Document:

sdmi-ex1024_851.htm

Exhibit 10.24

 

COAL VALLEY SALES, LLC

111 Freeport Road, Pittsburgh, PA 15215 
Phone (412) 784-0750 — Fax (412) 784-0841

June 5, 2017

Scrubgrass Generating Company LP 2151 Libson Road Kennerdell, PA 16374

Dear Mr. Shaffer:

Reference is made to that certain Waste Disposal Agreement by ant between Scrubgrass Generating Company LP (“Scrubgrass”) and Coal Valley Sales LLC (“Coal Valley”) dated February 12, 2002, as amended (the “Agreement”). Based on our recent discussions, Coal Valley will commit additional tonnage from the Tassa stockpile it controls in Irwin Township, Venango County as described In Exhibit H to the Agreement. Further, any and all Tassa waste coal shipped to Scrubgrass will be considered part of the Minimum Payment provisions under Section 5.4 of the Second Amended Agreement as of December 22, 2015.

Please indicate your acceptance of this waste coal pile to Exhibit H by countersigning below.

Best Regards,

/s/ Joe Anania

Joe Anania

CFO

Coal Valley Sales LLC

Accepted and agreed to:

Scrubgrass Generating Company LP

By: /s/ R.J. Shaffer

R.J Shaffer, Plant Manager

 

 

 

THIRD AMENDMENT TO THE WASTE DISPOSAL AGREEMENT

This THIRD AMENDMENT TO THE WASTE DISPOSAL AGREEMENT (this “Amendment”) dated January 31, 2017, is by and between Coal Valley Sales LLC of 111 Freeport Road, Pittsburgh, PA 15215, (hereinafter called “Operator”), and Scrubgrass Generating Company LP of 2151 Lisbon Road, Kennerdell, PA 16374 (hereinafter called “Scrubgrass”).

WHEREAS, Operator and Scrubgrass are parties to that certain Waste Disposal Agreement dated February 12, 2002, amended by the letter agreement dated February 22, 2010, extended by facsimile transmission dated June 13, 2011 and amended by the Second Amendment dated December 22, 2015 (the “Waste Disposal Agreement”); and

WHEREAS, Operator and Scrubgrass desire to amend the terms of the Waste Disposal Agreement as provided herein.

NOW THEREFORE, the Parties hereto, intending to be legally bound hereby an in consideration of promises contained herein, do hereby agree as follows:

1.Defined Terms. Capitalized terms used herein without definition shall have the meanings ascribed to them in the Waste Disposal Agreement.

2.Amendments:

	
 
	
(a) 
	
Amendment to Section 2.1. Operator and Scrubgrass hereby agree to amend Section 2.1 of the Waste Disposal Agreement by replacing it with the following:

“2.1Right to Waste Coal; Right to First Offer for Other Coal”

(c) SCRUBGRASS hereby terminates to Operator the right of first refusal offer with respect to the exclusive right to supply coal other than Waste Coal to SCRUBGRASS for the Facility during the term of the Agreement.

	
 
	
(b) 
	
Amendment to Section 4.1 Operator and Scrubgrass hereby agree to amend Section 4.1 of the Waste Disposal Agreement by restoring the Section 4.1 as described in the agreement dated February 12, 2002, based on the following:

“4.1Waste Coal Quality, Suspension of Deliveries.”

Provided that SCRUBGRASS does not continue to assume all of the Operator’s obligations related to mining, processing, loading and otherwise handling Waste Coal and unloading and properly disposing of ash with respect to the Russellton Pile, then all of the provisions of Section 4.1 as described in the agreement dated February 12, 2002 are restored in its entirety.

	
 
	
(c)
	
Amendment to Section 4.2 Operator and Scrubgrass hereby agree to amend Section 4.2 of the Waste Disposal Agreement by restoring the Section 4.2 as described in the agreement dated February 12, 2002, based on the following:

 

“4.2Inspection of Waste Coal.”

Provided that SCRUBGRASS does not continue to assume all of the Operator’s obligations related to mining, processing, loading and otherwise handling Waste Coal and unloading and properly disposing of ash with respect to the Russellton Pile, then all of the provisions of Section 4.2 as described in the agreement dated February 12, 2002 are restored in its entirety.

	
 
	
(d)
	
Amendment to Section 4.3 Operator and Scrubgrass hereby agree to amend Section 4.3 of the Waste Disposal Agreement by restoring the Section 4.2 as described in the agreement dated February 12, 2002, based on the following:

“4.2Rejection of a Delivery.”

Provided that SCRUBGRASS does not continue to assume all of the Operator’s obligations related to mining, processing, loading and otherwise handling Waste Coal and unloading and properly disposing of ash with respect to the Russellton Pile, then all of the provisions of Section 4.3 as described in the agreement dated February 12, 2002 are restored in its entirety.

	
 
	
(e)
	
Amendment to Section 5.1 Operator and Scrubgrass hereby agree to amend Section 5.1 of the Waste Disposal Agreement based on the following:

“5.1Handling Fee.”

The Reduced Handing Fee of $1.00 per ton is extended thru the expiration of the Basic Term (as provided in Section 6.1 below).

	
 
	
(f)
	
Amendment to Section 6.1 Operator and Scrubgrass hereby agree to amend Section 6.1 of the Waste Disposal Agreement by replacing it with the following:

“6.1Basic Term.”

This Agreement shall commence on the date of executed and delivery, shall expire on December 31, 2025, unless other terminated or extended in accordance with the provisions of this Agreement.

	
 
	
(g)
	
Amendment to Exhibit C. Operator and Scrubgrass hereby agree to amend Exhibit C by restoring it in its entirety provided that SCRUBGRASS has does not continue to assume the Operator’s obligations to mining, processing, loading and otherwise handling Waste Coal and unloading and properly disposing of ash with respect to the Russellton Pile.

 

3.Continuing Effect; No Other Amendments. Except as expressly amended hereby, all the terms and provisions of the Waste Disposal Agreement are and shall remain in full force and effect. The amendments contained herein shall not constitute an amendment or waiver of any other provision of the Waste Disposal Agreement or for any purpose except as expressly set forth herein. The parties shall preserve all rights, remedies, powers and privileges under the Waste Disposal Agreement.

4.Counterparts. The Amendment may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery of a signature page of the Amendment by electronic or facsimile transmission shall be effective as delivery of a manually executed counterpart thereof.

5.Severability. Any provision of the Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate nor render unenforceable such provision in any other jurisdiction.

6.GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA.

7.Headings. The headings of the Amendment are for purposes of reference only and shall not limit or otherwise effect the meaning thereof.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives as of the day and year first above written.

 

			
	
COAL VALLEY SALES LLC

	
 
	
 
	
 

	
By:
	
 
	
/s/ Joe Anania

	
 
	
 
	
Joe Anania — Chief Financial Officer

	
 
	
 
	
 

	
Dated: 1/31/2017

 

			
	
SCRUBGRASS GENERATING COMPANY LP

	
 
	
 
	
 

	
By:
	
 
	
/s/ RJ Shaffer

	
 
	
 
	
RJ Shaffer— General Manger

	
 
	
 
	
 

	
Dated: 1/31/2017sdmi-ex1025_706.htm

Exhibit 10.25

 

SUPPLY AGREEMENT
BY AND BETWEEN
SCRUBGRASS GENERATING COMPANY, L.P.
AND
COAL VALLEY PROPERTIES, LLC
REFERENCE: SCRUBGRASS SITE CODE 122

THIS Supply Agreement together with the Exhibit(s) (the “Agreement”) is made, entered into and effective as of August 14, 2015 (the “Effective Date”), by and between Scrubgrass Generating Co., L.P. with principal facility at 2151 Lisbon Road, Kennerdell, Pa. 16374 (the “Jobsite”), and it’s permitted assigns (hereinafter, the “Purchaser”) and Coal Valley Properties, LLC with its principal offices at 111 Freeport Road, Pittsburgh, Pennsylvania 15215 (hereinafter, the “Seller”), for the supply of materials (as hereinafter defined). Purchaser and Seller are also referred to individually as a “Party” and collectively as the “Parties”.

RECITALS

A.Purchaser desires to engage Seller to complete, on a fixed price basis, the services as, more fully described in Exhibits A and B.

B.Seller has:

(1)Been provided and reviewed the technical specifications for the services and all other documents relating to the services which Seller has deemed necessary in connection with this Agreement;

(2)Performed or reviewed such other investigations, studies and analyses which Seller has determined to be necessary or prudent in connection with entering into this Agreement.

THEREFORE, in consideration of the sums to be paid to Seller by Purchaser and of the covenants and agreements set forth herein, the Parties hereto, intending to be legally bound, hereby agree as follows:

ARTICLE I - SCOPE OF WORK

The Scope of Work (the “Work”) is defined by:

(i)This Agreement;

(ii)Technical Specifications as defined in Exhibit A and Exhibit B.

(iii)Seller’s pricing as defined in Exhibit B excluding any and all commercial terms contained and/or referenced therein.

Seller shall provide all local or county construction permits required for the material (the “Seller Supplied Permits”).

 

 

ARTICLE II - SCHEDULE OF AGREEMENT

Seller shall commence the services on or about the dates shown herein and completed by December 31, 2016 or as otherwise mutually agreed to by the Parties.

ARTICLE III - COMPENSATION TO SELLER

In full and complete compensation to the Seller for the satisfactory completion of the services, the Seller shall be paid by the Purchaser the adjustable price (the “Base Handling Fee”) of Twenty one dollars and zero cents ($21.00) in accordance with the provisions stated herein. The Base Handling Fee includes all applicable costs for salaries, materials, tools, Seller Supplied Permits and equipment, as well as all indirect costs, overhead, and fees.

This Supply Agreement may be amended from time to time with any changes or amendments to this Supply Agreement (the “Change Orders”) with such Change Orders being authorized in writing by Purchaser prior to their effectiveness.

Invoices directly relating to this Supply Agreement shall be issued by Seller to the Purchaser, payments shall be made the 20th of the following month for material delivered from the 1st to the 15th, and the first Monday of the second month for material delivered from the 16th to the end of the month, after receipt of a correct invoice.

Invoice(s) must be properly documented referencing this Supply Agreement and Scrubgrass Site Code 122 and include a unique invoice number.

ARTICLE IV - NOTIFICATION AND SUBMITTALS

Unless otherwise specifically provided herein, all Notices, consents, directions, approvals, instructions, requests and other communications required or permitted by the terms hereof to be given to either Party shall be in writing, and any such Notice shall become effective upon the earlier of receipt or seven (7) Days after being deposited in the United States mail, certified or registered with appropriate postage prepaid for first class mail or, if delivered by hand or by courier service or in the form of a telex, telecopy, or telegram, when received, and shall be directed to the address set forth below. A Party may change the address or addresses shown below by providing written Notice to the other Party.

PURCHASER:

	
 
	
Original to:
	
Scrubgrass Generating Co., L.P. 
2151 Lisbon Road 
Kennerdell, Pa. 16374 
Attention: R.J. Shaffer

SELLER:

	
 
	
Originals to:
	
Coal Valley Properties, LLC
111 Freeport Road 
Pittsburgh, Pa. 12215

 

 

ARTICLE VI - WHOLE AGREEMENT

This Supply Agreement is composed solely and exclusively of the following documents and in the event that there is a conflict between information contained within the Supply Agreement documents, the hierarchy of documents shall be:

A.This Agreement, as modified from time to time;

B.Exhibit A - Technical Specifications,;

C.Exhibit B - Seller’s pricing excluding any and all commercial terms contained and/or referenced therein.

Prior to Seller performing any of the services associated with this Supply Agreement and in order to establish the effectiveness of this Agreement, the Parties shall acknowledge, accept and agree to this Supply Agreement by signing below and returning a copy of this signed Supply Agreement to the Purchasers.

THIS SUPPLY AGREEMENT EXECUTED this October 22ndth day of , 2015

Coal Valley Properties, LLC

 

 

	
	
/s/ William Spence

	
Signature

 

 

	
	
William Spence

	
Printed Name

 

 

	
	
President

	
Title

 

 

	
	
10-27-15

	
Date

 

 

 

EXHIBIT A

Operator will handle and load an undetermined amount of the specified Fuel onto Scrubgrass Generating Co., LP trucks.

EXHIBIT B

The coal will originate from the Soldier site in PA. Fuel will have a minimum of 6000 BTU/LB. All quality parameters stated in the previous statement are on an as received basis.

PRICINGA.) BASE HANDLING FEE $21.00 per Ton Scrubgrass Scale Weight, F.O.B. Soldier site.

The quantities are estimates only and are subject to increase/decrease depending upon actual job and buyer requirements.

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