Cost and Contractual Responsibilities. The charges to the Lessee/Owner Parties for coal hereunder shall be the Operating Agent’s actual delivered cost of such coal to the Elm Road Site. The Lessee/Owner Parties shall pay the Operating Agent pursuant to Section 10.3 for their respective shares of Coal Costs incurred under the Coal Supply Agreements for the supply and transportation of coal to the Unit in accordance with this Article VIII. In the event that the applicable Coal Supply Agreements contain any minimum-purchase requirements, take-or-pay penalties, or similar provisions, each Lessee/Owner Party shall be responsible for its share of such charges or penalties based upon its coal quantities, adjusted (if appropriate) to take into account the extent to which the liability for such charges or penalties is related to each Party’s actual use of (or failure to use) the coal contracted for thereunder. In the event that the applicable Coal Supply Agreements provide for credits, discounts, rebates, BTU adjustment or similar provisions, each Lessee/Owner Party shall receive the benefit of such provisions as applicable to the coal delivered for each of their respective accounts, adjusted (if appropriate) to take into account the extent to which the credits, discounts, rebates or other adjustments are related to each Party’s actual use of (or failure to use) the coal contracted for thereunder. The Lessee/Owner Parties shall also receive or bear (as the case may be) shares of any benefits received or penalties imposed in any litigation or dispute settlement under the Coal Supply Agreements, as such benefits or penalties relate to the Unit, in proportion to coal delivered for their respective accounts, adjusted (if appropriate) to take into account the extent to which the benefits received or penalties imposed are related to each Party’s actual use of (or failure to use) the coal contracted for thereunder.
