Exhibit 10.86.1
[*] Indicates that the confidential portion has been omitted from
this filed exhibit and filed separately with
the Securities and Exchange Commission
AMENDMENT THREE TO UNDERGROUND
COAL SALES AGREEMENT
THIS AMENDMENT THREE TO
UNDERGROUND COAL SALES AGREEMENT ("Amendment Three"), by and between SAN JUAN
COAL COMPANY, a Delaware corporation (referred to herein as "SJCC")
and PUBLIC SERVICE COMPANY OF NEW MEXICO, a New Mexico corporation,
and TUCSON ELECTRIC POWER COMPANY, an Arizona corporation
(collectively referred to herein as the "Utilities") (with SJCC and
Utilities herein sometimes collectively referred to as "Parties"),
amends that certain Underground Coal Sales Agreement dated August
31, 2001 as amended (the "UG-CSA") between SJCC and the
Utilities.
RECITALS
WHEREAS, the Parties wish to
restate Section 8.3 "Coal Processing Component" of the
UG-CSA.
NOW THEREFORE
, in consideration of the terms,
covenants and agreements contained in this Amendment Three and for
other good and valuable consideration, the Utilities jointly and
severally agree with SJCC as follows:
AGREEMENT
1.
Section 8.3(A)(1) of the UG-CSA is modified by replacing the value
"[*]" with the value "[*]" in the formula contained in that
section. This change shall be effective as of January 1,
2003.
2.&
