BTU True Up Sample Clauses
The BTU True Up clause is designed to reconcile differences between the contracted and actual quantities of energy, measured in British Thermal Units (BTUs), delivered or consumed over a specified period. In practice, this clause requires the parties to compare the total BTUs delivered against the agreed-upon amount at the end of a settlement period, and to make financial adjustments if there is a shortfall or surplus. This mechanism ensures that both parties are fairly compensated for any deviations from the original agreement, thereby maintaining balance and reducing the risk of disputes over energy delivery volumes.
BTU True Up. The Base Price for coal delivered hereunder in any particular calendar month (a “Delivery Month”) is based on the assumption that the actual “as received” Monthly Weighted Average BTU/LB (the “BTU AMWA”) for coal delivered to Buyer during a Delivery Month is equal to the minimum Guaranteed Monthly Weighted Average BTU/LB set forth in §6.1 (the “BTU GMWA”). If the BTU AMWA varies from the BTU GMWA for any Delivery Month, then the price applicable to such delivered coal will be adjusted to account for such variation in BTU’s. The BTU adjustment for that Delivery Month will be determined as follows:
(i) Calculate the per ton BTU adjustment for a Delivery Month using the following formula (where Price per Ton is the applicable Base Price set forth in §8.1 above): ((BTU AMWA – BTU GMWA) ÷ BTU GMWA) X Price per Ton = Per Ton Adjustment
(ii) Determine the price adjustment for BTU’s for the Delivery Month by multiplying the Per Ton Adjustment (as calculated in (i) above) by the total number of tons of coal actually delivered to and unloaded by Buyer under this Agreement during the Delivery Month. Depending on whether the BTU AMWA is greater than or less than the BTU GMWA in a Delivery Month, the Per Ton BTU Adjustment for the Delivery Month can be positive or negative. If the BTU adjustment (as calculated above) for a Delivery Month is positive, then Buyer shall pay the amount of such BTU adjustment to Seller. If the BTU adjustment (as calculated above) for a Delivery Month is negative, then Seller shall pay or credit the amount of such BTU adjustment to Buyer. Buyer shall be responsible for making the BTU adjustment calculations and shall send a written statement to Seller of the amount of the BTU adjustment for each Delivery Month. BTU adjustment payments shall be due when the next payment for coal is due hereunder. For the avoidance of doubt, the parties agree to the following example. If the AMWA for a Delivery Month equals 11,250 BTU/LB, the GMWA equals 11,000 BTU/LB and the Base Price Per Ton is $45.00/ton, then the Per Ton BTU Adjustment would be ((11,250 – 11,000) ÷ 11,000) x $45.00 = $1.0227 per ton. If a total of 10,000 tons were delivered during the Delivery Month, then the BTU adjustment would equal $10,227.27 (10,000 x $1.0227). Since it is positive, this amount would be due and owing to Seller by Buyer with respect to the deliveries for that Delivery Month.
BTU True Up. The Base Price for coal delivered hereunder in any particular calendar month is based on the assumption that the actual “as received” monthly weighted average BTU/LB (the “AMWA”) for coal delivered to Buyer during that particular calendar month is equal to the minimum Guaranteed Monthly Weighted Average BTU/LB set forth in §6.1 (“GMWA”). In the event the AMWA varies from the GMWA for any particular calendar month, then the Base Price applicable to such delivered coal will be adjusted for that particular calendar month to account for such variation in BTU’s; such Base Price adjustment for BTU’s for that particular calendar month to be determined as follows: (i) Calculate the per ton Base Price BTU adjustment for any particular calendar month using the following formula (where Price per Ton is the applicable Base Price set forth in §8.1 above): ▇▇▇▇▇▇▇▇▇ COAL COMPANY, INC LG&E/KU Contract No. J10009 AMWA — GMWA X Price per Ton = Per Ton Adjustment GMWA