Common use of Limitations on Quantities Clause in Contracts

Limitations on Quantities. Notwith- standing any of the above, Buyer will not be obligated to purchase Firm Tonnage coal from Producer under this Contract if Buyer is unable to utilize such coal at its Danskammer Plant because of Economic Reasons. For the purposes as used herein, Economic Reasons is defined as times when electrical energy is available to Buyer, either from the Danskammer Plant when burning oil or natural gas or from any other source, at a lower cost than equivalent electrical energy which would otherwise be produced by Buyer's Danskammer Plant when burning coal supplied by Seller at the Base Price. If, because of Economic Reasons, the Danskammer Plant does not at any time require any of the coal contracted for hereunder, Buyer shall so notify the Seller in writing sixty days in advance of the scheduled loading of the applicable firm tonnage. If Buyer so notifies Seller, Seller shall have the right to reduce the Base Price so that the cost of electrical energy produced by Buyer's Danskammer Plant when burning coal supplied hereunder is equivalent in cost to other lower cost electrical energy then available to the Buyer. If Seller so elects to reduce the Base Price, the Buyer shall be obligated to purchase the Firm Tonnage contracted for herein. In the event, upon receipt of such notice, the Seller does not elect to reduce the Base Price, the Buyer shall have the right to reduce the Firm Tonnage to that required by Economic Reasons for the Danskammer Plant. If Buyer so reduces the Firm Tonnage for more than thirty (30) days for Economic Reasons during the term of this Contract, the Seller shall have the right to: 1. Upon sixty days' prior written notice terminate this Agreement.

Limitations on Quantities. Notwith- standing any of the above, Buyer will not be obligated to purchase Firm Tonnage coal from Producer Seller under this Contract if Buyer is unable to utilize such coal at its Danskammer Plant because of Economic Reasons. For the purposes as used herein, Economic Reasons is defined as times when electrical energy is available to Buyer, either from the Danskammer Plant when burning oil or natural gas or from any other source, at a lower cost than equivalent electrical energy which would otherwise be produced by Buyer's Danskammer Plant when burning coal supplied by Seller at the Base Price. If, because of Economic Reasons, the Danskammer Plant does not at any time require any all of the coal contracted for hereunder, Buyer shall so notify the Seller in writing sixty days in advance of the allowing for sufficient lead time for Seller to reconsign scheduled loading of the applicable firm tonnageocean shipments. If Buyer so notifies Seller, Seller shall have the right to reduce the Base Price so that the cost of electrical energy produced by Buyer's Danskammer Plant when burning coal supplied hereunder is equivalent in cost to other lower cost electrical energy then available to the Buyer. If Seller so elects to reduce the Base Price, the Buyer shall be obligated to purchase the Firm Tonnage contracted for herein. In the event, upon receipt of such notice, the Seller does not elect to reduce the Base Price, the Buyer shall have the right to reduce the Firm Tonnage to that required by Economic Reasons for the Danskammer Plant. If Buyer so reduces the Firm Tonnage for more than thirty (30) days for Economic Reasons during the term of this Contract, the Seller shall have the right to: 4 1. Upon sixty days' prior written notice terminate this Agreement. 2. Extend the Term of this Agreement until such deferred Firm Tonnage has been shipped in total quantities provided for in this Agreement. The prices for the tonnage then shipped will be the prices in effect at the time of shipment.

Limitations on Quantities. Notwith- standing any of the above, Buyer BUYER will not be obligated to purchase Firm and Incremental Tonnage coal from Producer ASSIGNEE under this Contract AGREEMENT if Buyer BUYER is unable to utilize such coal at its Danskammer Plant because of Economic Reasons. For the purposes as used herein, Economic Reasons is defined as times when electrical energy is available to Buyer, either from the Danskammer Plant when burning oil or natural gas or from any other source, at a lower cost than equivalent electrical energy which would otherwise be produced by Buyer's Danskammer Plant when burning coal supplied by Seller at the Base Priceis not in "economic dispatch". If, because of Economic Reasonseconomic reasons, the Danskammer Plant does not at any time then require any of the all coal contracted for hereunderunder all then-existing contracts, Buyer BUYER shall so notify the Seller ASSIGNEE in writing sixty days in advance of the scheduled loading of the applicable firm tonnage. If Buyer so notifies Seller, Seller shall have the right to and BUYER will reduce the Base Price so that the cost of electrical energy produced by Buyer's Danskammer Plant when burning coal supplied hereunder is equivalent tonnage taken from all such contract suppliers on a proportional basis. The tonnage taken from each such contract supplier will be in cost to other lower cost electrical energy then available proportion to the Buyer. If Seller so elects to reduce the Base Price, the Buyer shall be obligated to purchase the annual Firm Tonnage contracted for hereinin each such contract. In the eventevent that contract shipments are so reduced, upon receipt BUYER will take no spot coal during the period of reduction. Following said period of reduction, BUYER will elect either to increase shipments or to extend the Initial Term of this AGREE- MENT until such notice, deferred Firm and Incremental Tonnage has been shipped in the Seller does not elect to reduce the Base Price, the Buyer shall have the right to reduce the Firm Tonnage to that required by Economic Reasons total quantities provided for in this AGREEMENT. The prices for the Danskammer Planttonnage then shipped will be the prices in effect at time of shipment. If Buyer In the event the Initial Term is so reduces the Firm Tonnage for more than thirty (30) days for Economic Reasons during extended, the term of this Contract, AGREEMENT shall be extended for the Seller same number of days that the Initial Term was so extended and the beginning and end of each Contract Year following such an extension of the Initial Term shall have be respectively set back for the right to: 1. Upon sixty days' prior written notice terminate this Agreementsame number of days that the Initial Term was so extended and the "Contract Year" shall be adjusted accordingly.