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


  	

   


  





 






















* 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.




 




1





























 




 




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


  	

   


  	 

													





 






















* 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: 


  	

   


  





 




2