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 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 Point(s)” set forth below: MONTHLY DISCOUNT VALUES $/MMBTU BTU/LB. 0.2604 $/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 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 GMWA for such specification. Guaranteed Monthly Weighted Average Discount Point BTU/LB Min. 11,400 11,200 LB/MMBTU: ASH Max. 8.75 9.25 MOISTURE Max. 11.75 12.55 SULFUR Max. 2.75 2.90 For example, if the Actual Monthly Weighted Average of sulfur equals 3.10 lb./MMBTU, then the applicable discount would be (3.10 lb./MMBTU – 2.75 lb./MMBTU) × $0.1232/MMBTU per lb. Sulfur/MMBTU = $0.04312/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 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 Point(s)Values” set forth below: MONTHLY . DISCOUNT VALUES $/MMBTU BTU/LB. 0.2604 $/MMBTU per 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 reductions 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 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 GMWA for such specification. Guaranteed Monthly Weighted Average Discount Point GUARANTEED MONTHLY WEIGHTED AVERAGE DISCOUNT POINT BTU Min. 11,700 BTU/LB Min11,500 BTU/XX XXX Max. 11,400 11,200 7.63 LB/MMBTU: ASH Max. 8.75 9.25 MMBTU 8.50 LB/MMBTU MOISTURE Max. 11.75 12.55 10.25 LB/MMBTU 11.00 LB/MMBTU SULFUR Max. 2.75 2.90 2.35 LB/MMBTU 2.50 LB/MMBTU For example, if the Actual Monthly Weighted Average AMWA of sulfur equals 3.10 3.14 lb./MMBTU, then the applicable discount would be (3.10 lb./MMBTU 3.14 lb. – 2.75 lb./MMBTU2.35 lb.) × $0.1232/MMBTU per lb. Sulfur/MMBTU lb./MMBTU = $0.04312/0.09733 per MMBTU.

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 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 Point(s)” set forth below: MONTHLY DISCOUNT VALUES $/MMBTU BTU/LB. 0.2604 $/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 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 GMWA for such specification. Guaranteed Monthly Weighted Average Discount Point BTU/LB Min. 11,400 11,350 11,200 LB/MMBTU: ASH Max. 8.75 9.25 9.00 10.25 MOISTURE Max. 11.75 12.55 12.50 SULFUR Max. 2.75 2.90 2.95 3.10 For example, if the Actual Monthly Weighted Average of sulfur equals 3.10 lb./MMBTU, then the applicable discount would be (3.10 lb./MMBTU – 2.75 2.95 lb./MMBTU) × $0.1232/MMBTU per lb. Sulfur/MMBTU = $0.043120.01848/MMBTU.