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 Values” set forth below. $ /MMBTU BTU/LB. 0.2604 $ /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 GMWA for such specification. BTU Min. 11,000 BTU/LB 10,900 BTU/XX XXX Max. 11.82 LB/MMBTU 12.75 LB/MMBTU MOISTURE Max. 12.73 LB/MMBTU 13.10 LB/MMBTU SULFUR Max. 3.10 LB/MMBTU 3.15 LB/MMBTU For example, if the Actual Monthly Weighted Average of sulfur equals 3.18 lb/MMBTU, then the applicable discount would be (3.18 lb.—3.10 lb.) X .1232/lb/MMBTU = $0.0099/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 Values” set forth below. $ /MMBTU BTU/LB. 0.2604 $ $/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 GMWA for such specification. Guaranteed Monthly Weighted Average Discount Point BTU Min. 11,000 BTU/LB 10,900 BTU/XX XXX Max. 11.82 9.20 LB/MMBTU 12.75 9.70 LB/MMBTU MOISTURE Max. 12.73 14.00 LB/MMBTU 13.10 14.50 LB/MMBTU SULFUR Max. 3.10 3.00 LB/MMBTU 3.15 3.10 LB/MMBTU For example, if the Actual Monthly Weighted Average of sulfur equals 3.18 3.15 lb/MMBTU, then the applicable discount would be (3.18 lb.—3.10 3.15 lb. – 3.00 lb.) X .1232/lb/MMBTU = $0.00990.0185/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 Values” set forth below. $ /MMBTU BTU/LB. 0.2604 $ $/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 GMWA for such specification. Guaranteed Monthly Weighted Average Discount Point BTU Min. 11,000 BTU/LB 10,900 BTU/XX XXX Max. 11.82 9.00 LB/MMBTU 12.75 9.50 LB/MMBTU MOISTURE Max. 12.73 14.50 LB/MMBTU 13.10 15.00 LB/MMBTU SULFUR Max. 3.10 2.75 LB/MMBTU 3.15 2.85 LB/MMBTU For example, if the Actual Monthly Weighted Average of sulfur equals 3.18 lb/MMBTU, then the applicable discount would be (3.18 lb.—3.10 lb.) X .1232/lb/MMBTU = $0.00990.0493/MMBTU.