Common use of Federal Black Lung and Reclamation Fees Clause in Contracts

Federal Black Lung and Reclamation Fees. The Base Prices specified in this Section as of January 1, 2013, include the cost of compliance with ongoing laws and regulations currently in effect to the extent such laws and regulations are currently being interpreted and enforced related to Federal Black Lung Tax Fee and the Federal Reclamation Fee. For purposes of this provision, there is a $1.235 per ton base cost component level for such costs as of January 1, 2012, for both the West Kentucky Base price and Illinois Base Price, which represents the $1.100 per ton Federal Black Lung Fee and $0.135 per ton Federal Reclamation Fee and such components may be adjusted by Federal Statute. The Parties recognize that by current Federal Statute, the Federal Reclamation Fee is to change on October 1, 2012 and be reduced from $0.135 to $0.120 per ton, which shall be reflected in the January 1, 2013 Base Prices under this Confirmation. The Federal Black Lung Fee and the Federal Reclamation Fee described in this Section 4.1.4.5.1 shall not be considered as Additional Governmental Adjustment Cost as defined in Section 4.1.4.5.2. The Parties further recognize that, continuing for such duration of time as allowed by Federal Statute, Seller shall issue Buyer a credit adjustment on an ongoing calendar quarter basis to reflect credit for non-payment of the Federal Black Lung Tax Fee and Federal Reclamation Fee on excess moisture above equilibrium moisture.