AMENDMENT NO. 1 TO COAL SUPPLY AGREEMENT
Peabody COALSALES Company
Contract #LGE02011
Amendment No.1
EXHIBIT 10.71
AMENDMENT NO. 1 TO COAL SUPPLY AGREEMENT
THIS AMENDMENT NO. 1 TO COAL SUPPLY AGREEMENT (“Amendment No. 1”) is entered into effective as of June 1, 2002, by and between LOUISVILLE GAS AND ELECTRIC COMPANY, a Kentucky corporation, 000 Xxxx Xxxx Xxxxxx, Xxxxxxxxxx, Xxxxxxxx 00000 (Buyer”), and PEABODY COALSALES COMPANY, a Delaware corporation, 000 Xxxxxx Xxxxxx, Xxxxx 000, Xx. Xxxxx, Xxxxxxxx 00000-0000 (“Seller”). In consideration of the agreements herein contained, the parties hereto agree as follows.
1.0 AMENDMENTS
The Agreement heretofore entered into by the parties, dated effective January 1, 2002 and identified by the Contract Number set forth above, (hereinafter referred to as “Agreement”) is hereby amended as follows:
2.0 QUANTITY
2.1 Section 3.1 Base Quantity, is deleted in its entirety and replaced with the following:
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BASE QUANTITY (TONS) |
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2002 |
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600,000 |
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2003 |
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750,000 |
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2004 |
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600,000 |
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* Parties shall begin discussions on and after June 1, 2002 to negotiate pricing for an additional 250,000 tons of coal per year to be supplied during calendar year 2003. If the parties do not agree upon pricing for such additional tons by September 1, 2002, then Buyer shall not be required to purchase such additional tons, and the tonnage to be delivered during calendar year 2003 shall be the Base Quantity as defined above. The parties shall also meet starting June 1, 2003 to negotiate pricing for an additional 250,000 tons of coal to be supplied during calendar year 2004. If the parties do not agree upon pricing for such additional tons by September 1, 2003, then Buyer shall not be required to purchase such additional tons and the tonnage to be delivered during calendar year 2004 shall be the Base Quantity as defined above.
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3.0 PRICE
3.1 Section 8.1 Base Price is deleted and replaced with the following:
“The base price (“Base Price”) of the coal to be sold hereunder will be firm and will be determined by the criteria set forth in Section 5 in accordance with the following schedule:
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Year |
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Base Price (F.O.B. Barge) |
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2002 |
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$ |
1.1224 per MMBtu |
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$ |
25.59 per ton |
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2003 |
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$ |
1.1224 per MMBtu |
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$ |
25.59 per ton * |
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2003 |
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$ |
1.1351 per MMBtu |
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$ |
25.88 per ton ** |
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2004 |
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$ |
1.1680 per MMBtu |
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$ |
26.63 per ton |
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* The Base Price for the first 150,000 tons delivered in 2003
** The Base Price for the remainder of the tons delivered in 2003
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 on the day and year below written, but effective as of the day and year first set forth above.
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LOUISVILLE GAS AND ELECTRIC |
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PEABODY COALSALES COMPANY |
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BY: |
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BY: |
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SVP - Energy Services |
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DATE: |
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DATE: |
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