CONTRACT #LGE 99002
PEABODY COALSALES COMPANY
AMENDMENT NO. 1
EXHIBIT 10.105
AMENDMENT NO. 1 TO COAL SUPPLY CONTRACT
THIS AMENDMENT NO. 1 TO COAL SUPPLY CONTRACT ("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 PEABODY COALSALES COMPANY, a
Delaware corporation (hereinafter referred to as "SELLER"), whose address is 701
Market Street, St. Louis, Missouri 63101-18926. In consideration of the
agreements herein contained, the parties hereto agree as follows:
1.0 AMENDMENTS
The Agreement heretofore entered into by the parties, dated effective
January 1, 1999 and identified by the Contract Number set forth above,
(hereinafter referred to as "Agreement") is hereby amended as follows:
2.0 TERM
The term of this Agreement shall continue through December 31, 2001,
subject to the provisions of Section 8.4.
3.0 QUANTITY
3.1 Section 3.1 BASE QUANTITY, is modified and reads as follows:
YEAR BASE QUANTITY (TONS)
- ---- --------------------
2000 1,500,000
2001 1,500,000
3.2 Section 3.2 DELIVERY SCHEDULE is deleted in its entirety and
replaced with the following.
"Such coal shall be delivered ratably in accordance with
reasonable delivery schedules to be mutually agreed upon
between Buyer and Seller."
CONTRACT #LGE 99002
PEABODY COALSALES COMPANY
AMENDMENT NO. 1
3.3 Section 3.3 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 18,750 tons per
calendar quarter (three months). For example, if Buyer
increases the quantity by 18,750 tons each quarter during a
calendar year, the net increase will be 75,000 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, including coal purchased by Seller
from third parties, shall primarily be supplied from Seller's
Patriot Complex located in Henderson County, Kentucky. Seller
may also provide coal supplied from Seller's Lynnville Mine
located in Warrick County, Indiana, Seller's Camp Complex
located in Union County, Kentucky, and Seller's Gibraltar Mine
located in Muhlenberg County, Kentucky, (all of the foregoing
sources hereinafter referred to as the "Coal Properties)."
5.0 DELIVERY
5.1 Section 5.1 BARGE DELIVERY is amended to include the addition
of the following delivery points:
"Lynnville Mine delivery point: Yankeetown dock located at
Mile Point 772.5 on the Ohio River.
Camp Mine Complex delivery point: Camp Breckinridge located at
Mile Point 842.0 on the Ohio River.
Gibraltar Mine delivery point: Gibraltar Dock located at Mile
Point 85.9 on the Green River."
6.0 PRICE
6.1 Section 8.1 BASE PRICE is hereby deleted and replaced with the
following:
CONTRACT #LGE 99002
PEABODY COALSALES COMPANY
AMENDMENT NO. 1
"The base price ("Base Price") of the coal to be sold
hereunder will be firm (subject to Section 8.4 Price Review)
and in accordance with the following schedule:
PATRIOT MINE - BASE PRICE
YEAR $ PER MMBTU $ PER TON
- ----- ----------- ---------
2000 $0.8090 $17.07
2001 $0.8090 $17.07
LYNNVILLE MINE - BASE PRICE
YEAR $ PER MMBTU $ PER TON
- ----- ----------- ---------
2000 $0.8256 $17.42
2001 $0.8256 $17.42
CAMP COMPLEX - BASE PRICE
YEAR $ PER MMBTU $ PER TON
- ----- ----------- ---------
2000 $0.8100 $17.09
2001 $0.8100 $17.09
GIBRALTAR - BASE PRICE
YEAR $ PER MMBTU $ PER TON
- ----- ------------ ---------
2000 $0.7896 $16.66
2001 $0.7896 $16.66
6.2 Section 8.4 PRICE REVIEW is added and reads as follows:
CONTRACT #LGE 99002
PEABODY COALSALES COMPANY
AMENDMENT NO. 1
"The Base Price and all other terms and conditions of this
Agreement shall be subject to review for any reason at the
request of either party for revisions to become effective on
January 1, 2001. The party requesting such a review shall give
written notice of its request to the other party on or before
July 1, 2000. The parties then shall negotiate on new prices
and/or other terms and conditions between July 1 and October
1. If the parties do not reach an agreement by October 1, 2000
then this Agreement will terminate as of December 31, 2000
without liability due to such termination for either party.
This clause shall not be interpreted as a Right of First
Refusal or exclusive supply agreement."
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No.
1 on the day and year below written, but effective as of the day and year first
set forth above.
LOUISVILLE GAS AND ELECTRIC COMPANY PEABODY COALSALES COMPANY
BY: /SIGNED/ BY: /SIGNED/
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TITLE: TITLE:
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DATE: DATE:
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