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88 Page 123 APPENDIX A MOISTURE and the MRF The moisture content of Targeted Recyclable Materials (TRM) will be determined by three methods: moisture probe inbound loose material; average bale weights for acc, ONP and Mix Paper); and moisture probe of OCC, ONP and Mix Paper bales. Excess moisture content exists when moisture probe measurements are 30/0 higher than normal. Example; if normal probed moisture content are 10%, then excess moisture is present when probed levels are 13% or higher, and any level less than 13% is considered to be normal moisture levels. There are two types of excess moisture level; out-throw and prohibitive. The determination regarding classification will be made based on the recommendation of the Contractor, subject to the approval of SBWMA. Out-throw moisture is present when fiber (GNP, GCC, or Mix Paper) is still usable by paper mills but is subject to downgrade. The presence of out-throw moisture may result in either: (a) an adjustment/claim by the end user mill for moisture in excess of 12%, or (b) changes to mechanical sorting effectiveness when paper is limp resulting in excessive amounts of paper fiber other than those normally acceptable in a grade, such as bleached or ground-wood fiber in acc or brown fiber in ONP, being present in the sorted material. The method to handle the different types of excess moisture as an out-throw is as follows: Adjustment/Claim: If end user mills provide adequate claim documentation (photos, inspection reports, claim calculations) within a timely manner then Contractor will check site records (pre-shipment probed moisture levels, average bale weights, govenunent rainfall records) to verify that excess moisture was present when material was prepared for shipment. If verification exists and Contractor considers claim/adjustment amount to be reasonable, then Contractor will present all documentation to SBWMA for an adjustment to the invoiced amount. SBWMA will make the final determination regarding any and all adjustments. Excess amounts of non acceptable paper fiber: If the excess moisture results in MRF processing which causes fibers to react differently on mechanical screens than they otherwise would under normal conditions, then Contractor will document (report and photos) the situation and advise SBWMA of the issue along with a recommendation regarding what course of action is suggested. SBWMA will make the final determination regarding what action to take, which may include but is not limited to selling the excess moisture product as a different grade (for example #6 board-mill ONP instead of #7-#8 de-ink GNP, mix paper instead ofOCC~ etc.) or paying a supplemental sorting fee to maintain contract quality levels by incurring higher sorting costs (reducing the sort line throughput, increasing the number of sorters, etc.).