Dedicated Coal Supply Sample Clauses

Dedicated Coal Supply. The Deep Lease and the associated surface agreements and property rights that have been acquired by SJCC through an Acquisition Agreement dated as of March 25, 1983 with Paragon Resources Inc. and Valencia Energy Company ("Deep Lease") for use in connection with the San Xxxx Underground Mine, as well as the proposed DLX, and any contiguous lease extensions approved by the Joint Committee (which approval shall not be withheld unreasonably), when acquired, are hereby dedicated to production for the San Xxxx Station and are designated for inclusion as approved coal sources under the CSA, and shall be deemed included within the definition of "Coal Leases," as that term is used in the CSA. SJCC shall exercise diligence in acquiring the DLX. SJCC shall consult with Utilities concerning the bid. If at that time, SJCC determines that it is appropriate to submit a bid, SJCC shall prepare and submit its timely bid for the DLX. Appropriate property descriptions will be included in a Definitive Agreement or as an amendment to the CSA, as appropriate. Upon Commercial Operation (as defined below), the Utilities shall release SJCC from all coal delivery obligations from the La Plata Leases. Ongoing Operating Costs, including, but not limited to, the Cimarron Net Profits Interest, if any, will be reimbursed pursuant to the terms of the CSA. Upon Commercial Operation (as defined below), the Utilities shall release SJCC from the coal delivery obligations tied to the surface tons from the Fruitland Leases. Release of La Plata Reserves and San Xxxx Reserves shall occur only after the San Xxxx Underground Mine has achieved Commercial Operation and SJCC can affect a reasonable cessation of mining activities on those leases. Until that time, La Plata Reserves and San Xxxx Reserves shall continue to serve as coal sources for the San Xxxx Station. SJCC will maintain the Fruitland Leases, or an appropriate portion thereof, as an ash disposal area, per the Waste Disposal Agreement. Costs related to cessation and closure of surface mining operations, will be reimbursed as Operating Costs according to terms of the CSA.
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Related to Dedicated Coal Supply

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