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<br />equity holders of its estate to assume the Agreement. CFF~I Steel <br />has exercised its best business judgment in deciding to assume <br />the Agreer..ent. <br />10. As explained in the Affidavit of Earl Emery filed <br />herewith (copy attached hereto as Exhibit C), CF&I Steel has been <br />unable, after diligent effort, to procure any Iess-expensive, <br />reliable source of natural gas than that supplied by Coas~~al. A <br />steady reliable supply of natural gas is critical to CF&I Steel's <br />operation. Accordingly, a rejection of the Agreement would be <br />harmful to CF&I Steel's estate. <br />11. As of the petition date, CF&I Steel owed Coastal <br />approximately $160,000 for gas supplied under the Agreement. <br />CF&Z Steel has not paid this amount because it is prohibited from <br />doing so by the operation of bankruptcy law. Accordingly, the <br />nonpayment of this amount may cohstitute a default under the <br />Agreement. CF&I Steel knows of no other defaults under the <br />Agreement. <br />12. CF&I Steel, with the Court's permission, proposes <br />to cure the potential default under the Agreement by paying the <br />total obligation of $160,000 in monthly payments of $10,000 to <br />Coastal. The principal obligation will bear simple interest at <br />the rate of 8% per annum beginning at the date of approval of <br />this order. This cure of default is in line with CF&I St.eel's <br />cure of defaults under other executory contracts that it seeks to <br />assume. Furthermore, Coastal has agreed to this cure. See <br />Latter, Exhibit C. <br />4 <br />