Meritage Midstream Services II, LLC and Arch Coal Inc. announced that the companies have executed a letter of intent to create a joint venture. The new entity, to be called Black Thunder Terminal, LLC, will develop a rail terminal to provide crude oil handling, storage, rail loading and marketing services to producers in Wyoming's Powder River Basin and downstream refiners. Arch will contribute reclaimed land, rail switching and loop and other existing infrastructure assets at its Black Thunder mining complex in Campbell County, Wyoming. Meritage will contribute capital and will build and operate the crude oil terminal on property east of Arch's active operations and located near the basin's crude oil production activity. Meritage will own the majority interest in Black Thunder Terminal, LLC. Because much of the required rail infrastructure is already in place, early stage crude oil transloading operations from inbound trucks to outbound trains are expected to begin at Black Thunder as early as September 2013. As demand from producers and refiners warrants, the Black Thunder Terminal will have the ability to increase outbound shipping capacity from 10,000 barrels per day in the initial phase to 120,000 barrels of crude oil per day via outbound unit train. Significant acreage is available for further expansions. The terminal will be served by BNSF Railway Company. The Powder River Basin is one of the most resource-rich areas of the United States, with massive reserves of coal and crude oil. The U.S. Geological Survey (USGS) estimates that the Powder River Basin contains approximately 1 billion barrels of remaining recoverable oil. The proposed joint venture between Arch Coal and Meritage is subject to customary approvals, which the companies expect to receive in three to six months.

Arch Coal Inc. announced that Mr. A. Michael Perry retired from the board of directors of the company.  On the same date, the board of directors decreased the size of the board of directors from twelve to eleven. Mr. Perry was a member of the Nominating and Corporate Governance Committee and was chairman of the Audit Committee.

The board of directors of Arch Coal Inc. declared a quarterly cash dividend of $0.03 per share on the company's common stock. The dividend is payable on June 14, 2013 to shareholders of record on May 31, 2013.