Reserves - Alienation/Assignment Sample Clauses

Reserves - Alienation/Assignment. (a) Pen shall not Alienate or Assign its rights in the Designated Reserves to the prejudice of DP&L. In the event Pen wishes to Alienate or Assign its rights in the Designated Reserves, it shall first confer with DP&L and dedicate Substitute Reserves to the performance of this Agreement. Pen shall prove, to DP&L's satisfaction, that such dedicated Substitute Reserves contain commercially recoverable coal of the qualities required hereunder in sufficient quantities to meet Pen's obligations throughout the Term hereof, including the Option Terms. (b) Failure to notify and consult with DP&L prior to Alienation or Assignment of the Designated Reserves or failure to provide adequate Substitute Reserves pursuant to Section 3.02 (a) constitutes a material breach of this Agreement. In such event, DP&L may, without waiver of any other remedies at law or in equity that it may have, declare the Agreement terminated with no further obligation to Pen other than to pay for accepted coal. Furthermore, Pen/DP&L 3/1/93 Pen shall reimburse DP&L for the differential cost incurred - if any - for replacement fuel of the quality and quantity required hereunder, including any differential in the cost of transportation thereof, throughout the remaining Term of this Agreement, including the Option Terms. (c) Pen shall not sell nor contract to sell to others coal from the Designated Reserves in such quantities as to jeopardize Pen's ability to Tender the total quantity and quality of coal Pen is obligated to Tender to DP&L hereunder. This subsection is not to be construed as preventing Pen from selling coal from the Designated Reserves to other parties so long as Pen may do this without impairing its ability to comply with all of the provisions of this Agreement.