Document:

<PAGE>   1
                                                                    Exhibit 10.9

                             COAL TRANSPORTATION
                                  AGREEMENT

                                   BETWEEN

                          LOUISIANA GENERATING, LLC

                                     AND

                     THE BURLINGTON NORTHERN AND SANTA FE
                               RAILWAY COMPANY

                                     AND

                          AMERICAN COMMERCIAL MARINE
                               SERVICE COMPANY
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                              TABLE OF CONTENTS

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ARTICLE I        DEFINITIONS.................................................   2

ARTICLE II       FILING, APPROVAL, COMMENCEMENT OF SERVICE EFFECTIVE
                 DATE AND TERM...............................................   5
  Section 1.     Term........................................................   5
  Section 2.     Commencement of Service.....................................   5
                 A.    Effective Date of Agreement...........................   5
                 B.    Initiation of Service.................................   5

ARTICLE III      LG'S COAL TENDER COMMITMENT.................................   6
  Section 1.     Coal Tonnage Subject to this Agreement......................   6
  Section 2.     Minimum Volume Commitment...................................   6
  Section 3.     Volume Shortfall Payment....................................   7
  Section 4.     Shipment of Processed Coal..................................   8
  Section 5.     Reports.....................................................   8

ARTICLE IV       CARRIERS' OBLIGATION TO TRANSPORT COAL AND PROVIDE
                 EQUIPMENT...................................................   8
  Section 1.     Transportation Obligation...................................   8
  Section 2.     BN Equipment Supply.........................................   9
  Section 3.     ACMS Equipment Supply.......................................   9
                 A.    Equipment Supply......................................   9
                 B.    Requirements for Terminal.............................   9
                 C.    Storage Capacity......................................   9

ARTICLE V        LG'S OBLIGATION TO SUPPLY EQUIPMENT........................    10
  Section 1.     Supply of Equipment........................................    10
  Section 2.     Car Damage.................................................    10
  Section 3.     Car Destruction............................................    11
  Section 4.     Provision of Unloading Facilities..........................    12
  Section 5.     Provision of Harbor and Shift Boat.........................    13

ARTICLE VI       RAIL OPERATING AND SCHEDULING PROCEDURES...................    13
  Section 1.     Train Size.................................................    13
  Section 2.     Minimum Shipment Weight....................................    13
  Section 3.     Minimum Tender.............................................    14
  Section 4.     Advance Notice and Loading.................................    14
  Section 5.     Placement and Free Time - Origin...........................    14
  Section 6.     Rail Car Demurrage at Terminal.............................    16
  Section 7.     Constructive Placement.....................................    16
  Section 8.     Service Commitment.........................................    17
  Section 9.     Routing....................................................    19
</TABLE>

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                              TABLE OF CONTENTS

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ARTICLE VII      SERVICE AND MAINTENANCE....................................    20
  Section 1.     Service and Maintenance of LG Railcars.....................    20
  Section 2.     Holding and Storage of Empty Or Loaded Unit Trains.........    22
  Section 3.     Weighing and Determination of Weights......................    24
  Section 4.     Overloaded Car(s)..........................................    24
  Section 5.     Release of Crews/Removal of Locomotives....................    25

ARTICLE VIII     TERMINAL AND BARGE OPERATING PROCEDURES....................    25
  Section 1.     Control of Loading and Unloading...........................    25
  Section 2.     Control of Service Performance.............................    25
  Section 3.     Notice of Barge ETA........................................    26
  Section 4.     Origin Demurrage...........................................    26
  Section 5.     Destination Demurrage......................................    26
  Section 6.     Free Time..................................................    27
                 A.    Alternate A - Standby Unloading......................    27
                 B.    Alternate B - Additional Set Of Barges Unloading.....    27
                 C.    Alternate C - Single Barge Unloading.................    27
                 D.    Designation of Alternates............................    28
  Section 7.     Computation of Free Time...................................    28
  Section 8.     Adjustment for Force Majeure...............................    29
  Section 9.     ACMS Operating Obligations.................................    29

ARTICLE IX       LG OPERATING PROCEDURES....................................    30
  Section 1.     Responsibility for Unloading...............................    30
  Section 2.     Berthing and Mooring.......................................    30
  Section 3.     Excess Return Tonnage......................................    30

ARTICLE X        RATES AND RATE ADJUSTMENT..................................    31
  Section 1.     Minimum Base Rate..........................................    31
  Section 2.     Effective Rate.............................................    32
  Section 3.     Adjustment to Rates and Charges............................    32

ARTICLE XI       BILLING PROCEDURES.........................................    34
  Section 1.     Transportation Billing.....................................    34
  Section 2.     Payment....................................................    34
  Section 3.     All Other Charges..........................................    35

ARTICLE XII      FORCE MAJEURE..............................................    35
  Section 1.     Definition.................................................    35
  Section 2.     Effect of Force Majeure....................................    36
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                              TABLE OF CONTENTS

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ARTICLE XIII     INDEMNITY AND INSURANCE....................................   38
  Section 1.     Indemnity by ACMS..........................................   38
  Section 2.     Indemnity by LG............................................   38
  Section 3.     Insurance to be Maintained by ACMS.........................   39

ARTICLE XIV      COAL LOSS AND DAMAGE.......................................   40
  Section 1.     Liability for Loss of Coal Transported by BN...............   40
  Section 2.     Liability for Loss of Coal Transported by ACMS.............   40
  Section 3.     General Average............................................   41
  Section 4.     Disclaimer of Damages......................................   41
  Section 5.     Private Carriage...........................................   42

ARTICLE XV       TERMINATION................................................   42

ARTICLE XVI      ASSIGNMENT AND SUCCESSION..................................   42

ARTICLE XVII     AMENDMENT, MODIFICATION AND WAIVER.........................   43

ARTICLE XVIII    MISCELLANEOUS..............................................   44
  Section 1.     Subcontracting.............................................   44
  Section 2.     Independent Contractor.....................................   44
  Section 3.     Waivers and Remedies.......................................   44
  Section 4.     Notice.....................................................   44
  Section 5.     Severability, Effect of Agreement..........................   46
  Section 6.     Confidentiality............................................   46
  Section 7.     Representations and Warranties.............................   47
  Section 8.     Counterparts...............................................   48
  Section 9.     Remediation................................................   48
 Section 10.     Construction...............................................   49
</TABLE>

                                      iii
<PAGE>   5
                        COAL TRANSPORTATION AGREEMENT

      THIS AGREEMENT (the "Agreement") is made as of the 22nd day of January,
1997, by and among the BURLINGTON NORTHERN AND SANTA FE RAIL COMPANY (BN), a
Delaware corporation; AMERICAN COMMERCIAL MARINE SERVICE COMPANY ("ACMS"), a
Delaware corporation; and LOUISIANA GENERATING, L.L.C. ("LG"), a Delaware
limited liability company.

                             W I T N E S S E T H
      WHEREAS, BN is a common carrier by rail with legal authority pursuant to
49 U.S.C. Section 10709 to enter into a binding contract to provide coal
transportation services to LG; and

      WHEREAS, ACMS owns and operates a coal receiving, storage and transfer
facility in St. Louis, Missouri and also owns, operates, and/or charters,
through affiliated companies, river vessels suitable for transportation of coal
on the Mississippi River; and

      WHEREAS, LG intends to purchase and operate the Big Cajun No. II
steam-electric generating plant and coal unloading dock, located at
approximately Mile 263 AHP near New Roads, Louisiana (the "LG Power Plant")
pursuant to the Asset Purchase Agreement as hereinafter defined; and

      WHEREAS, LG will require large quantities of coal for the operation of
the LG Power Plant; and

      WHEREAS, BN and ACMS have been the sole suppliers of transportation of
coal for the LG Power Plant under long term arrangements with the prior operator
of Big Cajun No. II commencing in 1979; and
<PAGE>   6
      WHEREAS, LG, BN and ACMS all desire that BN and ACMS continue to transport
for LG pursuant to the terms of this Agreement certain tonnages of coal from
mines in the Wyoming Powder River Basin to the LG Power Plant, and BN and ACMS
are willing to provide such transportation; and

      WHEREAS, pursuant to Cajuns Chapter 11 Case Number 94-11474 pending before
the United States Bankruptcy Court for the Middle District of Louisiana (the
"Chapter 11 Proceeding") and LG's planned purchase of the LG Power Plant and
related assets from Cajun Electric Power Cooperative, Inc., BN and ACMS have
each agreed to renegotiate their respective long-term arrangements on amended
terms set forth in this Agreement in order to continue to supply, on a joint
basis, all coal transportation requirements for the LG Power Plant.

      NOW, THEREFORE, in consideration of the premises, the mutual covenants
herein set forth, and other good and valuable consideration, the receipt of
which is hereby acknowledged, the parties do hereby agree as follows:

                                  ARTICLE I
                                 DEFINITIONS
                                 -----------
      The following terms shall have the following meanings for purposes of this
Agreement:

      "AAR" shall mean the Association of American Railroads.
      "AAR Interchange Rules" shall mean the rules set out in the Field
Manual and Office Manual of the Interchange rules adopted by the AAR, as amended
from time to time.

      "Agreement" shall have the meaning set forth in the premises clause.

                                       2
<PAGE>   7
      "Asset Purchase Agreement" shall mean the Amended and Restated Asset
Purchase and Reorganization Agreement among LG, the Trustee and, as to certain
specific sections of the Agreement only, NRG Energy, Inc., Zeigler Coal Holding
Company and Southern Electric International, Inc., as of September 30, 1996, as
the same may be amended from time to time.

      "Cajun" shall mean Cajun Electric Power Cooperative, Inc.

      "Calendar Year" shall mean a year commencing January 1 and ending
December 31.

      "Carrier" or "Carriers" shall mean collectively BN and ACMS.

      "Chapter 11 Proceeding" shall have the meaning set forth in the
Recitals.

      "Coal" shall mean crushed raw coal (2x0 in size) unprocessed and
classified as bituminous (including sub-bituminous) whose Standard
Transportation Commodity Code (STCC) is 11212, as set forth in the STCC Tariff
ICC STCC 6001 Series in effect on the date this Agreement is executed or its
successor. Coal greater than 2x0 may be shipped only upon mutual consent of
the parties which consent shall not be unreasonably withheld. The Coal may be
treated to prevent freezing or to suppress dusting after mutual determination by
the parties that the agents used for such treatment shall not adversely affect
the facilities or equipment of ACMS or BN, or the operation thereof.

      "Coal Cars" shall mean LG supplied open-top rail cars equipped with rotary
couplers, having a capacity of not less than 204,000 pounds, suitable for use in
service between Origin and the Terminal, and suitable for use in service in the
Coal unloading equipment maintained by ACMS.

      "Designated Loading Point" shall mean that point on Origin mines' trackage
at which any further train movement is at the direction of the mine operator.

                                       3
<PAGE>   8
      "Destination" shall mean the private barge coal unloading facility at the
LG Power Plant at approximately mile 263 AHP near New Roads, LA.

      "Effective Date" shall mean the Effective Date under the Asset Purchase
Agreement.

      "Effective Rate" shall have the meaning set forth in Article I.

      "LG Power Plant" shall have the meaning set forth in the Recitals.

      "Origin" shall mean all existing BN-served Wyoming Powder River Basin
mines in Campbell and Converse Counties that are now operating and, with mutual
written consent of Carriers and LG, those mines that become operational during
the term of this Agreement.

      "Origin Loading Facilities" shall mean the equipment necessary to load
Unit Train shipments of Coal at Origin including but not limited to rail
trackage, Coal silos and/or hoppers, conveyor belts, preparation plants, and
storage facilities at or for Origin.

      "STB" shall mean the Surface Transportation Board or its successor agency
or body having the same or similar jurisdiction over common carriers by rail.

      "Tender" shall mean (a) with respect to a shipment of Coal by rail, to
make available for loading into Coal Cars; (b) with respect to Coal Cars, to
release Coal Cars into the control of BN; and (c) with respect to a shipment of
Coal by barge, to make available for unloading and loading into barges at the
Terminal.

      "Terminal" shall mean ACMS' Hall Street Terminal in St. Louis, Missouri.

      "Ton" shall mean a ton of 2,000 pounds, avoirdupois.

      "Transportation of Coal" shall mean movement of Coal from Origin to
Destination including rail transportation from Origin to the Terminal,
receiving, interim storage, loading to barge at the Terminal and barge
transportation from the Terminal to Destination.

                                       4
<PAGE>   9
      "Trustee" shall mean Ralph R. Mabey, as Chapter 11 Trustee of Cajun.

      "Trustee's Plan of Reorganization" shall mean the Trustee's Plan of
Reorganization as may be amended from time to time for Cajun, pending in the
Chapter 11 Proceeding.

      "Unit Train" shall mean an assembly of Coal Cars continuously cycling from
one Origin to the Terminal on one bill of lading.

                                  ARTICLE II
                  FILING, APPROVAL, COMMENCEMENT OF SERVICE
                           EFFECTIVE DATE AND TERM
                           -----------------------
      Section 1.  Term.
                  -----
      The term of this Agreement shall be for a period of five years, commencing
on the Effective Date (as defined below), and ending five years thereafter
except as provided in Article XII, Section 2.D.

      Section 2.  Commencement of Service.
                  ------------------------
      A.    Effective Date of Agreement.
            ----------------------------
      This Agreement is entered into and becomes binding upon the signatories
upon the Effective Date as defined in the Asset Purchase Agreement.

      B.    Initiation of Service.
            ----------------------
      Transportation service will initiate under this Agreement as of the first
train to commence loading at Origin on or after 12:01 a.m. on the calendar day
next following the Effective Date. Coal en route by train or barge or in transit
at the Terminal, prior to 12:01 a.m. of the day

                                       5
<PAGE>   10
following the Effective Date shall be transported to Destination under existing
Coal transportation arrangements between Carriers and Cajun.

                                 ARTICLE III
                         LG'S COAL TENDER COMMITMENT
                         ---------------------------

      Section 1.  Coal Tonnage Subject to this Agreement.
                  ---------------------------------------

      LG shall Tender to Carriers at Origin all Coal required for operation of
all of the Coal fired generation units at LG's Power Plant including the three
Coal fired generation units currently in operation, any additional Coal fired
generating unit(s) which might be constructed at LG's Power Plant during the
term of this Agreement, and all of the Coal required for maintaining a storage
pile of the proper size at the LG Power Plant, as determined by LG in its sole
discretion, from time to time.

      Section 2.  Minimum Volume Commitment.
                  --------------------------

      At least ninety (90) days prior to the beginning of each Calendar Year
(except 1997), LG shall provide to Carriers a declaration of the Tons of Coal
expected to be Tendered during the next Calendar Year ("Declared Tonnage").
Subject to the other provisions of this Agreement, the Declared Tonnage for a
Calendar Year shall represent LG's best estimate of the tonnage expected to be
Tendered for such Calendar Year. The Declared Tonnage for the portion of the
1997 Calendar Year that remains after the Effective Date shall be provided not
later than thirty (30) days after the Effective Date. Said declaration(s) shall
also include a shipping schedule of the amounts of Coal that LG expects to
Tender during each month of such year. During the Calendar Years 1998-2001, LG
shall Tender not less than {***} Tons per year (the "Minimum Volume
Commitment"). During the Calendar Years 1997 and 2002 (assuming an Effective
Date

                                       6
<PAGE>   11
in 1997), the Minimum Volume Commitment shall be prorated by multiplying a
ratio, the numerator of which is the number of days in a Calendar Year that
Transportation of Coal will be provided by Carriers under this Agreement and the
denominator is 365 days, multiplied by {***} Tons. LG shall Tender all shipments
of Coal on a ratable and mutually agreeable quarterly schedule taking into
consideration LG's seasonal Coal consumption. LG may increase or decrease the
Declared Tonnage for a Calendar Year quarter by as much as {***} of the
quarterly Declared Tonnage upon written notice to Carriers 60 days prior to the
beginning of the quarter. Neither the declaration of Declared Tonnage, the
amendment of such declaration or the ultimate accuracy of such declaration shall
be deemed to relieve LG of its obligation to Tender to Carriers the Coal tonnage
subject to this Agreement. If the Effective Date occurs after 1997, then all
dates and references to Calendar Years shall be adjusted as appropriate to give
effect to the five (5) year term provided for under Article II, Section 1.

      Section 3.  Volume Shortfall Payment.
                  -------------------------

      If in any Calendar Year, LG does not Tender Tons of Coal at least equal to
the Minimum Volume Commitment (for reasons other than an event of Force
Majeure), LG shall pay to Carriers, not as a penalty, but as compensation for
lost traffic in the form of liquidated damages, agreed upon as reasonable and in
full settlement for LG's failure to meet the Minimum Volume Commitment, an
amount equal to fifty {***} of the Effective Rate (as defined in Article X)
applicable for the fourth quarter of the Calendar Year in question, multiplied
by the number of Tons by which LG failed to meet the Minimum Volume Commitment
(the "Volume Shortfall Payment"). This Section shall not authorize LG to
transport any tonnage for any Calendar Year via any transportation mode other
than BN and ACMS.

                                       7
<PAGE>   12
      Section 4.  Shipment of Processed Coal.
                  ---------------------------

      The rates, terms and conditions of this Agreement apply to the
transportation of raw, untreated Coal and do not apply to the transportation of
artificially dried or processed Coal.

      Section 5.  Reports.
                  --------

      Within forty-five (45) days after the end of each Calendar Year (and
within forty-five (45) days after termination of this Agreement), LG shall send
a written notice to Carriers certifying for such year (A) the Minimum Volume
Commitment; (B) the number of Tons of Coal Tendered or caused to be Tendered by
LG for transportation hereunder; (C) the total number of Tons of Coal required
for operation of the LG Power Plant and the maintenance of the storage pile at
such plant; (D) the number of Tons of Coal transported hereunder by Carriers;
and (E) the dollar amount of any Volume Shortfall Payment due. If Carriers
accept LG's report or fail to advise LG of any exceptions within forty-five (45)
days of receipt of the report, the contents thereof shall be deemed final and
binding on the parties. If Carriers advise LG within forty-five (45) days of
their receipt of LG's report that they take exception to any portion thereof,
the parties shall meet in an attempt to resolve their differences in accordance
with Article XVIII, Section 9. Any Volume Shortfall Payment agreed to be owing
shall be paid by LG within thirty (30) days after the date such payment is
agreed or deemed to be agreed to be owing.

                                  ARTICLE IV
         CARRIERS' OBLIGATION TO TRANSPORT COAL AND PROVIDE EQUIPMENT
         ------------------------------------------------------------

      Section 1.  Transportation Obligation.
                  --------------------------

      Carriers agree to transport to Destination all Coal declared and
Tendered hereunder by LG during the term hereof, in accordance with the
procedures described herein.

                                       8
<PAGE>   13
      Section 2.  BN Equipment Supply.
                  -------------------
      BN hereby agrees to furnish all equipment, other than Coal Cars, that it
deems necessary in its sole discretion in order to transport the Tendered Coal
by rail from Origin to the Terminal in accordance with this Agreement and in
conformance with the rights, duties and obligations contained herein.

      Section 3.  ACMS Equipment Supply.
                  ---------------------
      A.    Equipment Supply.
            ----------------
      ACMS hereby agrees to furnish all equipment, including a sufficient number
of barges and towboats, that it deems necessary in its sole discretion in order
to transport the Tendered Coal by barge from the Terminal to Destination under
normal operating conditions and in accordance with this Agreement and in
conformance with the rights, duties and obligations contained herein.

      B.    Requirements for Terminal.
            -------------------------
      ACMS shall provide and operate the Terminal for the transfer of Coal from
Unit Trains to ACMS' barges. Such Terminal shall be capable of handling LG's
Coal requirements when Tendered in accordance with Article III, Section 2. The
Terminal will be equipped with rotary dumper equipment for the unloading of Unit
Trains. It will include sufficient area for the storage of Coal as provided
below in Paragraph C of this Section. Conveyors, stacking and reclaiming
equipment shall be provided, together with a complete loading dock for the high
speed loading of ACMS' barge tows.

      C.    Storage Capacity.
            ----------------
      ACMS shall maintain only one portion of the Terminal storage area for the
handling of LG's Coal. ACMS reserves the right to commingle Coal belonging to LG
originating from more

                                       9
<PAGE>   14
than one mine. The amount of storage used for LG's Coal shall be determined by
Carriers to efficiently manage BN and ACMS equipment and facilities and to best
accommodate LG's Declared Tonnage as provided in Article III, Section 2 hereof
up to a maximum of 150,000 Tons of storage. If LG requests that additional Tons
of Coal be stored at the Terminal and space is available, LG may be charged a
reasonable charge which shall be mutually agreed upon by the parties.

                                  ARTICLE V
                     LG'S OBLIGATION TO SUPPLY EQUIPMENT
                     -----------------------------------
      Section 1.  Supply of Equipment.
                  -------------------
      A. LG hereby agrees to supply sufficient Coal Cars including spare cars at
no cost to Carriers in order to transport the Coal Tendered pursuant to this
Agreement. LG shall supply enough Coal Cars such that each trainset shall be
comprised of at least {***} Coal Cars plus five (5) percent spare cars for each
trainset. Said Coal Cars to be furnished shall be approved for use by BN and
shall have a volume capacity of approximately 4,000 cubic feet and a net
capacity of not less than 102 tons per car in steel and 118 tons per car in
aluminum and shall be suitable for use at Origin and the Terminal.

      B. LG agrees that it will assume all owners' responsibility for Coal Cars
as designated in the AAR Interchange Rules and shall comply with the rules and
regulations of the Federal Railroad Administration (the "FRA") applicable to
such Coal Cars.

      Section 2.  Car Damage.
                  ----------
      If LG-provided Coal Cars are damaged while in the possession of Carriers
and on Carriers' trackage, BN or ACMS will give notice to LG promptly by
telephone or facsimile of

                                       10
<PAGE>   15
the damage or derailment giving car initial and number and will provide written
notice within thirty (30) days of the damage or derailment. LG will designate an
appropriate individual and location for such notification. If LG's Coal Cars are
damaged under conditions for which Carriers are liable under the AAR Interchange
Rules (except for damage due to defect in design, materials or workmanship or
the negligence of LG), Carriers will, if no LG spare Coal Cars are available,
furnish Coal Cars of not less than 100 tons marked capacity, if available, at no
additional cost to LG for a period of time not to exceed 120 days following the
date of damage. If suitable replacement Coal Cars are not available, the Minimum
Shipment Weight shall be adjusted pursuant to Article VI.

      In the event LG supplied cars are damaged and Carriers are liable pursuant
to this Section, Carriers shall:

                  a)    perform repairs to LG Coal Cars at a BN repair facility
                        at no charge to LG and pay for any transportation to and
                        from such facility; or if Carriers elect not to repair
                        LG Coal Cars at a BN repair facility;

                  b)    perform repairs at no charge to LG at a non-BN repair
                        facility designated by LG and acceptable to Carriers
                        (such acceptance shall not be unreasonably withheld by
                        Carriers), and pay for any transportation to and from
                        such facility. Such Coal Cars shall be transported by
                        Carriers as soon as practicable;

                  c)    perform all repair work on LG Coal Cars at either a BN
                        repair facility or a non-BN repair facility, in
                        accordance with all AAR and FRA requirements. All
                        damaged LG Coal Cars shall be repaired to a condition
                        equal to that before the damage occurred. Carriers shall
                        notify LG when repairs to LG Coal Cars have been
                        completed and returned to service.

      Section 3.  Car Destruction.
                  ---------------
      In the event LG-provided Coal Cars are destroyed while in the possession
of Carriers and on Carriers' trackage, BN or ACMS will give notice to LG
promptly by telephone or facsimile of

                                       11
<PAGE>   16
such destruction giving car initial and number and will provide written notice
within thirty (30) days of the destruction. LG will designate an appropriate
individual and location for such notification. If LG's Coal Cars are destroyed
under conditions for which Carriers are liable under the AAR Interchange Rules.
Carriers will, if no LG spare Coal Cars are available, furnish substitute Coal
Cars of not less than 100 tons marked capacity, if available, at no additional
cost to LG for a period not to exceed 120 days following settlement of claim for
such destroyed Coal Car, but in no event is this period to exceed 365 days
following date of actual destruction. If suitable replacement cars are not
available, the Minimum Shipment Weight shall be adjusted pursuant to Article VI.
Settlement for such destroyed Coal Car, if Carriers are liable, shall be on the
basis of cost of reproduction new less depreciation and salvage in accordance
with Rule 107 of the AAR Interchange Rules. Such amounts will be paid within
forty-five (45) days of receipt of LG's invoice. Carriers will not be liable for
such destruction that is the result of a defect in design, materials and/or
workmanship in the Coal Cars or the negligence of LG.

      Section 4.  Provision of Unloading Facilities.
                  ---------------------------------
      LG shall provide Destination facilities at the LG Power Plant capable of
unloading ACMS' individual barges at the rate of 3,000 tons per hour. For use in
conjunction with LG's dock at the Destination unloading facility. LG shall
provide a mooring area for holding of loaded tows and the make-up of outbound
empty tows. The mooring area shall be capable and suitable in all respects for
the handling of up to 35 loaded barges and 35 empty barges. Operation, repair
and maintenance of the Destination dock, unloading facility, and mooring area
shall be at the sole risk and expense of LG and shall be provided without cost
or other expense to ACMS.

                                       12
<PAGE>   17
      Section 5.  Provision of Harbor and Shift Boat.
                  ----------------------------------
      LG shall provide and operate at its sole risk and expense harbor and shift
boats sufficient to handle the shifting of loaded and empty barges to and from
the Destination dock and the mooring area and the rewiring of outbound empty
barges in a tow-like fashion as specified by ACMS.

                                  ARTICLE VI
                   RAIL OPERATING AND SCHEDULING PROCEDURES
                   ----------------------------------------
      Section 1.  Train Size.
                  ----------
      LG shall provide sufficient empty Coal Cars to assemble trains of at
least {***} cars. If an Origin mine is unable to load a train to the Minimum
Shipment Weight as a result of LG's failure to furnish a sufficient number of
Coal Cars, the Minimum Shipment Weight shall be applied.

      Section 2.  Minimum Shipment Weight.
                  -----------------------
      A. The "Minimum Shipment Weight" for trainloads of Coal Tendered by LG for
transportation under this Agreement shall be {***} tons for aluminum Coal Cars
and {***} tons for steel Coal Cars.

      B. For purposes of the billing of rates under Article X, Section 1, except
for LG's failure to provide sufficient empty Coal Cars as provided in Section 1
above, all trainloads of Coal Tendered by LG with a shipment weight of less than
the applicable Minimum Shipment Weight shall be assessed on the basis of the
Minimum Shipment Weight.

                                       13
<PAGE>   18
      C. The number of Tons upon which transportation charges are paid,
regardless of whether actually transported, shall be counted toward LG meeting
the Minimum Volume Commitment.

                                       14
<PAGE>   19
      Section 3.  Minimum Tender.
                  --------------
      A.    Each Unit Train for loading shall contain no less than {***} Coal
Cars except as provided for in this Section ("Minimum Tender").
      B. In the event LG is unable to furnish for loading at least {***} Coal
Cars because cars have been damaged, destroyed, or derailed by Carriers and have
been removed from service, and if Carriers are unable to substitute Carrier coal
cars pursuant to Article V, the per shipment Minimum Tender of {***} Coal Cars
shall be reduced by the number of coal cars Carriers are unable to substitute
under the provisions of Article V, but the minimum tender per shipment shall in
no case be less than {***} Coal Cars, unless mutually agreed upon by LG and BN.

      Section 4.  Advance Notice and Loading.
                  --------------------------
      A. LG will make Coal Cars available at Origin for loading without Carriers
or the mine operator ordering placement of Coal Cars. BN shall furnish the mine
operator not fewer than four (4) hours advance notice of the arrival of such
Coal Cars at Origin for loading.

      B. LG and the mine operator will be responsible for the loading of Coal
into the Coal Cars. The parties agree to cooperate with the mine operator to
provide for the complete and efficient loading of the Coal Cars at Origin. BN
shall provide locomotives and train crews to move trains through the Origin
Loading Facilities at a controlled speed which will allow for the full and
uniform loading of each Coal Car.

      Section 5.  Placement and Free Time -- Origin.
                  ---------------------------------
      A.    LG and the mine operator shall have {***} hours to load each
train ("Loading Free Time"). Loading Free Time shall commence when the
locomotives have arrived at the Designated Loading Point and the train crew has
requested loading instructions, or when the train is Constructively Placed, and
shall end when LG or the mine operator has released the train.

                                       15
<PAGE>   20
      B. LG shall pay BN an Origin Detention Charge of {***} for each hour or
fraction thereof that actual loading time exceeds its Loading Free Time;
PROVIDED, HOWEVER, that when a Loading Disability under Section 4 paragraph E of
this Article occurs during a train's Loading Free Time, LG's Loading Free Time
shall be extended for the duration of such Loading Disability; and, PROVIDED
FURTHER, that when a Loading Disability occurs (other than a cause directly
attributable to BN) after a train's Loading Free Time expires, LG shall be
required to pay an Origin Detention Charge during such Loading Disability. In
lieu of such Origin Detention Charges following the expiration of a train's
Loading Free Time, LG may request that BN release the locomotives and crew for
which LG shall pay a release charge of {***}. BN shall return the locomotives
and crew to the train at the expiration of the Loading Disability at no
additional charge to LG.

      C. If a train cannot be positioned on Origin trackage due to any cause
attributable to LG or its mine operator, that train shall be considered
Constructively Placed.

      D. If, due to any cause attributable to BN, a train arrives at Origin
before another train has been released, the second and subsequent train(s) shall
not be considered placed or Constructively Placed, and Loading Free Time for
such train shall not commence until the locomotives have arrived at the
Designated Loading Point on Origin trackage and the crew has requested loading
instructions.

      E. "Loading Disability" means any of the following events which results in
the inability to load Coal into the Coal Cars at Origin: (i) a cause directly
attributable to BN, (ii) an Act of God, (iii) a strike or other labor
disturbance, (iv) a riot or other civil disturbance, (v) unusual snow and/or ice
accumulation sufficient to immobilize train operations and prevent loading of
such train, (vi) governmental acts or regulations, or (vii) mechanical or
electrical

                                       16
<PAGE>   21
breakdown, explosion or fire, not reasonably within the control of LG or its
mine operator, in a Loading Facility. "Loading Disability Time" means the period
of time from which LG or the mine operator is prevented from loading a train at
Origin due to a Loading Disability. LG or the mine operator shall notify BN
immediately by telephone (i) as to the time and nature of commencement of the
Loading Disability and (ii) as to the time of termination of the Loading
Disability.

      Section 6.  Rail Car Demurrage at Terminal.
                  ------------------------------
      LG shall pay BN a terminal detention charge of {***} for each hour or
fraction thereof that actual unloading is delayed for reasons attributable to
LG.

      Section 7.  Constructive Placement.
                  ----------------------
      A. If a train cannot be positioned on mine operator's trackage at Origin
due to any cause attributable to LG or its mine operator, that train shall be
considered "Constructively Placed".

      B. A Constructively Placed train shall be held at the nearest available
hold point as determined by BN. Immediately upon arrival of the train at the
hold point, BN shall notify the mine operator or LG by radio, telephone, wire or
other reasonable means, of the date and hour that hold time begins. Immediately
upon departure of the train from the hold point, BN shall notify the mine
operator or LG by radio, telephone, wire or other reasonable means, of the date
and hour that the hold time ends.

      C.    For purposes of computing the loading or unloading time of a
Constructively Placed train:
                  a)    the time elapsed while transporting a Constructively
                        Placed train from the hold point to Origin shall be
                        excluded from Loading Free Time.

                                       17
<PAGE>   22
                  b)    If the train must reverse direction to reach the nearest
                        available hold point, the time required for the train to
                        return to the point of reverse direction shall be
                        included in Loading Free Time.

      Section 8.  Service Commitment.
                  ------------------
      A. BN will operate Unit Trains between Origin and the Terminal during each
Calendar Year of this Agreement on an average round trip cycle time that shall
be calculated by application of the following formulas ("Annual Service
Standard"):

            1)    For mines located North of Reno Junction:

                  a)    {***}
                  b)    {***}
                  c)    {***}
                  d)    {***}
                  e)    {***}

            2)    For mines located South of Reno Junction:

                  a)    {***}
                  b)    {***}
                  c)    {***}
                  d)    {***}
                  e)    {***}

            For Example:  If LG Tenders 6,100,000 tons from mines located
            north of Reno Junction, the calculation would be as follows:

                  {***}

The average cycle time shall not include:

                                       18
<PAGE>   23
            (i) Loading at Origin;

            (ii) Time elapsed for delays that are the result of a Force Majeure;
      for purposes of this Section such delays shall not be subject to the 24
      hour provision set forth in Article XII; and

            (iii) Time elapsed for delays that are attributable to LG, including
      but not limited to, delays resulting from removal of excess Coal under
      Article VII, release or hold time under Article VI and miscellaneous
      handling of Coal Cars under Article VII, and

            (iv) Time elapsed for trains held due to bunching at Origin mine or
      the Terminal; PROVIDED, HOWEVER, that elapsed transit time for bunching at
      Origin shall be included if LG has allowed BN the option of routing an
      empty train from its original Origin to an alternate Origin and the
      alternate Origin has Coal available for loading.

The cycle time of such additional trainset put into service to transport deficit
tonnage, described below, shall not be included in determining whether or not BN
has met the Annual Service Standard.

      B. In the event BN fails to meet the Annual Service Standard during any
Calendar Year due to causes other than those described in this Section, such as
to prevent the delivery of LG's Minimum Volume Commitment as provided in Article
III, Section 2, and if LG has complied with its obligations to supply sufficient
Coal Cars to transport its Minimum Volume Commitment, LG shall give notice to BN
in writing within fifteen (15) days after the end of the Calendar Year of the
amount of the deficit tonnage for that year resulting from BN's inability to
meet the Annual Service Standard. If the deficit is due to BN's failure to meet
the Annual Service Standard. BN shall, without additional charge to LG, take all
reasonable steps, including the addition of locomotives and Coal Cars, to
transport the deficit tonnage in the quarter or quarters designated by LG which
in no case shall be later than 6 months from the end of the

                                       19
<PAGE>   24
Calendar Year in which the deficit occurred and at a schedule consistent with
the ability of BN and the Origin mine(s) to load. In addition, Carriers may at
any time provide Carrier-owned or leased train sets, without additional charge
to LG, for Transportation of Coal pursuant to this Agreement, consistent with
the ability of the Origin mine(s) to load the Coal. If Carriers are unable to
furnish Coal Cars, LG may, with Carriers' consent, furnish Coal Cars and
Carriers shall reimburse LG for the reasonable cost of providing such Coal Cars.
The freight charges for transporting said deficit tonnage shall be the rate in
effect for the fourth quarter of the year during which the deficit occurs. If LG
does not provide timely notice of claimed deficit tonnage, Carriers will have no
obligation to transport said tonnage.

      C. Deficit tonnage incurred during one Calendar Year and delivered during
the following Calendar Year will be deemed to be Tons received during the prior
Calendar Year.

      Section 9.  Routing.
                  -------
      A. Loaded trains under this Agreement shall be transported via BN from
Origin to the Terminal via Alliance and Lincoln, Nebraska, and West Quincy,
Illinois ("Route-Of-Movement"); PROVIDED, HOWEVER, that BN may use alternate
routes at its discretion; PROVIDED, FURTHER that BN's decision to use alternate
routes other than for reasons of Force Majeure shall not reduce BN's obligation
to comply with the Annual Service Standard. In Force Majeure situations, BN
shall have the right to either declare its right to suspend its obligations
pursuant to Article XII hereof or to mitigate Force Majeure events through
reroute operations. In such event, LG may be charged a reasonable reroute charge
which shall be mutually agreed upon by the parties.

                                       20
<PAGE>   25
      B.    Transportation of Empty Trains.
            ------------------------------
      As part of the Transportation provided under this Agreement BN shall, at
no additional charge to LG, transport empty trains to Origin from the Terminal
or points intermediate on the Route-Of-Movement for the purpose of subsequent
loading under the terms of this Agreement.

      C.    Delivery of New Trains.
            ----------------------
      LG may deliver, from time to time, newly purchased or leased trainsets
(not currently in service under this Agreement) to BN. In the case of a newly
leased trainset, if the trainset is in BN's PRB revenue service immediately
prior to its lease by LG, BN will transport such trainset to Origin {***}. In
the case of a newly-purchased trainset, the following shall apply:

            1)    If LG delivers the trainset to a point on the BN system but
                  not on the Route-Of-Movement, BN will transport such trainset
                  to Origin [***] and in consideration of that transportation
                  will be entitled to use such trainset for one complete cycle
                  from the PRB to a destination of BN's choice and back to
                  Origin {***}; BN may exercise its right to cycle such trainset
                  to a destination of its choice at any time within six (6)
                  months of delivery of such trainset, subject to LG's agreement
                  to the schedule for its use.

            2)    If LG delivers the newly purchased trainset to a point on the
                  Route-Of-Movement, BN will transport such trainset to Origin
                  {***}, and will not be entitled under this Agreement to use
                  such trainset in non-LG service.

                                 ARTICLE VII
                           SERVICE AND MAINTENANCE
                          -------------------------

      Section 1.  Service and Maintenance of LG Railcars.
                  --------------------------------------
      A.    Upon reasonable request from LG, BN will stop a Unit Train of
Coal Cars on the return empty movement at a maintenance facility at an
intermediate point on BN's Route-Of-

                                       21
<PAGE>   26
Movement between the Terminal and Origin where trackage is available to
accommodate such Unit Train. For removal and replacement of Coal Cars in said
Unit Train, LG shall pay BN a charge of {***} per hour or fraction thereof for
such services. The time will be computed from the time the Unit Train stops for
removal or replacement of Coal Cars until such time as the last Coal Car is
removed from the Unit Train. This paragraph will also apply to switching of Coal
Cars into or out of an empty Unit Train at Origin or the Terminal.

      B. If, upon delivery of such an empty Unit Train of Coal Cars at the car
maintenance facility, BN is instructed by LG to leave the entire Unit Train of
empty Coal Cars and remove the locomotives, a charge of {***} per train will be
assessed in addition to the charges set out in Paragraph A. Upon request from
LG, BN will remove the entire Unit Train of empty Coal Cars from the car
maintenance facility and return it to Unit Train service at no additional
charge.

      C. If the car maintenance facility is served by another rail carrier which
necessitates a switch movement of the entire Unit Train of empty Coal Cars or a
lesser number of Coal Cars to or from a connecting railroad, BN will provide
services and be paid charges as outlined in Paragraph A and B, Article VII,
Section 1; PROVIDED, HOWEVER, that any switching or other charges imposed by the
connecting railroad shall be paid by LG. The switching and handling time will be
continuous from the time the Unit Train is made available for delivery until
such time as the locomotives have been attached to the empty Unit Train or empty
Coal Cars are available for movement or until such time as the locomotives have
been detached from the empty Unit Train or empty Coal Cars.

      D. If during the term of this Agreement, LG's car maintenance facility is
on trackage served by BN or on trackage served by another rail carrier, but is
located at a point which is not on the Route-Of-Movement, BN will provide
services and be paid charges as outlined in

                                       22
<PAGE>   27
Paragraphs A and B of Article VII, Section 1 herein, which shall be in addition
to a line haul charge covering any out-of-route movement. The line haul charges
covering out-of-route movement are as follows:

<TABLE>
<CAPTION>
        Rates in Cents
      Per Car Per Mile,               Number of Cars
       Minimum 75 Miles                   Per Tender
       ----------------               --------------
<S>                                   <C>
            {***}                        25 or less
            {***}                         26 to 75
            {***}                      More than 75
</TABLE>

The charge set out in this paragraph will not apply to Coal Cars damaged under
circumstances for which Carriers are liable under Article V (except for Coal
Cars damaged due to a defect or defects in design, materials, or workmanship or
the negligence of LG).

      Section 2.  Holding and Storage of Empty Or Loaded Unit Trains.
                  --------------------------------------------------
      A.    If BN-owned trackage is available at a location on the
Route-Of-Movement and upon request of LG, BN will, on the return movement from
the Terminal to Origin, place an entire Unit Train of empty Coal Cars on such
trackage for storage. Upon subsequent request from LG, BN will remove the Unit
Train from such storage and return it to service. BN will be paid {***} in total
for its services in placing and removing such Unit Train. In addition, storage
charges of {***} shall be paid by LG for each 24-hour period or fraction thereof
that such Unit Train is stored.

      B. Upon request of LG, BN will, on the return movement from the Terminal
to Origin, place an entire Unit Train of empty Coal Cars on a privately-owned or
leased storage track if located on the Route-Of-Movement. Upon subsequent
request of LG, BN will remove

                                       23
<PAGE>   28
the entire Unit Train from such storage track and return it to service. BN will
be paid {***} in total for its services in placing and removing such Unit Train
and returning it to service.

      C. If LG's owned or leased storage track is served by another rail carrier
which necessitates a switch movement at an intermediate point on the
Route-Of-Movement of an empty Unit Train to or from a connecting railroad, then
upon request of LG, BN will switch said Unit Train to or from the other carrier.
BN will be paid {***} for each such service to or from a connecting carrier. In
addition, LG shall pay BN {***} for each hour, or fraction thereof, required for
any switching. Any switching or other charges imposed by the connecting railroad
shall be paid by LG.

      D. If LG's owned or leased storage track is located at a point which is
not on the Route-Of-Movement, BN will move the empty Unit Train to and from such
storage track and be paid charges as outlined in Paragraphs D and E of this
Section, which shall be in addition to the line haul charges for any such
out-of-route movement. The line haul charges covering out-of-route movement are
as follows:

<TABLE>
<CAPTION>
        Rates in Cents
      Per Car Per Mile,               Number of Cars
       Minimum 75 Miles                   Per Tender
       ----------------               --------------
<S>                                   <C>
            {***}                        25 or less
            {***}                         26 to 75
            {***}                      More than 75
</TABLE>

      E. If LG requests BN to hold a train and if trackage is available, LG
shall pay to BN a Hold Charge of {***} for each hour or fraction thereof that
each Unit Train is held; PROVIDED, HOWEVER, that such Hold Charge shall not
apply (i) to a train being held during

                                       24
<PAGE>   29
Loading Free Time; (ii) to a train subject to a Detention Charge; or (iii) where
a train is held because it cannot be placed for reasons set forth in Article VI,
Section 7.

      Section 3.  Weighing and Determination of Weights.
                  -------------------------------------

      A.    The parties agree that the weight of the Coal in the Coal Cars will
be determined at Origin by the mine operator. Carriers shall not be responsible
for such weight determination. Weighing shall be performed on scales inspected
and certified in accordance with the specifications of the then-current
Institute of Standards and Technology (Handbook - 44) for such scales, subject
to supervision and/or verification by Carriers or their agent, and the results
furnished to LG and Carriers.

      B. If any Unit Train cannot be weighted due to a breakdown of scales, the
lading weight per car of such train shall be determined by averaging the lading
weight per car of the last five (5) trains of like equipment (i.e., aluminum or
steel Coal Cars) under this Agreement weighted at that Origin prior to such
breakdown. If fewer than five (5) trains under this Agreement were weighed at
that Origin prior to the breakdown, the weight per car shall be determined by
averaging the weight per car of the train(s) (of like equipment) under this
Agreement weighed at that Origin prior to the breakdown as well as the lading
weight per car of train(s) under the Agreement first weighed at that Origin
after the scales are repaired, so as to comprise a five (5) weighted train
average.

      Section 4.  Overloaded Car(s).
                  -----------------
      Unless LG is notified by BN that heavier weights are acceptable, if a
loaded Coal Car is found by BN, as determined by the weighing procedures in
Section 2 hereof, to weigh in excess of maximum gross weight on rail of 286,000
pounds for shipment in aluminum Coal Cars, or 268,000 pounds for shipments in
steel Coal Cars (plus or minus one-half of one percent), BN

                                       25
<PAGE>   30
may, at its discretion, switch said overloaded Coal Cars and remove them from
the train. LG or the mine operator shall then cause excess Coal to be removed
from the overloaded Coal Car, and BN shall replace the Coal Car into the train.
A charge of {***} per car will be assessed by BN for removal and reinsertion of
overloaded cars en route. If the excess Coal can be removed during the Loading
Free Time applicable under Article VI without removing the Coal Car from the
train, it shall be done without the assessment by BN of any additional charges
to LG.

      Section 5.  Release of Crews/Removal of Locomotives.
                  ---------------------------------------
      If upon request from LG, for reasons other than fault of BN or Force
Majeure, BN releases crews and/or removes locomotives from a train at a point
along the Route-Of-Movement where trackage is available or, at LG's direction,
at the Terminal, LG will pay a release charge of {***} for each such occurrence,
which charge shall include the subsequent return of crews and/or addition of
locomotives to the train and return of the train to service.

                                 ARTICLE VIII
                   TERMINAL AND BARGE OPERATING PROCEDURES
                   ---------------------------------------

      Section 1.  Control of Loading and Unloading.
                  --------------------------------
      ACMS shall be responsible for unloading of Coal Cars, Coal transfer,
storage and loading of LG's Coal into barges at the Terminal.

      Section 2.  Control of Service Performance.
                  ------------------------------
      ACMS shall have exclusive control of the methods of loading Coal into
barges at the Terminal and transporting and delivering the Coal by barge to the
Destination. The barges will move only at the convenience of ACMS along the
direct Mississippi River route and either singly or with one or more other
craft. ACMS shall have the right to shift or interchange the tow

                                       26
<PAGE>   31
from one to another towing vessel as frequently as it may find it convenient to
do so, or to procure towage from any other vessel, including vessels not owned
or operated by ACMS, to tie off the tow at any point and for any purpose, and to
deviate from its route, and visit any port whether or not on said route and in
any order.

      Section 3.  Notice of Barge ETA.
                  -------------------
      ACMS will use commercially reasonable efforts to give LG advance telephone
or facsimile notice of the expected time of arrival of each of its tows at
Destination, such notice to be given at least 24 hours in advance of arrival. LG
will at all times keep ACMS advised of persons authorized to receive such
notices and at all times shall have at least one such authorized individual
available to receive such notices at the unloading dock or Destination.

      Section 4.  Origin Demurrage.
                  ----------------
      If, by reason of act or omission solely attributable to LG, ACMS' barge
tows or single barge units, as described herein, are delayed in loading at the
Terminal, then demurrage shall accrue at the rate of (i) {***} per hour or part
thereof for each tow operating under Alternate A or Alternate B, and (ii) {***}
per day for each barge operating under Alternate C, for such period of time that
each tow or each barge, respectively, is thereby delayed in beginning or
completing loading.

      Section 5.  Destination Demurrage.
                  ---------------------
      Unless otherwise specified by ACMS in accordance with this Article, ACMS
will deliver LG's Coal in tows consisting of 15 to 30 barges. ACMS will allow
those hours of free time specified in subsections (A) through (C) below for
unloading and makeup of each tow. After expiration of the allowed free time,
demurrage will accrue for all time used in excess of the allowed free time at
the rate of {***} per hour or part thereof for Alternates A and B described

                                       27
<PAGE>   32
below and at the rate of {***} per day or part thereof for Alternate C
(collectively, the "Demurrage Rates"). These Demurrage Rates will be adjusted
under the provisions of Article X hereof.

      Section 6.  Free Time.
                  ---------
      A.    Alternate A -- Standby Unloading
            --------------------------------
      For standby unloading at Destination, ACMS will allow three hours free
time plus one hour free time per barge for each tow, for unwiring, unloading,
positioning and rewiring of each tow. In the event two or more tows are at the
LG Power Plant within a 24 hour period, free time for the second and succeeding
tows will commence at the expiration of free time for the preceding tow or when
such tow has completed discharge, whichever first occurs.

      B.    Alternate B -- Additional Set Of Barges Unloading.
            -------------------------------------------------
      If an additional set of barges is utilized so that the arriving towboat
may deliver a loaded tow and pick up the empty barges from the previous tow,
ACMS will allow three hours free time for landing the inbound towboat and its
tow and preparing the outbound empty tow for departure. In the event two or more
tows arrive at the LG Power Plant within a 24 hour period, the three hour free
time for the second and succeeding towboats will commence upon completion of
unloading and rewiring of the preceding tow or at the end of a period of time
beginning upon arrival of the preceding tow as described in Section 7 below, and
equal to one hour for each barge contained in such tow, whichever first occurs.

      C.    Alternate C -- Single Barge Unloading.
            -------------------------------------
      ACMS may elect to deliver LG's Coal in single barge increments
containing approximately I 500 net Tons. Under this Alternate C, lay time shall
be computed from the first 7:00 a.m. following placement, actual or
constructive, of one or more such single barges for

                                       28
<PAGE>   33
unloading. Following such commencement of lay time, ACMS will allow one day free
time to unload any such barge then on placement. After expiration of the allowed
free time, demurrage shall accrue at the rate specified above until the barge
has completed unloading and is ready for departure.

      D.    Designation of Alternates.
            -------------------------
      The Alternate B unloading procedure, as described in Section 6 above,
shall be the normal and preferred unloading procedure; however, ACMS may, at any
time and in its sole judgment, upon providing 24 hour notice to LG, utilize the
Alternate A unloading procedure described in Section 6 above. ACMS may also use
the Alternate C unloading procedure at any time, PROVIDED, HOWEVER, that ACMS
will provide reasonable advance notice to LG.

      Section 7.  Computation of Free Time.
                  ------------------------
      For purposes of free time and demurrage for Section 6, free time shall be
computed from the time and date ACMS lands its inbound tow alongside the
destination dock, or mooring area, or in the event the dock is blocked, the time
and date the master of the tow signifies his readiness to land alongside the
dock. Computation of free time and demurrage thereafter shall cease when either
(a) the towboat is faced up to the outbound empty tow and the master of the
towboat establishes that the empty tow is properly made up and ready for
departure, or (b) when the outbound empty tow is properly made up for departure
and the towboat commences standing by for repairs, maintenance or other
circumstances deemed necessary by ACMS. If a deficiency exists in the make-up of
the outbound tow, free time and demurrage thereafter shall continue until such
deficiency is corrected by LG. In the event ACMS is required to make-up an
outbound tow or correct deficiencies in a tow improperly made up by LG, free
time and demurrage thereafter shall continue until such deficiencies are
corrected.

                                       29
<PAGE>   34
      Section 8.  Adjustment for Force Majeure.
                  ----------------------------
      ACMS charges for demurrage as provided herein shall be subject to
adjustment by reason of Force Majeure, except that demurrage will continue to
apply to all tows and single barges which have loaded but not completed
unloading and rewiring prior to receipt of the Force Majeure notice.

      Section 9.  ACMS Operating Obligations.
                  --------------------------
      ACMS shall be responsible for any damage to LG's Coal Cars while in ACMS'
care, custody and control at the Terminal, except for damage due to defect in
design, materials and workmanship or the negligence of LG, PROVIDED, HOWEVER,
that such disclaimer shall not relieve ACMS from duties of care it may have by
custom of trade or industry while conducting operations at the Terminal. Upon
arrival of each Unit Train at the Terminal, ACMS shall:

      1)    Verify the number of Coal Cars from a listing of the Coal Car
            numbers to be provided in writing to ACMS by LG at least twelve (12)
            hours prior to arrival at the Terminal. The verification process
            will take place as the Coal Cars are placed for unloading.

      2)    Identify the Coal Car numbers not received at the Terminal and
            notify LG in writing within twenty-four (24) hours after the entire
            Unit Train is unloaded, except for Friday evenings and weekends, in
            which case the advice will be sent the next working day.

      3)    Report damage as noted during the unloading process. LG acknowledges
            that ACMS will not be responsible for checking or inspecting Coal
            Cars for damage.

      4)    Operate the thawing operation.

      5)    Uncouple and recouple cars at the Terminal when the Unit Train is
            split.

      6)    Maintain coal inventory records at the Terminal; PROVIDED, HOWEVER,
            that ACMS makes no representations or warranties as to the accuracy
            or completeness of such records, and such undertaking is subject to
            the disclaimer set forth in Article XIV, Section 2.

                                       30
<PAGE>   35
                                  ARTICLE IX
                           LG OPERATING PROCEDURES
                           -----------------------

      Section 1.  Responsibility for Unloading.
                  ----------------------------
      The Destination dock, unloading facility, mooring area and shifting and
harbor boat at the LG Power Plant shall be available as required for ACMS' use
and without cost or charge to ACMS. LG shall be responsible for any damage to
ACMS' floating equipment while in LG's care, custody or control, except for
damage due to defect in design, materials and workmanship or the negligence of
ACMS; PROVIDED, HOWEVER, that such disclaimer shall not relieve LG from duties
of care it may have by custom of trade or industry. LG shall also be responsible
for any loss or damage to rigging and mooring lines and shall equip the
unloading facility with portable pumps which shall be used to pump any barge
which may have been damaged in transit or while at dock. LG shall operate and
maintain the Destination dock, unloading facility and mooring area in a
commercially reasonable manner consistent with the normal industry practices so
as to facilitate the efficient utilization of ACMS' barging equipment and the
unloading of each barge as completely as practicable.

      Section 2.  Berthing and Mooring.
                  --------------------
      LG shall provide ACMS barges with a safe berth at the Destination mooring
area, dock, and unloading facility free of wharfage, dockage, port or other
charges. LG will also maintain at least a 10 foot channel dredged between such
areas and the sailing line. While barges are in the care, custody or control of
LG, or its agents, contractors or subcontractors, all applicable U.S. Coast
Guard Regulations shall be complied with, and in the event that ACMS should in
any manner be held responsible for any act or omission of LG in such compliance,
then LG agrees to indemnify, save and hold ACMS harmless for all such
responsibility and liability.

                                       31
<PAGE>   36
      Section 3.  Excess Return Tonnage.
                  ---------------------
      It is essential to proper maintenance and operation of hopper Coal barges
that all Coal be removed at the time of each unloading. In the event that LG
leaves excessive Coal in barges, ACMS shall be entitled to charge and collect an
additional transportation charge of {***}/Ton of Coal returned. Estimates of
Coal left in the barges shall be made by LG and ACMS by visual observation. If
this method of estimation becomes a recurring problem, then Coal remaining in a
barge shall be shoveled out and weighed periodically whenever a barge is taken
out of service for repairs in order to compare the actual weighed tonnage with
the visual estimate and thereafter corrections will be made as appropriate. In
such event, demurrage charges, as provided herein, shall apply.

                                  ARTICLE X
                          RATES AND RATE ADJUSTMENT
                          -------------------------
      Section 1.  Minimum Base Rate.
                  -----------------
      The Base Rate for transportation of Coal in aluminum Coal Cars operating
with net lading of at least 118 Tons Under this Agreement shall be {***} per
Ton, as of January 1, 1997. The Base Rate for transportation of Coal in steel
Coal Cars with net lading of at least 102 Tons under this Agreement shall be
{***} per Ton, as of January 1, 1997. There shall be a surcharge paid directly
to BN of {***} per Ton on all Tons moving in steel Coal Cars. Under no
circumstances shall application of the rate adjustment mechanism contained in
this Article cause the Effective Rate to fall below the Base Rate.

                                       32
<PAGE>   37
      Section 2.  Effective Rate.
                  --------------
      The Base Rate, as adjusted pursuant to Section 3 of this Article, shall be
the "Effective Rate." All other charges and surcharges provided in this
Agreement shall be adjusted at such times and in the same manner as the Base
Rate and the Effective Rate. The Effective Rate, together with the other charges
specified in this Agreement, shall constitute the entire compensation payable to
Carriers for all Transportation of Coal provided under this Agreement. The
adjustment mechanism specified in Section 3 of this Article shall constitute the
sole means of adjusting the rates and other charges specified in this Agreement
during the term hereof. If LG requests Carriers to perform services not
specified under this Agreement, charges for such services shall be established
by separate agreement.

      Section 3.  Adjustment to Rates and Charges.
                  -------------------------------
      A.    Commencing on April 1, 1997, the Effective Rates and other
charges provided for in the Agreement shall be adjusted quarterly, upward or
downward as provided herein. Adjustments shall be made through application of
the following formula:

            AR = a x [{***}(b) + {***}(d) + {***}(1)
                           ---        ---        ---
                                       c          l

in which,
      "AR" is the adjusted rate;
      "a" is the Base Rate;
      "b" is the most currently available [***], as published by the United
      States Department of Commerce, for two quarters

                                       33
<PAGE>   38
      prior to the quarter of adjustment (e.g., for the quarter beginning April
      1, 1997, the {***} for the fourth quarter of 1996 shall apply);

      "c" is the final {***} for the second quarter of 1996;

      "d" is the {***} for the quarter immediately prior to the quarter of
      adjustment (e.g., for the quarter beginning April 1, 1997, the first
      quarter 1997 average shall apply) PROVIDED, HOWEVER, at no time shall "d"
      be less than {***};

      "e" is {***}.

      B. The adjustment process described in Paragraph A shall be repeated on
every July 1, October 1, January 1, and April 1 thereafter during the term of
this Agreement, with the new Effective Rate and other charges for the three
month period following each such "Adjustment Date" being determined by
application of the formula described in Paragraph A for that Adjustment Date to
the Base Rate and other charges.

      C. In computing the quarterly adjustment under Paragraph A, all published
indices shall be rounded to the nearest thousandth of an index point, all
calculated indices shall be rounded to the nearest tenth of an index point, and
all rates and charges shall be rounded to the nearest whole cent. If there is no
nearest thousandth of an index point, tenth of an index point or whole cent, as
the case may be, indices, rates and charges shall be rounded to the nearest even
thousandth of an index point, tenth of an index point or whole cent. For
example, $15.935 and $15.945 would be rounded to $15.94.

      D. LG shall reimburse ACMS for any taxes paid on fuel used in commercial
transportation on inland waterways pursuant to 26 U.S.C. Section 4042, its
successor statutes, or any similar taxes imposed upon fuel use or related
commercial use of the Mississippi River

                                       34
<PAGE>   39
system, above and in excess of the {***} currently being levied and paid by
ACMS. LG shall reimburse ACMS quarterly for the amount of such tax paid by ACMS
in providing river transportation service under this Agreement. For purposes of
such quarterly billings, ACMS shall determine from its Boat History Report the
total number of taxable vessel operating hours in LG's service. The ratio of
such taxable hours in LG's service to all vessel operating hours in taxable
service shall be applied to ACMS' monthly vessel fuel consumption reports to
establish total taxable fuel consumption of vessels operating in LG's service.
Fuel burned in generators, heaters, boilers and in exempt waters is not
presently subject to this taxation and shall not be billed to LG. ACMS shall
provide LG all documentation to support billings with respect to the Federal Tax
on inland waterways.

                                  ARTICLE XI
                              BILLING PROCEDURES
                              ------------------

      Section 1.  Transportation Billing.
                  ----------------------
      Carriers shall bill LG for Transportation of Coal based upon the greater
of (i) the actual weight of Coal per train (as determined under Article VII) or
(ii) the applicable Minimum Shipment Weight. For purposes of determining the
actual weight, all shipments hereunder shall take place under a BN bill of
lading that recites that the transportation is governed by this Agreement, but
does not state the rate.

      Section 2.  Payment.
                  -------
      All payments for amounts due hereunder must be made by wire to Carriers'
designated bank account within {***} days from the date the invoice is received.
If LG fails to make payment within {***} days from the date the invoice is
received, LG shall pay a late charge

                                       35
<PAGE>   40
in the amount of 1/365th of the sum of {***} on the date the payment becomes
overdue times the amount due and unpaid, commencing from the expiration of said
{***} day period until such amount is paid.

      Section 3.  All Other Charges.
                  -----------------
      Carriers shall each bill LG for ancillary services based upon the adjusted
charges provided elsewhere in this Agreement. Payment for said charges shall be
remitted to the applicable invoicing party. Interest shall be applied in the
manner set forth in Section 2 of this Article.

                                 ARTICLE XII
                                FORCE MAJEURE
                                -------------

      Section 1.  Definition.
                  ----------
      Except as otherwise expressly provided in this Agreement, no party shall
be liable for any loss or damage resulting from failure to perform or the delays
in performance resulting from and occasioned by an event of Force Majeure. The
term "Force Majeure" or an event of Force Majeure as used herein shall mean any
cause beyond the reasonable control of the party affected which by exercise of
due diligence it shall be unable to overcome, including, without limitation, by
enumeration, allocations, expropriations, requisitions, priorities, boycotts,
embargos, restraint or other acts of courts or governmental or civil, military
or naval authorities (whether acting legally or otherwise); Acts of God; lock or
river-outages, perils or accidents of the sea or other water; defects, failures
or breakage in hull, turbines, generators, machinery, equipment or appliances;
acts of war, hostilities, blockages, interferences of public enemies or
belligerents,

                                       36
<PAGE>   41
rebellion, civil strife, or commotion; sabotage, vandalism or malicious
mischief; fire or explosion from any cause or wheresoever occurring; epidemics,
pestilence or quarantine; labor stoppage, riots, disorders, storms, landslides,
floods, washouts, earthquake, lightning, unusual snow accumulations,
inoperability of facilities at Origin, the Terminal or Destination or electrical
generation, transmission or distribution facilities, shortage of diesel fuel for
locomotives or towboats, derailments, failure of LG's coal suppliers to supply
Coal, or from any other cause whatsoever and wheresoever occurring beyond the
reasonable control of the respective parties, whether of the kind enumerated
herein or otherwise. It shall not, however, include any change in demand or
projected demand for electrical power or for transportation not due to events of
Force Majeure, whether foreseeable or not.

      Section 2.  Effect of Force Majeure.
                  -----------------------
      A. If because of an event of Force Majeure that endures for twenty-four
(24) continuous hours or more, a party is unable to carry out any of its
obligations under this Agreement, and if such party promptly, but not to exceed
ten (10) calendar days from commencement of the event of Force Majeure, gives
the other parties written notice of such Force Majeure, then the obligation of
the party giving such notice shall be suspended to the extent made necessary by
the Force Majeure and during its continuance (including the original 24-hour
period); PROVIDED, HOWEVER, that the aforementioned 24-hour rule shall not apply
in the case of derailments; and PROVIDED, FURTHER, that an event of Force
Majeure shall not reduce LG's Minimum Volume Commitment for any Calendar Year
unless an event or events of Force Majeure have occurred during such Calendar
Year for an aggregate number of days exceeding 15 days in which case the Minimum
Volume Commitment for such year shall be

                                       37
<PAGE>   42
reduced by a percentage equal to the ratio of the number of days of Force
Majeure during such Calendar Year in excess of {***} over 365.

      B. The party experiencing Force Majeure shall take prompt actions to
remove such causes of Force Majeure insofar as practicable, with all reasonable
dispatch, and its performance shall be resumed immediately after such causes
have been removed; PROVIDED, HOWEVER, that nothing contained in this Section 2
shall cause the party affected by the Force Majeure to submit to what it
considers to be an unfavorable labor agreement.

      C. When the Force Majeure condition has terminated, the party claiming the
Force Majeure shall notify the other parties in writing as soon as practicable,
but not to exceed ten (10) days, certifying that the amount of time expended due
to the Force Majeure.

      D. Notwithstanding the foregoing or any other provision of this Agreement,
in the event a single Force Majeure condition claimed by LG extends for a period
of 90 days or more, the original term of this Agreement shall be deemed to have
been extended for an equivalent time period.

      E. In the event a single Force Majeure condition claimed by Carriers has
existed for a period of {***} days or more, and has substantially prevented
performance during such period, LG may acquire and transport fuel via a mode
other than Carriers for the remaining duration of the condition of Force
Majeure; PROVIDED, HOWEVER, that if Carriers declare a Force Majeure the effect
of which is expressly limited to achievement of the Annual Service Standard,
this paragraph shall not apply as long as Coal supply at the Terminal, en route
in barges and at the LG Power Plant exceeds 14 days bum; PROVIDED, FURTHER, that
if rerouting of any aspect of the transportation service, including the use of
an alternative terminal will enable either or both of Carriers to continue to
participate in the transportation despite the event of Force

                                       38
<PAGE>   43
Majeure. LG will take all commercially reasonable steps necessary to permit
continued service by either or both of Carriers; PROVIDED, FURTHER, that LG is
not required to incur out of pocket expense to take such steps, except to the
extent that the parties hereto may otherwise mutually agree. Carriers will not
be responsible for any expense whatsoever incurred by LG as a result of such
transportation via a mode other than Carriers.

                                 ARTICLE XIII
                           INDEMNITY AND INSURANCE
                           -----------------------

      Section 1.  Indemnity by ACMS.
                  -----------------
      ACMS agrees to indemnify and save harmless LG from any and all suits,
actions, causes of action and claims of action of whatever character which may
be brought or made against LG by ACMS' agents, servants, employees or any third
party on account of injuries or damages sustained or alleged to have been
sustained while ACMS, such agents, servants or employees were performing any act
or thing required to be done under the provisions of this Agreement whether
caused by the sole act, negligence or default of LG or otherwise.

      Section 2.  Indemnity by LG.
                  ---------------
      A. LG agrees to indemnify and save harmless Carriers, their
subcontractors, affiliates and the vessels employed by ACMS, in the performance
of Coal transfer, storage and transportation hereunder, from any and all suits,
actions, causes of action and claims of action of whatever character which may
be brought or made against Carriers, their subcontractors, affiliates and said
vessels by LG's agents, servants or employees on account of injuries or damages
sustained or alleged to have been sustained while such agents, servants or
employees

                                       39
<PAGE>   44
were performing any act or thing required to be done under the provisions of
this Agreement whether caused by sole act, negligence or default of ACMS or
otherwise.

      B. LG hereby agrees to release, indemnify and save harmless ACMS, its
subcontractors, its affiliates and vessels employed by it or them in the
performance of the Coal transfer, storage and transportation hereunder from or
against any loss or damage to the Coal transferred, stored and transported under
this Agreement, whether such loss or damage is caused by AMCS' negligence or
not.

      C. If an ACMS towing vessel or barge comes into collision with another
vessel or object, LG agrees to indemnify ACMS, its subcontractors, its
affiliates and vessels employed by it or them in the performance of the
transportation movements hereunder, with respect to any payment which LG
receives or may be entitled to receive from such other vessel or object.

      Section 3.  Insurance to be Maintained by ACMS.
                  ----------------------------------
      ACMS shall, at its own expense, carry and maintain collision and
protection and indemnity insurance with waiver of subrogation against LG, or
other insurance covering the liability of the vessels and their owners against
loss of life and personal injury to members of their crews or to any third
party, including transportation, wages, maintenance and cure. The deductibles,
if any, applicable under said policies are to be borne by ACMS. All policies
pursuant to which such insurance is provided shall name LG as assured or
additional assured under such policy.

                                       40
<PAGE>   45
                                 ARTICLE XIV
                             COAL LOSS AND DAMAGE
                             --------------------

      Section 1.  Liability for Loss of Coal Transported by BN.
                  --------------------------------------------
      Liability for damage to or loss of Coal transported by BN pursuant to
this Agreement shall be determined as if BN were providing transportation
hereunder as a common carrier pursuant to the Interstate Commerce Commission
Termination Act, as amended. BN will not be, liable for Coal loss or damage
caused by improper loading at Origin or defects in the design or manufacture of
Coal Cars, except for Coal Cars supplied by BN.

      Section 2.  Liability for Loss of Coal Transported by ACMS.
                  ----------------------------------------------
      LG warrants that ACMS shall not be held accountable or otherwise liable
for any discrepancy in Coal inventories; any loss, shrinkage or damage to LG's
Coal shall be borne by LG, whether occurring during storage, transfer,
affreightment, unloading or otherwise; and whether such loss, shrinkage or
damage was caused, directly or indirectly, by ACMS' negligence. LG shall, at its
own expense, obtain and keep in full force and effect during the term of this
Agreement or any extension thereof, insurance on the full value of all Coal
received, stored, transferred and transported by ACMS under this Agreement. All
policies pursuant to which such insurance is provided shall name ACMS, its
subcontractors, its affiliates and the vessels employed by it or them in the
performance of the Coal transfer, storage and transportation hereunder as
assured or as additional assureds under such policy, which shall also be
endorsed to waive rights or subrogation against said parties. The deductibles,
if any, applicable under any of said insurance policies are to be borne by LG.
Full evidence of such insurance in form and substance satisfactory to ACMS shall
be provided to ACMS prior to the

                                       41
<PAGE>   46
first delivery of Coal to the Terminal. LG shall also, at its own expense, carry
and maintain Longshoremen's and Harbor Worker's Compensation Act insurance
covering its employees.

      Section 3.  General Average.
                  ---------------
      General average shall be payable according to York-Antwerp Rules, 1950,
and as to matters not therein provided for according to the laws and usage of
the Port of New York. The general average in each instance shall be prepared by
average adjusters selected by ACMS and consented to by LG. In the event of
accident, danger, damage or disaster, before or after commencement of the
voyage, resulting from any cause whatsoever, whether due to negligence or not,
for which, or for the consequence of which ACMS is not responsible, by statute,
contract, or otherwise, the goods, shippers, consignees, or owners of the goods
shall contribute with ACMS in general average to the payment of any sacrifices,
losses, or expenses of a general average nature that may be made or incurred and
shall pay salvage and special charges incurred in respect of the goods. If a
salving ship is owned or operated by ACMS, salvage shall be paid for in full as
if such salving ship or ships belonged to strangers. Such deposit as ACMS or its
agents may deem sufficient to the estimated contribution of goods, or any
salvage, or special charges thereon, shall, if required, be made by the goods,
shippers, consignees or owners of the goods to ACMS before delivery. This
section shall not give rise to any liability of BN.

      Section 4.  Disclaimer of Damages.
                  ---------------------
      In no event shall BN, ACMS or LG be liable for special or consequential
damages or lost profits relating to this Agreement.

                                       42
<PAGE>   47
      Section 5.  Private Carriage.
                  ----------------
      ACMS and its affiliated marine companies are private carriers in respect
to this Agreement, therefore, nothing set forth in this Agreement or performance
hereunder shall be deemed to subject ACMS to the jurisdiction of the STB.

                                  ARTICLE XV
                                 TERMINATION
                                 -----------

      If any party shall default in any material obligation of this Agreement
which is not excused as Force Majeure, and continues in such default for a
period of sixty (60) days after written notice thereof is given by any
non-defaulting party to such defaulting party of the existence of such default,
or, if more than sixty (60) days are required to correct with reasonable
diligence the matters complained of in said notice and such defaulting party
shall fail within said sixty (60) day period to commence the action necessary to
correct such matters and thereafter prosecute the same to completion with
reasonable diligence, the non-defaulting party may, at its option, and without
prejudice to its other rights and remedies hereunder, at law or in equity,
terminate this Agreement by written notice to the party in default.

                                 ARTICLE XVI
                          ASSIGNMENT AND SUCCESSION
                          -------------------------

      No party may assign this Agreement or any of its rights or obligations
hereunder, in whole or in part, without the prior written consent of the other
parties which consent shall not be unreasonably withheld. Such consent shall not
be required where the assignment is made to a purchaser or assignee of
substantially all of the assets of such party by way of merger, consolidation,
transfer, sale or lease of substantially all of its assets, divestiture pursuant
to an

                                       43
<PAGE>   48
order or decree of court, or similar court reorganization; PROVIDED, HOWEVER,
that no assignment shall be effective until and unless the assignee agrees in
writing to assume all obligations of the assignor hereunder. Any party hereto
may assign any receivables due them under this Agreement without the consent of
the other parties; PROVIDED, HOWEVER, such assignment shall not relieve the
assignor of any of its rights or obligations under this Agreement. ACMS may,
without the consent of LG or BN, assign this Agreement in whole or in part to
American Commercial Lines, Inc., or one of its wholly-owned subsidiaries; and
upon such assignee expressly assuming in writing, to the extent of such
assignment, the obligations of ACMS hereunder, and if each such assignee has a
net worth equal to that ACMS, LG shall, to the extent of such assignment,
release ACMS from all further obligations under this Agreement. Subject to the
foregoing, this Agreement shall bind and inure to the benefit of the parties,
their successors, and assigns.

                                 ARTICLE XVII
                      AMENDMENT, MODIFICATION AND WAIVER
                      ----------------------------------
      Any amendment, modification, or waiver of any provision of this
Agreement, or any consent to any departure therefrom, shall not be effective in
any event unless the same is in writing and signed by the proper party or
parties, and then such modification, wavier, or consent shall be effective only
in the specific instance and for the specific purpose given.

                                       44
<PAGE>   49
                                ARTICLE XVIII
                                MISCELLANEOUS
                                -------------

      Section 1.  Subcontracting.
                  --------------
      It is understood that nothing herein contained shall prevent ACMS from
subleasing or from subcontracting for any of the services provided for herein,
but ACMS shall remain responsible to LG for the performance of all such
services.

      Section 2.  Independent Contractor.
                  ----------------------
      Nothing herein contained shall be construed as a contract by LG for
chartering, hiring or leasing of any barge, towboat, railroad locomotive or rail
car or other equipment of ACMS or BN nor shall any of the agents, servants or
employees of ACMS or BN be regarded as employees of LG, it being understood that
ACMS and BN are in all respects independent contractors and that LG shall
exercise no control over such barges, towboats, railroad locomotives or rail
cars or other equipment, or the agents, servants or employees of ACMS or BN
except as specifically provided herein.

      Section 3.  Waivers and Remedies.
                  --------------------
      The failure of one of the parties hereto to insist in any one or more
instances upon strict performance of any of the obligations of the other party
pursuant to this Agreement or to take advantage of any of its rights hereunder
shall not be construed as a waiver of the performance of any such obligation or
the relinquishment of any such rights for the future, but the same shall
continue and remain in full force and effect.

      Section 4.  Notice.
                  ------
      Any notice, election or correspondence required or permitted hereunder
shall become effective upon receipt and, except invoices and payments, shall be
deemed to have been properly

                                       45
<PAGE>   50
given or delivered when made in writing and delivered personally to the parry to
whom directed, or when sent by United States mail, overnight or express
delivery, with all necessary postage and charges fully prepaid and delivery
verified, and addressed to the party to whom directed at its specified address:

<TABLE>
<S>               <C>
      To LG:      NRG Energy, Inc.
                  1221 Nicolett Mall, Suite 700
                  Minneapolis, MN  55403
                  Attention:  Vice President, U.S. Business Development

                  Zeigler Coal Holding Company
                  50 Jerome Lane
                  Fairview Heights, Illinois  62208
                  Attention:  Alan D. Williams, Manager, Business Development

                  Southern Electric International, Inc.
                  Suite 500
                  900 Ashwood Parkway
                  Atlanta, GA  30338
                  Attention:  Gary Kubick, Project Director

      To BN:      Burlington Northern Railroad Company
                  2650 Lou Menk Drive
                  Fort Worth, TX  76131-2830
                  Attention:  Coal Business Unit

      To ACMS:    American Commercial Marine Service Company
                  P.O. Box 610
                  1701 East Market Street
                  Jeffersonville, IN  47130
                  Attention:  Senior Vice President - Sales and Marketing
</TABLE>

or to such other addresses as may have been furnished in writing by any of the
foregoing to the other persons named above. Any notice pertaining to matters of
an emergency or an operating nature may be delivered by mail, messenger,
telephone, telefax or by any other reasonable means, to such representative of
the party hereto being notified as may be appropriate, and such

                                       46
<PAGE>   51
notice shall be effective upon receipt. If given by telephone or verbally, the
notice shall be confirmed in writing as soon as practicable thereafter.

      Section 5.  Severability, Effect of Agreement.
                  ---------------------------------
      A. Any provisions of this Agreement prohibited or unenforceable by reason
of any applicable law of 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 or render
unenforceable such provision in any other jurisdiction. Where, however, the
conflicting provisions of any such applicable law may be waived, they are hereby
waived by the parties hereto to the full extent permitted by law, to the end
that this Agreement shall be enforced as written.

      B. This Agreement exclusively and completely states the rights and
obligations that Carriers have with respect to LG, and that LG has with respect
to Carriers, concerning the subject matter of this Agreement and supersedes all
other Agreements, oral or written, with respect hereto.

      C. This Agreement supersedes and replaces in their entirety that certain
Revised and Restated Agreement No. 42875 (January 1, 1984 through December 31,
1994) previously entered between ACMS and Cajun, and that certain Coal
Transportation Agreement ICC-BN-C-0774 between BN and Cajun dated November 30,
1983 (as amended).

      Section 6.  Confidentiality.
                  ---------------
      Except to the extent that disclosure is required by law, court order or
decision, or applicable regulatory requirements, the provisions of this
Agreement shall not be disclosed to or discussed with any third party other than
counsel or consultants retained by Carriers or LG, all of

                                       47
<PAGE>   52
whom shall be advised of the confidential nature of this Agreement and
information related to it; PROVIDED, HOWEVER, that LG may make only necessary
disclosures in connection with the Chapter 11 Proceeding provided that it
obtains confidential treatment to the extent permitted by the bankruptcy court
and the presiding judge; PROVIDED, FURTHER, that LG shall be permitted to
disclose the provisions of Article VI, Sections 1-7 to Coal suppliers that agree
in writing to maintain the confidentiality of such information, where such
disclosure is required for the proper administration of Coal supply
arrangements. Where disclosure of information is required, the affected party
shall give written notice thereof to the other parties as far in advance as
practicable, shall confer with such other parties, and shall take such
reasonable actions as are available under applicable to law to attempt to
preserve the confidentiality of the material disclosed.

      Section 7.  Representations and Warranties.
                  ------------------------------
      A. Carriers and LG represent and warrant to one another that: (i) they are
duly organized and validly exist in good standing under the laws of their
governing jurisdictions and/or states of incorporation, and have all requisite
power and authority to enter into this Agreement and to carry out the terms and
provisions thereof; (ii) the person(s) executing this Agreement on behalf of
each party are duly authorized and empowered to bind their respective parties to
this Agreement; and (iii) there is no action, proceeding, or investigation
current or pending other than the Chapter 11 Proceeding and no term or provision
of any charter, by-law, certificate, license, mortgage, indenture, contract,
agreement, judgment, decree, order, statute, rule or regulation which in any way
prevents, hinders, or otherwise adversely affects, or would be violated by,
entering into and performing this Agreement.

                                       48
<PAGE>   53
      B. Each person executing this Agreement on behalf of his respective party
represents and warrants the execution of this Agreement and that he personally
has authority to sign on behalf of the party that he represents.

      Section 8.  Counterparts.
                  ------------
      This Agreement may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original, and such counterparts
together, shall constitute but one and the same instrument, which shall be
sufficiently evidenced by any such original counterpart.

      Section 9.  Remediation.
                  -----------
      If a party receiving a notice of default pursuant to Article XV does not
agree that it has failed to comply with or perform any of the terms, covenants
or conditions of this Agreement to be complied with or performed by it, in any
material respect, such party may, within thirty (30) days after receipt of such
notice of default, notify the other parties in writing of such disagreement (a
"Notice of Contest"). Upon such Notice of Contest being given, no termination of
this Agreement shall be effective unless and until a determination has been made
that a default has occurred and the provisions of this Section have been
implemented.

      The parties agree that any dispute arising in connection with the
interpretation of this Agreement or the performance of any party under this
Agreement or otherwise relating to this Agreement shall be treated in accordance
with the procedures set forth in this Section, prior to the resort by any party
to litigation in connection with such dispute. The dispute shall be referred for
resolution first to each parties' senior corporate officers with the power to
bind such parties. Such procedure shall be invoked by any party presenting to
the other a "Notice of Request for Resolution of Dispute" (a "Resolution
Notice") identifying the issues and dispute sought to be

                                       49
<PAGE>   54
addressed hereunder. A conference of the appointed officers of each of the
parties shall be held as soon as possible but in no event later than (30) days
after the delivery of the Resolution Notice. In the event that the conference
between such individuals does not resolve the dispute, it may be litigated in
any state or federal court of competent jurisdiction.

      Section 10. Construction.
                  ------------
      This Agreement is the product of arm's-length negotiations between the
parties. No provision of this Agreement shall be construed against any party be
virtue of that party being the drafter thereof. Use of the singular form shall
be deemed, where appropriate, to include the plural, and use of the masculine
gender shall be deemed to include the feminine. The terms of this Agreement and
all rights and obligations hereunder shall be construed in accordance with the
laws of the State of Missouri and, when appropriate, Federal law.

                                       50
<PAGE>   55
      IN WITNESS WHEREOF, the parties have cause this Agreement to be executed
as of the date first hereinabove written.

<TABLE>
<S>                                     <C>
                                        BURLINGTON NORTHERN AND SANTA FE
                                        RAILWAY COMPANY

ATTEST:                                 BY: /s/ Gregory T. Swinton
                                           _________________________________

/s/ [illegible]                         ITS: Senior Vice President Coal and
______________________________               Agricultural Commodities
                                             _______________________________

                                        AMERICAN COMMERCIAL MARINE SERVICE
                                        COMPANY

ATTEST:                                 BY: /s/ Daniel J. Marquitz
                                           _________________________________

/s/ [illegible]                         ITS: Senior Vice President
______________________________              ________________________________

                                        LOUISIANA GENERATING LLC

                                           BY:  ZENERGY, INC.

                                           BY: /s/ Alan D. Williams
                                              ______________________________
                                               ITS: President

                                           BY:  NRG ENERGY, INC.

                                           BY: /s/ Craig A. Mataczynski
                                              ______________________________
                                               ITS: Member

                                           BY:  SOUTHERN ENERGY CAJUN, INC.

                                           BY: /s/ G.J. Kubick
                                              ______________________________
                                               ITS: Vice President
</TABLE>

                                       51<PAGE>   1
                                                                   Exhibit 10.10

                                AGREEMENT BETWEEN

                            LOUISIANA GENERATING, LLC

                                       AND

                               TRITON COAL COMPANY

                        FOR THE SALE AND PURCHASE OF COAL

Execution Copy
August 1, 1997
<PAGE>   2
                   AGREEMENT BETWEEN LOUISIANA GENERATING, LLC
                             AND TRITON COAL COMPANY
                        FOR THE SALE AND PURCHASE OF COAL

                                TABLE OF CONTENTS

                                                                    PAGE
                                                                    ----

July 31, 1997                          i
<PAGE>   3
<TABLE>
<S>                                                                                                            <C>
1.01  MUTUAL OBLIGATIONS....................................................................................       2

1.02  DEFINITIONS...........................................................................................       2

2.01  SELLER'S RESERVES AND PREPARATION FOR SELLING COAL....................................................       7

2.02  SUBSTITUTION..........................................................................................       8

3.01  EFFECTIVENESS; TERM OF AGREEMENT......................................................................       9

3.02  EXTRAORDINARY MARKET OPPORTUNITIES....................................................................      11

3.03  SELLER'S RIGHT TO MATCH PRICE.........................................................................      12

4.01  PRICE PER TON OF COAL.................................................................................      18

4.02  ADJUSTMENTS - GENERAL.................................................................................      19

4.03  ADJUSTMENT FOR CHANGES IN GOVERNMENTAL IMPOSITIONS....................................................      19

4.04  CALORIFIC VALUE ADJUSTMENT............................................................................      24

4.05  EMISSIONS ALLOWANCE ADJUSTMENT........................................................................      24

4.06  EXCESS SO2 ALLOWANCE DUE SELLER.......................................................................     256

4.07  SO2 ALLOWANCE DUE PURCHASER...........................................................................     267

5.01  BILLING AND PAYMENT...................................................................................      27

5.02  THIRD PARTY ANNUAL AUDIT..............................................................................      29

6.01  SHIPMENT..............................................................................................      30

6.02  RAIL SHIPMENTS........................................................................................      30

6.03  FREIGHT CHARGES, TITLE, AND RISK OF LOSS..............................................................      32
</TABLE>

                                       i
<PAGE>   4
<TABLE>
<S>                                                                                                               <C>
6.04  LOADING COSTS CHARGEABLE TO SELLER....................................................................      32

6.05  EXCESS FREIGHT COSTS CHARGEABLE TO SELLER.............................................................      33

6.06  PAYMENT OF EXCESS COSTS...............................................................................      33

7.01  SHIPPING NOTICE.......................................................................................      33

8.01  QUANTITY REQUIREMENTS.................................................................................      35

9.01  WEIGHING..............................................................................................      36

10.01  COAL SPECIFICATIONS..................................................................................      38

11.01  SAMPLING.............................................................................................      39

11.02  ANALYSIS.............................................................................................      41

12.01  REJECTION OF COAL FOR COAL QUALITY DEFICIENCIES......................................................      43

12.02  SUSPENSION OF SHIPMENTS FOR COAL QUALITY DEFICIENCIES................................................      44

13.01  AUTOMATIC TERMINATION................................................................................      47

14.01  TERMINATION FOR UNREMEDIED DEFAULT...................................................................      47

15.01  FORCE MAJEURE........................................................................................      48

16.01  CHANGES IN ENVIRONMENTAL RELATED REQUIREMENTS........................................................      51

17.01  WARRANTIES...........................................................................................      55

17.02  DISCLAIMER OF WARRANTIES.............................................................................      56

18.01  INDEPENDENT CONTRACTOR...............................................................................      56

19.01  BINDING EFFECT.......................................................................................      56
</TABLE>

                                       ii
<PAGE>   5
<TABLE>
<S>                                                                                                               <C>
20.01  ASSIGNMENTS..........................................................................................      56

21.01  RIGHT OF INSPECTION:  ACCOUNTING.....................................................................      57

22.01  RIGHT OF INSPECTION: COAL PROPERTY...................................................................      58

22.02  RIGHT OF INSPECTION:  PURCHASER's LAB................................................................      59

23.01  WAIVER...............................................................................................      59

24.01  LIMITATION OF DAMAGES................................................................................      59

25.01  DISPUTED MATTERS.....................................................................................      60

25.02  ARBITRATION..........................................................................................      61

25.03  EXCEPTIONS...........................................................................................      64

26.01  NOTICES..............................................................................................      65

27.01  REMEDIES CUMULATIVE..................................................................................      66

28.01  AGENT FOR PURCHASER..................................................................................      66

29.01  CAPTIONS.............................................................................................      67

30.01  APPLICABLE LAW.......................................................................................      67

31.01  COMPLIANCE WITH LAWS AND REGULATIONS.................................................................      67

32.01  ENTIRE AGREEMENT.....................................................................................      67

33.01  CONFIDENTIAL AND PROPRIETARY INFORMATION.............................................................      68

34.01  BIG CAJUN II, UNIT 3.................................................................................      69
</TABLE>

                                      iii
<PAGE>   6
                                                                  Execution Copy

                   AGREEMENT BETWEEN LOUISIANA GENERATING, LLC
                             AND TRITON COAL COMPANY
                        FOR THE SALE AND PURCHASE OF COAL

         This Agreement is made and entered this 1st day of August, 1997 by and
between Louisiana Generating, LLC, a limited liability company organized and
existing under the laws of the State of Delaware, hereinafter referred to as
"PURCHASER", and Triton Coal Company, a corporation organized and existing under
the laws of the State of Delaware, hereinafter referred to as "SELLER."

                                   WITNESSETH:

         WHEREAS, SELLER owns or otherwise controls or has entered into
contracts for the mining of the Coal Property (as hereinafter defined) from
which SELLER desires to sell coal to PURCHASER.

         WHEREAS, PURCHASER intends to acquire Cajun Electric Power Cooperative,
Inc.'s ("Cajun's") Big Cajun No. II steam-electric generating plant and coal
unloading dock, located at approximately Mile 263 AHP near New Roads, Louisiana
(the "Power Plant") pursuant to the Asset Purchase Agreement (as hereinafter
defined) incorporated in the Trustee's Plan of Reorganization (as hereinafter
defined) proposed in Cajun's Chapter 11 Case Number 94-11474 pending before the
United States Bankruptcy Court for the Middle District of Louisiana (the
"Chapter 11 Proceeding"); and
<PAGE>   7
         WHEREAS, PURCHASER will require large quantities of coal for the
         operation of the Power Plant.

         NOW, THEREFORE, in consideration of the premises and covenants herein,
PURCHASER and SELLER agree as follows:

         1.01 MUTUAL OBLIGATIONS. SELLER agrees to sell coal to PURCHASER,
and PURCHASER agrees to buy coal from SELLER, on the terms and conditions, in
the quantities, and of the quality set forth herein.

         1.02 DEFINITIONS. The following definitions shall apply in this
Agreement:

         a.   "AAR" shall have the meaning set forth in Section 9.01.

         b.   "ACMS" shall mean the American Commercial Marine Service
              Company.

         c.   "ASSET PURCHASE AGREEMENT" shall mean the Second Amended and
              Restated Asset Purchase and Reorganization Agreement dated as
              of December 6, 1996 among PURCHASER, the Trustee and, as to
              certain specific sections of the Agreement only, NRG Energy,
              Inc., Zeigler Coal Holding Company, and Southern Energy, Inc.,
              as the same may be amended from time to time.

         d.   "ASTM" shall have the meaning set forth in Section 7.01.

         e.   "BN" shall mean the Burlington Northern Santa Fe Railway
              Company.

         f.   "BASE PRICE" shall have the meaning set forth in Section 4.01.

         g.   "BILLING PRICE" is the Base Price as adjusted pursuant to
              Section 4.02.

         h.   "CAJUN" shall have the meaning set forth in the Recitals.

         i.   "CALORIFIC VALUE ADJUSTMENT" shall have the meaning set forth
              in Section 4.04.

                                       2
<PAGE>   8
         j.   "CARRIER"or "CARRIERS" shall mean collectively BN and ACMS or
              other Carriers under any replacement Transportation Agreement.

         k.   "CHANGED GOVERNMENTAL IMPOSITIONS" shall have the meaning set
              forth in Section 4.03.

         l.   "CHAPTER 11 PROCEEDING" shall have the meaning set forth in
              the Recitals.

         m.   "COAL CARS" shall mean PURCHASER supplied open-top railcars
              equipped with rotary couplers, having a capacity of not less
              than 204,000 pounds, suitable for use in service between the
              relevant Origin and the Terminal, and suitable for use in
              service in the coal unloading equipment maintained by ACMS or
              any successor Carrier.

         n.   "COAL PROPERTY" shall mean the real property, mineral
              interests, preparation plant facilities and loading
              facilities, with improvements thereto, referred to as the
              Buckskin Mine and the North Rochelle Mine, both located in
              Campbell County, Wyoming and the other approved coal
              properties described in Appendix A.

         o.   "CONTRACT YEAR" shall mean each twelve (12) month period
              during the term of this Agreement following the Effective
              Date.

         p.   "DELIVERED COST" shall mean, for purposes of calculating the
              Calorific Value Adjustment under Section 4.04, the sum of the
              Base Price plus the Transportation Rate to the Power Plant
              unloading facility, including the rail, transshipment and
              barge rates.

                                       3
<PAGE>   9
         q.   "DESIGNATED LOADING POINT" shall mean that point on Origin
              mines' trackage at which any further train movement is at the
              direction of the mine operator.

         r.   "DISPUTED MATTER" shall have the meaning set forth in Section
              25.01.

         s.   "EFFECTIVE DATE" shall have the meaning set forth in Section
              3.01.

         t.   "EMISSIONS ADJUSTMENT" shall have the meaning set forth in
              Section 4.05.

         u.   "ENVIRONMENTAL RELATED REQUIREMENT" shall have the meaning set
              forth in Section 16.01.

         v.   "ESTIMATED DELIVERY REQUIREMENTS" shall have the meaning set
              forth in Section 8.01.

         w.   "EXCLUDED PORTION" shall have the meaning set forth in Section
              3.03.

         x.   "EXTENDED TERM" shall have the meaning set forth in Section
              3.01.

         y.   "EXTRANEOUS MATERIAL" shall have the meaning set forth in
              Section 10.01.

         z.   "EXTRAORDINARY SALES NOTICE" shall have the meaning set forth
              in Section 3.02.

         aa.  "FORCE MAJEURE" shall have the meaning set forth in Section
              15.01.

         bb.  "GOVERNMENTAL IMPOSITIONS" shall have the meaning set forth in
              Section 4.03.

         cc.  "GOVERNMENTAL IMPOSITIONS NOTICE" shall have the meaning set
              forth in Section 4.03.

         dd.  "GSU" shall mean Gulf States Utilities or any successor in
              interest.

         ee.  "HEARING" shall have the meaning set forth in Section
              25.01(b).

         ff.  "INDEPENDENT ARBITRATOR" shall have the meaning set forth in
              Section 25.02(b).

                                       4
<PAGE>   10
         gg.  "INITIAL TERM" shall mean the period of time beginning on the
              Effective Date and ending five (5) Contract Years from the
              Effective Date.

         hh.  "INTERNAL MEDIATION NOTICE" shall have the meaning set forth
              in Section 25.01(a).

         ii.  "NEW AGREEMENTS" shall have the meaning set forth in Section
              3.03.

         jj.  "ORIGIN" shall mean each of the existing Powder River Basin
              mines served by BN (or any successor Carrier) in Campbell and
              Converse Counties, Wyoming that is now operating, those mines
              listed in Appendix A, and those mines that become operational
              during the Initial Term of this Agreement and are approved by
              the prior written consent of PURCHASER, not to be unreasonably
              withheld.

         kk.  "ORIGIN LOADING FACILITIES" shall mean the equipment necessary
              to load Unit Train Shipments of coal at an Origin, in
              accordance with PURCHASER's Transportation Agreement,
              including but not limited to rail trackage, coal silos and/or
              hoppers, conveyor belts, preparation plants and storage
              facilities at or for such Origin.

         ll.  "OUTSIDE MEDIATION NOTICE" shall have the meaning set forth in
              Section 25.01(a).

         mm.  "PAYMENT PERIOD" shall have the meaning set forth in Section
              5.01.

         nn.  "PERIODIC COAL PAYMENT" shall have the meaning set forth in
              Section 5.01.

         oo.  "POWER PLANT" shall have the meaning set forth in the
              Recitals.

         pp.  "PURCHASER" shall have the meaning set forth in the preamble.

                                       5
<PAGE>   11
         qq.  "PURCHASER APPOINTEE" shall have the meaning set forth in
              Section 25.02(b).

         rr.  "PURCHASER'S DESIGNATED LABORATORY" shall have the meaning set
              forth in Section 11.02.

         ss.  "REFEREE LABORATORY" shall have the meaning set forth in
              Section 11.02.

         tt.  "SECTION 3.03 NOTICE" shall have the meaning set forth in
              Section 3.03.

         uu.  "SELLER" shall have the meaning set forth in the preamble.

         vv.  "SELLER APPOINTEE" shall have the meaning set forth in Section
              25.02(b).

         ww.  "SELLER PORTION" shall have the meaning set forth in Section
              3.03.

         xx.  A "SHIPMENT" shall begin when SELLER has loaded coal in
              sufficient quantities into a Unit Train provided by PURCHASER
              and shall end when the coal is unloaded at the Power Plant or
              other designated facility as provided herein.

         yy.  "SURVIVING PROVISIONS" shall have the meaning set forth in
              Section 3.01.

         zz.  "TENDER" shall mean (a) with respect to a Shipment of coal by
              rail, to make available for loading into Coal Cars; (b) with
              respect to Coal Cars, to release Coal Cars into the control of
              BN (or any successor Carrier); and (c) with respect to a
              Shipment of coal by barge, to make available for unloading and
              loading into barges at the Terminal.

         aaa. "TERMINAL" shall mean ACMS' Hall Street Terminal in St. Louis,
              Missouri or such other terminal as may be specified in a
              successor Transportation Agreement.

         bbb. "TON" or "TON" shall mean two thousand pounds avoirdupois
              weight.

                                       6
<PAGE>   12
         ccc. "TRANSPORTATION AGREEMENT" shall mean the Transportation
              Agreement among PURCHASER, BN and ACMS or any replacement or
              successor Transportation Agreement.

         ddd. "TRIGGER DATE" shall have the meaning set forth in Section
              4.01.

         eee. "TRANSPORTATION OF COAL" shall mean movement of Coal from
              Origin to destination including rail transportation from
              Origin to the Terminal, receiving, interim storage, loading to
              barge at the Terminal and barge transportation from the
              Terminal to destination.

         fff. "TRANSPORTATION RATE" shall mean those rates set forth in the
              Transportation Agreement.

         ggg. "TRUSTEE" shall mean Ralph R. Mabey, as Chapter 11 Trustee of
              Cajun.

         hhh. "TRUSTEE'S PLAN OF REORGANIZATION" shall mean the Trustee's
              Plan of Reorganization as may be amended from time to time for
              Cajun, pending in the Chapter 11 Proceeding.

         iii. "UNIT TRAIN" shall mean an assembly of Coal Cars transporting
              coal from one Origin to the Terminal on one bill of lading.

         2.01 SELLER'S RESERVES AND PREPARATION FOR SELLING COAL. SELLER
represents and warrants that SELLER owns or controls the Buckskin and North
Rochelle mines and that such mines contain economically recoverable coal under
current laws and regulations of a quality and in quantities which shall be
sufficient to satisfy the requirements of

                                       7
<PAGE>   13
this Agreement and that all coal delivered hereunder shall be mined from the
Coal Property or such other Origins as may be approved by PURCHASER pursuant to
Section 2.02.

         SELLER hereby agrees to commit sufficient reserves of coal at the
Buckskin and North Rochelle mines meeting the quality specifications of Section
10.01 so as to fulfill the quantity specifications herein. SELLER agrees and
warrants that SELLER shall not use or sell coal meeting the quality
specifications hereof from such mines in a way that shall reduce the
economically recoverable balance of coal from such mines to an amount less than
the amount required to be supplied hereunder.

         SELLER shall defend the title of PURCHASER with respect to all coal
sold hereunder and, with respect to such title, shall indemnify PURCHASER from
and against all claims, demands, actions, suits and judgments.

         2.02 SUBSTITUTION. All coal delivered hereunder shall be shipped from
the Coal Property or, at SELLER's sole option, after giving notice to PURCHASER,
any Origin, provided SELLER obtains the prior written consent of PURCHASER with
respect to such Origin, which consent shall not be unreasonably withheld and,
provided further, that the coal shipped from any Origin other than the Coal
Property satisfies the quality specifications of Section 10.01 hereof and, on
the basis of a test burn, performs satisfactorily to PURCHASER in the Power
Plant.

         In the event that SELLER requests that PURCHASER conduct a test burn of
coal from a proposed substitute Origin, such test shall be promptly scheduled
and performed consistent with PURCHASER's then current operating plans. SELLER
shall promptly reimburse PURCHASER for all costs incurred by PURCHASER which are
paid to third parties for conducting such test,

                                       8
<PAGE>   14
provided that PURCHASER shall pay the normal Transportation Rates (excluding any
costs of segregating such coal or other extraordinary costs, which shall be paid
by SELLER) associated with the transportation of such coal. PURCHASER shall not
be required to perform more than two test burns in any Contract Year. PURCHASER
shall solely determine the results of test burns in accordance with its standard
operating procedures. PURCHASER shall promptly notify SELLER of its approval of
such proposed Origin if use of such coal does not adversely affect PURCHASER's
operations, provided, however, that PURCHASER shall retain the right to withdraw
its approval of any Origin, including the Coal Property, if the use of coal from
such Origin has, in PURCHASER's sole discretion reasonably exercised, a material
adverse effect on PURCHASER's operations when compared to its historical
operations.

         3.01 EFFECTIVENESS; TERM OF AGREEMENT. This Agreement shall only become
effective if the closing occurs under the Asset Purchase Agreement. SELLER shall
provide the full coal requirements for the Power Plant for a period of five (5)
Contract Years (the "Initial Term") commencing on the Closing Date of the Asset
Purchase Agreement (the "Effective Date") of this Agreement. This Agreement
shall continue in full force and effect during the Initial Term unless earlier
terminated according to the provisions of this Agreement. PURCHASER shall have
the right to purchase up to {***} tons of coal from other sources during the
{***} Contract Year of the Initial Term hereof for purposes of test burns (the
"Test Burn Amount"). In such event, SELLER has the right to provide make-up coal
to PURCHASER, up to the Test Burn Amount so purchased, during the {***} Contract
Year at the {***} Contract Year price, provided that the Test Burn Amount shall
be deducted from Seller's Portion during such

                                       9
<PAGE>   15
sixth Contract Year for purposes of Section 3.03. SELLER agrees to give written
notice to PURCHASER on or before the expiration of the {***} Contract Year if
SELLER intends to provide such make-up coal, in which case SELLER will provide
such coal within the first two (2) calendar months of such {***} Contract Year.

         This Agreement shall terminate upon the expiration of the Initial Term,
provided, however, that the following provisions (the "Surviving Provisions")
shall survive for an additional period of {***} Contract Years following the
expiration of the Initial Term (the "Extended Term"): (i) Section 2.01 with
respect to SELLER's reserves; (ii) Section 2.02 with respect to the substitution
of coal from Origins other than the Coal Property; (iii) Section 3.03 with
respect to PURCHASER's right to purchase the Excluded Portion (as hereinafter
defined) from other sources and SELLER's matching rights; (iv) Section 19.01,
Binding Effect; (v) Section 20.01, Assignments; (vi) Section 21.01 with respect
to the parties' accounting inspection rights; (vii) Section 23.01, Waiver;
(viii) Sections 25.01, 25.02 and 25.03 with respect to Disputed Matters; (ix)
Section 26.01, Notices; (x) Section 29.01, Captions; (xi) Section 30.01,
Applicable Law; (xii) Section 32.01, Entire Agreement; (xiii) Section 33.01 with
respect to confidentiality; (xiv) Section 34.01 as it applies to Section 3.03;
(xv) the Preambles, Recitals, such definitions in Section 1.02 and such of the
Appendices as are used or referenced in the Surviving Provisions specified
above; and (xvi) this Section 3.01. At the end of the Initial Term, the
Surviving Provisions may, at the option of the parties: (i) continue in effect
as the only surviving provisions of this Agreement; (ii) be incorporated in a
New Agreement (as defined in Section 3.03); or (iii)

                                       10
<PAGE>   16
be incorporated in a separate agreement limited to the Surviving Provisions and
such other provisions as the parties may agree.

         3.02 EXTRAORDINARY MARKET OPPORTUNITIES. In the event PURCHASER has an
identifiable new opportunity to make extraordinary off-system power sales, with
respect to which, in order to provide a reasonable margin to PURCHASER,
PURCHASER requires a lower coal price, PURCHASER shall promptly notify SELLER in
writing (an "Extraordinary Sales Notice") of the required price and volume of
coal associated with such opportunity. Such extraordinary market opportunity
shall be for a minimum of either {***}. PURCHASER shall not use this provision
to increase its margin on a sale it otherwise would have made, but only to make
a sale it otherwise would not make.

         As soon as possible, but in any event within three (3) days of
receiving an Extraordinary Sales Notice, SELLER shall notify PURCHASER in
writing as to whether or not it elects to supply the required price and volume
of coal associated with such opportunity. Any such coal provided by SELLER shall
comply with the quality and other requirements of this Agreement. If SELLER
fails to respond within such three (3) day period or if SELLER elects not to
meet such price, or to provide the required volume, then PURCHASER may purchase
the coal required to secure such extraordinary off-system power sales from any
supplier who is willing to supply coal at the required price and volume.

                                       11
<PAGE>   17
         SELLER shall have the right to designate an independent third party to
audit, at SELLER's expense, the quantity and price terms of such sales, provided
that such third party auditor (i) shall be required to keep such terms and the
identity of the third party supplier confidential pursuant to the terms of a
confidentiality agreement to be entered into among such auditor, SELLER and
PURCHASER, which confidentiality agreement shall be reasonably acceptable to
PURCHASER; and (ii) shall only be permitted to advise SELLER as to whether or
not such third party sales are being made in accordance with the quantity and
price terms described in the relevant Extraordinary Sales Notice. PURCHASER and
SELLER agree to work together to identify such market opportunities.

         3.03 SELLER'S RIGHT TO MATCH PRICE. During the Extended Term, PURCHASER
shall have the right to purchase up to {***} tons of coal per year, plus or
minus one Unit Train, (the "Excluded Portion") from other sources, provided
that PURCHASER agrees to notify SELLER in writing prior to soliciting or
negotiating such offers or such other arrangements.

         Subject to PURCHASER's right to obtain the Excluded Portion from other
sources and to the other terms of this Section 3.03, SELLER shall have the right
to supply coal to meet the remaining coal requirements of the Power Plant
(including the requirements of GSU at Unit No. 3 and any new facilities which
PURCHASER may construct at the Power Plant) (the "SELLER's Portion"), during the
Extended Term. PURCHASER may solicit third party offers for SELLER's Portion.
PURCHASER shall evaluate and determine the delivered cost per million BTU's,
term, coal quality and other terms and conditions applicable to such third party
offers (which it may

                                       12
<PAGE>   18
obtain by solicitation and/or through direct negotiations with other fuel
suppliers submitting bona fide offers. In making such evaluations, PURCHASER
shall consider coal handling costs, transportation, transloading, heat content,
sulfur and other generally accepted industry fuel procurement practices.

         The following procedure shall be used to determine whether an offer
from a fuel supplier for SELLER's Portion shall be deemed to be "bona fide" for
purposes of this Section 3.03. If such supplier produces coal (i) in the Powder
River Basin or (ii) in the United States west of the Mississippi River and, in
the case of (ii) only, has (A) the ability to load out unit trains (consisting
of a minimum of {***} coal cars) and (B) uncommitted reserve life equal to at
least {***} times the volume that PURCHASER would offer to purchase from such
third party supplier (the "Qualifying Characteristics") (which facts shall be
verified by the independent auditor described below, provided that such
verification shall be limited to obtaining written confirmation from such
proposed supplier of the facts outlined above), the bona fides of such third
party supplier shall be determined in the sole opinion of PURCHASER. If such
third party supplier does not meet the Qualifying Characteristics outlined in
sub-paragraphs (i) or (ii) above because such supplier does not produce coal in
the Powder River Basin or in the United States west of the Mississippi River
(and does not meet the additional sub-qualifications outlined above for
suppliers who produce coal west of the Mississippi River), then PURCHASER shall
provide the independent auditor with such information as is required to enable
such auditor to determine whether the offer of such third party supplier is bona
fide. In making such determination, the inquiry of the auditor shall be

                                       13
<PAGE>   19
limited to determining whether it is commercially reasonable to assume that the
third party supplier has the ability to perform its obligations under the
proposed offer.

         PURCHASER shall use its commercially reasonable efforts to provide
SELLER with as much advance notice of the terms of such third party offers for
SELLER's Portion as is consistent with PURCHASER's need to minimize its
delivered cost of coal but in no event later than ninety (90) days prior to the
end of the Initial Term (or, if (i) SELLER and PURCHASER have entered into a New
Agreement for the supply of coal or (ii) PURCHASER and a third party supplier
have entered into a contract for the sale of coal, no later than ninety (90)
days prior to the expiration of such New Agreement or coal supply contract, as
relevant). PURCHASER shall provide written notice to SELLER of such offers to
supply the SELLER's Portion (a "Section 3.03 Notice") including all pertinent
terms and conditions (which may include non-economic terms); which notice shall
describe the f.o.b. mine price to SELLER which would result in the same
evaluated delivered price to PURCHASER.

         SELLER shall have the right to verify, through an independent auditor,
the terms and conditions of any such offer, provided that (i) PURCHASER consents
to such independent auditor, which consent shall not be unreasonably withheld
and (ii) such auditor enters into a confidentiality agreement with SELLER and
PURCHASER that is reasonably acceptable to PURCHASER and that shall provide that
such auditor shall not reveal the identity of the proposed third party
suppliers. The cost of such verification shall be borne by SELLER. The purpose
of such verification shall be limited to assessing the accuracy of the described
terms and

                                       14
<PAGE>   20
conditions and to the matters relating to the bona fides of the third party
suppliers described above.

         SELLER shall have the right, but not the obligation, within {***}
working days of receiving a Section 3.03 Notice to provide written notice to
PURCHASER of SELLER's intent to match the price at the same evaluated delivered
cost per million BTU's and to match such other terms and conditions as are
described in such Section 3.03 Notice. Notwithstanding the source of coal
reflected in any Section 3.03 Notice given hereunder, SELLER shall have the
right to match such terms and conditions with shipments originating either at
the Coal Property or some other approved Origin or from a source (and with
similar fuel characteristics) in the same geographic region as the source of
fuel reflected in such Section 3.03 Notice, provided that such non-Origin
sources from other geographic regions shall be subject to approval by PURCHASER
as though they were proposed to be new Origins in accordance with Section 2.02.

         In no event shall the independent audit process described above extend
beyond such {***} day period, provided that, if, within such {***} day period
the independent auditor reports that PURCHASER's Section 3.03 Notice does not
accurately describe the third party terms and conditions, PURCHASER shall
correct its Section 3.03 Notice and SELLER's {***} working day period to provide
notice of its intent to match shall be extended for an additional period of five
(5) working days from SELLER's receipt of a corrected Section 3.03 Notice.

         If SELLER elects to match such offer, SELLER and PURCHASER shall
cooperate in preparing and executing one or more new agreements (the "New
Agreements") to replace this Agreement (except that the parties may elect to
handle the Surviving Provisions pursuant to

                                       15
<PAGE>   21
Section 3.01), which New Agreements shall include: (i) the terms and conditions
described in the Section 3.03 Notice and (ii) such other terms and conditions as
SELLER and PURCHASER may agree; provided that if the parties fail to execute
such New Agreement on or before the date that is forty-five (45) days prior to
the end of the Initial Term (or if a New Agreement previously has been executed,
on or before the date that is forty-five (45) days prior to the end of the term
of such New Agreement) then PURCHASER shall be free to contract with the third
party suppliers on the terms described below.

         In the event that SELLER elects to match such offer, SELLER, at its
sole option, may also elect to negotiate the transportation of such coal from
other sources to the Power Plant, provided that PURCHASER has not made prior
contractual commitments to transport such coal; provided that nothing contained
herein shall prohibit PURCHASER from contemporaneously negotiating a coal
transportation agreement with a third party carrier. If SELLER negotiates a
Transportation Agreement that is reasonably acceptable to PURCHASER and
PURCHASER has not made prior contractual commitments to transport such coal,
then PURCHASER shall execute such Transportation Agreement.

         In the event PURCHASER has not made prior contractual commitments to
transport such coal and SELLER undertakes to negotiate such Transportation
Agreement, SELLER agrees that it will be acting only as agent for, and
representative of, PURCHASER for that limited purpose. SELLER's agency is
limited to negotiating a coal Transportation Agreement with Carriers and is for
the period beginning when SELLER gives notice to PURCHASER of SELLER's intent to
match such third party notice, as provided herein, and ending with SELLER having
completed its

                                       16
<PAGE>   22
negotiations within a reasonably short period of time. SELLER is not permitted
to represent itself as agent of PURCHASER for any other purpose and may act as
PURCHASER's agent only during the period of time established hereinabove.

         If PURCHASER has made a prior contractual commitment to transport such
coal, SELLER may not act as PURCHASER's agent in negotiating a Transportation
Agreement, but SELLER shall be free to contact the Carrier with whom PURCHASER
has made such Transportation Agreement or any other Carrier for the purpose of
determining whether SELLER can obtain a transportation rate from such Carrier
that would enable SELLER to match the third party offer outlined in PURCHASER's
Section 3.03 Notice, provided that nothing contained in this Agreement shall
change the requirement that PURCHASER must be the signatory to any
Transportation Agreement entered into to transport the coal to be purchased and
sold hereunder.

         Nothing in this Section 3.03 shall restrict PURCHASER in the
development of its own fuel procurement strategy, the choice of type of fuel or
the quality thereof, the choice of third party fuel suppliers, etc., which it
shall elect to purchase after the Initial Term of this Agreement. The only
limitations on PURCHASER during the Extended Term shall be that all offers
relating to SELLER's Portion which SELLER has the election to match hereunder
must be from bona fide suppliers (established as described above), and must
have a minimum term of {***}.

         In the event that SELLER does not elect to match all of the alternative
terms and conditions offered by another supplier within the {***} day period
described above (as the same may be extended to correct a Section 3.03 Notice),
or SELLER and PURCHASER fail to execute a New Agreement within the time period
described above, SELLER shall forego its right to match

                                       17
<PAGE>   23
that portion of PURCHASER's coal requirements provided that within {***} days of
such event, PURCHASER executes an agreement with {***} from an alternate
supplier to purchase such coal under the same terms as were described in the
Section 3.03 Notice from PURCHASER to SELLER, provided that such third party
agreement may differ from the terms described in the Section 3.03 Notice if such
differences would not reasonably be deemed to be material to a decision by
SELLER as to whether it desires to match such third party offer. Upon expiration
of such coal supply agreement for SELLER's Portion, PURCHASER shall, once again
during the Extended Term, grant SELLER the right to match any new offer. This
matching right shall also again apply during the Extended Term upon the
expiration of any New Agreement entered into between SELLER and PURCHASER as a
result of SELLER electing to match the terms and conditions offered by a third
party supplier.

         4.01 PRICE PER TON OF COAL. The prices per ton f.o.b. railcar at the
Coal Property or other approved Origins applicable to Shipments hereunder (the
"Base Price") shall be as follows in the specified calendar years:

<TABLE>
<CAPTION>
                                                               ($/Ton)
                                                               -------
<S>                                                            <C>
                           1997                                 {***}
                           1998                                 {***}
                           1999                                 {***}
                           2000                                 {***}
                           2001                                 {***}
                           2002                                 {***}
                           2003                                 {***}
</TABLE>

         It is understood that the prices specified above include all costs of
Governmental Impositions, as of the earlier of January 1, 1998 or the Effective
Date (the "Trigger Date"), as

                                       18
<PAGE>   24
allocated between PURCHASER and SELLER pursuant to Section 4.03, relating to the
ownership or acquisition of the mineral, mining, processing, marketing or
quality control work necessary to meet the quantity and quality specifications
hereof.

         4.02 ADJUSTMENTS - GENERAL. The Base Prices set forth in Section 4.01
shall be adjusted from time to time as provided in Section 4.03 hereof (as so
adjusted, the "Billing Price"). Any adjustments to SELLER's account pursuant to
Section 4.03 shall be included in the Base Price for the purposes of the
Calorific Value Adjustment under Section 4.04.

         4.03 ADJUSTMENT FOR CHANGES IN GOVERNMENTAL IMPOSITIONS. The term
"Governmental Impositions," as used in this Agreement, means taxes, fees or
other costs, including royalties or severance taxes imposed on SELLER by any
government or governmental agency or as a result of costs arising from any
governmental law or regulation directly affecting the ownership, production,
severance, loading, transportation, preparation or sale of coal and reclamation
of the source of coal shipped hereunder including all costs of compliance with
the Federal Surface Mining Control and Reclamation Act of 1977 applicable to the
Coal Property or other Origins, including (but not limited to) costs associated
with all environmental protection performance standards under Sections 515 and
516 of such Act, with inspection and monitoring by state and/or federal
regulatory authorities, with the obtaining of permits and with any performance
bond which may be required under such Act. As an example, the term Governmental
Impositions shall include ad valorem taxes and federal royalties levied by a
political subdivision and severance taxes on coal; however, the term
Governmental Impositions shall not include federal or state income taxes, ad
valorem taxes on land, personal property, or

                                       19
<PAGE>   25
improvements thereto which are not levied directly upon the ownership,
production, severance, loading, preparation, transportation, or sale of coal
hereunder, unmined mineral taxes, special fund assessments related to worker's
compensation insurance, orders or decrees revoking SELLER's self-insurance
privileges and sales or use taxes (even if imposed on materials and supplies
used in the production of coal hereunder.)

         The Base Prices specified in Section 4.01 include all costs of
compliance by SELLER as of the Trigger Date with all Governmental Impositions in
force as of such date. No adjustment to the Base Price shall be made under this
Section 4.03 for costs occasioned by any Governmental Impositions in force on
the Trigger Date or expressly included in the prices specified in Section 4.01,
regardless of whether SELLER's costs as of the Trigger Date reflect the full
costs of compliance with such Governmental Impositions. To the extent not
prohibited by or inconsistent with other provisions of this Section 4.03,
adjustments to the Base Price shall be made for changes in costs which directly
affect coal actually mined or coal procured for delivery to PURCHASER hereunder
and which result from SELLER's compliance with the following: (a) amendments to
Governmental Impositions which are enacted or promulgated after the Trigger
Date, (b) final judgments, orders or decrees issued by any court of law or
equity or administrative or regulatory body after the Trigger Date, which
reflect new and different interpretations of Governmental Impositions or (c)
Governmental Impositions enacted after the Trigger Date (collectively; the
"Changed Governmental Impositions"). However, no adjustment to the Base Price
shall be made for changes in costs which result from any civil or criminal money
fine or penalty imposed as the result of failure to comply with any Governmental
Impositions unless

                                       20
<PAGE>   26
PURCHASER shall have specifically authorized the incurring of such fine or
penalty; or any change in the millage rate or valuation of property for purposes
of assessing any existing ad valorem tax. As of the Trigger Date certain of the
Governmental Impositions applicable to this Agreement are set forth in Appendix
B and relate to coal sold hereunder and are calculated in the manner indicated.

         In the event and whenever after the Trigger Date any of the events
described in sub-parts (a), (b) or (c) above of the proceeding paragraph occurs,
SELLER shall give PURCHASER prompt written notice thereof (a "Governmental
Impositions Notice") as provided in Section 26.01. For purposes of this Section
4.03, if the Changed Governmental Imposition is stated in cents per ton, the
Governmental Impositions Notice shall contain sufficient documentation and data
to permit PURCHASER to verify SELLER's computations of the effect of such
Governmental Impositions on SELLER's costs. In the event the Changed
Governmental Imposition is not stated in cents per ton, SELLER shall furnish a
preliminary Governmental Impositions Notice to PURCHASER notifying PURCHASER
that such changed Governmental Imposition has occurred, which preliminary notice
shall be followed by a final Governmental Impositions Notice within the time
periods specified below.

         Subject to the following provisions of this Section 4.03, after
PURCHASER delivers a Governmental Impositions Notice to SELLER, PURCHASER and
SELLER shall jointly estimate and agree on the cost of such Governmental
Impositions applicable to the coal sold hereunder and shall make an adjustment
to the Base Prices specified in Section 4.01 accordingly. Changes in the

                                       21
<PAGE>   27
cost of Governmental Impositions shall be shared {***} to the PURCHASER's
account and {***} to the SELLER's account.

         Where such Changed Governmental Imposition is stated in cents per ton,
the adjustment to the Base Prices specified in Section 4.01 shall be made on
such basis using the information contained in the Governmental Impositions
Notice. Where such Changed Governmental Imposition is not stated in cents per
ton, SELLER shall, within sixty (60) days after delivering the preliminary
Governmental Impositions Notice to PURCHASER referenced above, prepare and
submit to PURCHASER a final Governmental Impositions Notice in a format
reasonably acceptable to PURCHASER detailing SELLER's determination of the
actual cost impact of such Changed Governmental Imposition applicable to the
coal delivered to PURCHASER hereunder. Such final notice shall also include a
proposed cents per ton allocation of such actual cost impact based upon the
quantity delivery commitment of SELLER and a method of adjusting for the
continuing cost impact of such Changed Governmental Imposition. SELLER's final
Governmental Impositions Notice submitted in accordance with this Section 4.03
shall be subject to PURCHASER's approval, which approval shall not be
unreasonably withheld. In the event PURCHASER's approval and any adjustment to
be made cannot be established within one hundred twenty (120) days after
submittal by SELLER of its final Governmental Impositions Notice, the matter
shall be submitted to outside mediation in accordance with Section 25.01(b).

         PURCHASER shall determine, after consulting in good faith with SELLER
during such one hundred twenty (120) day period, the amount of an interim
adjustment, if any, to partially compensate SELLER for the immediate impact of
any such Changed Governmental Impositions.

                                       22
<PAGE>   28
PURCHASER's determination of the amount of any such interim adjustment will be
made after consideration of the detailed statements and supporting information
submitted by SELLER and will not, in PURCHASER's opinion, exceed the expected
amount of the final adjustment. If the final adjustment approved by PURCHASER
differs from any interim adjustment, a retroactive settlement shall be made.
After the approval by PURCHASER of said final adjustment, the required changes
to the Base Price hereunder and other affected provisions of this Agreement
shall be made.

         After such final adjustment has been made, then during the period
beginning up to twelve (12) months prior to the delivery of the Governmental
Impositions Notice (or final Governmental Impositions Notice in the case of a
Changed Governmental Imposition that is not stated in cents per ton) and during
which such Changed Governmental Imposition was in effect, an adjustment to the
Base Price specified in Section 4.01 (as such Base Price may have been adjusted
pursuant to Section 4.02) shall be made for the cost of such Changed
Governmental Imposition, applicable to the coal sold to PURCHASER hereunder,
provided that in no event shall an adjustment to the Base Price be made for any
period prior to the Trigger Date. The twelve (12) month limitation imposed in
the prior sentence shall not apply to Governmental Impositions identified in
governmental audits of severance tax or royalty rates or payments. PURCHASER
also shall have the right, but not the obligation, to give SELLER notice as
provided in Section 26.01, of any such Changed Governmental Impositions; and an
adjustment to the Base Price specified in Section 4.01 shall then be made as
described in this Section 4.03.

                                       23
<PAGE>   29
         4.04 CALORIFIC VALUE ADJUSTMENT. The parties shall make a monthly
adjustment to amounts paid by PURCHASER to SELLER hereunder in accordance with
Section 5.01 upon the basis of the governing actual "as-received" calorific
value of the coal as contained in the samples taken in accordance with Sections
11.01 and 11.02 and analyzed in accordance with Appendix G attached hereto and
as compared to {***} btu/lb. This monthly adjustment (the "Calorific Value
Adjustment") shall be made as set forth in Appendix C.

         4.05 EMISSIONS ALLOWANCE ADJUSTMENT. The Base Prices specified in
Section 4.01 above are based on the following assumed prices for emission
allowances during the Initial Term hereof:

<TABLE>
<CAPTION>
                                          Assumed SO[2]
                Calendar Year             Allowance Price(P[C])
                -------------             ----------------
<S>                                       <C>
                    2000                       {***}
                    2001                       {***}
                    2002                       {***}
                    2003                       {***}
</TABLE>

         Beginning on January 1, 2000 and continuing during the remainder of the
Initial Term, PURCHASER shall determine the actual price of sulfur dioxide
emission allowances during the immediately preceding month (P[A]), which price
shall equal the "Market Price Indices," rounded to the nearest 1/10th of a cent
per ton, for sulfur dioxide emission allowances that are published or provided
by Cantor-Fitzgerald Environmental Brokerage Services. The Market Price Index
for the current month is published in the prior month (i.e., the January 2000
Market Price Index is published in December 1999). If this information is no
longer published, then PURCHASER and SELLER agree to negotiate in good faith on
the use of a reasonably adequate substitute.

                                       24
<PAGE>   30
         Upon determination of the actual price of sulfur dioxide emission
allowances as specified above, PURCHASER shall compute an emissions allowance
adjustment (the "Emissions Adjustment") as follows:

         Emissions Adjustment = ([P[A] -P[C]]/P[C] ) x A[S]; rounded to the
         nearest one-tenth of one cent per ton

         Where

              P[A] =   Actual Monthly Market Price Index of sulfur dioxide
                       emission allowances

              P[C] =   Assumed sulfur dioxide emission allowance price for such
                       calendar year

              A[S] =   {***} per ton in 2000
                       {***} per ton in 2001
                       {***} per ton in 2002
                       {***} per ton in 2003

         If P[A] is greater than P[C] during any such month, the Emissions
Adjustment shall be multiplied by the number of tons of coal shipped hereunder
during such month and SELLER shall promptly remit such amount in cash to
PURCHASER in accordance with Section 5.01 (Billing and Payment).

         If P[A] is less than P[C] during any such month, the absolute value of
the Emissions Adjustment shall be multiplied by the number of tons of coal
shipped hereunder during such month and PURCHASER shall promptly remit such
amount in cash to SELLER in accordance with Section 5.01 (Billing and Payment).

         4.06 EXCESS SO[2] ALLOWANCE DUE SELLER. Beginning with calendar year
2000, if the actual SO[2] emissions of the Power Plant are less than {***} tons
of SO[2] during any calendar year during the Initial Term, PURCHASER shall
provide SELLER with allowances, as

                                       25
<PAGE>   31
calculated herein, by January 20th of the following calendar year rounded to the
next closest allowance. The allowances due SELLER shall be calculated as
follows:

         If the actual Annual Plant Burn for such calendar year is less than
{***} MMBtu and actual Power Plant emissions for such calendar year are less
than {***} tons of SO[2] (both as determined by PURCHASER) then:

            [{***} - APE - [{***}-APB] x {***}] x {***}= ADS

         If the actual Annual Plant Burn in such calendar year is greater than
{***} MMBtu and the actual Power Plant SO[2] emissions for such calendar year
are less than {***} tons of SO[2] then:

            [{***} - APE] x {***}=ADS.

         Where

              Power Plant SO[2] Allowances in Tons available  = {***}
              Actual Plant Burn in MMBtu                      = APB
              Actual Plant Emissions in Tons of SO[2]         = APE
              Allowances Due Seller                           = ADS

         A sample calculation of the SO[2] allowance due SELLER is set forth in
Appendix E. If (i) {***} is not the correct number of SO[2] emissions allowances
established for the Power Plant as of the applicable date or if GSU's interest
in the Power Plant is not included in calculating the SO[2] allowances (see
Section 34.01 herein), or (ii) the final Contract Year of the Initial Term is
less than a full calendar year, then Sections 4.06 and 4.07 will be equitably
adjusted by the parties.

         4.07  SO[2] ALLOWANCE DUE PURCHASER.

         Beginning with calendar year 2000, if actual SO[2] emissions of the
Power Plant are greater than {***} tons of SO[2] during any calendar year of the
Initial Term, SELLER will provide

                                       26
<PAGE>   32
PURCHASER by January 20th of the following calendar year, with the number of
allowances in excess of {***} required to enable PURCHASER to be in compliance
with the applicable regulatory requirements for SO[2] allowances for the
previous calendar year.

         If SELLER fails to provide PURCHASER with such allowances by January
20th, PURCHASER shall be permitted to purchase the allowances required for
PURCHASER to be in compliance and SELLER shall be liable for the cost thereof,
which shall be payable to PURCHASER immediately upon presentation of a statement
of such costs by PURCHASER.

         In the event PURCHASER elects to (i) purchase coal from third parties
pursuant to Section 3.02 or 8.01, or (ii) divert any of SELLER's coal from the
Power Plant to other plants pursuant to Section 6.01, and as a result of such
elections, the SO[2] emissions at the Power Plant are different from what such
emissions would have been in the absence of such election(s), the amount of
SO[2] allowances due SELLER or PURCHASER under Sections 4.06 and 4.07 shall be
adjusted accordingly.

         5.01 BILLING AND PAYMENT. An invoice shall be prepared by SELLER and a
copy sent to PURCHASER within {***} days after the end of each Payment Period
(as defined below) for all coal shipped to PURCHASER during the Payment Period.
The payment periods ("Payment Periods") during the Initial Term of this
Agreement shall be as follows:

                                       27
<PAGE>   33
                                 PAYMENT PERIODS

                           {***} -  7th of the month
                           {***} - 14th of the month
                           {***} - 21st of the month
                           {***} - last day of the month

         Each invoice will indicate (i) the tons of coal shipped by SELLER
during the Payment Period, as determined by SELLER's loaded weights established
in accordance with Section 9.01, (ii) the then current Billing Price established
pursuant to Sections 4.01, 4.02, and 4.03 hereof and (iii) the amount then due
from PURCHASER (the "Periodic Coal Payment") determined by multiplying the tons
of coal shipped during the Payment Period by the Billing Price. Within fifteen
(15) days after the end of each Payment Period PURCHASER shall remit to SELLER
or its designee one-hundred percent (100%) of the Periodic Coal Payment.

         Within fifteen (15) days after the end of each calendar month during
the Initial Term, PURCHASER shall calculate the total amount due SELLER for coal
shipped during the prior month, plus or minus any adjustments pursuant to the
Calorific Value Adjustment specified in Section 4.04 and Appendix C and the
Emissions Adjustment specified in Section 4.05. This total amount less all
Periodic Coal Payments previously made for coal shipped during the Payment
Periods of such prior month shall be forwarded by PURCHASER to SELLER within
five (5) working days for any balance due from PURCHASER. Any such amount which
is due from SELLER to PURCHASER as a result of an overpayment shall be credited
toward PURCHASER's payment due for the next Shipment.

                                       28
<PAGE>   34
         Invoices shall be sent to:

               Fuel Accounting Manager
               Louisiana Generating
               Baton Rouge, LA

         Payment shall be sent via wire transfer to the following account:

               Triton Coal Company
               c/o Bank of America
               Account No. 78-20151
               ABA No. 071000039

         5.02 THIRD PARTY ANNUAL AUDIT. PURCHASER has executed a Transportation
Agreement for the transportation of coal hereunder during the Initial Term of
this Agreement. Transportation Rates and certain other information in the
Transportation Agreement must be held confidential pursuant to the terms of such
Agreement. In order to verify the accuracy of Calorific Value Adjustments
calculated pursuant to Section 4.04, SELLER may designate an independent third
party to annually audit PURCHASER's computations of such adjustments; provided
that (i) PURCHASER consents to such independent auditor, which consent shall not
be unreasonably withheld; (ii) such auditor enters into a confidentiality
agreement with SELLER and PURCHASER that is reasonably acceptable to PURCHASER
and that shall provide that such auditor shall be bound by the confidentiality
provisions of the Transportation Agreement; and (iii) the scope of such audit
shall be limited to verifying the accuracy of Calorific Value Adjustments
calculated pursuant to Section 4.04. The cost of such verification shall be
borne by SELLER.

                                       29
<PAGE>   35
         6.01 SHIPMENT. It is anticipated that coal sold hereunder shall be
shipped by rail from the Designated Loading Point ultimately to be delivered to
the Power Plant. PURCHASER's designation of plants to receive the coal may
include any plants on or off the Louisiana Generating system in the event
PURCHASER experiences operating problems or transportation problems. In
addition, PURCHASER, may elect to have up to {***} tons per year of the coal
sold by SELLER hereunder delivered to plants other than the Power Plant as
designated by PURCHASER; provided, however, that no such coal shall be delivered
to plants belonging to any of the three partners who comprise PURCHASER or any
of their respective affiliates or subsidiaries. PURCHASER shall nominate the
tons of coal to be shipped to other plants subject to SELLER's consent which
shall not be unreasonably withheld. In addition, PURCHASER, at its sole option,
may elect to have all or any part of the coal sold hereunder delivered to plants
other than the Power Plant as designated by PURCHASER; provided, however, that
all of the energy produced from such coal is received by PURCHASER. Any cost
increases which may result from the transportation of coal from the Origin to
destinations other than the Power Plant pursuant to this Section 6.01 shall be
for PURCHASER's account.

         6.02 RAIL SHIPMENTS. PURCHASER shall provide whatever rail
transportation service is required for the loading of the coal to be provided by
SELLER under this Agreement. SELLER shall provide at its expense Origin Loading
Facilities sufficient for efficient and dependable loading of at least one
hundred and twenty (120) Coal Car Unit Trains at the Coal Property and other
Origins as mutually agreed to by PURCHASER and SELLER. SELLER agrees to provide
Origin Loading Facilities capable of loading Unit Trains at an effective rate of
a

                                       30
<PAGE>   36
minimum of {***} tons in {***} hours. SELLER shall load the Coal Cars in a
timely manner that coincides with the loading times specified in the applicable
Transportation Agreement. SELLER shall be prepared to operate the Origin Loading
Facilities twenty-four (24) hours per day, seven days per week, if needed, in
compliance with the Transportation Agreement applicable to deliveries under this
Agreement to which SELLER agrees to be bound and, further, agrees to conduct its
operation in compliance herewith and therewith. (A summary of the
non-confidential terms of the applicable Transportation Agreement provisions is
attached hereto as Appendix F).

         PURCHASER shall not make changes to the loading or operating provisions
of the existing Transportation Agreement without the prior written consent of
SELLER, which consent shall not be unreasonably withheld. Upon execution of an
applicable tariff or rail contract that supplements or replaces the existing
Transportation Agreement, Appendix F may be supplemented by attaching relevant
portions of said tariff or rail contract hereto as a new Appendix F. SELLER
represents and warrants that no agreement of SELLER providing for the joint use
of surface facilities shall interfere with or impair SELLER's obligations as set
forth in this Agreement.

         Shipping schedules shall be coordinated by PURCHASER's and SELLER's
transportation coordinators in accordance with the quantities of coal to be
delivered under this Agreement.

         6.03 FREIGHT CHARGES, TITLE, AND RISK OF LOSS. Subject to the
reimbursement provided by Sections 6.04 and 6.05, PURCHASER shall pay all
freight and other charges imposed by Carriers with respect to the loading,
transportation, transshipment and

                                       31
<PAGE>   37
unloading at destination of the coal provided under this Agreement. PURCHASER
shall bear all risks associated with ownership of the coal including, but not
limited to, the risk of loss of each Shipment after the Shipment has been
properly loaded into Coal Cars at the Designated Loading Point in accordance
with the terms hereof and title shall pass to PURCHASER at the Designated
Loading Point once such loading has been completed; provided, however, if
PURCHASER suffers an economic disadvantage as a result thereof, SELLER and
PURCHASER agree to negotiate in good faith a basis for resolving PURCHASER's
disadvantages.

         6.04 LOADING COSTS CHARGEABLE TO SELLER. If SELLER fails to satisfy the
loading requirements of the applicable Transportation Agreement and such failure
is not excused pursuant to the force majeure provisions of the applicable
Transportation Agreement, to which provisions SELLER agrees to be bound, SELLER
shall pay any resulting Coal Car detention penalties or demurrage and shall pay
any penalties or charges for any Coal Cars loaded in excess of capacity which is
required by such Transportation Agreement.

         6.05 EXCESS FREIGHT COSTS CHARGEABLE TO SELLER. If SELLER fails to
Tender sufficient coal to satisfy the quantity requirements in accordance with
Section 8.01 of this Agreement, and thereby fails to satisfy the Tonnage
requirements of the applicable Transportation Agreement and such failure is not
excused pursuant to the force majeure provisions (including environmental force
majeure provisions and availability of rail equipment) of the applicable
Transportation Agreement to which provisions SELLER agrees to be bound, SELLER
shall pay any resulting freight or other charges which are incurred by PURCHASER
under such Transportation Agreement over the amount of such charges otherwise
payable.

                                       32
<PAGE>   38
SELLER shall also pay the per Ton Transportation Rate required to be paid by
PURCHASER under the applicable Transportation Agreement for all Tons not loaded
to the minimum capacity per Coal Car as specified in the Transportation
Agreement to the extent such costs are incurred by PURCHASER.

         6.06 PAYMENT OF EXCESS COSTS. Any payments required by Sections 6.04
and 6.05 above and Section 7.01 below shall be paid by SELLER within fourteen
(14) working days after SELLER's receipt of a written statement from PURCHASER
itemizing such charges. At PURCHASER's election, such charges may be credited
against amounts owed by PURCHASER to SELLER hereunder.

         7.01 SHIPPING NOTICE. Promptly after loading each Shipment (and in any
event no later than the end of the next working day), SELLER shall
electronically transfer to PURCHASER, in a format prepared by PURCHASER a notice
of Shipment which shall include SELLER's name; train number; car numbers;
Tonnage shipped; date of Shipment; and other such information as required by
PURCHASER from time to time.

         NOTICES OF SHIPMENT SHALL BE SENT TO:

         Plant Manager, Big Cajun II
         Louisiana Generating

         and

         Production Support Analyst
         Fuel Department
         Louisiana Generating

         and

         Manager
         American Commercial Marine Service Company

                                       33
<PAGE>   39
         Hall Street Terminal
         St. Louis, Missouri

         SELLER shall determine the short proximate analysis (moisture, ash,
sulfur, sodium and Btu) of the coal contained in each Unit Train in accordance
with American Society for Testing Materials ("ASTM") methods and procedures (see
Appendix G, Coal Preparation and Analysis Laboratory Procedures) and shall
electronically transfer such analysis to PURCHASER at the addresses specified
above in a format provided by PURCHASER within twenty-four (24) hours of such
Unit Train departing from the Origin. Should SELLER fail to provide such
analysis of any Shipment as specified herein, PURCHASER may elect to delay
unloading of the Shipment until such analysis is provided; and SELLER shall be
liable for any demurrage and other costs occasioned by such delay.

         8.01 QUANTITY REQUIREMENTS. Subject to Power Plant burn and inventory
requirements and to the terms of Section 3.02, PURCHASER shall purchase from
SELLER under the terms of this Agreement PURCHASER's estimated quarterly
delivery requirements (the "Estimated Delivery Requirements") of coal required
at the Power Plant per calendar quarter during the Initial Term of this
Agreement. SELLER shall give PURCHASER preliminary written notice of Shipment
Origins and expected coal quality specifications no later than sixty (60) days
prior to the beginning of the Contract Year and final written notice of Shipment
Origins and expected coal quality specifications no later than thirty (30) days
prior to the beginning of such Contract Year, provided that SELLER shall have
the right to modify the Shipment Origins (subject to Section 2.02) and expected
coal quality specifications (subject to Section 10.01) by giving PURCHASER
written notice no later than thirty (30) days prior to the beginning of the

                                       34
<PAGE>   40
calendar quarter or, in the event of a Force Majeure, as much notice as is
commercially reasonable under the circumstances. PURCHASER shall give SELLER
preliminary written notice of its Estimated Delivery Requirements no later than
ninety (90) days prior to the beginning of the Contract Year and final written
notice of Estimated Delivery Requirements no later than forty-five (45) days
prior to the beginning of the Contract Year. PURCHASER shall have the right to
increase the quarterly Tons shipped by up to twenty percent (20%) above the
relevant Estimated Delivery Requirement specified in any final written notice by
giving SELLER written notice no later than thirty (30) days prior to the
beginning of the calendar quarter or, in the event of a Force Majeure, as much
notice as is commercially reasonable under the circumstances; provided, however,
that SELLER shall not be obligated to ship more than {***} Tons of coal to
PURCHASER in any calendar month. In the event that PURCHASER elects to purchase
a volume of coal in excess of {***} Tons of coal in any calendar month, SELLER
shall have the right but not the obligation to supply such coal in accordance
with the terms hereof provided that if it elects to supply such coal, SELLER
must notify PURCHASER in writing within ten (10) days of receipt of PURCHASER's
notice described above. If SELLER fails to notify PURCHASER within such ten (10)
day period or if SELLER elects not to supply such excess coal, PURCHASER may
purchase it elsewhere.

         9.01 WEIGHING. The governing weight of coal sold and delivered
hereunder shall be determined from SELLER's scale systems located at the
Designated Loading Point. Said scale systems and methods of weighing shall be
acceptable to PURCHASER and the Carrier, and shall be certified in accordance
with the Association of American Railroads ("AAR") "Scale

                                       35
<PAGE>   41
Handbook". The regulations contained in the AAR "Scale Handbook" are based on
National Institute of Standards and Technology Handbook 44, "Specifications,
Tolerances, and other Technical Requirements for Weighing and Measuring
Devices." All scales used to determine the governing weight of coal shall be
tested and certified by the BN (or any successor Carrier) and the Wyoming
Department of Agriculture on a semi-annual basis. If SELLER fails to establish
weights in accordance with this Section 9.01 for ten (10) or fewer Coal Cars in
any Unit Train, the weight of each of those Coal Cars shall be deemed to equal
the average weight of the other Coal Cars comprising such Unit Train. If SELLER
fails to establish weights in accordance with this Section 9.01 for eleven (11)
or more Coal Cars in any Unit Train, the weight of each of the Coal Cars
comprising such Unit Train shall be deemed to equal the average per Coal Car
weight of the five (5) prior Unit Trains shipped by SELLER to PURCHASER.

         SELLER will determine and report a weight for each Shipment of coal
hereunder. Subject to the provisions of the following two paragraphs, the
aggregate weights determined by SELLER in accordance with the terms of this
Agreement during any Payment Period shall be accepted as the quantity of coal
sold and purchased during such period for which invoices are to be rendered and
payments are to be made in accordance with Section 5.01.

         PURCHASER shall have the right to have a representative present at any
and all times to observe determination of weights. If PURCHASER should at any
time question the accuracy of the weights thus determined, PURCHASER shall so
advise SELLER and SELLER shall permit the BN (or any successor Carrier) or the
Wyoming Department of Agriculture, as appropriate, to test SELLER's scale
systems or methods on a mutually agreeable schedule and at Seller's expense.

                                       36
<PAGE>   42
If such tests show the scale systems devices to be in error, or if the scale
systems otherwise are determined to be in error, SELLER will, at its expense,
take appropriate steps to immediately adjust such scale systems to an accurate
condition. If such tests show the scale systems devices to be accurate,
PURCHASER shall pay the cost of such tests.

         If SELLER's scale systems or weighing methods are determined to be in
error, an appropriate adjustment shall be made to the affected weights and
related invoices and payments and shall be applied to the next Shipment. Such
adjustments shall be made retroactively to a date that is midway between the
date on which the scale systems or weighing methods were last certified and the
date on which the weighing methods and scale systems were determined to be in
error.

         10.01 COAL SPECIFICATIONS. The coal sold by SELLER and purchased by
PURCHASER hereunder shall be uniformly blended; and such blend shall be
consistent from Coal Car to Coal Car; shall be two and one-half inches and under
in size (2-1/2" x 0") as defined in the then-current ASTM Designation D-4749
Standard Test Method for "Performing Sieve Analysis and Designating Coal Size";
shall not contain greater than {***} particles less than one-quarter (1/4) inch
in size (if, in PURCHASER's sole reasonable judgment, coal handling problems
occur at the destination, and SELLER is reasonably able to correct such problems
at the Origin, SELLER agrees to take reasonable corrective action acceptable to
PURCHASER); shall have no intermediate sizes added or removed; shall not contain
coal greater than three (3) inches in any dimension and shall be substantially
free of bone, slate, shale, rock, dirt, clay, fireclay, pond fines, washer
fines, washer refuse, plastic, rubber, iron, roots, wood, water, debris, refuse
or other

                                       37
<PAGE>   43
waste materials identified as coming from the Origin or a washer or coal
preparation facility (collectively "Extraneous Material"). Any Shipment that is
not substantially free of such Extraneous Material will be rejected. SELLER
shall only deliver run-of-mine coal product (or fully washed product) to
PURCHASER; provided, however, SELLER may add minimal amounts of coal fines from
the ENCOAL facility at the Buckskin Mine to Shipments hereunder. SELLER shall
promptly reimburse PURCHASER for all damage to PURCHASER's equipment directly
caused by any Extraneous Material loaded with the coal by SELLER, as well as for
damages to PURCHASER's equipment caused by shipping coal failing to meet the
specifications contained in this Section 10.01.

         Coal sold by SELLER and purchased by PURCHASER hereunder shall conform
to the following analysis on an "as received" basis:

<TABLE>
<CAPTION>
                                     Expected Annual
                                       Weighted Avg.         Suspension Limits         Rejection Limits
                                      Specifications           (Per Shipment)           (Per Shipment)
                                      --------------           --------------           --------------
<S>                                  <C>                     <C>                       <C>
Max. Moisture (total), %                  {***}                    {***}                    {***}
Max. Ash, %                               {***}                    {***}                    {***}
Max. Sulfur Dioxide                       {***}                    {***}                    {***}
  lbs./MMBtu
Min. Volatile Matter, %                   {***}                    {***}                    {***}
Min. Ash Fusion Temp.,(degree)F           {***}                    {***}                    {***}
  Softening (H=W)
  Reducing Atmosphere
Min. Calorific Value, Btu/lb.             {***}                    {***}                    {***}
  for the Buckskin Mine
Min. Calorific Value, Btu/lb.             {***}                    {***}                    {***}
  for all Origins other than
  the Buckskin Mine
</TABLE>

                                       38
<PAGE>   44
         The Expected Annual Weighted Average Specifications shown in the above
table establish the minimum requirements for coal from all Origins other than
the Buckskin Mine.

         11.01 SAMPLING. SELLER shall provide at its expense at the Designated
Loading Point a mechanical sampling system of the "cutting the full coal stream"
type or other system acceptable to PURCHASER. The design and operation of the
sampling system shall be in accordance with ASTM D-2234, "Standard Test Methods
for Collection of a Gross Sample of Coal" and D-2013, "Standard Method of
Preparing Coal Samples for Analysis." The mechanical sampling system shall be
enclosed to minimize moisture loss and shall be designed for two stage of sample
crushing to the No. 8 sieve size. SELLER shall submit design drawings and
specifications for any new sampling system to PURCHASER for approval prior to
installation. PURCHASER will not unreasonably withhold such approval. PURCHASER
and SELLER shall use their best efforts to agree on a modification of procedures
and equipment to incorporate improved methods developed in the future by the
ASTM.

         SELLER shall collect representative samples using the mechanical
sampling system as described above at the Designated Loading Point of each
Shipment of coal sold hereunder. SELLER shall divide the final sample of No. 8
sieve size coal from the mechanical sampling system, at the Designated Loading
Point, into at least four 1000 gram laboratory sample splits in accordance with
ASTM Standard D-2013, "Standard Method of Preparing Coal Samples for Analysis,"
using an enclosed riffle to minimize moisture loss. SELLER shall send two
laboratory samples to PURCHASER's Designated Laboratory (as defined in Section
11.02), and shall retain

                                       39
<PAGE>   45
two laboratory samples, one of which will be retained by SELLER for sixty (60)
days from date of shipment as a reserve sample and the second of which will be
analyzed by SELLER to meet its obligations under this Agreement.

         PURCHASER or PURCHASER's designated representative may observe any
sampling or sample preparation performed by SELLER or SELLER's designated
representative. In the event that SELLER's sampling system ceases to operate,
SELLER shall immediately notify PURCHASER or PURCHASER's representative to
determine a course of action to be taken. A weighted average analysis of the
results for coal contained in the last ten (10) Unit Trains sampled may be used
by mutual agreement between PURCHASER and SELLER for any Unit Train for which
the samples required above are not collected. SELLER shall provide PURCHASER
with documentation of test results of a dynamic bias test of the sampling system
on a semi-annual basis, and shall conduct a stop belt test prior to January 1,
1998 and during the third Contract Year of the Initial Term of this Agreement
unless the sampling system is significantly modified between the tests in year
one and year four, in which case an additional stop belt test shall be performed
at the completion of such modification.

         11.02  ANALYSIS.

         PURCHASER's designated laboratory ("PURCHASER's Designated Laboratory")
may be its laboratory, SELLER's laboratory as provided below, or a qualified
independent coal testing laboratory which, in each case, shall analyze the
laboratory samples sent by SELLER in accordance with Appendix G. In the event
PURCHASER elects to employ such an independent

                                       40
<PAGE>   46
laboratory, SELLER shall not be liable for any costs incurred by PURCHASER
except as herein provided.

         Prior to the Effective Date, PURCHASER shall inspect the laboratory
located in SELLER's Buckskin Property and operated by a third party. At any time
during the Initial Term hereof, PURCHASER shall have the right to inspect the
Buckskin laboratory or such other laboratory as SELLER may designate as SELLER's
laboratory. PURCHASER may propose to SELLER changes it deems necessary in the
laboratory or analytical procedures. If SELLER makes the recommended changes to
the laboratory and/or analytical procedures, PURCHASER will designate SELLER's
laboratory as PURCHASER's Designated Laboratory. If PURCHASER can show the
analytical procedures used by SELLER's laboratory fail to meet appropriate ASTM
standards, including those described in Appendix G, or if SELLER changes the
third party operator of SELLER's laboratory without obtaining PURCHASER's prior
written consent, PURCHASER reserves the right to revoke the designation of
SELLER's laboratory as PURCHASER's Designated Laboratory and to designate
another laboratory as PURCHASER's Designated Laboratory. If PURCHASER so
designates SELLER's laboratory as PURCHASER's Designated Laboratory, all costs
will be for SELLER's account.

         Upon request of PURCHASER, the two laboratory samples sent to
PURCHASER's Designated Laboratory shall be promptly analyzed in accordance with
Appendix G and, except as provided in this Section 11.02, the results of such
analysis shall govern under this Agreement. PURCHASER will cause the results of
its Designated Laboratory's analysis to be provided to SELLER within twenty-four
(24) hours of receipt of SELLER's samples.

                                       41
<PAGE>   47
         Except as hereinafter provided in this Section 11.02, the analysis of
PURCHASER's Designated Laboratory shall govern for all purposes under this
Agreement. If a dispute arises between PURCHASER and SELLER over the results of
the analyses performed by PURCHASER's Designated Laboratory, the reserve sample
shall be sent to a qualified independent laboratory (selected jointly by
PURCHASER and SELLER) (the "Referee Laboratory") which shall conduct a referee
analysis in accordance with Appendix G. The cost of any such analysis shall be
borne equally by PURCHASER and SELLER. The results of the Referee Laboratory's
analysis will be determinate.

         With respect to a dispute pertaining to the calorific value of the
coal, the analysis of PURCHASER's Designated Laboratory will be deemed to have
been confirmed and no further adjustment in billing calculations will be made if
the dry basis Btu content of the analysis of the Referee Laboratory differs from
the analysis of PURCHASER's Designated Laboratory by no more than 100 Btu per
pound. With respect to disputes involving other items of the analysis, the
analysis of PURCHASER's Designated Laboratory will be deemed to have been
confirmed and no other adjustment in billing calculations will be made if the
difference between the analysis of the Referee Laboratory and the analysis of
PURCHASER's Designated Laboratory is within the tolerances for reproduceability
specified in the applicable ASTM Standards.

         In the event that a difference in any item of the analysis of
PURCHASER's Designated Laboratory and that of the Referee Laboratory exceeds
tolerances specified in the applicable ASTM Standards specified in Appendix G,
the analysis of the Referee Laboratory will govern and appropriate adjustments
in billing calculations will be made during the next Payment Period.

                                       42
<PAGE>   48
         12.01 REJECTION OF COAL FOR COAL QUALITY DEFICIENCIES. In addition to
and not as a limitation upon other rights of PURCHASER hereunder, PURCHASER
shall have the right to refuse and reject any Shipment of coal under any one or
more of the following circumstances: (a) the Shipment fails by analysis
(including short proximate analysis as provided for in Section 7.01) to comply
with any one or more of the Rejection Limits set forth in Section 10.01; (b) the
Shipment contains coal that was or is being mined or produced from a seam or
source other than the Coal Property described in Appendix A without securing the
prior written approval of PURCHASER as provided in Section 2.02; (c) the
Shipment fails in any manner to comply with any of the coal size specifications
contained in Section 10.01 hereof or (d) when loaded at Origin, the Shipment is
not substantially free of Extraneous Material. PURCHASER shall give prompt
notice to SELLER of any such rejection of Shipments. Risk of loss shall shift
from PURCHASER to SELLER upon delivery of such notice. After receipt of such
notification, SELLER shall not resume Shipments from the particular Origin of
the rejected Shipment until coal quality has been corrected or the Origin
changed to PURCHASER's satisfaction.

         In the event that PURCHASER notifies SELLER that a Shipment has been
rejected, SELLER may, at SELLER's expense, remove such Shipment from PURCHASER's
facilities or from transportation equipment and shall reimburse PURCHASER for
all transportation costs incurred by PURCHASER in connection with such Shipment.
PURCHASER may deduct all such costs and expenses from any sum owed by PURCHASER
to SELLER. If SELLER elects not to remove any such Shipment by giving prompt
notice and PURCHASER is willing to purchase such

                                       43
<PAGE>   49
coal, the price applicable to such Shipment shall equal the applicable Billing
Price pursuant to Sections 4.01; 4.02 and 4.03 less {***} per ton. SELLER and
PURCHASER shall work together in good faith to expeditiously resolve any
problems associated with rejection of a Shipment hereunder.

         12.02 SUSPENSION OF SHIPMENTS FOR COAL QUALITY DEFICIENCIES. Subject to
SELLER's substitution rights contained in Section 2.02, PURCHASER shall, in
addition to the rights set forth above in Section 12.01, have the right to
suspend Shipments from a particular Origin immediately, by giving notice to
SELLER, under any one or more of the following circumstances: (a) any Shipment
from such Origin fails by analysis (including short proximate analyses as
provided for in Section 7.01) to comply with any one or more of the per Shipment
suspension limit specifications set forth in Section 10.01; (b) any Shipment
contains coal that was or is being mined or produced from a seam or source other
than the Coal Property described in Exhibit A without securing the prior written
approval of PURCHASER as provided in Section 2.02; or (c) when loaded at the
Origin, any Shipment is not substantially free of Extraneous Material. Shipments
in transit at the time of notification of suspension shall be accepted.

         The suspension of Shipments from any one Origin shall not affect
SELLER's right to source Shipments hereunder from other Origins consistent with
the terms of this Agreement. In addition, PURCHASER shall have the right to
purchase coal from other sources during such period of suspension if total
deliveries to PURCHASER are reduced. Four (4) or more suspensions in any 120 day
period shall be deemed to be a material breach of this Agreement, for

                                       44
<PAGE>   50
which PURCHASER shall have the unilateral right, exercised in its sole
discretion, to terminate this Agreement by giving notice of the termination to
SELLER as provided in Section 13.01.

         In the event that PURCHASER suspends Shipments from a particular
Origin, SELLER may resume Shipments from such Origin provided that SELLER (i)
provides a written explanation of the cause of the quality variations and
specifies remedial actions reasonably acceptable to PURCHASER which SELLER will
undertake to ensure compliance with the coal quality specifications of Section
10.01 and (ii) after resumption of Shipments, the weighted average calorific
content of the first twenty (20) Shipments of coal from such Origin must equal
or exceed {***} Btu/lb., the sulfur dioxide content of each of these twenty (20)
Shipments must be {***} pounds per MMBtu or less, the minimum volatile matter
must be {***} or higher and the minimum ash fusion temperature must be {***} or
higher. The twenty (20) Shipments shall be scheduled and sampled by such method
as shall be reasonably acceptable to PURCHASER. All special handling costs,
including (but not limited to) stockpile segregation, transportation routing,
etc., associated with the test Shipments shall be borne by SELLER.

         If the analysis by PURCHASER shows the resumed Shipment(s) to be in
compliance with the coal quality specifications specified above, deliveries
shall be permitted to resume from this Origin. PURCHASER shall have the sole
right to determine if SELLER shall be allowed to make up any Tonnage not
delivered during the period Shipments were suspended. Any make-up Tonnage
scheduled will be mutually agreed to on a reasonable basis. The price to be paid
for any such make-up Tonnage is the price that would have been in effect at the
time the coal was originally scheduled to be delivered under the terms of this
Agreement.

                                       45
<PAGE>   51
         In the event of suspension of any Shipment(s) followed by termination
of this Agreement, SELLER shall reimburse PURCHASER for any and all
transportation costs associated with suspended Shipment(s) and/or termination
which may be incurred by PURCHASER. PURCHASER's rights of suspension and
termination are in addition to any other remedies provided by this Agreement or
at law or in equity for SELLER's failure to deliver coal in compliance with this
Agreement.

         13.01 AUTOMATIC TERMINATION. In addition to the automatic termination
rights set forth in Sections 12.01, 12.02, 15.01, 16.01 and 20.01, PURCHASER in
each of (a), (b), or (c) below and SELLER in (c) below shall have the right to
cancel the remaining Shipments to be delivered and to terminate this Agreement
with no liability therefor except with respect to coal delivered prior to such
termination by giving written notice to the other party, as provided in Section
26.01, under any one or more of the following circumstances: (a) any Shipment
contains coal that was or is being mined or produced from a seam or source other
than the Coal Property described in Appendix A without the prior written
approval of PURCHASER as provided in Section 2.02; (b) the occurrence of four
(4) or more suspensions in any 120 day period, as provided in Section 12.02 or
(c) in the event that the other party engages in any fraudulent or illegal
conduct in connection with its performance under this Agreement.

         14.01 TERMINATION FOR UNREMEDIED DEFAULT. If either party fails to
comply with any or all of its material obligations as set forth in this
Agreement, the party not in default shall have the right to terminate this
Agreement at any time by giving notice as provided in Section 26.01 of its
intention to do so to the other party, which notice shall specify the default.

                                       46
<PAGE>   52
         At the expiration of sixty (60) days after the date of such notice,
unless the party in default shall have cured such default to the satisfaction of
the non-defaulting party, the party not in default shall have the right, at its
sole election, to terminate this Agreement immediately with no liability
therefor except with respect to coal delivered prior to such termination;
provided, however, that the failure of the parties to agree on a price
adjustment shall not constitute grounds for termination of this Agreement under
this Section 14.01.

         In addition to and not as a limitation upon other rights of PURCHASER
or SELLER hereunder, either party may elect, at its sole option, to forego its
right to terminate this Agreement upon the other party's default under this
Agreement, as provided in Section 13.01 or this Section 14.01, and may require,
in lieu of termination, the other party to perform its obligations according to
the terms and conditions of this Agreement.

         15.01 FORCE MAJEURE. "SELLER's Force Majeure" as used herein shall mean
a cause reasonably beyond the control of SELLER which, wholly or in substantial
part, directly or indirectly prevents SELLER from the mining, transporting,
crushing, loading, or delivery of coal at the Coal Property or another Origin
approved in accordance with Section 2.02. "PURCHASER's Force Majeure" as used
herein shall mean a cause reasonably beyond the control of PURCHASER which,
wholly or in substantial part, directly or indirectly prevents or restricts the
delivery, unloading, storing or burning of coal or the production of electricity
by PURCHASER at the Power Plant. Examples (without limitation) of Force Majeure
are the following: acts of God; acts of the public enemy; insurrections; riots;
strikes; labor disputes; work stoppages; fires; explosions; floods; electric
power failures; breakdowns of or damage to

                                       47
<PAGE>   53
generating or preparation plants or mining equipment which materially impacts
the mining process; interruptions to or contingencies of transportation,
including but not limited to Force Majeure as defined in the Transportation
Agreement; embargoes; and orders or acts of civil or military authority
(including, without limitation, a city or county ordinance, an act of a state
legislature or an act of the United States Congress); provided, however, for the
purposes of this Agreement, Force Majeure shall not include, and neither party
hereto shall be excused from performance because of the development or existence
of economic conditions which may adversely affect the anticipated profitability
of such party's activities hereunder, acts or omissions of such party which
constitute mismanagement or fraud on the part of such party, or reduced
productivity of labor employed by such party in its activity hereunder.

         If a PURCHASER's Force Majeure occurs and PURCHASER gives SELLER notice
of such Force Majeure as provided in Section 26.01, the obligations and
liabilities of PURCHASER and the corresponding obligations of SELLER shall be
suspended to the extent made necessary by and during the continuance of such
Force Majeure; provided, however, that PURCHASER shall use its commercially
reasonable efforts to eliminate the disabling effects of such Force Majeure as
soon as and to the extent possible (except PURCHASER may settle any of its own
labor disputes, strikes, or terminate any of its own lockouts in its sole
discretion).

         If a SELLER's Force Majeure occurs and SELLER gives PURCHASER notice of
such Force Majeure as provided in Section 26.01, the obligations and liabilities
of SELLER and the corresponding obligations of PURCHASER shall be suspended to
the extent made necessary by and during the continuance of such Force Majeure;
provided, however, that SELLER shall use its

                                       48
<PAGE>   54
commercially reasonable efforts to eliminate the disabling effects of such Force
Majeure as soon as and to the extent possible (except that SELLER may settle any
of its own labor disputes, strikes, or terminate any of its own lockouts in its
sole discretion).

         In the event of a transportation or transloading or SELLER's Force
Majeure, PURCHASER may purchase substitute coal from a third party or parties if
Power Plant inventories are projected to fall below {***} days projected burn.
In the event a Force Majeure causes a partial reduction in the total quantity of
coal SELLER can deliver from all PURCHASER approved Origins, SELLER's available
supply of coal from such Origins shall be apportioned in a reasonable manner
among all of its customers having contracts for the purchase of coal from such
Origins at the time of the occurrence of the Force Majeure event.

         It is agreed that in the event that any valid act, law, ordinance, rule
or regulation of a municipality, county, state or the United States government,
or final judicial decision, judgment or order, is adopted or passed after the
Effective Date of this Agreement, which either (a) directly prohibits the mining
contemplated hereunder or (b) directly or indirectly imposes significant burdens
or restrictions upon the burning or use of coal by PURCHASER to the extent that
PURCHASER is unable or would not be allowed to utilize the coal to be shipped
hereunder feasibly and economically at the Power Plant or would be allowed to
utilize such coal only after the installation or substantial renovation of plant
equipment, then the existence and implementation of such act, law, ordinance,
rule, regulation, decision, judgment or order shall constitute an event of
permanent Force Majeure whereupon this Agreement may be terminated by the party
so affected upon notice to the other party. Neither party shall have any further
right or

                                       49
<PAGE>   55
obligation hereunder effective upon such termination except with respect to coal
delivered prior to such termination.

         Notwithstanding the provisions of this Section 15.01, a party not
claiming Force Majeure may terminate this Agreement upon notice to the other
party and without liability to the other party whenever all of the following
circumstances exist: (a) a condition of Force Majeure occurs which causes the
mutual obligations to be suspended as provided above with respect to the total
quantity of coal to be supplied; (b) such condition (alone or extended by other
conditions of Force Majeure) continues so that the mutual obligations remain
suspended for a period of six (6) consecutive months; and (c) at the end of said
six (6) consecutive months or at any time thereafter, the party not claiming
Force Majeure, in the exercise of its reasonable judgment, concludes that there
is little likelihood of ending the condition(s) in the immediate future. The
party not claiming Force Majeure may exercise such right of termination by
giving ninety (90) days' notice, as provided in Section 26.01, of its intention
to terminate to the other party. Neither party shall have any further right or
obligation hereunder effective upon such termination except with respect to coal
delivered prior to such termination.

         16.01 CHANGES IN ENVIRONMENTAL RELATED REQUIREMENTS. The term
"Environmental Related Requirement," as used in this Agreement, means the
following: (a) any prohibition, restriction, or limitation related to the
quality of coal which PURCHASER may burn, including any constituent
specification, at its electric generating plants, or to the type or amount of
emissions from any or all such plants; (b) any rule or requirement affecting the
permissible means for complying with any such prohibition, restriction or
limitation; or (c) any

                                       50
<PAGE>   56
imposition of a cost, fee, tax or other economic burden on PURCHASER relating to
(i) the production of electricity (generally or by means of coal-fired steam
electric generation), (ii) the quantity of coal purchased and/or burned by
PURCHASER, (iii) any constituent specification of coal purchased by PURCHASER,
or (iv) the type or amount of emissions from PURCHASER's electric generating
plants. A change in Environmental Related Requirements shall be deemed to have
occurred in any one or more of the following circumstances: (a) there is any
increase or decrease in existing Environmental Related Requirements; (b)
PURCHASER, in the exercise of its sole judgment, decides to change its strategy
for compliance with any such existing Environmental Related Requirements; or (c)
a new Environmental Related Requirement is imposed on PURCHASER as a result of
any federal or state statute, local ordinance, administrative regulation or
ruling, court order, or any revision in any interpretation or implementation
thereof. In the event that it is recognized that a change in Environmental
Related Requirements upon PURCHASER may occur even though stated as a
restriction or limitation on, or requirement of, PURCHASER and its affiliates or
some other group of utilities, so long as (i) such restriction or limitation
appears to be likely and imminently applicable to PURCHASER, then SELLER and
PURCHASER agree to negotiate in good faith to develop a mutually reasonable plan
of mitigation. It is further recognized that any change in Environmental Related
Requirements may affect PURCHASER in a general way and may not be directed at
specific plants, fuels, fuel supplies or other operating conditions. In this
event PURCHASER shall, in its sole discretion, determine its strategy for
compliance, and whether PURCHASER's use of the

                                       51
<PAGE>   57
coal to be supplied hereunder has been adversely impacted. The provisions of
this Section 16.01 are intended to provide rights in addition to the rights
provided in Section 15.01.

         The price, specifications, quantity and destination of coal purchased
hereunder are predicated on Environmental Related Requirements in effect as of
the Trigger Date. In the event and whenever after such date, there is a change
in Environmental Related Requirements, PURCHASER shall determine whether such
change has had or may have an adverse impact on its use of the coal purchased
hereunder. It is agreed that any change in Environmental Related Requirements
which has one or more of the following effects shall be deemed to have an
adverse impact on PURCHASER's use of the coal purchased hereunder, even though
the statute, regulation, ruling or ordinance may allow PURCHASER a choice of
options for complying with such changed Environmental Related Requirements
(which choice may include the payment of a fee or tax in lieu of the
installation of equipment, or utilization of coal of different constituent
specifications, or the reduction in the overall use of coal by PURCHASER): (a)
the change imposes a fee, tax, or other economic burden on PURCHASER relating to
the constituent specifications of coal purchased by it or on the type or amount
of emissions from PURCHASER's electric generating plants; (b) the change
directly or indirectly prevents or restricts PURCHASER from utilizing the coal
purchased hereunder in one or more of its electric generating plants; (c) the
change requires PURCHASER to install equipment (such as flue gas desulfurization
equipment or particulate removal equipment) at one or more of its electric
generating plants in order to comply with such change; or (d) the change
requires or permits PURCHASER to utilize coal of a quality (including, but not
limited to, sulfur) different from that specified in Section 10.01.

                                       52
<PAGE>   58
         If PURCHASER determines that a change in Environmental Related
Requirements has had or may have an adverse impact on its use of the coal
purchased hereunder, PURCHASER shall so notify SELLER as provided in Section
26.01. Upon receipt of such notice, SELLER shall have the right, at its option,
to propose within thirty (30) days after receipt of such notice, any steps
available to SELLER in its mining and processing of the coal, in the supply of
substitute coal, in the change in the price of the coal, or other measure which
would result in as low a delivered cost of coal at the Power Plant or to other
power plants pursuant to Section 6.01 as PURCHASER could achieve by purchasing
reasonably available substitute coal, taking into consideration any fees, taxes,
costs, or other economic burdens imposed on the use of coal by PURCHASER. In the
event PURCHASER, in its sole judgment, determines that SELLER cannot achieve
this result, then PURCHASER may terminate this Agreement upon ninety (90) days'
notice thereof as provided in Section 26.01. PURCHASER shall have the right to
give such notice either before or after the effect of a change in Environmental
Related Requirements. Neither party shall have any further right or obligation
hereunder effective upon such termination except with respect to coal delivered
prior to such termination.

         The parties hereto acknowledge that this Agreement is based on the
assumption that the coal to be delivered hereunder will enable PURCHASER to
comply with the provisions of the Clean Air Act Amendments of 1990, judicial and
administrative interpretations thereof, and regulations to be promulgated
thereunder as such interpretations and resolutions exist as of the Effective
Date of this Agreement. If, at any time during the Initial Term of this
Agreement, PURCHASER determines, in its sole judgment, that any operational or
environmental compliance

                                       53
<PAGE>   59
problem at the Power Plant has resulted from the components or characteristics
of SELLER's coal or the products of its combustion, including, but not limited
to, nitrogen oxide emissions, or any other constituent or property of the coal
not otherwise specified herein, SELLER and PURCHASER shall immediately enter
into discussions in a good faith effort to resolve the problem. If such
discussions fail to resolve such problem in a manner which, in PURCHASER's sole
judgment, is reasonable and would not impose an unreasonable additional expense
to PURCHASER, then PURCHASER shall have the right to terminate this Agreement by
giving SELLER notice of PURCHASER's intention to do so as provided in Section
26.01. Neither party shall have any further right or obligation hereunder
effective upon such termination except with respect to coal delivered prior to
such termination. No expense contemplated by this Section 16.01 shall be deemed
reasonable if it would result in a delivered price of coal hereunder in excess
of the delivered price of competitive fuels or sources then available to
PURCHASER. If, during the Initial Term of this Agreement, PURCHASER is required
to meet certain NOx levels, then PURCHASER and SELLER agree to review NOx levels
and identify appropriate mechanisms for establishing a value for NOx emissions
by calculating any difference between SELLER's coal and the baseline coal used
to establish initial compliance, i.e., Kennecott's Antelope Mine.

         17.01 WARRANTIES. In addition to the warranties provided elsewhere in
this Agreement, SELLER warrants that (i) no outside sales to others will
diminish the production of coal to be supplied under this Agreement; (ii) only
coal mined and produced from the Coal Property will be shipped to PURCHASER and
(iii) no substitute coal will be shipped by SELLER

                                       54
<PAGE>   60
to PURCHASER without the prior approval of PURCHASER except as provided
in Section 2.02 and Appendix A.

         17.02 DISCLAIMER OF WARRANTIES. WITH THE EXCEPTION OF THOSE WARRANTIES
EXPRESSLY PROVIDED IN THIS AGREEMENT, SELLER MAKES NO OTHER WARRANTIES
WHATSOEVER, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Notwithstanding the
foregoing, SELLER and PURCHASER agree that, to the extent the coal provided
hereunder creates operational problems for PURCHASER, the parties shall
negotiate in good faith to seek a prompt and mutually satisfactory resolution of
such problems.

         18.01 INDEPENDENT CONTRACTOR. This Agreement is a contract for the sale
and purchase of coal. The parties recognize and agree that neither party is an
agent or employee of the other party nor any affiliate of the other party and
that each party is independent of any managerial or other control or direction
by the other party and is free to perform, by such means and in such manner as
such party may choose, all work in pursuance of commitments hereunder.

         19.01 BINDING EFFECT. This Agreement shall bind and inure to the
benefit of the parties and their successors and assigns, as permitted under
Section 20.01.

         20.01 ASSIGNMENTS. Neither party may assign its rights under this
Agreement without the non-assigning party's prior written approval. However,
notwithstanding the above, PURCHASER may assign its rights, duties, obligations
and interests in and to this Agreement to a subsidiary, affiliate or sister
entity; provided, however, PURCHASER shall not be thereby

                                       55
<PAGE>   61
relieved of its responsibilities or obligations hereunder. Furthermore,
notwithstanding the above, SELLER may assign its rights, duties, obligations and
interests in and to this Agreement to a parent, subsidiary, affiliate or sister
entity; provided, however, that SELLER shall not be thereby relieved of its
responsibilities or obligations hereunder. This Agreement shall likewise apply
to any successor or assignee of either PURCHASER or SELLER.

         Should the majority of stock or other ownership interests in either
SELLER or PURCHASER be conveyed to an unaffiliated entity, and if the party
whose stock or other ownership interests are being conveyed will not agree to
guaranty the performance of its transferee hereunder, the party not conveying
its interest shall have the option to immediately terminate this Agreement,
should it determine, in its reasonable judgment, that the change in such
ownership materially and adversely affects the other party's ability to perform
under this Agreement, provided, however, that the parties agree that a transfer
of stock or ownership interests between or among one or more of the existing
owners of PURCHASER or its or their affiliates shall not be included in any
determination as to whether there has been a transfer of a majority of the stock
or ownership interests of PURCHASER.

         21.01 RIGHT OF INSPECTION: ACCOUNTING. SELLER and PURCHASER shall
preserve in an orderly manner the records supporting all charges and adjustments
to the Billing Price and all other payments, adjustments and obligations
hereunder and shall make such records available to the other party's
accountants, auditors or other authorized representatives, who shall, after
giving adequate notice, be afforded access to and be permitted to examine such
records at all reasonable times during normal business hours. In the event, upon
audit, it is

                                       56
<PAGE>   62
determined that adjustments in price were not properly made or were allowed to
go into effect but were not properly calculated, adjustments shall be made
promptly in billings hereunder for current coal deliveries to reflect the proper
amounts of such adjustments; or if no billings are then due, payments reflecting
the difference between the proper amounts determined by audit and the amounts
paid shall be made. It is expressly understood and agreed that the provisions of
this Section 21.01 shall survive the termination or expiration of this
Agreement.

         22.01 RIGHT OF INSPECTION: COAL PROPERTY. PURCHASER or its designated
agent shall have the right at all times, at its sole risk and expense, to enter
upon the Coal Property and/or other appropriate locations or Origins (including
PURCHASER's Designated Laboratory), where such entry is announced, for any of
the following purposes: (a) to inspect and examine the method, equipment and
manner of mining, producing, storing, washing, blending, crushing, loading,
unloading, transporting, sampling, weighing, analyzing, and other handling of
coal to be sold and delivered under this Agreement; (b) to take samples of coal
for PURCHASER's analyses (in taking such samples PURCHASER agrees not to
materially impact SELLER's operations); or (c) in connection with any
accounting, audit, or examination of SELLER's records. PURCHASER's
representative shall check in with the appropriate personnel at the entrance to
SELLER's facility or other location or Origin prior to entering onto such
property. SELLER's representative will accompany PURCHASER's representative at
the convenience of PURCHASER's representative and PURCHASER's representative
will undergo reasonable safety training as required by SELLER but no more often
than once each calendar year. PURCHASER's representative will also abide by
SELLER's company rules and procedures.

                                       57
<PAGE>   63
No inspection by PURCHASER shall be deemed to be a waiver of any of
PURCHASER's rights or relieve SELLER of any obligation under this Agreement.

         22.02 RIGHT OF INSPECTION: PURCHASER'S LAB. SELLER or its designated
agent shall have the right at all times, at its sole risk and expense, to enter
PURCHASER's Designated Laboratory where such entry is announced to inspect and
examine the method, equipment and manner of conducting analysis of coal to be
sold and delivered under this Agreement. SELLER's representative shall check in
with the appropriate personnel at PURCHASER's facility prior to entering onto
PURCHASER's property. SELLER's representative will abide by PURCHASER's company
rules and procedures. No inspection by SELLER shall be deemed to be a waiver of
any of SELLER's rights or relieve PURCHASER of any obligation under this
Agreement.

         23.01 WAIVER. The failure of either party to insist on strict
performance of any provision of this Agreement, or to take advantage of any
right hereunder, shall not be construed as a waiver of such provision or right.
Time is of the essence of this Agreement.

         24.01 LIMITATION OF DAMAGES. Neither PURCHASER nor SELLER shall be
liable hereunder to the other for consequential, special, exemplary or indirect
damages.

         25.01 DISPUTED MATTERS. If any dispute, disagreement, claim or
controversy exists between SELLER and PURCHASER arising out of or relating to
this Agreement (in each case, a "Disputed Matter") and such Disputed Matter is
not resolved pursuant to a dispute resolution mechanism specifically provided
for elsewhere in this Agreement, it shall be submitted to the following
mediation process:

                                       58
<PAGE>   64
(a)      Internal Mediation. Upon notice from either party to the other
         ("Internal Mediation Notice"), the Disputed Matter shall first be
         referred jointly to two designees, one of each of SELLER and of
         PURCHASER. If PURCHASER's and SELLER's designees do not agree upon a
         decision within twenty-one (21) days after the delivery of an Internal
         Mediation Notice, either party may give the other notice (an "Outside
         Mediation Notice") that the Disputed Matter shall be referred to
         outside mediation in accordance with subsection (b).

(b)      Outside Mediation. If either party delivers an Outside Mediation Notice
         to the other, the parties shall participate in a non-binding resolution
         procedure whereby each Party presents its case at a hearing (the
         "Hearing") before a panel consisting of three (3) individuals: (i) a
         senior executive or representative of SELLER, (ii) a senior executive
         or representative of PURCHASER, and (iii) a neutral adviser appointed
         by the first two executives or representatives. If such executives or
         representatives fail to agree upon such neutral adviser within seven
         (7) days after the date of the Outside Mediation Notice, either party
         may direct the American Arbitration Association to select such neutral
         adviser. The Hearing shall occur promptly after the appointment of the
         neutral adviser but no later than thirty (30) days after the date of
         the Outside Mediation Notice or such reasonable time thereafter (not to
         exceed fourteen (14) days) as may be necessary to accommodate the
         schedule of the neutral adviser. Each party may be represented at the
         Hearing by lawyers. If the outside mediation proceedings do not result
         in a resolution of

                                       59
<PAGE>   65
         the Disputed Matter, the outside mediation proceeding shall be without
         prejudice to the legal position of any affected party. The parties
         shall each bear their respective costs incurred in connection with this
         procedure, except that the fees and expenses of the neutral adviser and
         the costs of the facility for the Hearing shall be allocated fifty
         percent (50%) to SELLER and fifty percent (50%) to PURCHASER.

(c)      Failure to Resolve Dispute. If the Disputed Matter is not resolved
         pursuant to subsection (a) or within sixty (60) days after the date of
         the Outside Mediation Notice, either Party may submit such Disputed
         Matter to binding arbitration in accordance with Section 25.02.

         25.02 ARBITRATION. Upon written notice from one party to the other
party in accordance with Section 25.01(c), the Disputed Matter shall be
submitted to binding arbitration in accordance with this Section 25.02. Each
such arbitration shall proceed in accordance with the then current rules of the
American Arbitration Association insofar as such rules are not inconsistent with
the provisions expressly set forth in this Agreement, and, unless the parties
mutually agree otherwise, pursuant to the following procedures:

         (a)      Notice of demand for arbitration shall be filed in writing
                  with the other party to this Agreement and with the American
                  Arbitration Association.

         (b)      Such arbitration shall be conducted by a panel of three
                  arbitrators appointed as follows:

                                       60
<PAGE>   66
         (i)      one (1) arbitrator (the "SELLER Appointee") shall be appointed
                  by SELLER;

         (ii)     one (1) arbitrator (the "PURCHASER Appointee") shall be
                  appointed by PURCHASER;

         (iii)    one (1) arbitrator (the "Independent Arbitrator") shall be
                  selected by SELLER Appointee and PURCHASER Appointee.

         Each arbitrator shall be an attorney familiar with the electric utility
         and coal industries and unaffiliated with any Party and otherwise
         disinterested in the outcome of the arbitration. The SELLER Appointee
         and the PURCHASER Appointee shall be appointed within twenty-one (21)
         days after a Disputed Matter is submitted to arbitration; provided,
         however, if any Party fails to designate its appointee within such
         period, the American Arbitration Association shall appoint such
         appointee and shall be requested to appoint a person meeting the
         objective qualifications set forth in this paragraph. If the SELLER
         Appointee and PURCHASER Appointee are unable to agree upon an
         Independent Arbitrator within fourteen (14) days after the latter of
         such Appointees is appointed, then the American Arbitration Association
         shall appoint the Independent Arbitrator and shall be requested to
         appoint a person meeting the objective qualifications set forth in this
         paragraph.

                                       61
<PAGE>   67
         (c)      A determination by a majority of the panel of three
                  arbitrators shall be binding. In making such determination the
                  arbitrators shall be required to choose between the positions
                  presented by PURCHASER and SELLER.

         (d)      Reasonable discovery shall be allowed in the arbitration.

         (e)      The Independent Arbitrator shall set the schedule for the
                  arbitration, provided that the Independent Arbitrator shall
                  set such schedule in a manner designed to complete the
                  arbitration in as expeditious a manner as is reasonably
                  practicable.

         (f)      The arbitrators shall abide by the terms of this Agreement in
                  resolving the dispute.

         (g)      SELLER and PURCHASER shall be entitled to be represented at
                  the arbitration by legal counsel and shall be entitled to
                  adduce evidence.

         (h)      The governing law shall be as specified in Section 30.01.

         (i)      Unless otherwise agreed by the Parties to the dispute, all
                  arbitration proceedings shall be held in New Orleans,
                  Louisiana.

         (j)      Each Party agrees to comply with any award made in such
                  proceeding that has become final and to the entry of a
                  judgment in accordance with applicable law in any court having
                  jurisdiction thereof upon any award rendered in such
                  proceeding that has become final.

         (k)      The decision of the arbitrators shall be rendered in writing
                  and within sixty (60) days of the final submissions of the
                  Parties to the dispute in writing or in a hearing before the
                  arbitrators.

                                       62
<PAGE>   68
         (l)      Each such arbitration award that has become final shall be
                  conclusive and binding upon the Parties to the dispute and
                  shall not be appealable, subject to the provisions of
                  applicable law regarding the vacation, modification and
                  correction of awards.

         (m)      Attorneys' fees, costs and other out-of-pocket expenses may be
                  awarded by the arbitrators in their discretion to the party
                  that prevails in any such arbitration, provided that each
                  party to the dispute shall pay its own expenses pending the
                  awarding thereof to the party that prevails in any such
                  arbitration.

The foregoing agreement to arbitrate shall be specifically enforceable and,
subject to the provisions of applicable law regarding the vacation, modification
and correction of awards, the award rendered by the arbitrators shall be final
and judgment may be entered upon it in accordance with applicable law in any
court having jurisdiction thereof.

        25.03 EXCEPTIONS. Nothing in Section 25.01 or 25.02 shall limit the
rights of either of the parties to seek in any court of competent jurisdiction:

         (a)      legal or equitable relief in circumstances other than a
                  Disputed Matter;

         (b)      in any circumstances, such interim relief as may be needed to
                  maintain the status quo, to prevent irreversible harm, or
                  otherwise to protect the subject matter of the mediation
                  and/or arbitration until the matter shall have been finally
                  resolved; provided, however, any such interim relief ordered
                  by a court shall not determine or prejudge the substantive
                  issues to be decided by such mediation and/or arbitration; or

                                       63
<PAGE>   69
         (c)      the collection by either party, as liquidated debt, of any
                  costs, charges or fees due from the other party under this
                  Agreement.

         26.01 NOTICES. With the exception of PURCHASER's invoices or shipping
notices as required by Section 7.01, any notice, request, protest, consent,
demand, report or statement given by one party to the other shall be in writing
and deemed duly given when hand delivered to the person designated below, when
it is transmitted by facsimile to the facsimile number below or seventy-two (72)
hours after it is deposited in the United States mail, by certified mail,
postage prepaid, and properly addressed as follows:

         (1)      If the notice is to PURCHASER, to:

                           Vice President, Fuel
                           Louisiana Generating

                           with copy to:

                           Plant Manager, Big Cajun II
                           Louisiana Generating

(or to such other person or addresses as PURCHASER shall have designated in
writing to SELLER).

         (2)      If the notice is to SELLER, to:

                           President
                           Triton Coal Company
                           113 S. Gillette Avenue
                           Suite 203
                           Gillette, WY  82716

                           and

                                       64
<PAGE>   70
                           President
                           Franklin Coal Sales Company
                           50 Jerome Lane
                           Fairview Heights, IL  62208

(or to such other person or address as SELLER shall have designated in writing
to PURCHASER).

         Notwithstanding the foregoing, the parties agree that, if the
exigencies of the circumstances so require, verbal notices that are directed to
the official of the other party who is appropriate under the circumstances and
that are promptly followed by a written notice delivered in accordance with the
foregoing procedures shall be deemed to be duly given as of the giving of such
verbal notice.

         27.01 REMEDIES CUMULATIVE. Except as otherwise provided herein,
remedies provided under this Agreement shall be cumulative and in addition to
other remedies provided at law or in equity.

         28.01 AGENT FOR PURCHASER. PURCHASER may designate an individual or
entity to act for and on behalf of PURCHASER for the purpose of giving or
receiving any notice, demand or request required or authorized by this
Agreement, for the purpose of designating the quantity, size, destination and
routing of Shipments to be made from time to time to PURCHASER hereunder, and
for such other purposes as may from time to time be designated by PURCHASER.
PURCHASER may change agent by giving notice thereof to SELLER as provided in
Section 26.01.

         29.01 CAPTIONS. The captions to sections hereof are for convenience
only and shall not be considered in construing the intent of the parties.

                                       65
<PAGE>   71
         30.01 APPLICABLE LAW. All questions concerning the execution,
construction, performance, breach or enforcement of this Agreement shall be
construed under the substantive laws of the State of Illinois and not just the
Illinois laws regarding conflicts of laws.

         31.01 COMPLIANCE WITH LAWS AND REGULATIONS. In connection with the
performance of this Agreement, PURCHASER and SELLER agree to comply in all
material respects with all applicable governmental laws and regulations.
PURCHASER and SELLER each agree and warrant that it or its agent will acquire
and maintain, in a timely manner, all licenses and permits required by
governmental authorities to engage in the mining and selling of coal and the
operation of a power plant and the sale of electricity and to otherwise perform
their respective obligations under this Agreement.

         32.01 ENTIRE AGREEMENT. This Agreement (including the Appendices
attached hereto, which shall be deemed to be an integral part of this
Agreement), contains the entire agreement between the parties; and there are no
representations, understandings or agreements, oral or written, which are not
included herein. This Agreement cannot be changed except by duly authorized
representatives of both parties in writing.

         33.01 CONFIDENTIAL AND PROPRIETARY INFORMATION. The terms and
conditions (including, but not limited to, prices and mining plans) set forth in
this Agreement are considered by both PURCHASER and SELLER to be confidential
and proprietary information. Neither party shall disclose any such information
to any third party without advance written consent of the other (which consent
shall not be unreasonably withheld) except where such disclosure may be required
by law, regulation or regulatory agencies having jurisdiction over

                                       66
<PAGE>   72
SELLER or PURCHASER or is required in connection with the assertion of a claim
or defense in judicial or administrative proceedings involving the parties
hereto, in which event the party intending to make such disclosure shall advise
the other in advance and cooperate to the extent practicable to minimize the
disclosure of any such information. Either party hereto shall be permitted to
disclose any information contained herein to a prospective purchaser of the
stock, ownership interests or assets of said party, to prospective lenders, to
the independent auditors described in this Agreement and to the parties' own
such auditors' or prospective purchasers' or lenders' legal and financial
advisors in each case on a need to know basis provided that any such third party
shall be bound by the provisions of this Section 33.01. For purposes of this
Section 33.01, the term "third party" shall not include a parent, subsidiary,
affiliate or sister corporation of either party hereto.

         34.01 BIG CAJUN II, UNIT 3. Forty two percent (42%) of Unit 3 at the
Power Plant is presently owned by GSU. PURCHASER anticipates that it will
continue to operate the Power Plant pursuant to the current applicable Joint
Ownership and Operating Agreement with GSU. In the event that PURCHASER does not
perform as the agent for GSU at the Power Plant during the entire term of this
Agreement, PURCHASER and SELLER shall promptly meet and amend the provisions of
Sections 3.03, 4.06 and other provisions as appropriate to reflect such change.

                                       67
<PAGE>   73
         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers duly authorized thereunto, on the date
indicated by their signatures.

         PURCHASER

         LOUISIANA GENERATING, LLC

         BY:      NRG ENERGY, INC.                       ATTEST: /s/ [illegible]

                  By: /s/ Craig A. Matacynski

                  Its:  Member

                  Date: 01 August, 97

         BY:      SOUTHERN ENERGY CAJUN, INC.            ATTEST: /s/ [illegible]

                  By: /s/ G.J. Kubick

                  Its:  Vice President

                  Date: 8/11/97

         BY:      ZENERGY, INC.                          ATTEST: /s/ [illegible]

                  By: /s/ Alan D. Williams

                  Its:  President

                  Date: 8/18/97

         SELLER

         TRITON COAL COMPANY                             ATTEST: /s/ [illegible]

         By: /s/ John C. Willson

         Its:  President

         Date: 8/20/97
<PAGE>   74
                                   APPENDIX A

                                  COAL PROPERTY

BUCKSKIN MINE - The Mining Area owned, leased or controlled by SELLER as
described in the map attached as Appendix A-1.

NORTH ROCHELLE MINE - The Mining Area owned, leased or controlled by SELLER as
described in the map attached as Appendix A-2, including the North Roundup lease
that is continguous to the North Rochelle Mine but is not currently owned,
leased or controlled by SELLER.

BLACK THUNDER MINE - located in Campbell County, Wyoming, operated by Thunder
Basin Coal Company, a wholly-owned subsidiary of Atlantic Richfield Company.

JACOB'S RANCH MINE - located in Campbell County, Wyoming, operated by Kerr McGee
Coal Corporation.

NORTH ANTELOPE MINE - located in Campbell County, Wyoming, operated by Powder
River Coal Company, a subsidiary of Peabody Coal Company.

ROCHELLE MINE - located in Campbell County, Wyoming, operated by Powder River
Coal Company, a subsidiary of Peabody Coal Company.
<PAGE>   75
                                  APPENDIX A-1

                                  BUCKSKIN MINE

                                 [see next page]

                                       2
<PAGE>   76
                                  BUCKSKIN MINE

                                  APPENDIX A-1

                                   [graph/map]
<PAGE>   77
                                  APPENDIX A-2

                               NORTH ROCHELLE MINE

                                 [see next page]

                                       3
<PAGE>   78
                                  APPENDIX A-2

                               NORTH ROCHELLE MINE

                                   [graph/map]
<PAGE>   79
                                   APPENDIX B

                        GOVERNMENTAL IMPOSITION WORKSHEET
                            (REFERENCE SECTION 4.03)

<TABLE>
<CAPTION>
PRICE COMPONENTS                                                                              PER TON
----------------                                                                              -------
<S>                                                                                           <C>
PRICE BEFORE TAXES, ROYALTY, & RECLAMATION FEE                                                 {***}

BLACK LUNG TAX (5)                                                                             {***}

GROSS PROCEEDS TAX (4)                                                                         {***}

SEVERANCE TAX (3)                                                                              {***}

RECLAMATION FEE (2)                                               {***}
         LESS: 1.3% EXCESS MOISTURE                               {***}                        {***}

PROPERTY TAX                                                                                   {***}

FEDERAL ROYALTY (1)                                                                            {***}
                                                                                               -----

TOTAL                                                                                          {***}
</TABLE>

NOTES:

1)       The Federal Royalty Rate is {***}.

2)       Lesser of {***} of the Total Price (less the Reclamation Fee itself) or
         {***} per ton with a reduction for excess moisture (assumed constant at
         {***}).

         *    Direct Cost Ratio (DCR) of {***} used to determine effective
              Wyoming Tax. This rate is the 1996 rate for the Buckskin Mine
              (being used in 1997).

3)       The Wyoming Severance Tax (WST) rate is {***}.

              WST = {***} [DCR {[Sales Price - (Recl + WST + CCGPT + BL + All
                  Royalty)} * } + (Recl + WST + CCGPT + BL + Private Royalty)]

4)       The Campbell County Gross Proceeds Tax (CCGPT) Rate is {***}.
         This is the 1995 rate, first published in September of 1996. The 1996
         rate will be published in the fall of 1997.

              CCGPT = {***}[DCR{[Sales Price - (Recl + WST + CCGPT + BL + All
                  Royalty)} + [(Recl + WST + CCGPT + BL + Private Royalty)]

5)       Lesser of {***} of the Total Price (less the Black Lung Tax itself) or
         {***} per ton.

                                       4
<PAGE>   80
                                   APPENDIX C

                           CALORIFIC VALUE ADJUSTMENT
                            (REFERENCE SECTION 4.04)

         An adjustment is to be made monthly to the Base Price applicable to
coal received by PURCHASER hereunder as specified in Section 5.01 to reflect the
actual "as received" calorific value of the coal compared to {***} Btu/lb.

         Determination of the monthly adjustment to the Base Price reflecting
the Calorific Value Adjustment shall be made as follows:

(NOTE: Figures used in the example below are purely hypothetical and are used
only for illustrative purposes, also ( ) denotes a reduction in the Base Price.)

<TABLE>
<CAPTION>
                                                           Example              Example               Example
                                                           Case 1                Case 2               Case 3
                                                         {***} at a              {***}                 {***}
                                                      Specified Period       at a Specified       at a Specified
                                                      CalorificValue of     Period Calorific     Period Calorific
                                                           Btu/lb.          Value of Btu/lb.     Value of Btu/lb.
                                                           -------          ----------------     ----------------
<S>                                                   <C>                   <C>                  <C>
(a)    Base Price (per ton)                                 $3.240               $3.240                $3.240

(b)    Transportation Rate per ton                         $14.750              $14.750               $14.750

(c)    Purchaser's Total Delivered Cost per ton            $17.990              $17.990               $17.990
       (a+b)

(d)    Calorific Value as specified in Section             16.9000              16.9000               16.9000
       10.01 in MMBtu/ton

(e)    Purchaser's Total Delivered Cost expressed          1.06450              1.06450               1.06450
       in $/MMBtu (c/d)

(f)    Calorific Value of coal received during the         16.9000              17.2000               16.6000
       specified period in MMBtu/ton

(g)    Price per ton to be paid for coal received           {***}                {***}                 {***}
       during the specified period {***}

(h)    Calorific Value Adjustment to Base Price             {***}                {***}                 {***}
       {***}
</TABLE>

                                       5
<PAGE>   81
                                   APPENDIX D

                         EMISSIONS ALLOWANCE ADJUSTMENT
                            (REFERENCE SECTION 4.05)

Following is an example of the Emissions Allowance Adjustment to be made
annually to the Base Price in accordance with Section 4.05. The price adjustment
shall be rounded to the nearest one-tenth of a cent per ton. The figures used in
the example are hypothetical and are used only for illustrative purposes.

Example for January 2000; adjustment to be calculated by PURCHASER: Tons shipped
by SELLER in January 2000 is 550,000 tons. Cantor-Fitzgerald Market Price Index
for January 2000 is $129.68.

Determination of actual price of SO2 Emissions Allowances for January 2000:

P(C) = $158.00 (value for Calendar Year 2000)

P(A) = $129.68 (for January)

A(S) = {***}/ton (value for Calendar Year 2000)

Adjustment = ([P(A) - P(C)] / P(C)) x A(S)

Adjustment = [$129.68 - $158.00]/$158.00 x {***}

Adjustment = {***} per ton

Since P(A) is less than P(C), then the absolute value of the adjustment, or
{***} per ton, shall be remitted by PURCHASER to SELLER. Amount paid to SELLER =
{***} x 550,000.00 = {***}.

NOTE: The Cantor-Fitzgerald Market Price Index for SO(2) allowance for the month
is published in the prior month. In other words, the January 2000 Market Price
Index will be published in December 1999.

                                       6
<PAGE>   82
                                   APPENDIX E

                           SO(2) ALLOWANCE DUE SELLER
                            (REFERENCE SECTION 4.06)

Following is an example of the SO(2) Allowance due SELLER to be calculated
annually in accordance with Section 4.06. The figures used in the example are
hypothetical and are used only for illustrative purposes:

Example for Calendar Year 2000; if the Annual Plant Burn is LESS THAN
85,000,000MM Btu:

Assume APB = 84,000,000MM Btu

Assume APE = 36,000 tons SO(2) Actual Emissions in Calendar Year 2000

ADS = [{***} - 36,000 - {({***}-84,000,000) x {***}}] x {***}

ADS = {***}

ADS = {***}

ADS = 4,905

Example for Calendar Year 2000; if the Annual Plant Burn is GREATER THAN
85,000,000MM Btu:

Assume APB = 88,000,000MM Btu

Assume APB = 37,500 tons SO(2) Actual Emissions in Calendar Year 2000

ADS = {***}

ADS = {***}

ADS = 4,205

                                       7
<PAGE>   83
                                   APPENDIX F

                       SUMMARY OF PERTINENT PROVISIONS OF
                        THE COAL TRANSPORTATION AGREEMENT

(A)      PURCHASER is to provide a sufficient number of empty coal cars to
         assemble unit trains of {***} cars or more.

(B)      The Minimum Shipment Weight for coal cars shall be {***} tons for
         aluminum cars and {***} tons for steel cars.

(C)      Coal tendered with a shipment weight of less than the Minimum Shipment
         Weight shall be billed on the basis of the Minimum Shipment Weight.

(D)      The number of tons on which transportation charges are paid shall be
         counted toward meeting the Minimum Volume Commitment.

(E)      Each unit train shall contain no less than {***} coal cars unless cars
         have been damaged, destroyed or derailed by carriers and if carriers
         are unable to provide substitute cars, then the unit train shall be
         reduced by cars destroyed or damaged but not to less than 105 cars.

(F)      PURCHASER shall make the coal cars available for loading. BN shall
         furnish mine operator not less than four (4) hours advance notice of
         the arrival of railcars at origin.

(G)      PURCHASER and mine operator shall be responsible for loading of cars.
         BN shall provide locomotives and train crews to move trains through
         loading facilities at a controlled speed which will allow for full and
         uniform loading of each coal car.

(H)      Mine operator shall have four (4) hours free time to load each unit
         train. Free time shall start when locomotives have arrived at the
         loading point and the train crew has requested loading instructions and
         shall end when the mine operator has released the train.

(I)      Loading free time shall be extended when a Loading Disability occurs
         during a train's free time.

(J)      "Loading Disability" means any of the following events which result in
         the inability to load coal at Origin:

         (i)      a cause directly attributable to BN;

         (ii)     an act of God;

         (iii)    a strike or other labor disturbance;

         (iv)     a riot or other civil disturbance;

                                       8
<PAGE>   84
         (v)      unusual snow and/or ice accumulation sufficient to immobilize
                  train operations and prevent loading of such train;

         (vi)     governmental acts or regulations; or

         (vii)    mechanical or electrical breakdown, explosion or fire, not
                  reasonably within the control of PURCHASER or its mine
                  operator, in a Loading Facility.

         "Loading Disability Time" means the period of time from which PURCHASER
         or the mine operator is prevented from loading the train at origin due
         to a Loading Disability. PURCHASER or the mine operator shall notify BN
         immediately by telephone (i) as to the time and nature of commencement
         of the Loading Disability and (ii) as to the time of termination of the
         Loading Disability.

(K)      If a train cannot be positioned on origin trackage due to any cause
         attributable to PURCHASER or if a train cannot be positioned on mine
         operator's trackage at origin due to any cause attributable to
         PURCHASER or its mine operator, that train shall be considered
         "Constructively Placed." A Constructively Placed train shall be held at
         the nearest available hold point as determined by BN. Immediately upon
         arrival of the train at the hold point, BN shall notify the mine
         operator or PURCHASER by radio, telephone, wire or other reasonable
         means, of the date and hour that hold time begins. Immediately upon
         departure of the train from the hold point, BN shall notify the mine
         operator or PURCHASER by radio, telephone, wire or other reasonable
         means, of the date and hour that the hold time ends. For purposes of
         computing the loading or unloading time of a Constructively Placed
         train:

         (i)      the time elapsed while transporting a Constructively Placed
                  train from the hold point to origin shall be excluded from
                  loading free time; and

         (ii)     if the train must reverse direction to reach the nearest
                  available hold point, the time required for the train to
                  return to the point of reverse direction shall be included in
                  loading free time.

(L)      If, due to any cause attributable to BN, a train arrives at origin
         before another train has been released, the second and subsequent
         train(s) shall not be considered placed or Constructively Placed, and
         Loading Free Time for such train shall not commence until the
         locomotives have arrived at the Designated Loading Point on origin
         trackage and the crew has requested loading instructions.

(M)      The weight of the coal in the coal cars will be determined at origin by
         the mine operator. Carriers shall not be responsible for such weight
         determination.

(N)      If any unit train cannot be weighed due to a breakdown of scales, the
         lading weight per car of such train shall be determined by averaging
         the lading weight per car of the last five (5) trains of like equipment
         (i.e., aluminum or steel railcars) weighed at that origin prior to such
         breakdown. If fewer than five (5) trains under this Agreement were
         weighed at that origin prior to the breakdown, the weight per car shall
         be determined by averaging the

                                       9
<PAGE>   85
         weight per car of the train(s) (of like equipment) under this Agreement
         weighed at that origin prior to the breakdown as well as the lading
         weight per car of train(s) under the Agreement first weighed at that
         origin after the scales are repaired, so as to comprise a five (5)
         weighted train average.

(O)      Unless PURCHASER is notified by BN that heavier weights are acceptable,
         if a loaded railcar is found by BN, as determined by weighing
         procedures set forth above, to weigh in excess of maximum gross weight
         on rail of 286,000 pounds for shipment in aluminum railcars, or 268,000
         pounds for shipments in steel railcars (plus or minus one-half of one
         percent), BN may, at its discretion, switch said overloaded railcars
         and remove them from the train. PURCHASER or the mine operator shall
         then cause excess coal to be removed from the overloaded railcar, and
         BN shall replace such car into the train.

                                       10
<PAGE>   86
                                   APPENDIX G

                      COAL SAMPLE PREPARATION AND ANALYSES
                              LABORATORY PROCEDURES

Procedures to be utilized for coal sample preparation and analysis will be
performed manually or by utilization of automated equipment which conforms with
the referenced ASTM Standards.

<TABLE>
<S>        <C>                                                                           <C>
1.         Total Moisture in Coal (Air drying will be continued for                      ASTM D-3302
           predetermined time necessary to achieve a loss in weight
           of no more than 0.1 percent per hour).

2.         Preparing Coal Samples for Analysis                                           ASTM D-2013

3.         Moisture in the Analysis Sample of Coal                                       ASTM D-3173

4.         Ash in the Analysis Sample of Coal                                            ASTM D-3174

5.         Gross Calorific Value of Coal by the Adiabatic Bomb Calorimeter               ASTM D-2015
           or
           Gross Calorific Value of Coal by Microprocessor Controlled Isoperibol         ASTMD-1989
           Bomb Calorimeter

6.         Total Sulfur in the Analysis Sample of Coal Using High Temperature            ASTM D-4239
           Tube Furnace Combustion Method
7.         Volatile Matter in the Analysis Sample of Coal                                ASTM D-3175

8.         Fusibility of Coal Ash                                                        ASTM D-1857

9.         Grindability of Coal by the Hardgrove Grindability Machine Method (No.        ASTM D-409
           8 coal samples will be used for this analysis)

10.        Fixed Carbon is a calculated value. Fixed Carbon is the resultant of          ASTM D-5142
           the summation of percentage moisture, ash and volatile                        or
           matter  subtracted from 100. All percentages used in the                      ASTM D-3172
           calculation must be on the same moisture basis.

11.        Nitrogen in the Analysis Sample of Coal                                       ASTM D-5373
                                                                                         or
                                                                                         ASTM D-3179

12.        Calculating Coal Analyses from As-Determined to Different Basis               ASTM D-3180
</TABLE>

                                       11

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