BARGETRANSPORTATIONAGREEMENT

ThisisabargetransportationagreementbetweenLOUISVILLEGAS
ANDELECTRICCOMPANY(LG&E)effectiveJanuary1,2002andbetween
KENTUCKYUTILITIESCOMPANY(KU)effectiveJuly1,2002,both
Kentuckycorporations,whoseaddressesare220WestMainStreet,Louisville,
Kentucky,40202(collectivelyBuyer)andCROUNSECORPORATION,a
Kentuckycorporation,whoseaddressis2626Broadway,Paducah,Kentucky
420028109(Carrier).

RECITALS

1.
LG&EownsandoperatesageneratingplantknownasMill
CreekStationwhichislocatedontheKentuckysideoftheOhioRiveratMile
point626.4(MillCreek).ThecoalbargeunloadercurrentlyatMillCreekisa
clamshelltypediggerwithanaveragedigrateofaboutonethousand(1,000)tons
perhour.ThelimestonebargeunloadercurrentlyatMillCreekisanexcavator
equippedwithaclamshellbucketwithanaveragedigrateofaboutfourhundred
(400)tonsperhour.

2.
LG&EownsandoperatesageneratingplantknownasTrimble
CountyStationwhichislocatedontheKentuckysideoftheOhioRiveratMile
point571.4(TrimbleCounty).ThecoalbargeunloadercurrentlyatTrimble
Countyisabucketladderstylediggerwithanaveragedigrateofaboutthree
thousandandfifty(3,050)tonsperhour.Thelimestonebargeunloadercurrentlyat
TrimbleCountyisaclamshelltypediggerwithanaveragedigrateofaboutfour
hundredandsixtyfive(465)tonsperhour.

3.
LG&EownsandoperatesageneratingplantknownasCane
RunStationwhichislocatedontheKentuckysideoftheOhioRiveratMilepoint
617.0(CaneRun).The

coalandlimestoneunloaderwillbeanexcavatorthatdigsthematerialoutofthe
bargeasthebargepassesbeneaththeexcavator.Thecoalandlimestoneunloader
isdesignedwithanaveragedigrateofaboutonethousandandsixhundred

(1,600)tonsperhour.

4.
KUownsandoperatesageneratingplantknownasGhent
StationwhichislocatedontheKentuckysideoftheOhioRiveratMilepoint
535.8(Ghent).Thecoalandlimestoneunloaderisabucketladderstyledigger
withanaveragedigrateofaboutonethousandandeighthundred(1,800)tonsper
hour.

5.
Forpurposeshereof,thetermBuyershallrefertoLG&E
relativetothecoalandlimestonethatisdeliveredtoLG&E,andshallrefertoKU
relativetothecoalandlimestonethatisdeliveredtoKU.

6.
JeffersonCountyRiverportAuthorityisatransloadingfacility
locatedontheKentuckysideoftheOhioRiveratMilepoint618.00(Riverport).
Thebargeunloaderisaclamshelltypediggerwithanaveragedigrateofabout
fourhundred(400)tonsperhour.

AGREEMENTS

Thepartiesheretoagreeasfollows:

1.
General.Carrierwilltransportcoalandlimestonebybargeto
MillCreek,CaneRun,TrimbleCounty,Ghent,andJeffersonCountyRiverport.
BuyerwillcompensateCarriertherefor,underallthetermsandconditionsofthis
Agreement.

2.
Term.ThetermofthisAgreement(theTerm)shall
commenceJanuary1,2002forLouisvilleGasandElectricCompanyandJuly1,
2002forKentuckyUtilitiesCompanyandshallcontinuethroughDecember31,
2007subjecttothefollowing.Theratesandothertermsandconditionssetforthin
thisAgreementaresubjecttoreviewforanyreason,attherequestofeitherparty,
forrevisionstobecomeeffectiveonJanuary1,2005.Eitherpartymayrequest
suchareviewbygivingtheotherpartywrittennoticeofsuch

requestbyOctober1,2004.Thepartiesshallthenusetheirbesteffortsto

negotiateingoodfaithanagreementonnewratesand/orothertermsand
conditionsbetweenOctober1,2004andNovember30,2004.Ifthepartiesdonot
reachanagreementonnewratesand/orothertermsandconditionsby
December1,2004,thenthisAgreementwillterminateasofDecember31,2004
withoutliabilityduetosuchterminationforeitherparty.

3.
Cargo.Carrierwilltransportunderthetermsofthis
AgreementallsolidfuelandlimestonepurchasedbyBuyerfordeliverybybarge
(theCargo),exceptfor(a)distressCargoalreadyinbargesbelongingtoother
carriers,(b)Cargopurchasedunderspotcontractsfromsuppliershavingcontracts
withothercarriers,(c)Cargopurchasedfromloadingpointsnotcoveredby
Section7and(d)CargowhichispurchasedFOBDestination,exceptthatthe
Cargotransportedbyanothercarrierduringanycalendarmonthpursuantto
exceptions(a)through(d)shallnotexceedtenpercent(10%)ofthetotalCargo(in
tons)purchasedbyBuyerfordeliverybybargeduringsuchcalendarmonth.These
restrictionsshallnotapplyifBuyerrequiresmoreCargotransportationthan
CarriercanprovidewithinthetimeframeBuyerrequiresforloading,regardlessof
whethersuchnonperformanceisexcusedorunexcused,andregardlessorwhether
Buyersdeliveryrequirementsareofanurgentornonurgentnature.Buyeragrees
toprovideCarrierasmuchnoticeaspracticableandCarrieragreestoconfirm
whetherornotbargesareavailablepromptly.Ifbargesbelongingtoanother
carrieraredockedattheBuyersplantwithCarriersbarges,thenBuyershallpay
demurragetoCarrieratthegreaterof(i)thesametermsandconditionswhich
wouldgovernsuchotherbargecarriersrighttorecoverdemurrageor(ii)the
termsofSection8herein.NotwithstandinganyprojectionsofBuyersbarging
requirementsoranypriorbargingrequirementsofBuyer,Buyerhasnoobligation
tohaveanyCargotransportedunderthisAgreementatanytime,butpromises
onlythatallCargoactuallydeliveredby

bargetoBuyerwillbedeliveredunderthisAgreement,subjecttotheexceptions
setforthabove.

4.
Delivery.

(a)
CarrierwillreceiveCargoattheloadingpointslisted

inSection7hereof.CarrierwillfurnishemptybargesattheLoadingPointsin
adequatenumbersandatsuchtimesastopermitloadingoftheCargoin
accordancewiththeCargosuppliersreasonableoperatingschedulesandBuyers
supplyrequirements.BuyerscontractswithitsCargosuppliersshallrequirethem,
attheirownexpense,toloadtheCargointothebargeswithduediligenceand
dispatchandotherwisecomplywiththereasonablerequirementsofCarriers
bargingoperation.TheCargosuppliersshallhavetherighttorefusetoloadany
bargestheyconsiderunseaworthyoranybargescontainingwaterorotherforeign
matter.Inthecaseoflimestoneloading,Buyerslimestonesuppliershallbe
responsibleforcleaningbargestoitsreasonablesatisfaction.Carrierwilldeliver
theloadedbargestoBuyersunloadingdockorotherpointdesignatedbyBuyerat
suchtimesastopermittheunloadingoftheCargoinaccordancewithBuyers
reasonableoperatingschedules.

(b)
AtMillCreek,Ghent,TrimbleCountylimestone,and
JeffersonCountyRiverport,Carriershallproperlyandsecurelymoortheloaded
bargesattheunloadingdockandnotifytheappropriateperson(s)thatsuch
mooringhasbeencompletedinaccordancewiththeprovisionssetforthin
AppendixA,whichisattachedhereto.Buyeratitsownexpenseshallhavethe
Cargounloadedoutofthebargeswithduediligenceanddispatchandotherwise
complywiththereasonablerequirementsofCarriersbargingoperation.

(c)
AtTrimbleCountyandCaneRun,theCarriershall
notifytheappropriateperson(s)ofincomingbargesatleastsix(6)hourspriorto
thearrivalofeachtow,inaccordancewiththeprovisionssetforthinAppendixA.
Carriershallprovidethedesignated

plantpersonnelwithperiodicupdatesoftheexpecteddayofalltowarrivals.
Carrierscoaltowsshallbeunloadedonastandbybasis,uponarrival,atTrimble
CountyandCaneRunwithCarrierbeingresponsibleforallplacement,shifting
anddeckingservicesattheplant.Buyershallprovideadequateshoreside
personnelandequipment(includingtheshuttlebarge)fortheoperationofthe
unloadingsystem.Thecoalbargesgenerallywillbestandbyunloadedasfollows:
TheCarriershallprovideaboatandalldeckhandsandtyingservicesandshall
shuttlethecoalbargestoandawayfromthebargeunloader;andshallleavewith

allemptycoalbarges.Carriersservicesshallbeprovidedinaccordancewiththe
provisionssetforthinAppendixA,whichisattachedhereto.Afterthebargesare
unloaded,BuyershallnotifyCarrierthatsuchunloadinghasoccurredandCarrier
shallremovetheunloadedbargespromptly.Buyershalloperatetheunloader.
WhencircumstancesmakestandbyunloadingimpracticalinBuyersdiscretionor
intheeventBuyerclaimsthatforcemajeureconditionspreventtheunloadingofa
tow,thentheBuyershallhavetheoptionof:(1)reconsigningthetowtoanotherof
theBuyersplants,(2)havingCarrierproperlyandsecurelymoorthecoalbarges
attheunloadingdockandnotifyingtheappropriateperson(s)thatsuchmooring
hasbeencompletedandBuyerhiringaharborboattoprovidefleetsecurityforthe
loadedtow,or(3)requestingCarrierremainattheplantwiththetowand
compensatingCarrierattheapplicablehourlyrateof$225perhour,subjecttothe
sameadjustmentssetforthinsubsection7(b).

(d)
Exceptasotherwiseexpresslyprovidedherein,
Carriershallsupplyatitsownexpensealllabor,supervision,equipmentand
facilities,andshallpayallexpensesandtaxeswhatsoever,incurredinconnection
withitsperformanceunderthisAgreement.

5.
DescriptionofBarges.AllbargesusedbytheCarriershallbe
ingoodandseaworthycondition,shallhavetwo(2)interiorsideslopesheets,at
leastone(1)interiorend

slopesheet,shallnotbewiderthanthirtyfive(35)feet,andshallhaveaminimum
capacityoffifteenhundred(1,500)tonsofcoal.

6.
CompliancewithSafetyProceduresandLaws.

(a)Carrierrepresentsandwarrantsthatitisinthebusinessof
riverbargetransportationandthatitpossessesahighdegreeofprofessional
expertiseinallfacetsofriverbargetransportationandpromisesthatitwill
exercisethatdegreeofcareofpersonssoskilledandthatitwillatalltimes
provideadequateskilledpersonnel,equipment,facilities,andcapitaltotransport
CargosafelyinaccordancewiththetermsofthisAgreement.

(b)Withoutlimitingthegeneralityoftheprovisionsof
subsection(a)above,theCarrierwillatalltimesinitsperformanceunderthis
Agreementcomplywithallapplicablelawsandregulationsofanykindandall
proceduresandprovisionssetforthinAppendixAattachedhereto.

7.
Rates

(a)
Subjecttotheadjustmentssetforthinsubsections
6(b)and6(c)hereof,BuyershallpaytotheCarrierthefollowingratesperton:

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