Tennessee Valley Authority Coal Supply & Origination Chattanooga, Tennessee 37402-2801 CONTRACT SUPPLEMENT

Exhibit 10.11

Tennessee Valley Authority

Coal Supply & Origination

0000 Xxxxxx Xxxxxx, XX 0X

Xxxxxxxxxxx, Xxxxxxxxx 00000-0000

CONTRACT SUPPLEMENT

TO:		Xxxxxxxxx Coal Company, Inc,		Supplement Xx.		0
		0000 Xxxxxxx Xxxxxxxxx - Xxxxx 0000		Date		December 14, 0000
		Xx. Xxxxx, Xxxxxxxx 00000		Group-Contract No.		612-40958
				Plants		Widows Creek/Paradise

Attention: Mr. Xxxxxx Xxxxxx

This confirms the agreement reached between Xxxxxx Xxxxxxxx, Xxxxxxxxx Coal Company, Inc. (“Xxxxxxxxx”) and Xxx Xxxxxx, Tennessee Valley Authority (“TVA”). TVA and Xxxxxxxxx agree to further Supplement Group-Contract 612-40958 as previously amended by Supplements 1-2 (the “Contract”) as follows:

1. TVA and Xxxxxxxxx hereby agree to change the start date of the Base Term of the Contract from January 1, 2013 (as stated in Section 1.0 Contract Term) to December 17, 2012.

2. Effective December 17, 2012, and through December 31, 2012 (“2012 Period”), Xxxxxxxxx’x Parkway Underground Mine (“Parkway Mine”) shall, at TVA’s option, deliver up to 20,000 tons of coal from its Parkway Mine to TVA’s Paradise Fossil Plant (“Paradise”) by truck under the Contract.

3. All 5.0# SO2 coal delivered from the Parkway Mine during the 2012 Period shall conform to the quality specifications as set forth below:

TYPICAL ANALYSIS1												REJECTION/SUSPENSION SPECIFICATIONS3
Lbs. of SO2 per million BTu2			5.0				lbs.					Not more than 5.0(P)			lbs.
Total Moisture			11.0				%					Not more than 12.0			%
Sulfur (a/r max)			2.90				%					Not more than 3.0			%
Ash (as received)			10.0				%					Not more than 12.0			%
Btu/lb. (a/r)			11,400									Not less than 11,000
Ash fusion temperature Reducing atmosphere
Initial			1980				°F
Softening			2075				°F								°F
Hemispherical			2135				°F								°F
Fluid							°F								°F
Volatile Matter (dry basis)							%								%
Grindability (Xxxxxxxxx Index)			54
Chlorine (dry basis)			.02				%								%

TVA RESTRICTED INFORMATION

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NOTES:

1 The Typical Analysis shall be used for the quality adjustments under Section 8.

2 Sulfur Dioxide calculated at 97.5 percent

3 Failure to comply with any of these specifications shall be a basis for rejections and suspensions or termination pursuant to Subsections 9.3., 9.4., and 9.5 of the Contract.

4 Paradise (P)

4. The Base Price for coal delivered from the Parkway Mine during the 2012 Period shall be the Contract Year #1 Base Price of $45.50 per ton. Coal delivered from the Parkway Mine during the 2012 Period shall be subject to adjustment pursuant to Section 10 0 Contract Price Adjustments and Cost Reimbursements of the Contract.

5. The Contract Year #1 Base Price of $45.50 per ton for coal delivered from the Parkway Mine during the 2012 Period shall be subject to quality adjustments as may be applicable to reflect the quality of delivered coal under Section 8, Adjustment for Quality, of the Contract based on the quality and specifications in accordance with Section 3. of this Supplement No. 3.

6. TVA shall make price adjustments to cover Xxxxxxxxx’x cost for the truck transportation of the coal delivered from Xxxxxxxxx’x Parkway Mine to Paradise during the 2012 Period by adding the truck transportation rate of $2.50 per ton for delivery on Weekdays, including Saturdays.

7. TVA shall make a price adjustment to cover Xxxxxxxxx’x cost for the sampling and weighing of the coal delivered during the 2012 Period from Xxxxxxxxx’x Parkway Mine to Paradise. The price for providing these services will be $0.20 per ton.

8. Invoices for truck transportation and weighing and sampling costs shall be submitted by Xxxxxxxxx to TVA’s Contract Administrator by the tenth day of each month for the previous month with backup documentation to support the claim. Payment of these invoices shall be handled by TVA as additional payments.

9. The coal quantity delivery requirements of the Contract shall be reduced by each ton of coal delivered from Parkway Mine to Paradise under this agreement during the 2012 Period.

Please complete the acceptance on both copies and return one copy to this office. You should retain the other original copy for your files.

In the event Contractor fails to execute this Supplement in the acceptance space provided below or fails to return such executed Supplement to TVA, shipment of coal to TVA following the date of Contractor’s receipt of this Supplement shall constitute an acceptance by Contractor of all the terms and conditions of this Supplement, Contractor notifies TVA, both orally and in writing that this Supplement is not accepted.

Except as otherwise provided in the immediately preceding sentence, the acceptance date of this Supplement shall be the date on which both parties have signed a copy thereof.

(Signature Page Follows)

TVA RESTRICTED INFORMATION

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Accepted		XXXXXXXXX COAL CO.				Tennessee Valley Authority
		(Company)
By						By
						Xxxxxx X. Xxxxxxx
						Asset Management Specialist
Title		President				December 17, 2012
						Date
Date		12/18/12
						Xxxxxxxxx X. Xxxx
						Manager, Coal Contracts
						December 17, 2017
						Date

TVA RESTRICTED INFORMATION

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