Coal Inventory Quantities. After reviewing recommendations provided by the Operating Agent, the Operating Committee shall establish both a minimum coal inventory quantity and a target coal inventory quantity for Xxx Xxxx Xxxx 0. If the Operating Agent, acting in accordance with Section 8.1(a), believes that it is necessary or appropriate to increase the minimum coal inventory and/or target coal inventory quantity (e.g., in anticipation of a strike), it shall bring the situation to the attention of all Operating Committee Members, and recommend appropriate action. Each Lessee/Owner Party shall designate a coal inventory level that it wishes the Operating Agent to maintain on the Party’s behalf for operation of Elm Road Unit 1, based on the Party’s expected usage of the Unit and other appropriate considerations. Each Lessee/Owner Party must designate a level no less than its Pro Rata Share of the minimum inventory level approved by the Operating Committee. Each Lessee/Owner Party shall have the right to designate a level above such minimum levels up to the Party’s Pro Rata Share of the inventory targets established by the Operating Committee. Any Lessee/Owner Party’s designation of a level above its Pro Rata Share of the inventory target approved by the Operating Committee shall be accommodated (i) if the purchase of such additional amounts is permitted under the terms of applicable Coal Supply Agreements and (ii) to the extent storage of such additional fuel stock can be accommodated at the Elm Road Site. In such event, the requesting Party shall bear all costs associated with the purchase, transportation and stockpile maintenance of such coal supply above its Pro Rata Share of the approved inventory target, to the extent not otherwise billed pursuant to Article IX or the Common Facilities O&M Agreement.
