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, 220 West Main Street, Louisville, Kentucky
40202 (Buyer”), and PEABODY COALSALES COMPANY, a Delaware corporation, 701
Market Street, Suite 830, St. Louis, Missouri 63101-1826 (“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:

 

 

YEAR

 

BASE QUANTITY (TONS)

 

 

 

 

 

2002

 

600,000

 

2003

 

750,000

 

2004

 

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:

 

Year

 

Base Price (F.O.B. Barge)

 

 

 

 

 

 

 

 

2002

 

$

1.1224 per MMBtu

 

$

25.59 per ton

 

 

2003

 

$

1.1224 per MMBtu

 

$

25.59 per ton *

 

 

2003

 

$

1.1351 per MMBtu

 

$

25.88 per ton **

 

 

2004

 

$

1.1680 per MMBtu

 

$

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.

 

 

 

 

LOUISVILLE GAS AND ELECTRIC
COMPANY

 

PEABODY COALSALES COMPANY

 

 

 

BY:

 

 

BY:

 

 

SVP - Energy Services

 

 

 

 

 

TITLE:

 

 

 

 

 

DATE:

 

 

DATE:

 

 

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