Common use of Alternate Supply Source Clause in Contracts

Alternate Supply Source. The source of coal subject to this Agreement shall be determined according to the Annual Delivery Plan as detailed in Section 1.3. Seller, with Buyer’s prior written approval, may however deliver to Buyer coal conforming to the specifications set forth in Exhibit A, from an alternate source (“Alternate Source Coal”). Buyer shall retain the right to revoke such approval at Buyer’s discretion upon providing Seller with seven (7) days’ prior written notification. The transportation cost for delivering Alternate Source Coal shall be determined in accordance with Section 4.1 provided that in no event will the transportation cost be greater than the delivered cost per million BTU of coal from Seller’s Mines as provided for in the Annual Delivery Plan, unless otherwise mutually agreed. Seller shall use commercially reasonable efforts, as defined in Section 1.5, to comply with the Annual Delivery Plan. Seller shall provide Purchaser with documentation supporting its inability to comply if such inability exceeds 15% of planned deliveries from a particular source Mine designated in the Annual Delivery Plan and the deviation from the Annual Delivery Plan results in increased transportation costs to Buyer (i.e. more deliveries from Oaktown Mine or at the Oaktown Mine rate in substitution for planned Prosperity Mine deliveries). Without limiting the generality of the foregoing, except for pro-rata reductions applicable to all buyers in the event of a Force Majeure affecting the Prosperity Mine, Seller shall not be permitted to deviate from the Annual Delivery Plan in order to ship to another buyer all or any portion of the coal from the Prosperity Mine that is contemplated under the Annual Delivery Plan to be delivered to Buyer, where such deviation would result in any increase in overall cost to Buyer.