# Contract

June 30th, 2005
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Requirement Specification (per Shipment) ------------- -------------- Maximum Moisture [_ _ _ _]% Maximum Ash [_ _ _ _]% Maximum Sulfur [_ _ _ _]% Minimum Volatile Matter [_ _ _ _]% Minimum Ash Fusion Temperature Softening (H=W Reducing Atmosphere) [_ _ _ _]degrees F Minimum Grindability (Hardgrove Grindability Index ("HGI")) [_ _ _ _] HGI Minimum Calorific Value [_ _ _ _] Btu/lb.
(b) Based on the foregoing, the following calculations would be made: Step 1: Calculate (to six decimal places) the [_ _ _ _] of all Shipments received during the Contract Year: [_ _ _ _] [_ _ _ _] [_ _ _ _] - --------- x ---------- x --------- = [_ _ _ _] [_ _ _ _] [_ _ _ _] [_ _ _ _]
[_ _ _ _] [_ _ _ _] = [_ _ _ _] Step 2: Calculate (to six decimal places) the [_ _ _ ] of all Shipments received during the Contract Year: [_ _ _ _] = [_ _ _ _] Thus, the actual [_ _ _ _] Step 3: Calculate the total amount of [_ _ _ _] received during the Contract Year: [_ _ _ _] [_ _ _ _] [_ _ _ _] [_ _ _ _] x --------- x --------- x --------- = [_ _ _ _] [_ _ _ _] [_ _ _ _] [_ _ _ _]
Step 4: Calculate the amount of [_ _ _ _] resulting from the excess determined in Step 2 and then round to the nearest whole unit: [_ _ _ _] [_ _ _ _] [_ _ _ _] x --------- x --------- = [_ _ _ _] [_ _ _ _] [_ _ _ _]
Item of Analysis Tolerance - ---------------- --------- Moisture [_ _ _ _] Moisture Ash [_ _ _ _] Dry Ash Volatile Matter [_ _ _ _] Dry Volatile Matter Sulfur = 2.0% [_ _ _ _] Dry Sulfur AFT (H=W Reducing) [_ _ _ _] Grindability [_ _ _ _]
GUARANTEE MONTHLY MONTHLY AVERAGE AS SULFUR RECEIVED EXAMPLE SPECIFICATION % SULFUR ADJUSTMENT CALCULATION - ------- ------------- ---------- ---------------------- A [_ _ _ _] [_ _ _ _] [_ _ _ _] per ton reduction B [_ _ _ _] [_ _ _ _] [_ _ _ _] per ton reduction
EXAMPLE B: Ash fusion temperature is outside [_ _ _ _]-degree deadband. Ash fusion temperature specification: [_ _ _ _] degrees Ash fusion temperature of shipment: [_ _ _ _] degrees Ash fusion temperature adjustment: [_ _ _ _] per ton reduction
Sub-Bituminous Coal Analysis performed on any size sample which indicates an ash fusion temperature (H=W) within [_ _ _ _] degrees of the ash fusion temperature specification stated in the Purchase Order shall not result in any price adjustment for ash fusion temperature. Analysis of any shipment or portion of a shipment which falls more than [_ _ _ _] degrees below the ash fusion temperature specification stated in the Purchase Order shall result in a downward price adjustment based on a ratio of [_ _ _ _] per degree below such specification. EXAMPLE A: Ash fusion temperature is within [_ _ _ _] -degree deadband. C-12 * CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. BRACKETS AND UNDERSCORES DENOTE SUCH OMISSIONS. Ash fusion temperature specification: [_ _ _ _] degrees Ash fusion temperature of shipment: [_ _ _ _] degrees Ash fusion temperature adjustment: [_ _ _ _]
EXAMPLE B: Ash fusion temperature is outside [_ _ _ _] degree deadband. Ash fusion temperature specification: [_ _ _ _] degrees Ash fusion temperature of shipment: [_ _ _ _] degrees Ash fusion temperature adjustment: [_ _ _ _] per ton reduction
PLANT SCS OPERATING COMPANY Attention: Plant Manager Attention: Production Support Attention: Fuel Services - --------------------------------------- ----------------------------- ------------------------ ALABAMA POWER Barry (334) 829-2029 Gaston (205) 669-8084 Gadsden (205) 257-1645 Gorgas (205) 257-1165 (205) 257-7288 not applicable Greene County (334) 289-6105 Miller (205) 257-3238 GEORGIA POWER Arkwright (912) 757-7200 Bowen (770) 387-9800 Branch (706) 485-2391 Hammond (706) 290-6255 Fuel Services McDonough (404) 792-5354 (205) 257-7288 (404) 506-6948 Mitchell (912) 438-3129 Scherer (912) 784-5079 Wansley (770) 854-8570 Yates (770) 252-0568 GULF POWER Crist (904) 420-2349 Fuel & Environmental Scholz (904) 444-6826 (205) 257-0410 (904) 444-6217 Smith (904) 420-2470 MISSISSIPPI POWER Daniel, X5301 (228) 474-3029 (205) 257-7288 Manager, Fuels. Watson, X5231 (228) 897-6302 (205) 257-0410 (228) 865-5286 (205) 257-7288 SAVANNAH ELECTRIC & POWER Kraft (912) 966-3657 (205) 257-7288 Fuel Services McIntosh (912) 754-2793 (404) 506-6948
C-18 RAILCAR WEIGHT MATRIX Weight limitations on railcars must meet two criteria; design limitations and track standards. Railcars should be loaded to full visible capacity, if possible, but must not exceed the lesser of the two criteria below: 1. - All private aluminum railcars are designed to withstand a maximum of 286,000 pounds gross weight on rail (GWR). - All private steel railcars are designed to withstand a maximum of 272,000 pounds GWR. - Railroad owned railcars must be loaded in accordance with stenciled weights on railcars unless otherwise specified by Rail Carrier. 2. In addition to the general constraints of Item 1, all railcars shall be loaded to full visible capacity but within each rail carrier's load limits for maximum GWR. The maximum GWR for the originating rail carrier for each of the generating plants in the Southern electric system is specified below. ALABAMA POWER COMPANY
Burlington Northern Norfolk Southern Generating Plant Santa Fe (BNSF) CSXT (NS) ---------------- --------------- ---- ---- Gaston N/A 286,000 286,000 Miller 286,000 286,000 N/A
GEORGIA POWER COMPANY
Norfolk Southern Union Pacific Illinois Central Generating Plant CSXT (NS) (UP) (IC) - ---------------- ---- ---- ---- ---- Arkwright N/A 286,000 N/A N/A Bowen 286,000 N/A N/A N/A Branch 286,000 286,000 N/A N/A Hammond N/A 286,000 N/A N/A McDonough 286,000 286,000 N/A N/A Mitchell 286,000 N/A N/A N/A Scherer N/A 286,000 286,000 N/A Wansley 286,000 286,000 N/A 286,000 Yates N/A 286,000 N/A N/A
C-19 GULF POWER COMPANY
Generating Plant CSXT - ---------------- ---- Scholz 286,000
MISSISSIPPI POWER COMPANY
Canadian National Burlington Northern Illinois Central Union Pacific Generating Plant Santa Fe (BNSF) CSXT (IC) (UP) - ---------------- --------------- ---- ---- ---- Daniel 286,000 286,000 286,000 286,000
SAVANNAH ELECTRIC AND POWER COMPANY
Norfolk Southern Generating Plant CSXT (NS) - ---------------- ---- ---- Kraft N/A 286,000 McIntosh 286,000 286,000
C-20
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