Common use of External Transfer Clause in Contracts

External Transfer. The Operating Agent, in its sole discretion, shall consider the request of any Lessee/Owner Party to transfer coal directly from its stockpile to be used at another of its plants in order to avert an operational emergency affecting the reliability at the other plant; provided, that such transfer does not reduce the Party’s stockpile below its Pro Rata Share of the minimum inventory level approved by the Operating Committee and, in the reasonable judgment of the Operating Agent, inventories and expected receipts are such that the Unit’s operation will not be jeopardized. The Operating Agent shall permit such transfers only if and to the extent they can be conducted in a manner that will not materially adversely affect ▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇ or other units on the Land, and will be in full compliance with all applicable Laws and local restrictions. In such cases, the Operating Agent shall deduct the quantity transferred from the Lessee/Owner Party’s inventory at the average inventory cost per ton of its stockpile at the time the transfer is completed. Any incremental cost resulting from any such transfer to another site by any Lessee/Owner Party will be the sole responsibility of that Lessee/Owner Party. All external transfers shall be scheduled by the Operating Agent in a manner so as to accommodate to the extent possible the timing needs of the transferring Lessee/Owner Party while minimizing the impact on the Unit, and if the transfer utilizes the Unit’s coal handling personnel and facilities, the transferring Lessee/Owner Party shall be charged on the same basis as otherwise applies to such usage. The Operating Agent shall provide an estimate of such charges prior to the transfer. All external transfers will require the approval of the Operating Agent as to scheduling, handling and transportation methods.