SO2 Adjustment Clause Samples
The SO2 Adjustment clause defines how changes in sulfur dioxide (SO2) content in a product, typically coal or other fuels, will affect pricing or other contractual terms. In practice, this clause sets a baseline SO2 level and outlines adjustments—such as price increases or decreases—if the delivered product's SO2 content deviates from the agreed standard. This mechanism ensures that both parties are fairly compensated for variations in quality, helping to allocate risk and maintain compliance with environmental regulations.
SO2 Adjustment. The Index Based Market Price shall be adjusted to reflect a sulfur value of 1.2lbs SO2/MMBtu.
SO2 Adjustment. If the weighted average pounds of SO2 per million Btu (lbs.SO2/mmBtu) on an as received basis of all shipments in a calendar month differs from (*) lbs.SO2/mmBtu, then an SO2 adjustment shall be calculated using the following formula: SO2 Adjustment = ((*) – Actual SO2) x (Actual Btu) x (SO2 Value)
1, 000,000
SO2 Adjustment. (a) Such weighted average S02, value shall be used in adjusting the price of coal in the following manner. The price of coal accepted containing a monthly weighted average S02 in excess of the 2.75 lbs./mmbtu guarantee will be adjusted downward according to the following formula: (ACTUAL S02 - 2.75) (ACTUAL BTU/LB.) ------------------------------------ 9434 = $ per ton downward adjustment Example: Monthly weighted average SO2 = 3.00; monthly weighted average BTU per lb. = 12,000: SO2 Guarantee = 2.75. (3.00 - 2.75) (12.000) ---------------------- 9434 = $0.32 per ton downward adjustment
(b) If any individual shipment received in a month exceeds ▇.▇. ▇▇▇▇▇'▇ State Implementation Plan limit of 5.15 Lbs. S02/mmbtu, KU shall reduce said shipment by $2.00 per ton. This reduction is in addition to any S02 adjustment as stated in Section VI, paragraph 4(a).
SO2 Adjustment. Such weighted average SO2 value shall be used in adjusting the price of coal in the following manner. The price of coal accepted containing a monthly weighted average SO2 in excess of the 3.00 Lbs./MMBtu guarantee will be adjusted downward according to the following formula: (Actual SO2 - 3.00)(Actual Btu/lb.) = $ per ton downward adjustment ------------------------------------ 9434 Example: Monthly weighted average SO2 = 3.50; monthly weighted BTU per lb. = 12,000: SO2 Guarantee = 3.00. Contract # F-98627 Amendment #1 (3.50 - 3.00) (12,000.) = $0.64 per ton downward adjustment ----------------------- 9434