Gross Clean Recoverable

Exhibit 10.27

TENNESSEE VALLEY AUTHORITY
COAL SUPPLY & ORIGINATION
1101 Market Street, MR 2A-C
Chattanooga, Tennessee ###-###-####

CONTRACT SUPPLEMENT

TO:		Armstrong Coal Company, Inc.		Supplement No.		3
		7701 Forsyth Boulevard - 10th Floor		Date		October 15, 2010
		St. Louis, Missouri 63105		Group-Contract No.		635-40685
				Plant		Paradise
				Name of Mine		Parkway

Attention: Mr. Martin Wilson

This confirms the following recent agreement between the parties, involving Tate Rich representing Armstrong Coal Company, Inc. (“Armstrong”), and Connie Gazaway representing TVA:

1. TVA has claimed Force Majeure on 103,840 tons of coal under Group-Contract No. 635-40685 at Paradise Fossil Plant (“Plant”) in calendar year 2010 due to events at the Plant. TVA and Armstrong have mutually agreed to ship these tons in the 4th quarter of calendar year 2010 at a price reduction of $5.00 per ton or $51.71 per ton.

All other terms and conditions of the contract remain unchanged.

Please complete the acceptance below and return a signed copy of this contract supplement to this office. You should retain the other signed copy for your files.

Accepted		Armstrong Coal Co.		TENNESSEE VALLEY AUTHORITY
		Company
By		/s/ Martin D. Wilson		/s/ Connie S. Gazaway
		Signature		Connie S. Gazaway
				Senior Fuel Transportation Specialist
President				/s/
Title				Contract Support Specialist
10/27/10				/s/
Date				Manager of Coal Supply

TVA SENSITIVE INFORMATION