It’s important to remind you here that minimum purchase and maximum delivery obligations are primarily a function of contracts in the United States. Most Canadian and British contracts don’t have these features. Turning back to our customers who do have minimum purchase requirements, some customers haven’t fully met their purchase obligations under last years contracts because they just had nowhere to put more salt. A few customers do have large storage facilities, but most can only store enough salt for a couple of snow events.We’ve worked with these customers to try to find creative ways to solve their dilemma. The common strategy has been to grant an extension of the deadline for taking salt under last season’s contracts and blend this carry over volume into a new commitment covering the upcoming winter season. Predictably these customers are requesting lower volumes this bid season, but they still plan to begin the winter season with a normal amount of salt.
Compass Minerals' CEO Discusses Q2 2012 Results - Earnings Call Transcript
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