Re: Coal Purchase and Sale Agreement No. 10-62-04-900, dated as of May 21, 2004, as amended, between American Electric Power Service Corporation, as agent for Columbus Southern Power Company (“Buyer”), and Oxford Mining Company, Inc. (“Seller”)...
Exhibit 10.17H
[*] Certain information in this document has been omitted and filed separately with the Securities
and Exchange Commission. Confidential treatment has been requested
with respect to the omitted portions.
[AEP LETTERHEAD]
Oxford Mining Company, LLC
c/o Eagle Fuels
000 Xxx Xxxx
X.X. Xxx 000
Xxxxx, XX 00000
c/o Eagle Fuels
000 Xxx Xxxx
X.X. Xxx 000
Xxxxx, XX 00000
Attention: Xxxxxxx Xxxxxxxx
December 15, 2009
Re:
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Coal Purchase and Sale Agreement No. 00-00-00-000, dated as of | |
May 21, 2004, as amended, between American Electric Power | ||
Service Corporation, as agent for Columbus Southern Power | ||
Company (“Buyer”), and Oxford Mining Company, Inc. (“Seller”) | ||
Amendment Xx. 0000-0 |
Xxxxxxxxx:
Reference is made to the above referenced Coal Purchase and Sale Agreement, as amended, (the
“Agreement”) under which Seller is supplying coal to Buyer.
Effective January 1, 2010, Buyer and Seller to amend the Agreement as follows:
1) | The fourth paragraph in Section 2.1, Contract Quantity, of Article II, Obligations and Deliveries, shall be deleted and replaced with the following in lieu thereof: | |
Through November 2008, there was a tonnage shortfall of [*] Tons (inclusive of [*] force majeure Tons claimed by Seller during Contract [ * ]). The shortfall has subsequently been reduced by [*] tons delivered by Seller in the months of January, February, and October 2009. The parties have agreed to an additional shortfall tonnage reduction in 2009, for a remaining shortfall total of [*] Tons. Buyer shall have the right to increase deliveries in any month(s) by up to [*] Tons per month with thirty (30) days prior written notice until such time as the [*] Tons have been delivered. The Contract Price to be paid for such Coal shall be the Contract Price in effect when delivered. | ||
2) | Delete the first paragraph in Article V, subsection (b) in its entirety and replace it with the following in lieu thereof: | |
(b) The Labor (Labor shall be deemed to be inclusive of all benefits and related taxes), Health Benefits, Construction Machinery & Equipment, Other, and Truck Transportation Cost Components shall be adjusted effective July 1 and January 1 of each Contract [ * ] commencing July 1, 2009. At such dates the average of the values of each of the respective indices correlative thereto (as set forth below) for the third, fourth, and fifth preceding months of such dates (i.e., August, September, and October for the January calculation) shall be compared to the average of the values of each of such respective indices for the ninth, tenth, and eleventh preceding months of such dates. The Petroleum Products Refined Cost Component shall be adjusted effective |
Oxford Mining Company, LLC
Amendment No. 2009-3
Page 2
Amendment No. 2009-3
Page 2
January 1, April 1, July 1 and October 1 of each Contract [*] beginning in April 2010. At such dates the Petroleum Products Refined Cost Component, for the third, fourth, and fifth preceding months of such dates (i.e., August, September, and October for the January calculation) shall be compared to the average values of the sixth, seventh and eighth preceding months of such dates. | ||
[*] of the respective percentage change (carried out four decimal places, e.g., 6.124% shall be 0.0612) in each of such average index values shall be multiplied by the last previously effective Component amount of the Contract Price correlative thereto. The amounts per Ton of increase or decrease, either by quarterly or semi-annual adjustment, so obtained shall be added to or subtracted from, as the case may be, the last previously effective amount of such respective Component, and the resulting amounts per Ton shall become the then effective amounts per Ton for such Components of the Contract Price. | ||
3) | For the period [*] through [*], the following quality specifications for Specification A reflected in Schedule 3.1-A, Quality Specifications shall be amended as follows: |
Weighted Average “As-Received” Basis | ||||||||||||
Contracted | Half-Month (A)* | Applicable Lot (B)* | ||||||||||
SPECIFICATION A: | Half-Month | Suspension Limit | Suspension Limit (D)* | |||||||||
Caloric Value (Btu/lb.) |
[*] | [*] minimum | [*] minimum | |||||||||
Ash (%) |
[*] | [*] maximum | [*] maximum | |||||||||
Sulfur Dioxide (lbs.
SO2/MMBtu( (C)* |
[*] | [*] maximum | [*] maximum |
Except as amended herein, all other provisions of the Agreement shall remain in full force and
effect. If you are in agreement with the foregoing, kindly indicate your acceptance thereof by
signing the enclosed duplicate of this letter in the space provided and by returning it to the
notice address provided in the Agreement.
Very truly yours,
/s/ Xxxxx X. Xxxxx
Xxxxx X. Xxxxx
Vice President — Fuel Procurement East,
as Agent for Columbus Southern Power Company
as Agent for Columbus Southern Power Company
Acceptance Date:
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Oxford Mining Company, LLC |
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/s/
Xxxxxx X. Xxxxxxxx |
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Signature |
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Xxxxxx X. Xxxxxxxx |
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Name (Print) |
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Vice
President |
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Title |
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xc: W. E. Xxxxxx — Eagle Fuels, Inc. |
[*] Certain information in this document has been omitted and filed separately with the Securities
and Exchange Commission. Confidential treatment has been requested
with respect to the omitted portions.