Calorific Adjustment. Such weighted average calorific value shall be used in adjusting the price of coal in the following manner. The F.O.B. Railcar Price then in effect, specified and determined as provided in Section V, but before any Ash or SO2 Adjustment provided for hereafter in this Section VI, shall be adjusted to reflect variation from 11,800 BTU per pound in such weighted average calorific value of the coal received, in arriving at the price (exclusive of any Ash or SO2 Adjustment) to be paid by KU to Seller for such coal, in accordance with the following formula (assuming, for purposes of illustration, an adjusted price, prior to the Calorific Adjustment, of $21.73): Actual BTU/lb. - 11,800 x $21.73 = Premium/Penalty Per Ton. ----------------------- 11,800
Calorific Adjustment. The price per ton of coal shall be increased or decreased to compensate for variations in the calorific value of the coal shipped. The BTU content shall be determined on actual “as received” basis. If the actual average heating value of the coal shipped by Seller on each shipment is one hundred (100) BTU per pound, or more, in excess or fifty (50) BTU per pound, or more, below the Guaranteed Specification, the base price per ton will be adjusted in accordance with the following formula: Actual Btu/lb./Guaranteed 11,650 X Base Price= Net Price Per Ton Base Price $32 and 11,650 Guaranteed as stated in this Agreement Example 11,750 Btu/lb/11,650 Btu/lb=1.008584 x $32 ton=$32.27 11,600 Btu/lb/11,650 Btu/lb=.995708 x $32 ton=$31.86 Ash Adjustment The price per ton of coal shall be decreased if the monthly weighted average percent of ash is greater than the ash guarantee as set forth in the Seller’s coal specifications. The price per ton reduction shall be $0.30 per ton for each percent, fractions pro rata, by which the weighted average of the “as received” ash content for the coal delivered that month exceeds the guaranteed level. No credits will be given if the “as received” ash content is less than the guaranteed level. The ash penalty adjustment shall be made in accordance with the following formula: Actual Ash % – Guaranteed Ash 8.60 % = Excess Ash % x 100 x $.30 per ton = Ash penalty per ton Example
