Common use of COAL QUALITY SPECIFICATIONS Clause in Contracts

COAL QUALITY SPECIFICATIONS. If the Parties set forth coal quality specifications in a Confirmation, the following Sections 6.01 – 6.03 shall apply with respect to those specifications. 6.01 At the Delivery Point, all tendered Coal shall be raw, substantially free of magnetic material and other foreign material impurities, and crushed to a maximum size as set forth in the Confirmation as determined in accordance with applicable American Society of Testing and Materials (ASTM) standards. 6.02 If there are three (3) Non-Conforming Shipments as defined in Section 6.04, whether rejected or not, under a Transaction in any three (3) month period or, if two (2) out of four (4) consecutive shipments under a Transaction are Non-Conforming Shipments, Buyer may upon notice confirmed in writing and sent to Seller, suspend future shipments except those shipments already loaded into railcars. Seller shall, within sixty (60) days, provide Buyer with reasonable assurances that subsequent deliveries of Coal shall meet or exceed the specifications set forth in the Confirmation. If Seller fails to provide such assurances within that sixty (60) day period, Buyer shall have the right to terminate the Transaction without further obligation hereunder on the part of either party. Termination shall be the sole remedy of Buyer under this Section. Buyer’s waiver of this right for any one train shall not constitute a waiver for subsequent trains. If Seller provides such assurances to Buyer’s reasonable satisfaction, deliveries hereunder shall resume and any tonnage deficiencies resulting from suspension may be made up at Buyer’s sole option subject to a mutually agreeable schedule. Buyer shall not unreasonably withhold its acceptance of Seller’s assurances, or delay the resumption of shipment. 6.03 The Parties recognize during the performance of a Transaction, legislative, regulatory bodies or the courts may adopt environmental laws, rules, and regulations that will make it impossible or commercially impracticable for Buyer to utilize or to remarket Coal purchased under this Agreement. If, as a result of the adoption of such laws, rules, and regulations or changes in the interpretation or enforcement thereof, Buyer, in good faith, decides it will be impossible or commercially impracticable for Buyer to utilize or to remarket such Coal, Buyer shall promptly notify Seller in writing. After receiving such notification, Buyer and Seller shall promptly consider whether corrective actions can be taken in the mining and preparation of the Coal, in the operation of Buyer’s generating station, or in Seller’s substituting different source Coal. If in the Parties’ reasonable judgment such actions will, make it impossible and commercially impracticable for Buyer to utilize or to remarket tendered Coal without violating any applicable law, regulation, policy, or order, Buyer shall have the right, upon sixty (60) days notice to Seller, to terminate the Transaction without further obligation on the part of either party. Termination shall be the sole remedy of Buyer and Seller under this section. If Rejection Limits are specified in the Confirmation, this Section 6.04 shall apply. 6.04 If any Shipment of Coal triggers any of the Rejection Limits specified in the Confirmation for a Transaction (a “Non-Conforming Shipment”), Buyer shall have the option, within twenty-four (24) hours of Buyer’s receipt of the quality analysis of the Coal, of either (i) rejecting such Non-Conforming Shipment prior to unloading the Coal, or, (ii) accepting the Non-Conforming Shipment and in addition to any quality adjustments outlined in the Confirmation, reducing the price of Coal for such trainload by (*) per ton. If Buyer fails to timely exercise its rejection rights under this Section as to a Shipment, Buyer shall be deemed to have waived such rights to reject with respect to that Shipment only. Buyer’s failure to timely exercise such notice does not constitute a waiver of its right to any penalty adjustment provided for herein or in the relevant Confirmation. If Buyer timely rejects the Non-Conforming Shipment, Seller shall be responsible for promptly transporting the rejected Coal to an alternative destination determined by Seller and, if applicable, promptly unloading such Coal. Seller shall reimburse Buyer for all reasonable costs and expenses associated with the transportation, storage, handling and removal of the Non-Conforming Shipment. Buyer shall cooperate with Seller in minimizing Seller’s cost of redirecting the rejected Coal. Seller shall replace the rejected coal within a reasonable period of time.

COAL QUALITY SPECIFICATIONS. If the Parties 6.01 Each Confirmation for a Transaction shall set forth coal the following requirements for the Transaction: (a) typical monthly Ton-weighted average Coal quality specifications in a Confirmation, the following Sections 6.01 – 6.03 shall apply with respect to those specifications("Typical Specifications"); (b) monthly Ton-weighted average Coal quality suspension limits ("Suspension Limits"); and (c) per- shipment Coal quality rejection limits ("Rejection Limits"). 6.01 6.02 At the Delivery Point, all tendered Coal shall be raw, substantially free of magnetic material and other foreign material impurities, and crushed to a maximum top size as set forth in the Applicable Confirmation as determined in accordance with applicable American Society of Testing and Materials Mate- rials ("ASTM") standards, shall substantially conform to the Typical Specifications, and shall con- form to the Suspension Limits and the Rejections Limits. 6.02 If there are three 6.03 In order to comply with the nitrogen oxide (3"NOx") Non-Conforming Shipments provisions of the Clean Air Act Amendments of 1990, as defined in Section 6.04amended, whether rejected or notjudicial and administrative interpretations thereof, under a Transaction in any three and regulations promulgated thereunder (3) month period or, if two (2) out of four (4) consecutive shipments under a Transaction are Non-Conforming Shipments"Clean Air Requirements"), Buyer may upon analyze one or more shipments of Coal sup- plied under each Transaction to determine (in Buyer's reasonable judgment) whether the Coal, when used at Plant , causes Plant to exceed applicable NOx emission limitations of the Clean Air Requirements. In performing such analysis, Buyer may evaluate the combination of (i) the percent nitrogen, (ii) the ratio of fixed carbon to volatile matter, and (iii) other quality char- acteristics of the Coal by using an Electric Power Research Institute product referred to as the EPRI NOx/LOI Predictor (EPRI TR-109208 or subsequent versions). Buyer may also consider its actual operating experience with the Coal and the amount of NOx emissions produced by using the Coal at Plant . In the event that Buyer reasonably determines, as provided in this Section 6.03, that the Coal has caused or is causing Plant to exceed applicable NOx emission limitations of the Clean Air Requirements, Buyer may terminate the Transaction(s) by giving Sell- er written notice confirmed in writing thereof, which shall specify the effective date of termination and sent shall be given at least thirty (30) days prior to Seller, suspend future shipments except those shipments already loaded into railcarssuch date. Seller shall, within sixty (60) days, provide Buyer with reasonable assurances that subsequent deliveries of Coal shall meet or exceed the specifications set forth in the Confirmation. If Seller fails to provide such assurances within that sixty (60) day period, Buyer shall have the right to terminate substitute alternate Coal that complies with the Transaction without further obligation hereunder on Typical Specifications to remedy any violation of the part NOx emission limitations of either party. Termination shall be the sole remedy of Clean Air Requirements, whether such violation has actually occurred or is reasonably per- ceived by Buyer under this Section. Buyer’s waiver of this right for any one train shall not constitute a waiver for subsequent trains. If Seller provides such assurances as likely to Buyer’s reasonable satisfaction, deliveries hereunder shall resume and any tonnage deficiencies resulting from suspension may be made up at Buyer’s sole option subject to a mutually agreeable schedule. Buyer shall not unreasonably withhold its acceptance of Seller’s assurances, or delay the resumption of shipmentoccur. 6.03 6.04 The Parties recognize that during the performance of a Transaction, legislative, regulatory bodies or the courts may adopt environmental laws, rules, and regulations that will make it impossible or commercially impracticable for Buyer to utilize or to remarket Coal purchased under this Agreement. If, as a result of the adoption of such laws, rules, and regulations or changes in Environmental- Related Requirements (as defined in Section 11A.01) may occur. In the interpretation or enforcement thereofevent of any such change, Buyer, in good faith, decides it will be impossible or commercially impracticable for Buyer to utilize or to remarket such Coal, Buyer shall promptly notify Seller in writing. After receiving such notification, Buyer and Seller shall promptly consider whether corrective actions can be taken in the mining and preparation provisions of the Coal, in the operation of Buyer’s generating station, or in Seller’s substituting different source Coal. If in the Parties’ reasonable judgment such actions will, make it impossible and commercially impracticable for Buyer to utilize or to remarket tendered Coal without violating any applicable law, regulation, policy, or order, Buyer shall have the right, upon sixty (60) days notice to Seller, to terminate the Transaction without further obligation on the part of either party. Termination shall be the sole remedy of Buyer and Seller under this section. If Rejection Limits are specified in the Confirmation, this Section 6.04 Article 11A shall apply. 6.04 6.05 If any Shipment shipment of Coal triggers any exceeds one or more of the Rejection Limits specified in the Applicable Confirmation for a Transaction (a “"Non-Conforming Shipment”"), Buyer shall have the option, within twenty-four (24) hours of Buyer’s 's receipt of the quality analysis of the CoalCoal contained in the Non-Conforming Shipment (such analysis shall be performed and transmitted by Seller as provided in Section 7.03), of either (i) rejecting such the Non-Conforming Shipment prior to unloading the Coal, or, Coal or (ii) accepting ac- cepting the Non-Conforming Shipment and in addition to any quality adjustments outlined in the Confirmation, reducing the base price of Coal for such trainload Non- Conforming Shipment by (*) per ton10% of the base price. If Buyer fails to timely exercise its rejection rights under this Section 6.05 as to a Non-Conforming Shipment, Buyer shall be deemed to have waived such rejection rights to reject with respect to that Shipment shipment only. Buyer’s Xxxxx's failure to timely exercise such notice does rejection rights shall not constitute a waiver of its right to any penalty price adjustment provided for herein or in the relevant Applicable Confirmation. If Buyer timely rejects the a Non-Conforming Shipment, Seller shall be responsible for promptly transporting the rejected Coal Non-Conforming Shipment to an alternative alterna- tive destination determined by Seller and, if applicable, promptly unloading such Coal. Seller shall reimburse Buyer for all reasonable costs and expenses associated with the transportation, storage, handling handling, and removal of the Non-Conforming Shipment. Buyer shall cooperate with with 6.06 If (i) three (3) or more shipments of Coal are supplied during a calendar month under a Transac- tion and the Ton-weighted average of all shipments during such month exceeds one or more of the Suspension Limits specified in the Applicable Confirmation or (ii) three (3) Non-Conforming Shipments, whether rejected or not, are supplied under a Transaction during any Quarter or (iii) two (2) out of four (4) consecutive shipments under a Transaction are Non-Conforming Ship- ments, Buyer may suspend future shipments from Seller, except those shipments already loaded into railcars or are in the process of being loaded into railcars, by giving Seller in minimizing Seller’s cost a written notice of redirecting the rejected Coalsuspension. Seller shall, within twenty (20) days after Seller has received such notice, provide Buyer with reasonable assurances that subsequent deliveries of Coal shall replace comply with the rejected coal Sus- pension Limits set forth in the Applicable Confirmation. If Seller fails to provide such assurances within that twenty (20)-day period, Buyer shall have the right (i) to terminate the Transaction with- out further obligation to Seller with respect to such Transaction and (ii) to exercise such other remedies as are provided to Buyer under Section 13.01(b). Xxxxx's waiver of such rights for any one incident shall not constitute a waiver for any subsequent incident(s). If Seller provides such assurances to Buyer's reasonable period satisfaction, deliveries under that Transaction shall resume; and any tonnage deficiencies resulting from suspension may be made up, at Buyer's sole option, on a schedule that is mutually agreeable to the Parties. Buyer shall not unreasonably withhold its acceptance of timeSeller's assurances nor unreasonably delay the resumption of shipments.

COAL QUALITY SPECIFICATIONS. If the Parties set forth coal quality specifications in a Confirmation, the following Sections 6.01 – 6.03 shall apply with respect to those specifications. 6.01 At the Delivery Point, all tendered Coal shall be raw, substantially free of magnetic material and other foreign material impurities, and crushed to a maximum size as set forth in the Confirmation as determined in accordance with applicable American Society of Testing and Materials (ASTM) standards. 6.02 If there are three (3) Non-Conforming Shipments as defined in Section 6.04, whether rejected or not, under a Transaction in any three (3) month period or, if two (2) out of four (4) consecutive shipments under a Transaction are Non-Conforming Shipments, Buyer may upon notice confirmed in writing and sent to Seller, suspend future shipments except those shipments already loaded into railcars. Seller shall, within sixty (60) days, provide Buyer with reasonable assurances that subsequent deliveries of Coal shall meet or exceed the specifications set forth in the Confirmation. If Seller fails to provide such assurances within that sixty (60) day period, Buyer shall have the right to terminate the Transaction without further obligation hereunder on the part of either party. Termination shall be the sole remedy of Buyer under this Section. Buyer’s waiver of this right for any one train shall not constitute a waiver for subsequent trains. If Seller provides such assurances to Buyer’s reasonable satisfaction, deliveries hereunder shall resume and any tonnage deficiencies resulting from suspension may be made up at Buyer’s sole option subject to a mutually agreeable schedule. Buyer shall not unreasonably withhold its acceptance of Seller’s assurances, or delay the resumption of shipment. 6.03 The Parties recognize during the performance of a Transaction, legislative, regulatory bodies or the courts may adopt environmental laws, rules, and regulations that will make it impossible or commercially impracticable for Buyer to utilize or to remarket Coal purchased under this Agreement. If, as a result of the adoption of such laws, rules, and regulations or changes in the interpretation or enforcement thereof, Buyer, in good faith, decides it will be impossible or commercially impracticable for Buyer to utilize or to remarket such Coal, Buyer shall promptly notify Seller in writing. After receiving such notification, Buyer and Seller shall promptly consider whether corrective actions can be taken in the mining and preparation of the Coal, in the operation of Buyer’s generating station, or in Seller’s substituting different source Coal. If in the Parties’ reasonable judgment such actions will, make it impossible and commercially impracticable for Buyer to utilize or to remarket tendered Coal without violating any applicable law, regulation, policy, or order, Buyer shall have the right, upon sixty (60) days notice to Seller, to terminate the Transaction without further obligation on the part of either party. Termination shall be the sole remedy of Buyer and Seller under this section. If Rejection Limits are specified in the Confirmation, this Section 6.04 shall apply. 6.04 If any Shipment of Coal triggers any of the Rejection Limits specified in the Confirmation for a Transaction (a “Non-Conforming Shipment”), Buyer shall have the option, within twenty-four (24) hours of Buyer’s receipt of the quality analysis of the Coal, of either (i) rejecting such Non-Conforming Shipment prior to unloading the Coal, or, (ii) accepting the Non-Conforming Shipment and in addition to any quality adjustments outlined in the Confirmation, reducing the price of Coal for such trainload by (*) $0.50 per ton. If Buyer fails to timely exercise its rejection rights under this Section as to a Shipment, Buyer shall be deemed to have waived such rights to reject with respect to that Shipment only. Buyer’s failure to timely exercise such notice does not constitute a waiver of its right to any penalty adjustment provided for herein or in the relevant Confirmation. If Buyer timely rejects the Non-Conforming Shipment, Seller shall be responsible for promptly transporting the rejected Coal to an alternative destination determined by Seller and, if applicable, promptly unloading such Coal. Seller shall reimburse Buyer for all reasonable costs and expenses associated with the transportation, storage, handling and removal of the Non-Conforming Shipment. Buyer shall cooperate with Seller in minimizing Seller’s cost of redirecting the rejected Coal. Seller shall replace the rejected coal within a reasonable period of time.

COAL QUALITY SPECIFICATIONS. If the Parties set forth coal quality specifications in a Confirmation, the following Sections Articles 6.01 – 6.03 shall apply with respect to those specifications. 6.01 At the Delivery Point, all tendered Coal shall be raw, substantially free of magnetic material and other foreign material impurities, and crushed to a maximum size as set forth in the Confirmation as determined in accordance with applicable American Society of Testing and Materials (ASTM) standards. 6.02 If there are three (3) Non-Conforming Shipments Shipments, as hereinafter defined in Section 6.04below, whether rejected or not, under a Transaction in any three (3) month period or, if two (2) out of four (4) consecutive shipments Shipments under a Transaction are Non-Conforming Shipments, Buyer may upon written notice confirmed in writing and sent to Seller, suspend future shipments except those shipments already loaded into railcars. Seller shall, within sixty (60) days, provide Buyer with reasonable assurances that subsequent deliveries of Coal coal shall meet or exceed the specifications set forth in the Confirmation. If Seller fails to provide such assurances within that sixty sixty- (60) day period, Buyer shall have the right to terminate the Transaction without further obligation hereunder on the part of either party. Termination shall be the sole remedy of Buyer under this Section. Buyer’s waiver of this right for any one train shall not constitute a waiver for subsequent trains. If Seller provides such assurances to Buyer’s reasonable satisfaction, deliveries hereunder shall resume and any tonnage deficiencies resulting from suspension may be made up at Buyer’s sole option subject to a mutually agreeable schedule. Buyer shall not unreasonably withhold its acceptance of Seller’s assurances, or delay the resumption of shipment. 6.03 The Parties recognize during the performance of a Transaction, legislative, regulatory bodies or the courts may adopt environmental laws, rules, and regulations that will will, make it impossible or commercially impracticable for Buyer to utilize or to remarket Coal purchased under this Agreement. If, as a result of the adoption of such laws, rules, and regulations or changes in the interpretation or enforcement thereof, Buyer, in good faith, decides it will be impossible or commercially impracticable for Buyer to utilize or to remarket such Coal, Buyer shall promptly notify Seller in writing. After receiving such notification, Buyer and Seller shall promptly consider whether corrective actions can be taken in the mining and preparation of the Coal, in the operation of Buyer’s generating station, or in Seller’s substituting different source Coal. If in the Parties’ reasonable judgment such actions will, make it impossible and commercially impracticable for Buyer to utilize or to remarket tendered Coal without violating any applicable law, regulation, policy, or order, Buyer shall have the right, upon sixty (60) days notice to Seller, to terminate the Transaction without further obligation on the part of either party. Termination shall be the sole remedy of Buyer and Seller under this section. If Rejection Limits are specified in the Confirmation, this Section 6.04 shall apply. 6.04 If any Shipment of Coal coal triggers any of the Rejection Limits specified in the Confirmation for a Transaction (a A “Non-Conforming Shipment”), Buyer shall have the option, within twenty-twenty four (24) hours of Buyer’s receipt of the quality analysis of the Coal, of either (i) rejecting such Non-Conforming Shipment prior to unloading the Coal, or, (ii) accepting the Non-Conforming Shipment and in addition to any quality adjustments outlined in the Confirmation, reducing the price of Coal for such trainload by (*) per ton. If Buyer fails to timely exercise its rejection rights under this Section as to a Shipment, Buyer shall be deemed to have waived such rights to reject with respect to that Shipment only. Buyer’s failure to timely exercise such notice does not constitute a waiver of its right to any penalty adjustment provided for herein or in the relevant Confirmation. If Buyer timely rejects the Non-Conforming Shipment, Seller shall be responsible for promptly transporting the rejected Coal to an alternative destination determined by Seller and, if applicable, promptly unloading such Coalcoal. Seller shall reimburse Buyer for all reasonable costs and expenses associated with the transportation, storage, handling and removal of the Non-Conforming Shipment. Buyer shall cooperate with Seller in minimizing Seller’s ’ s cost of redirecting the rejected Coal. Seller shall replace the rejected coal within a reasonable period of time.