased deliveries in the first quarter of 2023 and commenced final reclamation on April 1, 2023.

Funding for mine reclamation is the responsibility of SWEPCO, and Sabine receives compensation for providing mine reclamation services.

During the third quarter of 2023, Sabine and SWEPCO entered into an agreement under which Sabine will provide mine reclamation services through September 30, 2026.

On October 1, 2026, SWEPCO will take over and complete the remaining mine reclamation services by acquiring all of the capital stock of Sabine.

Sabine will provide mine reclamation services through September 30, 2026.

As of October 1, 2026, SWEPCO has an obligation to acquire all of the capital stock of Sabine and complete the remaining mine reclamation.

5.0 Facilities and Equipment

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Location Mining Method Total Historical Cost of Mine

Property, Plant and Equipment

(excluding Coal Land, Real Estate

and Construction in Progress), Net of

Applicable Accumulated

Property, Plant and Equipment, Net of Applicable Accumulated

Amortization, Depreciation and Impairment

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At December 31, 2024, NAMining operated 31 draglines and other equipment at 23 quarries.

Of the 30 draglines, 7 are owned by the Company and 23 are owned by customers.

Of the 31 draglines, 7 are owned by us and 24 are owned by customers.

At December 31, 2024, NAMining had $72.7 million in property, plant and equipment, net of applicable accumulated amortization, depreciation and impairment.

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Perry Limestone Lamont FL Martin Marietta 2018

SDI Aggregates Limestone Florida City FL Blue Water Industries 2018

Queenfield Sand and gravel King William County VA King William Sand and Gravel Company, Inc.

Newberry Limestone Alachua County FL Argos USA, LLC 2019

Seven Diamonds Limestone Pasco County FL Seven Diamonds, LLC 2021

Johnson County (a)

Sand and gravel Johnson County IN Martin Marietta 2021

Little River Sand and gravel Ashdown AR Lehigh Hanson 2021

Rosser Sand and gravel Ennis TX Lehigh Hanson 2021

SDI Aggregates Limestone Florida City FL Martin Marietta 2018

Queenfield Sand and gravel King William County VA Holcim Group

Newberry Limestone Alachua County FL Summit Materials/Quikrete 2019

Seven Diamonds Limestone Pasco County FL Summit Materials/Quikrete 2021

Little River Sand and gravel Ashdown AR Heidelberg Materials

Rosser Sand and gravel Ennis TX Heidelberg Materials

Brooksville Cement Plant Limestone Brooksville FL Cemex 2021

Ash Grove Limestone Louisville NE Ash Grove 2022

(a) The Johnson County quarry was idled during 2023.

NAMining mined de minimis amounts at this location during the 2023 and 2022 periods.

Ash Grove Limestone Louisville NE Ash Grove, A CRH Company

Mineral Development, LLC

(a) The MDL quarry was idled during 2024.

NAMining mined de minimis amounts at this location during 2024.

NAMining's customers control all of the limestone and sand reserves within their respective mines.

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Access to Ash Grove Louisville Quarry is by means of a paved road from HWY 50.

Access to MDL Quarry is by means of Noralyn Mine Road.

Minerals Management - Operations

As an owner of royalty and mineral interests, the Company’s access to information concerning activity and operations of its royalty and mineral interests is limited.

The Company does not have information that would be available to a company with oil and natural gas operations because detailed information is not generally available to owners of royalty and mineral interests.

Consequently, the exact number of wells producing from or drilling on the Company’s mineral interests at a given point in time is not determinable.

The following table sets forth the Company’s estimate of the number of gross and net productive wells:

As an owner of royalty and mineral interests, our access to information concerning activity and operations of our royalty and mineral interests is limited.

We do not have information that would be available to a company with oil and natural gas operations because detailed information is not generally available to owners of royalty and mineral interests.

Consequently, the exact number of wells producing from or drilling on our mineral interests at a given point in time is not determinable.

The following table sets forth our estimate of the number of gross and net productive wells:

December 31, 2024 December 31, 2023

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Gross wells are the total wells in which an interest is owned.

Net wells are calculated based on the Company's net royalty interest, factoring in both ownership percentage of gross wells and royalty rate.

The majority of the Company’s producing mineral and royalty interest acreage now, or in the future, can be pooled with third-party acreage to form pooled units.

Pooling proportionately reduces the Company’s royalty interest in wells drilled in a pooled unit, and it proportionately increases the number of wells in which the Company has such reduced royalty interest.

The following table includes the Company's estimate of acreage for oil and gas mineral interests, NPRIs, and ORRIs:

Net wells are calculated based on our net royalty interest, factoring in both ownership percentage of gross wells and royalty rate.

The majority of our producing mineral and royalty interest acreage now, or in the future, can be pooled with third-party acreage to form pooled units.

Pooling proportionately reduces our royalty interest in wells drilled in a pooled unit, and it proportionately increases the number of wells in which we have such reduced royalty interest.

The following table includes our estimate of acreage for oil and gas mineral interests, NPRIs, and ORRIs:

December 31, 2024 December 31, 2023

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198,457 63,919 184,749 63,320

The Company may own more than one type of interest in the same tract of land, but the overlap is not significant.

Net royalty acres are calculated based on the Company’s ownership and royalty rate, normalized to a standard 1/8 th royalty lease, and assumes a 1/4 th royalty rate for unleased acres.

The following table includes the Company's estimate of developed and undeveloped acreage based on the gross acres in a basin or region and includes mineral interests, NPRIs, and ORRIs:

We may own more than one type of interest in the same tract of land, but the overlap is not significant.

Net royalty acres are calculated based on our ownership and royalty rate, normalized to a standard 1/8 th royalty lease, and assumes a 1/4 th royalty rate for unleased acres.

The following table includes our estimate of developed and undeveloped acreage based on the gross acres in a basin or region and includes mineral interests, NPRIs, and ORRIs:

December 31, 2024 December 31, 2023

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Production and Price History

The following table sets forth the estimated oil and natural gas production data related to the Company’s mineral and royalty interests as well as certain price and cost information for the years ended December 31:

The following table sets forth the estimated oil and natural gas production data related to our mineral and royalty interests as well as certain price and cost information for the years ended December 31:

Production data:

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Barrel of Oil Equivalent, a conversion factor of 6 MCF of gas was used for 1 equivalent bbl of oil.

(4) As an owner of mineral and royalty interests, the Company’s access to information concerning activity and operations of its royalty and mineral interests is limited.

As a result, the Company estimated the last two months of 2023 and 2022 production and pricing data using projections based on decline rates of wells and prior expense information.

(4) As an owner of mineral and royalty interests, our access to information concerning activity and operations of our royalty and mineral interests is limited.

As a result, we estimated the last two months of 2024 and 2023 production and pricing data using projections based on decline rates of wells and prior expense information.

Evaluation and Review of Reserves

The reserve estimates as of December 31, 2023 were prepared by Haas Petroleum Engineering Services, Inc.

("Haas Engineering").

Haas Engineering has provided reservoir engineering services, consulting and ongoing support for major and independent petroleum companies, public utilities, financial institutions, investors, and government agencies since 1980.

Haas Engineering does not own an interest in NACCO or any of the Company's properties, nor is it employed on a contingent basis.

A copy of Haas Engineering's estimated proved reserve report as of December 31, 2023 is incorporated by reference herein to Exhibit 99.1 to this Form 10-K.

The properties evaluated for proved reserves are located in Alabama, Louisiana, New Mexico, Ohio, Pennsylvania, Texas and Wyoming and represent all of the Company’s oil and gas reserves.

The reserve estimates as of December 31, 2024 were prepared by Haas & Cobb Petroleum Consultants (Haas & Cobb).

Haas & Cobb is an independent, third-party, petroleum engineering firm that meets industry-standards for qualifications, independence, objectivity and confidentiality.

The primary technical person, Franklin Stagg, responsible for preparing the Reserve Report, Licensed Professional Engineer in the State of Texas, has been practicing consulting petroleum engineering at Haas & Cobb since 2016 and has over 9 years of industry experience.

Haas & Cobb does not own an interest in NACCO or any of our properties, nor is it employed on a contingent basis.

A copy of Haas & Cobb's estimated proved reserve report as of December 31, 2024 is incorporated by reference herein to Exhibit 99.1 to this Form 10-K.

The properties evaluated for proved reserves are located in Alabama, Louisiana, New Mexico, Ohio, Pennsylvania, Texas, Utah and Wyoming and represent all of our oil and gas reserves.

A reserves audit is not the same as a financial audit.

Reserve engineering is a subjective process of estimating volumes of economically recoverable oil and natural gas that cannot be measured in an exact manner.

The accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation.

The accuracy of any reserve estimate is a function of the quality of available data and of

engineering and geological interpretation.

As a result, the estimates of different engineers often vary.

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The maximum remaining reserves life assigned to wells included in this report is 50 years.

Total net proved reserves are defined as those natural gas and hydrocarbon liquid reserves to the Company's interests after deducting all royalties, overriding royalties, and reversionary interests owned by outside parties that become effective upon payout of specified monetary balances.

Total net proved reserves are defined as our natural gas and hydrocarbon liquid reserves after deducting all royalties, overriding royalties, and reversionary interests owned by outside parties that become effective upon payout of specified monetary balances.

All reserves estimates have been prepared using standard engineering practices generally accepted by the petroleum industry and conform to guidelines developed and adopted by the SEC.

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The term reasonable certainty implies a high degree of confidence that the quantities of oil, natural gas and/or NGLs actually recovered will equal or exceed the estimate.

To achieve reasonable certainty, the Company employed technologies that have been demonstrated to yield results with consistency and repeatability.

The technologies and economic data used in the estimation of the Company’s proved reserves include, but are not limited to, well logs, geologic maps, seismic data, well test data, production data, historical price and cost information and property ownership interests.

The accuracy of the estimates of the Company’s reserves is a function of:

To achieve reasonable certainty, we employed technologies that have been demonstrated to yield results with consistency and repeatability.

The technologies and economic data used in the estimation of our proved reserves include, but are not limited to, well logs, geologic maps, seismic data, well test data, production data, historical price and cost information and property ownership interests.

The accuracy of the estimates of our reserves is a function of:

• the quality and quantity of available data and the engineering and geological interpretation of that data;

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• the judgment of the persons preparing the estimates.

The following table presents the Company's estimated net proved oil and natural gas reserves based on the reserve report prepared by Haas Engineering, the Company’s independent petroleum engineering firm.

All of the Company’s reserves are located in the United States.

The following table presents our estimated net proved oil and natural gas reserves based on the reserve report prepared by Haas & Cobb, our independent petroleum engineering firm.

All of our reserves are located in the United States.

Net reserves as of December 31, 2024 Net reserves as of December 31, 2023

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One thousand cubic feet of natural gas at the contractual pressure and temperature bases.

As an owner of mineral and royalty interests and not working interests, the Company is not required to make capital expenditures and did not make capital expenditures to convert proved undeveloped reserves from undeveloped to developed.

We do not currently have any material investments under which it would be required to bear the cost of exploration, production or development.

We did not make capital expenditures to convert proved undeveloped reserves from undeveloped to developed.

Internal Control Disclosure

The Company's internal staff works closely with Haas Engineering to ensure the integrity, accuracy and timeliness of the data used to calculate proved reserves relating to NACCO's assets.

Our internal staff works closely with Haas & Cobb to ensure the integrity, accuracy and timeliness of the data used to calculate proved reserves relating to NACCO's assets.

Internal technical team members met with independent reserve engineers periodically during the period covered by the reserves report to discuss the assumptions and methods used in the proved reserve estimation process.

The preparation of the Company's proved reserve estimates is completed in accordance with internal control procedures.

The preparation of our proved reserve estimates is completed in accordance with internal control procedures.

These procedures, which are intended to ensure reliability of reserve estimations, include the following:

• Review and verification of historical production data, which data is based on actual production as reported by third-party producers who lease the Company’s royalty and mineral interests;

• Preparation of reserve estimates by Haas Engineering under the direct supervision of internal staff;

• Verification of property ownership by the Company's land department;

• No employee’s compensation is tied to the amount of reserves booked.

The Minerals Management Segment’s Vice President of Engineering and Finance is the technical person primarily responsible for overseeing the preparation of the internal reserve estimates and for coordinating with Haas Engineering in the preparation of the third-party reserve report.

The Vice President of Engineering and Finance has over 15 years of industry experience with positions of increasing responsibility and reports directly to the President of Catapult Mineral Partners, the Company’s business unit focused on managing and expanding the Company’s portfolio of oil and gas mineral and royalty interests.

• Review and verification of historical production data, which data is based on actual production as reported by third-party producers who lease our royalty and mineral interests;

• Preparation of reserve estimates by Haas & Cobb under the direct supervision of internal staff;

• Verification of property ownership by our land department.

The Minerals Management Segment’s Vice President of Engineering and Finance is the technical person primarily responsible for overseeing the preparation of the internal reserve estimates and for coordinating with Haas & Cobb in the preparation of the third-party reserve report.

The Vice President of Engineering and Finance has over 15 years of industry experience with positions of increasing responsibility and reports directly to the President of Catapult Mineral Partners, our business unit focused on managing and expanding our portfolio of oil and gas mineral and royalty interests.

Estimated Proved Reserves

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(3) Revisions of previous estimates include technical revisions due to changes in commodity prices, historical and projected performance and other factors.

As an owner of mineral and royalty interests, the Company generally does not have evidence or approval of operators’ development plans.

As an owner of mineral and royalty interests, we generally do not have evidence or approval of operators’ development plans.

As a result, proved undeveloped reserve estimates are limited to those relatively few locations for which drilling permits have been publicly filed.

As of December 31, 2024, PUD reserves consists of 89 wells in various stages of drilling or completions.

As of December 31, 2023, less than 1% of the Company's total proved reserves were classified as PUDs.

As of December 31, 2024, less than 1% of our total proved reserves were classified as PUDs.

Headquarter locations

NACCO leases office space in Mayfield Heights, Ohio, a suburb of Cleveland, Ohio, which serves as its corporate headquarters.

NACCO leases office space in Highland Hills, Ohio, a suburb of Cleveland, Ohio, which serves as our corporate headquarters.

Coal Mining and Minerals Management lease corporate headquarters office space in Plano, Texas.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties