Common use of Other Quality Price Reductions Clause in Contracts

Other Quality Price Reductions. The Base Price is based on Buyer’s receipt of coal of a quality that is consistent with or superior to all of the TMWA specifications as set forth in §6.1. Quality price reductions shall be applied for each specification each Delivery Month to account for the Seller’s failure to provide coal of a quality superior to the “Discount Values” set forth below. BTU/LB. 0.2604 $/LBS/MMBTU SULFUR 0.1232 ASH 0.0083 MOISTURE 0.0016 For each specification during each Delivery Month with respect to the quality price discounts listed above, there shall be no discount if the AMWA for a specification meets the applicable Discount Point set forth below for that specification. If the AMWA fails to meet the Discount Point, then the applicable Discount Value shall apply, and the quality price reduction shall be calculated on the basis of the difference between the AMWA and the TMWA for such specification. Typical Monthly Weighted Average Discount Point BTU Min. 12,900 BTU/LB 12,700 BTU/XX XXX Max. 6.98 LBS/MMBTU 7.75 LBS/MMBTU MOISTURE Max. 5.38 LBS/MMBTU 6.92 LBS/MMBTU SULFUR Max. 2.575 LBS/MMBTU 2.75 LBS/MMBTU For example, if the Actual Monthly Weighted Average of sulfur equals 3.15 LBS/MMBTU, then the applicable discount would be (3.15 – 2.575) X .1232/LBS/MMBTU = $0.07084/MMBTU.”

Other Quality Price Reductions. The Base Price is based on Buyer’s receipt of coal of a quality that is consistent with or superior to all of the TMWA GMWA specifications as set forth in §6.1. Quality price reductions shall be applied for each specification each Delivery Month to account for the Seller’s failure to provide coal of a quality superior to the “Discount ValuesPoint(s)” set forth below. : BTU/LB. 0.2604 $/LBS/MMBTU SULFUR 0.1232 ASH 0.0083 MOISTURE 0.0016 For each specification during each Delivery Month with respect to the quality price discounts listed reductions above, there shall be no discount if the AMWA for a specification meets the applicable Discount Point set forth below for that specification. If the AMWA fails to meet the applicable Discount Point, then the applicable Discount Value shall apply, and the quality price reduction shall be calculated on the basis of the difference between the AMWA and the TMWA GMWA for such specification. Typical Guaranteed Monthly Weighted Average Discount Point BTU Min. 12,900 BTU/LB 12,700 BTU/XX XXX Min. 11,400 11,200 ASH Max. 6.98 LBS/MMBTU 7.75 LBS/MMBTU 8.75 9.25 MOISTURE Max. 5.38 LBS/MMBTU 6.92 LBS/MMBTU 11.75 12.55 SULFUR Max. 2.575 LBS/MMBTU 2.75 LBS/MMBTU 2.90 For example, if the Actual Monthly Weighted Average of sulfur equals 3.15 LBS/MMBTU3.10 lb./MMBTU, then the applicable discount would be (3.15 3.10 lb./MMBTU – 2.5752.75 lb./MMBTU) X .1232× $0.1232/LBSMMBTU per lb. Sulfur/MMBTU = $0.070840.04312/MMBTU.”

Other Quality Price Reductions. The Base Price is based on Buyer’s receipt of coal of a quality that is consistent with or superior to all of the TMWA GMWA specifications as set forth in §6.1. Quality price reductions shall be applied for each specification each Delivery Month to account for the Seller’s failure to provide coal of a quality superior to the “Discount Values” set forth below. BTU/LB. 0.2604 $/LBS/MMBTU /MMBTU per LB./MMBTU SULFUR 0.1232 ASH 0.0083 MOISTURE 0.0016 For each specification during each Delivery Month with respect to the quality price discounts listed above, there shall be no discount if the AMWA for a specification meets the applicable Discount Point set forth below for that specification. If the AMWA fails to meet the Discount Point, then the applicable Discount Value shall apply, and the quality price reduction shall be calculated on the basis of the difference between the AMWA and the TMWA GMWA for such specification. Typical Guaranteed Monthly Weighted Average Discount Point BTU Min. 12,900 11,200 BTU/LB 12,700 11,100 BTU/XX XXX Max. 6.98 LBS8.40 LB/MMBTU 7.75 LBS9.00 LB/MMBTU MOISTURE Max. 5.38 LBS11.70 LB/MMBTU 6.92 LBS12.10 LB/MMBTU SULFUR Max. 2.575 LBS2.68 LB/MMBTU 2.75 LBS3.00 LB/MMBTU For example, if the Actual Monthly Weighted Average of sulfur equals 3.15 LBS/MMBTU, then the applicable discount would be (3.15 – 2.5752.68) X x .1232/LBS/MMBTU = $0.070840.05790/MMBTU.”

Other Quality Price Reductions. The Base Price is based on Buyer’s receipt of coal of a quality that is consistent with or superior to all of the TMWA GMWA specifications as set forth in §6.1. Quality price reductions shall be applied for each specification each Delivery Month to account for the Seller’s failure to provide coal of a quality superior to the “Discount Values” set forth below. BTU/LB. 0.2604 $/LBS/MMBTU SULFUR 0.1232 ASH 0.0083 MOISTURE 0.0016 For each specification during each Delivery Month with respect to the quality price discounts listed above, there shall be no discount if the AMWA for a specification meets the applicable Discount Point set forth below for that specification. If the AMWA fails to meet the Discount Point, then the applicable Discount Value shall apply, and the quality price reduction shall be calculated on the basis of the difference between the AMWA and the TMWA GMWA for such specification. Typical Guaranteed Monthly Weighted Average Discount Point BTU Min. 12,900 11,000 BTU/LB 12,700 10,900 BTU/XX XXX Max. 6.98 LBS11.82 LB/MMBTU 7.75 LBS12.75 LB/MMBTU MOISTURE Max. 5.38 LBS12.73 LB/MMBTU 6.92 LBS13.10 LB/MMBTU SULFUR Max. 2.575 LBS3.00 LB/MMBTU 2.75 LBS3.10 LB/MMBTU For example, if the Actual Monthly Weighted Average of sulfur equals 3.15 LBS3.14 lb/MMBTU, then the applicable discount would be (3.15 3.14 lb. – 2.5753.00 lb.) X .1232/LBSlb/MMBTU = $0.070840.017248/MMBTU. §8.3 Payment Calculation. Schedule 1 attached hereto shows the methodology for calculating the coal payment, the BTU adjustment and quality price reductions for the Delivery Month. If there are any such price adjustments, Buyer shall apply a credit for such adjustments to amounts owed Seller for the month the coal was unloaded.”

Other Quality Price Reductions. The Base Price is based on BuyerXxxxx’s receipt of coal of a quality that is consistent with or superior to all of the TMWA GMWA specifications as set forth in §6.1. Quality price reductions shall be applied for each specification each Delivery Month to account for the Seller’s failure to provide coal of a quality superior to the “Discount ValuesPoint(s)” set forth below. : BTU/LB. 0.2604 $/LBS/MMBTU SULFUR 0.1232 ASH 0.0083 MOISTURE 0.0016 For each specification during each Delivery Month with respect to the quality price discounts listed reductions above, there shall be no discount if the AMWA for a specification meets the applicable Discount Point set forth below for that specification. If the AMWA fails to meet the applicable Discount Point, then the applicable Discount Value shall apply, and the quality price reduction shall be calculated on the basis of the difference between the AMWA and the TMWA GMWA for such specification. Typical Guaranteed Monthly Weighted Average Discount Point BTU Min. 12,900 BTU/LB 12,700 BTU/XX XXX Min. 11,350 11,200 ASH Max. 6.98 LBS/MMBTU 7.75 LBS/MMBTU 9.00 10.25 MOISTURE Max. 5.38 LBS/MMBTU 6.92 LBS/MMBTU 11.75 12.50 SULFUR Max. 2.575 LBS/MMBTU 2.75 LBS/MMBTU 2.95 3.10 For example, if the Actual Monthly Weighted Average of sulfur equals 3.15 LBS/MMBTU3.10 lb./MMBTU, then the applicable discount would be (3.15 3.10 lb./MMBTU – 2.5752.95 lb./MMBTU) X .1232× $0.1232/LBSMMBTU per lb. Sulfur/MMBTU = $0.070840.01848/MMBTU.”

Other Quality Price Reductions. The Base Price is based on Buyer’s receipt of coal of a quality that is consistent with or superior to all of the TMWA GMWA specifications as set forth in §6.1. Quality price reductions shall be applied for each specification each Delivery Month to account for the Seller’s failure to provide coal of a quality superior to the “Discount Values” set forth below. BTU/LB. 0.2604 $/LBS/MMBTU SULFUR 0.1232 ASH 0.0083 MOISTURE 0.0016 For each specification during each Delivery Month with respect to the quality price discounts listed above, there shall be no discount if the AMWA for a specification meets the applicable Discount Point set forth below for that specification. If the AMWA fails to meet the Discount Point, then the applicable Discount Value shall apply, and the quality price reduction shall be calculated on the basis of the difference between the AMWA and the TMWA GMWA for such specification. Typical Monthly Weighted Average Discount Point GUARANTEED MONTHLY WEIGHTED AVERAGE DISCOUNT POINT BTU Min. 12,900 11,700 BTU/LB 12,700 11,500 BTU/XX XXX Max. 6.98 LBS7.63 LB/MMBTU 7.75 LBS8.50 LB/MMBTU MOISTURE Max. 5.38 LBS10.25 LB/MMBTU 6.92 LBS11.00 LB/MMBTU SULFUR Max. 2.575 LBS2.35 LB/MMBTU 2.75 LBS2.50 LB/MMBTU For example, if the Actual Monthly Weighted Average AMWA of sulfur equals 3.15 LBS/MMBTU3.14 lb./MMBTU, then the applicable discount would be (3.15 3.14 lb. – 2.5752.35 lb.) X .1232/LBS× $0.1232/MMBTU per lb./MMBTU = $0.07084/0.09733 per MMBTU.”

Other Quality Price Reductions. The Base Price is based on Buyer’s receipt of coal of a quality that is consistent with or superior to all of the TMWA GMWA specifications as set forth in §6.1. Quality price reductions shall be applied for each specification each Delivery Month to account for the Seller’s failure to provide coal of a quality superior to the “Discount Values” set forth below. BTU/LB. 0.2604 $/LBS/MMBTU SULFUR 0.1232 ASH 0.0083 MOISTURE 0.0016 For each specification during each Delivery Month with respect to the quality price discounts listed above, there shall be no discount if the AMWA for a specification meets the applicable Discount Point set forth below for that specification. If the AMWA fails to meet the Discount Point, then the applicable Discount Value shall apply, and the quality price reduction shall be calculated on the basis of the difference between the AMWA and the TMWA GMWA for such specification. Typical Monthly Weighted Average Discount Point GUARANTEED MONTHLY WEIGHTED AVERAGE DISCOUNT POINT BTU Min. 12,900 12,500 BTU/LB 12,700 12,300 BTU/XX XXX Max. 6.98 LBS8.0 LB/MMBTU 7.75 LBS9.0 LB/MMBTU MOISTURE Max. 5.38 LBS7.20 LB/MMBTU 6.92 LBS7.60 LB/MMBTU SULFUR Max. 2.575 LBS2.75 LB/MMBTU 2.75 LBS3.0 LB/MMBTU For example, if the Actual Monthly Weighted Average AMWA of sulfur equals 3.15 LBS/MMBTU3.14 lb./MMBTU, then the applicable discount would be (3.15 3.14 lb. – 2.5753 lb.) X .1232/LBS× $0.1232/MMBTU per lb./MMBTU = $0.07084/0.01725 per MMBTU.”