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DUKE ENERGY«.
Buyer:
COAL PURCHASE CONFIRMATION
Seller: Duke Energy Kentucky, Inc. 526 South Church Street Mail Code EC02F Charlotte, NC 28202
Armstrong Coal Sales, LLC 7733 Forsyth Boulevard, Suite 1625 Saint Louis, MO 63105
Attention: Eddie Vinson, Manager, Coal Origination Mail Code: EC02F
Attention: Adam Anderson (P) 314.721.2885
(P) 980.373.2763 Email: [email protected] Email: [email protected]
This confirms the agreement entered into this 2J. day of June, 2017 (the "Effective Date"), by and between Duke Energy Kentucky, Inc. ("Buyer") and Armstrong Coal Sales, LLC ("Seller"), Buyer and Seller shall be referred to individually as a "Party" and collectively as the "Parties", regarding the sale and purchase of coal (the "Transaction") under the terms specified herein.
This Coal Purchase Confinnation (the "Confinnation") constitutes an agreement for the sale and purchase of coal and constitutes a "Confirmation" under the Master Agreement (as defined below). This Confirmation shall be governed by the terms set forth herein and the parties hereby incorporate the provisions of that certain Master Agreement for the Sale and Purchase of Coal, dated as of December 15, 2015 between the Parties as it has been or may be amended and supplemented from time to time (the "Master Agreement") as tenns and conditions to this Confirmation. All provisions contained in the Master Agreement govern this Confirmation to the extent not in conflict with the terms hereof. The tenns of this Confirmation shall prevail in the event of an inconsistency between the terms of this Confinnation and the Master Agreement. The Confirmation shall be considered as a separate agreement between the parties effective on the date of execution of this Confirmation. Tenns used but not defined herein shall have the meanings ascribed to them in the Master Agreement.
Quote Date:
Product Description:
Seller:
Buyer:
May I, 2017
Crushed coal, containing no synthetic fuels, and free from any extraneous materials, with no intennediate sizes added or removed and otherwise meeting the Quality Specifications set forth in this Confirmation.
Armstrong Coal Sales, LLC
Duke Energy Kentucky, Inc.
Term (Delivery Period): January I, 2018 through December 31, 2018, inclusive.
Contract Quantity:
Contract Quantity Flexibility:
Scheduling:
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225,000 Tons (+/- 20% quarterly tonnage flexibility at Buyer's sole discretion as provided below).
Buyer, in its sole discretion, shall have the right, by providing notice fifteen (15) days prior to the beginning of a calendar quarter to as to whether it will flex the tons up (increase tons) or down (decrease tons) by twenty percent (20%) during the succeeding calendar quarter. Should Buyer exercise its right to reduce the tons in a calendar quarter, those reduced tons shall be subtracted from the annual Contract Quantity tonnage obligation and Buyer has no obligation to take such reduced tons at a later date.
Pursuant to the Master Agreement.
Contract Price:
Delivery Point:
Production Source(s):
Destination:
Weighing, Sampling And Analysis:
Payment:
Quality Specifications:
Btu/lb. lbs. ofSO,/mmBtu Moisture(%) Ash(%) Chlorine <PPM) Volatile Matter(%) HGI Sulfur% Fusion Temp (Initial Deformation °F, Reducin~ Atmos.) Sizing
Quality Price Adjustments:
No Precedent:
Notices:
$40.25 USO per Ton at the Delivery Point.
r .0.B. barge at Seller's loading facilities Armstrong Dock (Green River Mile Post 76.6).
Kronos, Survant, Equality and Midway Mines.
Duke Energy Kentucky, Inc. East Bend Generating Station KY S.R. 3387 Rabbit Hash Big Bone Rd. Union, KY 4I091
Pursuant to the Master Agreement.
Pursuant to the Master Agreement.
All coal delivered hereunder shall meet the Quality Specifications specified in the following table for each of the listed criteria. The Rejection Limits shall be as specified in the following table for each of the listed criteria. All amounts are as measured on an as-received basis in accordance with ASTM standards.
Oualitv Soecification Reiection Limit 11,500 < 11 ,200 4.8 > 5.0 12% >14% 10% >12% 300 >750 37.5% <32% 57minimum <45 2.7 2.9 2125° minimum per shipment no portion <2000° can be below
2" x O" greater than 45% by weight fines passing V." screen
The BTU adjustment of Section 8.1.1 of the Master Agreement shall apply to this Confirmation.
The 802 adjustment of Section 8.1.3 of the Master Agreement shall apply to this Confirmation, provided that there shall be no increase to the Contract Price for any 802
content that is less than 4.7 lbs./MMBTU and no decrease to the Contract Price for any S02 content greater than 5.0 lbs. per MMBTU.
Buyer's Actual Costto Scrub is $116.15/fon S02 Removed.
The terms and conditions set forth in this Agreement are for the purpose of this Agreement and the Transaction contemplated herein only and will not set or be construed or deemed to set a precedent for any future purchase and sales agreement, if any, that may be entered into between Buyer and Seller.
Pursuant to the Master Agreement.
This Confirmation shall supersede any broker confirmation concerning this Transaction.
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IN WITNESS WHEREOF the Parties have caused this Agreement to be executed (including by means of email, facsimile or other electronic exchanged signatures), by their respective duly authorized representatives as of the first date mentioned herein.
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