The agreement extends the current contract, which would have ended in 2027, by 10 years. BNI Coal owns and operates a surface lignite mine in Center, North Dakota, producing about 4 million tons annually. Virtually all of BNI’s lignite production is consumed by the nearby Milton R. Young Station, the primary source of electrical generation for Minnkota.
BNI and Minnkota signed the original cost plus fixed-fee agreement to supply Young Station in 1974. The 10-year extension also includes the option to extend the agreement an additional five years through 2042.