Diesel Fuel Adjustment. In addition to any other adjustments provided herein, the Base Price shall also be adjusted for changes in the price of Diesel Fuel, such adjustment to be effective on the Adjustment Date (as such term is hereinafter defined). The first Diesel Fuel Price Adjustment calculation shall be applied towards shipments unloaded beginning January 1, 2010. The Diesel Fuel adjustment contemplated herein for any particular period shall be determined as follows: (1) $7.00 per ton of the Base Price applicable to that particular period shall be deemed (for purposes of this section) to be the diesel fuel component of the Base Price (herein called the “Diesel Fuel Component”) ; (2) Multiply the Diesel Fuel Component by the Adjustment Factor (as hereinafter defined; the resulting product is hereinafter called the “Diesel Fuel Component Adjustment”); before any adjustment to the price under this Section shall occur with respect to a particular period, the applicable PPI Factor must be greater than 1.200 or less than 0.800; (3) If the PPI Factor is greater than 1.200 or less than 0.800, then the Base Price adjusted pursuant to this section (herein called the “Adjusted Base FOB Price Per Ton”) for that particular period shall be equal to the sum of the Base Price and the Diesel Fuel Component Adjustment (note that if the PPI Factor is less than 0.800, the Diesel Fuel Component Adjustment will be negative, resulting in an Adjusted Base FOB Price Per Ton which is less than the Base Price due by the amount of the Diesel Fuel Component Adjustment. An example calculation is shown in Exhibit C. For purposes of this Section 8.4, the following terms shall have the meanings set forth below:
Appears in 3 contracts
Samples: Coal Supply Agreement (Armstrong Coal Company, Inc.), Coal Supply Agreement (Armstrong Energy, Inc.), Coal Supply Agreement (Armstrong Resource Partners, L.P.)
Diesel Fuel Adjustment. In addition to any other adjustments provided herein, the Base Price shall also be adjusted for changes in the price of Diesel Fuel, such adjustment to be effective on the Adjustment Date (as such term is hereinafter defined). The first Diesel Fuel Price Adjustment calculation shall be applied towards shipments unloaded beginning January 1, 2010on the Commencement Date (as defined in Section 2 above). The Diesel Fuel adjustment contemplated herein for any particular period shall be determined as follows: (1) $7.00 per ton of the Base Price applicable to that particular period shall be deemed (for purposes of this section) to be the diesel fuel component of the Base Price (herein called the “Diesel Fuel Component”) ); (2) Multiply the Diesel Fuel Component by the Adjustment Factor (as hereinafter defined; the resulting product is hereinafter called the “Diesel Fuel Component Adjustment”); before any adjustment to the price under this Section shall occur with respect to a particular period, the applicable PPI Factor must be greater than 1.200 or less than 0.800; (3) If the PPI Factor is greater than 1.200 or less than 0.800, then the Base Price adjusted pursuant to this section (herein called the “Adjusted Base FOB Price Per Ton”) for that particular period shall be equal to the sum of the Base Price and the Diesel Fuel Component Adjustment (note that if the PPI Factor is less than 0.800, the Diesel Fuel Component Adjustment will be negative, resulting in an Adjusted Base FOB Price Per Ton which is less than the Base Price due by the amount of the Diesel Fuel Component Adjustment. An example calculation is shown in Exhibit C. For purposes of this Section 8.4, the following terms shall have the meanings set forth below:
Appears in 3 contracts
Samples: Coal Supply Agreement (Armstrong Coal Company, Inc.), Coal Supply Agreement (Armstrong Energy, Inc.), Coal Supply Agreement (Armstrong Energy, Inc.)
