diff --git a/core/block_processor.go b/core/block_processor.go
index 99d27fa717..04b469eb91 100644
--- a/core/block_processor.go
+++ b/core/block_processor.go
@@ -73,23 +73,21 @@ func (sm *BlockProcessor) TransitionState(statedb *state.StateDB, parent, block
 	coinbase.SetGasLimit(block.GasLimit())
 
 	// Process the transactions on to parent state
-	receipts, err = sm.ApplyTransactions(coinbase, statedb, block, block.Transactions(), transientProcess)
+	receipts, err = sm.ApplyTransactions(&coinbase, statedb, block, block.Transactions(), transientProcess)
 	if err != nil {
 		return nil, err
 	}
-
 	return receipts, nil
 }
 
-func (self *BlockProcessor) ApplyTransaction(coinbase *state.StateObject, statedb *state.StateDB, header *types.Header, tx *types.Transaction, usedGas *big.Int, transientProcess bool) (*types.Receipt, *big.Int, error) {
-	cb := statedb.GetStateObject(coinbase.Address())
+func (self *BlockProcessor) ApplyTransaction(coinbasePtr **state.StateObject, statedb *state.StateDB, header *types.Header, tx *types.Transaction, usedGas *big.Int, transientProcess bool) (*types.Receipt, *big.Int, error) {
+	cb := statedb.GetStateObject((*coinbasePtr).Address())
 	_, gas, err := ApplyMessage(NewEnv(statedb, self.bc, tx, header), tx, cb)
 	if err != nil {
 		return nil, nil, err
 	}
-
 	// Update the state with pending changes
-	statedb.SyncIntermediate()
+	statedb.SyncIntermediate(coinbasePtr)
 
 	usedGas.Add(usedGas, gas)
 	receipt := types.NewReceipt(statedb.Root().Bytes(), usedGas)
@@ -118,7 +116,7 @@ func (self *BlockProcessor) ChainManager() *ChainManager {
 	return self.bc
 }
 
-func (self *BlockProcessor) ApplyTransactions(coinbase *state.StateObject, statedb *state.StateDB, block *types.Block, txs types.Transactions, transientProcess bool) (types.Receipts, error) {
+func (self *BlockProcessor) ApplyTransactions(coinbasePtr **state.StateObject, statedb *state.StateDB, block *types.Block, txs types.Transactions, transientProcess bool) (types.Receipts, error) {
 	var (
 		receipts      types.Receipts
 		totalUsedGas  = big.NewInt(0)
@@ -130,7 +128,7 @@ func (self *BlockProcessor) ApplyTransactions(coinbase *state.StateObject, state
 	for i, tx := range txs {
 		statedb.StartRecord(tx.Hash(), block.Hash(), i)
 
-		receipt, txGas, err := self.ApplyTransaction(coinbase, statedb, header, tx, totalUsedGas, transientProcess)
+		receipt, txGas, err := self.ApplyTransaction(coinbasePtr, statedb, header, tx, totalUsedGas, transientProcess)
 		if err != nil {
 			return nil, err
 		}
diff --git a/core/chain_makers.go b/core/chain_makers.go
index b009e0c28c..401622ddd2 100644
--- a/core/chain_makers.go
+++ b/core/chain_makers.go
@@ -93,7 +93,7 @@ func (b *BlockGen) AddTx(tx *types.Transaction) {
 	if err != nil {
 		panic(err)
 	}
-	b.statedb.SyncIntermediate()
+	b.statedb.SyncIntermediate(&b.coinbase)
 	b.header.GasUsed.Add(b.header.GasUsed, gas)
 	receipt := types.NewReceipt(b.statedb.Root().Bytes(), b.header.GasUsed)
 	logs := b.statedb.GetLogs(tx.Hash())
@@ -151,7 +151,7 @@ func GenerateChain(parent *types.Block, db common.Database, n int, gen func(int,
 			gen(i, b)
 		}
 		AccumulateRewards(statedb, h, b.uncles)
-		statedb.SyncIntermediate()
+		statedb.SyncIntermediate(&b.coinbase)
 		h.Root = statedb.Root()
 		return types.NewBlock(h, b.txs, b.uncles, b.receipts)
 	}
diff --git a/core/state/state_test.go b/core/state/state_test.go
index 5972d266a9..bfe764ed72 100644
--- a/core/state/state_test.go
+++ b/core/state/state_test.go
@@ -88,7 +88,7 @@ func TestNull(t *testing.T) {
 	//value := common.FromHex("0x823140710bf13990e4500136726d8b55")
 	var value common.Hash
 	state.SetState(address, common.Hash{}, value)
-	state.SyncIntermediate()
+	state.SyncIntermediate(nil)
 	state.Sync()
 	value = state.GetState(address, common.Hash{})
 	if !common.EmptyHash(value) {
diff --git a/core/state/statedb.go b/core/state/statedb.go
index 577f7162eb..44aab13573 100644
--- a/core/state/statedb.go
+++ b/core/state/statedb.go
@@ -349,16 +349,25 @@ func (self *StateDB) Refunds() *big.Int {
 }
 
 // SyncIntermediate updates the intermediate state and all mid steps
-func (self *StateDB) SyncIntermediate() {
+func (self *StateDB) SyncIntermediate(coinbaseRef **StateObject) {
 	self.refund = new(big.Int)
 
 	for _, stateObject := range self.stateObjects {
 		if stateObject.dirty {
 			if stateObject.remove {
-				self.DeleteStateObject(stateObject)
+				if stateObject == (*coinbaseRef) {
+					// Save the original address and remaining gas
+					address, gas := (*coinbaseRef).Address(), new(big.Int).Set((*coinbaseRef).gasPool)
+					self.DeleteStateObject(stateObject)
+
+					// Resurrect the coinbase and restore the gas allowance
+					*coinbaseRef = self.CreateAccount(address)
+					(*coinbaseRef).SetGasLimit(gas)
+				} else {
+					self.DeleteStateObject(stateObject)
+				}
 			} else {
 				stateObject.Update()
-
 				self.UpdateStateObject(stateObject)
 			}
 			stateObject.dirty = false
diff --git a/miner/worker.go b/miner/worker.go
index 86970ec071..1f7ad04632 100644
--- a/miner/worker.go
+++ b/miner/worker.go
@@ -619,7 +619,7 @@ func (env *Work) commitTransactions(transactions types.Transactions, gasPrice *b
 
 func (env *Work) commitTransaction(tx *types.Transaction, proc *core.BlockProcessor) error {
 	snap := env.state.Copy()
-	receipt, _, err := proc.ApplyTransaction(env.coinbase, env.state, env.header, tx, env.header.GasUsed, true)
+	receipt, _, err := proc.ApplyTransaction(&env.coinbase, env.state, env.header, tx, env.header.GasUsed, true)
 	if err != nil {
 		env.state.Set(snap)
 		return err