Document:

EXHIBIT
10.61

 

KU Contract #KUF-02849

Amendment #1

 

AMENDMENT
NO. 1 to

COAL
SUPPLY AGREEMENT

 

THIS
AMENDMENT NO. 1 to COAL SUPPLY AGREEMENT (“Amendment No. 1”) is entered
into effective July 1, 2003, by and between KENTUCKY UTILITIES COMPANY, a
Kentucky corporation, 220 West Main Street, Louisville, Kentucky 40202 (“KU”),
and ARCH COAL SALES COMPANY, INC., a Delaware corporation, agent for the
independent operating subsidiaries of ARCH COAL, INC., a Delaware corporation
(collectively “Seller”), whose address is CityPlace One, Suite 300, St. Louis,
Missouri 63141.

 

In
consideration of the agreements herein contained, the parties hereto agree as
follows:

 

1.0                                                                               MODIFICATIONS
TO AGREEMENT

 

The Agreement
heretofore entered into by the parties, dated effective January 1, 2002 and
identified by the Contract Number set forth above (hereinafter together
referred to as “Agreement”), is hereby amended as follows:

 

1.1                                 Section 3.1 Base
Quantity:

 

The quantity
schedule set forth in Section 3.1 is deleted in its entirety and is replaced
with the following:

 

	
  YEAR

  	
   

  	
  BASE QUANTITY (TONS)

  
	
  2002

  	
   

  	
  600,000

  
	
  2003

  	
   

  	
  1,100,000

  
	
  2004

  	
   

  	
  800,000

  
	
  2005

  	
   

  	
  800,000

  

 

1.2                                 Section 4.1. Source:

 

Section 4.1 is
deleted in its entirety and is replaced with the following provision:

 

“The coal sold
hereunder shall be supplied by Seller primarily from the following coal mines
owned or controlled by Arch Coal, Inc., its subsidiaries or affiliates:
Ruffner, Wylo, Campbell’s Creek, Ragland, Mingo-Logan, Samples and Guyan Mines
located in Logan, Mingo and Kanawha Counties, West Virginia. Seller shall
determine, in its discretion, which mine or mines shall produce the coal to be
supplied to Buyer for each shipment, provided that Buyer receives a continuous
supply of the quantity and the quality of coal to be provided hereunder. Arch
Coal, Inc. benefits from this Agreement as supplier of the coal to be sold
hereunder and as the parent corporation of Arch Coal Sales Co., Inc., and Arch
Coal, Inc. is therefore the guarantor of Seller’s obligations hereunder pursuant
to a Guaranty Agreement of even date herewith.”

 

1.3                                 Section 4.5. Substitute
Coal:

 

Section 4.5 is
deleted in its entirety and is replaced with the following provision:

 

 

 

“Notwithstanding
the above representations and warranties, in the event that Seller is unable to
produce or obtain coal from the Coal Property in the quantity and of the
quality required by this Agreement, and such inability is not caused by a force
majeure event as defined in § 10, then Buyer will have the option of requiring
that Seller supply coal from Seller’s other facilities and mines. Seller shall
also have the right to supply substitute coal from sources not owned or
controlled by Seller after having received Buyer’s prior written consent (which
shall not be unreasonably withheld) for up to 20% of the annual volume
commitments. Such substitute coal shall be provided under all the terms and
conditions of this Agreement including, but not limited to, the price
provisions of §8, the quality specifications of § 6.1, and the provisions of §
5 concerning reimbursement to Buyer for increased transportation costs.
Seller’s delivery of coal not produced from the Coal Property without having
received the express written consent of Buyer shall constitute a material
breach of this Agreement.”

 

1.4                                 Section 5.1. Barge
Delivery:

 

The first
literary paragraph of Section 5.1 is deleted in its entirety and is replaced by
the following paragraph. All other portions of Section 5.1 shall remain
unchanged.

 

“The coal
shall be delivered to Buyer F.O.B. barge at the following points (the “Delivery
Point”), for coal delivered from the Ruffner Mine, the Wylo Mines, the Samples
Mine, the Ragland Mine, the Mingo-Logan Mine and the Guyan Mine: Huntington
Coal Terminal (HCT), KRT-Ceredo, Ohio River Terminal (ORT) and Arch Coal
Terminal (ACT) located at mile points 309.1, 314.5, 306.0 and 318.0
respectively on the Ohio River. For coal delivered from the Campbell’s Creek
Mine: Port Amherst Dock located at mile point 63.9 on the Kanawha River. Seller
may deliver the coal at a location different from the Delivery Points,
provided, however, that Seller shall reimburse Buyer for any resulting
increases in the cost of transporting the coal to Buyer’s generating stations.
Buyer shall retain any resulting savings in such transportation costs.

 

 

1.5                                 Section 6.1. Specifications:

 

Section 6.1 is deleted in
its entirety and is replaced with the following:

 

“6.1         Specifications.

 

(a) The first 1,600,000 tons
of coal delivered hereunder shall conform to the following specifications on an
“as received” basis:

 

	
  Specifications

  	
   

  	
  Guaranteed Monthly

  Weighted Average (1)

  	
   

  	
  Rejection Limits

  (per shipment)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BTU/LB.

  	
   

  	
  min. 12,000

  	
   

  	
   

  	
  <

  	
   

  	
  11,800

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LBS/MMBTU:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MOISTURE

  	
   

  	
  max. 6.67

  	
   

  	
   

  	
  >

  	
   

  	
  8.33

  	
   

  
	
  ASH

  	
   

  	
  max. 10.83

  	
   

  	
   

  	
  >

  	
   

  	
  11.66

  	
   

  
	
  SULFUR

  	
   

  	
  max. 0.60 *

  	
   

  	
   

  	
  >

  	
   

  	
  0.60

  	
   

  
	
  SULFUR

  	
   

  	
  min.   NA

  	
   

  	
   

  	
  <

  	
   

  	
  NA

  	
   

  
	
  CHLORINE

  	
   

  	
  max. 0.142

  	
   

  	
   

  	
  >

  	
   

  	
  0.21

  	
   

  
	
  NITROGEN

  	
   

  	
  max. 1.190

  	
   

  	
   

  	
  >

  	
   

  	
  1.66

  	
   

  

 

* Individual barge shipment
limit of 1.20 lbs. S02/MMBTU

 

	
  SIZE (2” x 0”):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Top size (inches)**

  	
   

  	
  max. 2x0

  	
   

  	
   

  	
  >

  	
   

  	
  2x0

  	
   

  
	
  Fines (% by wgt)

  	
   

  	
   

  	
   

  	
   

  	
  >

  	
   

  	
   

  	
   

  
	
  Passing 1/4” screen

  	
   

  	
  max. 40

  	
   

  	
   

  	
   

  	
   

  	
  50

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BY WEIGHT:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VOLATILE

  	
   

  	
  min.  32

  	
   

  	
   

  	
  <

  	
   

  	
  32

  	
   

  
	
  FIXED CARBON

  	
   

  	
  min.  52

  	
   

  	
   

  	
  <

  	
   

  	
  50

  	
   

  
	
  GRINDABILITY (HGI)

  	
   

  	
  min.  42

  	
   

  	
   

  	
  <

  	
   

  	
  42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ASH
  FUSION TEMPERATURE (°F) (ASTM D1857)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REDUCING ATMOSPHERE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Initial Deformation

  	
   

  	
  min. +2700

  	
   

  	
   

  	
  min.

  	
   

  	
  +2700

  	
   

  
	
  Softening (H=W)

  	
   

  	
  min. +2700

  	
   

  	
   

  	
  min.

  	
   

  	
  +2700

  	
   

  
	
  Softening (H=1/2W)

  	
   

  	
  min. +2700

  	
   

  	
   

  	
  min.

  	
   

  	
  +2700

  	
   

  
	
  Fluid

  	
   

  	
  min. +2700

  	
   

  	
   

  	
  min.

  	
   

  	
  +2700

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OXIDIZING ATMOSPHERE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Initial Deformation

  	
   

  	
  min. +2700

  	
   

  	
   

  	
  min.

  	
   

  	
  +2700

  	
   

  

 

 

	
  Softening (H=W)

  	
   

  	
  min. +2700

  	
   

  	
   

  	
  min.

  	
   

  	
  +2700

  	
   

  
	
  Softening (H=1/2W)

  	
   

  	
  min. +2700

  	
   

  	
   

  	
  min.

  	
   

  	
  +2700

  	
   

  
	
  Fluid

  	
   

  	
  min. +2700

  	
   

  	
   

  	
  min.

  	
   

  	
  +2700

  	
   

  

 

(1) An actual
Monthly Weighted Average will be calculated for each specification for coal
delivered to the Kentucky Utilities Ghent generating station.

 

	
  Note: As
  used herein

  	
   

  	
  >

  	
   

  	
  means
  greater than:

  
	
   

  	
   

  	
  <

  	
   

  	
  means less
  than.

  

 

(b) After the
first 1,600,000 tons of coal is delivered hereunder, the coal shall conform to
the following specifications on an “as received” basis:

 

	
  Specifications

  	
   

  	
  Guaranteed Monthly

  Weighted Average (1)

  	
   

  	
  Rejection
  Limits

  (per shipment)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BTU/LB.

  	
   

  	
  min. 12,200

  	
   

  	
   

  	
  <

  	
   

  	
  11

  	
   

  
	
  LBS/MMBTU:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MOISTURE

  	
   

  	
  max. 6.67

  	
   

  	
   

  	
  >

  	
   

  	
  8.33

  	
   

  
	
  ASH

  	
   

  	
  max. 10.00

  	
   

  	
   

  	
  >

  	
   

  	
  11.00

  	
   

  
	
  SULFUR

  	
   

  	
  max. 0.60
  *

  	
   

  	
   

  	
  >

  	
   

  	
  0.60

  	
   

  
	
  SULFUR

  	
   

  	
  min. NA

  	
   

  	
   

  	
  <

  	
   

  	
  NA

  	
   

  
	
  CHLORINE

  	
   

  	
  max. 0.142

  	
   

  	
   

  	
  >

  	
   

  	
  0.21

  	
   

  
	
  NITROGEN

  	
   

  	
  max. 1.190

  	
   

  	
   

  	
  >

  	
   

  	
  1.66

  	
   

  

 

* Individual
barge shipment limit of 1.20 lbs. S02/MMBTU

 

	
  SIZE (2” x 0”):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Top size
  (inches)**

  	
   

  	
  max. 2x0

  	
   

  	
   

  	
  >

  	
   

  	
  2x0

  	
   

  
	
  Fines (% by
  wgt)

  	
   

  	
   

  	
   

  	
   

  	
  >

  	
   

  	
   

  	
   

  
	
   Passing 1/4” screen

  	
   

  	
  max. 40

  	
   

  	
   

  	
   

  	
   

  	
  50

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BY WEIGHT:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VOLATILE

  	
   

  	
  min. 
  32

  	
   

  	
   

  	
  <

  	
   

  	
  32

  	
   

  
	
  FIXED CARBON

  	
   

  	
  min. 
  52

  	
   

  	
   

  	
  <

  	
   

  	
  50

  	
   

  
	
  GRINDABILITY (HGI)

  	
   

  	
  min. 
  42

  	
   

  	
   

  	
  <

  	
   

  	
  42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ASH FUSION TEMPERATURE (°F) (ASTM D1857)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REDUCING
  ATMOSPHERE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Initial
  Deformation

  	
   

  	
  min. +2700

  	
   

  	
   

  	
  min.

  	
   

  	
  +2700

  	
   

  

 

 

	
  Softening (H=W)

  	
   

  	
  min. +2700

  	
   

  	
   

  	
  min.

  	
   

  	
  +2700

  	
   

  
	
  Softening (H=1/2W)

  	
   

  	
  min. +2700

  	
   

  	
   

  	
  min.

  	
   

  	
  +2700

  	
   

  
	
  Fluid

  	
   

  	
  min. +2700

  	
   

  	
   

  	
  min.

  	
   

  	
  +2700

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OXIDIZING ATMOSPHERE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Initial Deformation

  	
   

  	
  min. +2700

  	
   

  	
   

  	
  min.

  	
   

  	
  +2700

  	
   

  
	
  Softening (H=W)

  	
   

  	
  min. +2700

  	
   

  	
   

  	
  min.

  	
   

  	
  +2700

  	
   

  
	
  Softening (H=1/2W)

  	
   

  	
  min. +2700

  	
   

  	
   

  	
  min.

  	
   

  	
  +2700

  	
   

  
	
  Fluid

  	
   

  	
  min. +2700

  	
   

  	
   

  	
  min.

  	
   

  	
  +2700

  	
   

  

 

(1)
An actual Monthly Weighted Average will be calculated for each specification
for coal delivered to the Kentucky Utilities Ghent generating station.

 

	
  Note: As
  used herein

  	
   

  	
  >

  	
   

  	
  means
  greater than:

  
	
   

  	
   

  	
  <

  	
   

  	
  means less
  than.

  

 

1.6                                 Section 8.1. Base Price:

 

Section 8.1 is deleted in
its entirety and is replaced with the following provision:

 

“8.1 For the first 1,600,000
tons shipped, the base price (“Base Price”) of the coal to be sold hereunder
will be firm during each time period of this Agreement in accordance with the
following schedule, subject to adjustment only for quality variations pursuant
to §8.2 and New Costs pursuant to §8.4:

 

	
   

  	
   

  	
   

  	
   

  	
  BASE PRICE

  	
   

  
	
  PERIOD

  	
   

  	
  LOADING
  POINT

  	
   

  	
  ($ PER
  MMBTU)

  	
   

  	
  ($ PER
  TON)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1/1/02 - 12/31/03

  	
   

  	
  Huntington,
  WV Docks

  	
   

  	
  1.8333
  F.O.B. barge

  	
   

  	
  $

  	
  44.00

  	
   

  
									

 

For tons shipped after the
first 1,600,000 tons, the base price (“Base Price”) of the coal to be sold
hereunder will be firm during each time period of this Agreement in accordance
with the following schedule, subject to adjustment only for quality variations
pursuant to §8.2 and New Costs pursuant to §8.4:

 

	
   

  	
   

  	
   

  	
   

  	
  BASE PRICE

  	
   

  
	
  PERIOD

  	
   

  	
  LOADING
  POINT

  	
   

  	
  ($ PER
  MMBTU)

  	
   

  	
  ($ PER
  TON)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10/1/03

  	
  -

  	
  12/31/03

  	
   

  	
  Huntington,
  WV Docks

  	
   

  	
  1.4344
  F.O.B. barge

  	
   

  	
  $

  	
  35.00

  	
   

  
	
  1/1/04

  	
  -

  	
  12/31/04

  	
   

  	
  Huntington,
  WV Docks

  	
   

  	
  1.5164 F.O.
  B. barge

  	
   

  	
  $

  	
  37.00

  	
   

  
	
  1/1/05

  	
  -

  	
  12/31/05

  	
   

  	
  Huntington
  WV Docks

  	
   

  	
  1.5471 F.O.
  B. barge

  	
   

  	
  $

  	
  37.75

  	
   

  

 

 

1.8.                              Section 8.2.(b). Quality
Price Discounts:

 

The text of
Section 8.2.(b) is deleted in its entirety and is replaced with the following
provision:

 

(b) (i) The
quality price discounts for the first 1,600,000 tons of coal delivered
hereunder shall conform to the following:

 

Notwithstanding the
foregoing, for each specification, there shall be no discount if the actual
Monthly Weighted Average meets the applicable Discount Point set forth below. However,
if the actual Monthly Weighted Average for the Kentucky Utilities Ghent
generating station fails to meet such applicable Discount Point, then the
discount shall apply to and shall be calculated on the basis of the difference
between the actual Monthly Weighted Average and the Guaranteed Monthly Weighted
Average pursuant to the methodology shown in Exhibit A attached hereto.

 

	
   

  	
   

  	
  Guaranteed Monthly

  Weighted Average

  	
   

  	
  Discount Point

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BTU/LB

  	
   

  	
  Min. 12,000

  	
   

  	
  11,800

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LB/MMBTU:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ASH

  	
   

  	
  Max. 10.83

  	
   

  	
  10.83

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MOISTURE

  	
   

  	
  Max. 6.67

  	
   

  	
  8.33

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Guaranteed Barge

  LbsSO2/Mmbtu

  	
   

  	
  Discount Point

  	
   

  
	
  LB/MMBTU:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SO2

  	
   

  	
  Max. 1.20

  	
   

  	
  1.20

  	
   

  

 

For example,
if the actual Monthly Weighted Average of ash equals 11.00 lb/MMBTU, then the
applicable discount would be (11.00 lb./mmbtu - 10.83 lb./mate) X $.0083
lb./mmbtu = $.001411 /mmBtu.

 

(b)(ii) The
quality price discounts after the first 1,600,000 tons of coal is delivered
hereunder shall conform to the following:

 

Notwithstanding the
foregoing, for each specification, there shall be no discount if the actual
Monthly Weighted Average meets the applicable Discount Point set forth below.
However, if the actual Monthly Weighted Average for the Kentucky Utilities
Ghent generating station fails to meet such applicable Discount Point, then the
discount shall apply to and shall be calculated on the basis of the difference
between the actual Monthly Weighted Average and the Guaranteed Monthly Weighted
Average pursuant to the methodology shown in Exhibit A attached hereto.

 

 

	
   

  	
   

  	
  Guaranteed
  Monthly

  Weighted Average

  	
   

  	
  Discount
  Point

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BTU/LB

  	
   

  	
  Min. 12,200

  	
   

  	
  12,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LB/MMBTU:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ASH

  	
   

  	
  Max. 10.00

  	
   

  	
  10.60

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MOISTURE

  	
   

  	
  Max. 6.67

  	
   

  	
  8.33

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Guaranteed
  Barge

  LbsSO2/Mmbtu

  	
   

  	
  Discount
  Point

  	
   

  
	
  LB/MMBTU:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SO2

  	
   

  	
  Max. 1.20

  	
   

  	
  1.20

  	
   

  

 

For example, if the actual
Monthly Weighted Average of ash equals 11.00 lb/MMBTU, then the applicable
discount would be (11.00 lb./mmbtu - 10.00 lb./mmBtu) X $.0083 lb./mmbtu =
$.00830/MMBTU.

 

 

2.0                                                                                 STATUS OF AGREEMENT

 

The Agreement, as amended by
this Amendment No. 1, is hereby ratified and confirmed and shall continue in
full force and effect. Unless hereby amended, all terms and conditions of the
Agreement shall apply to this Amendment No. 1. This Amendment No. 1 is the
final and complete agreement of the parties hereto respecting the subject
matter hereof and hereby supersedes all prior or contemporaneous oral or
written statements, understandings and promises of the parties relating to the
subject matter hereof.

 

IN WITNESS
WHEREOF, the parties
hereto have executed this Agreement on the dates below written, but effective
as of the day and year first set forth above.

 

 

	
  KENTUCKY
  UTILITIES COMPANY

  	
  ARCH COAL
  SALES COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
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  DateEXHIBIT 10.62

 

Contract #96-412-026

Hopkins County Coal, LLC

Amendment No. 1

 

AMENDMENT
NO. 1 TO AMENDED AND RESTATED COAL SUPPLY AGREEMENT

 

THIS
AMENDMENT NO. 1 TO AMENDED AND RESTATED COAL SUPPLY AGREEMENT (“Amendment No. 1”) is entered into effective
as of January 1, 2000, by and between LOUISVILLE GAS AND ELECTRIC COMPANY
(hereinafter referred to as “Buyer”), whose address is 220 West Main Street,
Louisville, Kentucky 40202, and HOPKINS COUNTY COAL, LLC, a Delaware limited
liability company and WEBSTER COUNTY COAL, LLC, a Delaware limited liability
company (successor to WEBSTER COUNTY COAL CORPORATION, a Kentucky corporation),
both having an address of 1717 South Boulder Avenue, Tulsa, Oklahoma
74119-4886, (the foregoing companies hereinafter referred to as “Seller”). In consideration of the
agreements herein contained, the parties hereto agree as follows.

 

1.0
AMENDMENTS

 

The Amended and Restated
Agreement heretofore entered into by the parties, dated effective April 1,
1998, and identified by the Contract Number set forth above, (hereinafter
referred to as “Agreement”) is hereby amended as follows:

 

2.0 TERM

 

2.1           Section 2.0 Term,
is hereby modified to read as follows:

 

“The Term of this Agreement
shall continue through December 31, 2001.”

 

3.0 QUANTITY

 

3.1                                 Section 3.0 Quantity,  is deleted and replace with the following:

 

“During the Term, Seller
shall deliver and Buyer shall purchase and accept delivery of the following
quantities of coal.

 

	
  YEAR

  	
   

  	
  BASE
  QUANTITY (TONS)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 1999

  	
   

  	
  60,000

  	
  *

  
	
  2000

  	
   

  	
  1,250,000

  	
   

  
	
  2001

  	
   

  	
  1,250,000

  	
   

  

* The
additional 60,000 tons in December 1999 are in addition to the base quantity of
1,500,000 tons for 1999 and are priced as set forth in Section 8.1.

 

Such coal
shall be delivered ratably throughout the Term in accordance with reasonable
delivery schedules to be mutually agreed by Buyer and Seller.”

 

 

 

 

3.2                                 Section 3.1 Option to Increase or Decrease Quantity  is
added and reads as follows:

 

“Buyer shall
have the right to increase or decrease the Base Quantity to be delivered
hereunder by up to 31,250 tons per calendar quarter (three months), for
example, if Buyer increases the quantity by 31,250 tons each quarter during a
calendar year, the net increase will be 125,000 tons. Buyer shall exercise such
option by giving Seller such notice stating Buyer’s exercise of the option and
specifying the increase or decrease in tonnage, no later than thirty days prior
to the first day of the quarter in which the increased or decreased tonnage
will be delivered.”

 

4.0 SOURCE

 

4.1                                 Section 4.1 Source  is hereby deleted and replaced
with the following:

 

“The coal sold
hereunder shall be supplied from any one of the geological seams Western
Kentucky #11, #12, and #9 (surface and underground), of any one of the Seller’s
Hopkins County Mines, and/or from Seller’s Webster County Coal, LLC Dotiki Mine
Complex, (all of the foregoing sources herein after referred to as the “Coal
Property”).”

 

5.0 DELIVERY

 

5.1                                 Section 5.1 Buyer’s Option  is hereby deleted and
replaced with the following:

 

“The Delivery
Points shall be designated as follows: For the Hopkins County mines, the coal
shall be delivered F.O.B. railcar at the Hopkins County rail loading facility
near Madisonville, Kentucky on the Paducah and Louisville Railroad (the
“Delivery Point”). For mines in the Dotiki Mine Complex, the coal shall be
delivered F.O.B. railcar at the Dotiki rail loading facility near Madisonville,
Kentucky on the CSXT Railroad which is accessible by the Paducah and Louisville
Railroad (the “Delivery Point”). Seller may deliver the coal at a location
different from the Delivery Points, provided, however that Seller shall
reimburse Buyer for any resulting increases in the cost of transporting the
coal to Buyer’s generating stations. Any resulting savings in such transportation
costs shall be shared by Buyer and Seller. Buyer may request to change the
Delivery Point to either F.O.B. truck or F.O.B. barge. Upon Buyer’s

 

 

notification
to Seller of its desire to change the Delivery Point, Buyer and Seller shall
mutually agree in writing upon the change(s) and the time frame wherein such
change will take place.”

 

5.2                                 Section 5.3 Delivery to Sebree Dock  is deleted in
its entirety.

 

6.0 QUALITY

 

6.1                                 Section 6 Quality  is amended as follows:

 

“Seller has
the option to supply coal of two different qualities, noted as Quality #1 and
Quality #2. Seller shall exercise such option by giving Buyer such notice
stating Seller’s intent to supply coal of Quality #1 or Quality #2, no later
than the fifteenth of the month, prior to the first day of the calendar month
during which that particular coal Quality will be delivered. After Seller gives
notice of the particular quality to be delivered for a given calendar month,
Seller must supply coal of that quality for the entire calendar month. Seller
shall not supply coals of Quality #1 and Quality #2 during the same calendar
month.

 

The following
specifications are amended:

 

QUALITY
#1

 

All
specifications are the same as specified in Section 6.1 of the Amended and
Restated Coal Supply Agreement for coal to be delivered during the Secondary
Term.

 

QUALITY
#2

 

	
  Specifications

  	
   

  	
  Guaranteed
  Monthly

  Weighted Average

  	
   

  	
  Rejection
  Limits

  (per shipment)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BTU/LB.

  	
   

  	
  Min. 11,200

  	
   

  	
  <10,900

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ASH (lbs/Mmbtu)

  	
   

  	
  Max. 12.00

  	
   

  	
  >13.00

  	
   

  

 

All other
specifications are the same as specified in Section 6.1 of the Amended and
Restated Coal Supply Agreement for coal to be delivered during the Secondary
Term.

 

6.2                                 Section 6.4 Suspension and Termination  is deleted
and replaced with the following:

 

 

“If the coal sold hereunder
fails to meet one or more of the Guaranteed Monthly Weighted Averages set forth
in §6.1 for any two months during any twelve month rolling period during the
term of this Agreement, or if two (2) truck shipments or three (3) barge shipments
in a seven-day period are rejectable by Buyer, or if Buyer receives at its
generating station two (2) rail shipments which are rejectable in any ten-day
period, Buyer may, upon notice confirmed in writing and sent to Seller by
certified mail, terminate this Agreement and exercise all its other rights and
remedies under applicable law and in equity for Seller’s breach.”

 

7.0 PRICE

 

7.1                                 Section 8.1 Base Price  is deleted and replaced with the following:

 

“The base price (“Base
Price”) of the coal to be sold hereunder will be firm and in accordance with
the following schedule:

 

QUALITY #1
- HOPKINS COUNTY MINE

 

	
   

  	
   

  	
  BASE PRICE

  	
   

  
	
  Year

  	
   

  	
  $ Per
  MMBtu

  	
   

  	
  $ Per Ton
  A 11,400Btu

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2000

  	
   

  	
  $

  	
  0.8224

  	
   

  	
  $

  	
  18.75

  	
   

  
	
  2001

  	
   

  	
  $

  	
  0.8224

  	
   

  	
  $

  	
  18.75

  	
   

  

 

QUALITY #2
- HOPKINS COUNTY MINE

 

	
   

  	
   

  	
  BASE PRICE

  	
   

  
	
  Year

  	
   

  	
  $ Per MMBtu

  	
   

  	
  $ Per Ton
  A 11,200 Btu

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2000

  	
   

  	
  $

  	
  0.8100

  	
   

  	
  $

  	
  18.14

  	
   

  
	
  2001

  	
   

  	
  $

  	
  0.8100

  	
   

  	
  $

  	
  18.14

  	
   

  

 

QUALITY #1-
DOTIKI MINE

 

	
   

  	
   

  	
  BASE PRICE

  	
   

  
	
  Year

  	
   

  	
  $ Per
  MMBtu

  	
   

  	
  $ Per Ton
  A 11,400Btu

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2000

  	
   

  	
  $

  	
  0.7952

  	
   

  	
  $

  	
  18.13

  	
   

  
	
  2001

  	
   

  	
  $

  	
  0.7952

  	
   

  	
  $

  	
  18.13

  	
   

  

 

 

QUALITY #2
- DOTIKI MINE

 

	
   

  	
   

  	
  BASE PRICE

  	
   

  
	
  Year

  	
   

  	
  $ Per
  MMBtu

  	
   

  	
  $ Per Ton
  (a, 11,200 Btu

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2000

  	
   

  	
  $

  	
  0.7821

  	
   

  	
  $

  	
  17.52

  	
   

  
	
  2001

  	
   

  	
  $

  	
  0.7821

  	
   

  	
  $

  	
  17.52

  	
   

  

 

7.2                                 Section 8.2 Quality Price Discounts,  paragraph (b) is deleted and replaced
with the following:

 

“Notwithstanding the
foregoing, for each specification each month, there shall be no discount if the
actual Monthly Weighted Average meets the applicable Discount Point set forth
below. However, if the actual Monthly Weighted Average fails to meet such
applicable Discount Point, then the discount shall be calculated on the basis
of the difference between the actual Weighted Average and the Guaranteed
Monthly Weighted Average pursuant to the methodology shown in Exhibit A of the
Agreement.

 

The Guaranteed Monthly
Weighted Average and Discount Points shall be calculated as follows:

 

QUALITY #1

 

	
   

  	
   

  	
  Guaranteed
  Monthly

  Weighted Average

  	
   

  	
  Discount
  Point

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BTU/Lb.

  	
   

  	
  Min. 11,400

  	
   

  	
  11,250

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lb/MMBtu

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SULFUR

  	
   

  	
  Max. 3.125

  	
   

  	
  3.325

  	
   

  
	
  ASH

  	
   

  	
  Max. 11.75

  	
   

  	
  12.50

  	
   

  
	
  MOISTURE

  	
   

  	
  Max. 11.50

  	
   

  	
  13.00

  	
   

  

 

QUALITY #2

 

	
   

  	
   

  	
  Guaranteed
  Monthly

  Weighted Average

  	
   

  	
  Discount
  Point

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BTU/Lb.

  	
   

  	
  Min. 11,200

  	
   

  	
  11,050

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lb/MMBtu

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SULFUR

  	
   

  	
  Max. 3.125

  	
   

  	
  3.325

  	
   

  
	
  ASH

  	
   

  	
  Max. 12.00

  	
   

  	
  12.75

  	
   

  
	
  MOISTURE

  	
   

  	
  Max. 11.50

  	
   

  	
  13.00

  	
   

  

 

For example, if the Monthly
Weighted Average of ash for Quality #1 equals 13.5 lb/MMBtu, then the
applicable discount would be (13.5 lb - 11.75 lb.) X $0.0083/lb./MMBtu =
$0.01453/MMBtu.

 

 

7.3                                 Section 8.3 Price, Terms and Conditions Review  is deleted in its
entirety.

 

IN WITNESS
WHEREOF, the parties
hereto have executed this Amendment No. 1 on the day and year below written,
but effective as of the day and year first set forth above.

 

 

	
  HOPKINS COUNTY COAL, LLC.

  	
  LOUISVILLE
  GAS AND ELECTRIC

  COMPANY

  
	
   

  	
   

  
	
  BY:

  	
   

  	
   

  	
  BY:

  	
   

  	
   

  
	
  TITLE:

  	
   

  	
   

  	
  TITLE:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  DATE:

  	
   

  	
   

  	
  DATE:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  WEBSTER
  COUNTY COAL, LLC

  	
   

  
	
   

  	
   

  
	
  BY:

  	
   

  
	
   

  	
   

  
	
  TITLE:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  DATE:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00064-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00064-of-00352.parquet"}]]