Common use of Tonnage Adjustment due to De-Rating Clause in Contracts

Tonnage Adjustment due to De-Rating. If any legislative, regulatory, administrative or other governmental bodies, or any court with jurisdiction, enacts, adopts or imposes new laws, rules or regulations, amends existing laws, rules or regulations, or reinterprets existing laws, rules or regulations, that require Buyer to de-rate the Plant, Buyer may, by written notice to Seller, reduce the Base Tonnage hereunder; provided that such reduction shall be imposed on a pro-rata basis among all of Buyer’s coal suppliers to the Plant, based on the number of tons of coal that Buyer is obligated to receive from its committed suppliers, to the extent that its contracts with other suppliers give Buyer the right to reduce its purchase obligations as a result of such new or amended laws, rules or regulations, or reinterpretation. In the event Buyer is later able to increase operations at the Plant during the Term of this Agreement after such notice has been given, the Base Tonnage hereunder shall be increased, not to exceed the Base Tonnage as stated in Section 2.1, plus any annual and quarterly adjustments to the Base Tonnage pursuant to Section 2.2 and Section 2.3, as applicable; provided that any increase in the number of tons of coal required by Buyer for operation of the Plant shall be allocated on a pro-rata basis among Buyer’s committed coal suppliers to the Plant in the same fashion as the decrease in coal was allocated.