After a bid is accepted, NEP proceeds with a contract for services. NEP follows the bid specifications and may enter into one or more agreenents based upon forecasted need. Each contract is for a minimum of 10000 tons of coal per month. NEP attempts to negotiate contract prices for a term of one, three,or five years at a fixed or escalating price. Typically , NEP specifies the method of delivery in the contract as well, requiring that delivery be made by rail or barge to reduce uncertainty in the delivery schedule. The primary focus of the contract is to specify minimum quality standards for the coal and control price in order to properly forecast financial activity. The contracts for coal also cover many nonquality measures.