Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
CRAFT JOSEPH W III
   2. Issuer Name and Ticker or Trading Symbol
Alliance Holdings GP, L.P. [AHGP] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director __X__ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
President and CEO
(Last)
(First)
(Middle)
1717 S. BOULDER AVENUE, SUITE 600		 3. Date of Earliest Transaction (Month/Day/Year)
02/27/2008
(Street)

TULSA, OK 74119		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Units               20,641,168 I By Alliance Resources GP, LLC (1)
Common Units               5,193,759 I By trust (2)
Common Units 02/27/2008   G   4,411,579 D $ 0 0 (3) I See footnote (3)
Common Units               523,122 I By Alliance Management Holdings III, LLC (4)

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
CRAFT JOSEPH W III
1717 S. BOULDER AVENUE, SUITE 600
TULSA, OK 74119		   X   X   President and CEO  

Signatures

 /s/ Joseph W. Craft III by Megan Cordle pursuant to Power of Attorney dated 2/13/07   12/22/2008
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Joseph W. Craft III ("Craft") indirectly holds 20,641,168 Common Units of AHGP through Alliance Resources Holdings, Inc. ("ARH II"), of which he is sole director and sole shareholder. ARH II holds all of the outstanding shares of Alliance Resource Holdings, Inc. ("ARH"). ARH, in turn, holds all of the outstanding membership interests of Alliance Resources GP, LLC (the "SGP"), and the SGP holds 20,641,168 Common Units of AHGP.
(2) These 5,193,759 Common Units are held directly by the JWC III Rev Trust and indirectly by Craft as trustee of the trust. These Common Units were previously held directly by Craft (4,693,759 Common Units were transferred to the trust on June 28, 2008 and 500,000 were transferred to the trust on July 31, 2008).
(3) Prior to February 27, 2008, the 4,411,579 Common Units of AHGP which were previously reported as being indirectly owned by Craft "by GRAT" were held in a grantor retained annuity trust of which Craft was trustee (the "JWC III GRAT"), and accordingly, he was deemed to have beneficial ownership of such Common Units. On February 27, 2008, the term of the JWC III GRAT expired, Craft ceased serving as trustee, and the Common Units held by the JWC III GRAT were allocated to trusts for the benefit of Craft's four children. As of February 28, 2008, Craft no longer has beneficial ownership of those 4,411,579 Common Units of AHGP.
(4) Craft indirectly holds 523,122 Common Units of AHGP through Alliance Management Holdings III, LLC ("AMH III"), of which Craft is the sole director and owns 42.43% of the membership interests. Craft disclaims beneficial ownership of the reported securities except to the extent of his pecuniary interests therein.

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