9. Commitments and Contingencies Construction and Other Purchase Commitments At September 30, 2019 OTP had commitments under contracts, including its share of construction program commitments and other nonlease commitments, extending into 2021 of approximately $138.9 million. At December 31, 2018 OTP had commitments under contracts, including its share of construction program commitments and other nonlease commitments, extending into 2021 of approximately $64.5 million. The increase in commitments is mainly due to a $77.5 million increase in commitments and contractual obligations in 2019 associated with the construction of OTPs Astoria Station natural gas-fired combustion turbine in eastern South Dakota. Spending commitments increased $70.3 million for 2020 and $9.7 million for 2021. Total 2019 unmet project commitments decreased $5.7 million in 2019 with initiation of construction activities. At December 31, 2018 T.O. Plastics had commitments for the purchase of resin through December 31, 2021 of approximately $5.0 million under a long-term supply agreement. On October 1, 2019 this resin supply agreement was replaced with a new six -year resin supply agreement that commences on January 1, 2020. Under the new resin supply agreement, there are no minimum purchase requirements, but T.O. Plastics is required to purchase all of a specified class of regrind resin delivered by the supplier at a set price per pound. Based on current forecasted production levels, T.O. Plastics anticipates the quantity of resin delivered under the supply agreement will not exceed its requirements over the six -year term of the supply agreement or exceed the market cost of alternative sources of the resin. T.O. Plastics estimates it will pay the supplier approximately $1.6 million annually under this agreement. Electric Utility Capacity and Energy Requirements and Coal Purchase and Delivery Contracts OTP has commitments for the purchase of capacity and energy requirements under agreements extending into 2042. OTP also has contracts providing for the purchase and delivery of a significant portion of its current coal requirements. OTPs current coal purchase agreements for Coyote Station expire at the end of 2040. OTPs current coal purchase agreements for Big Stone Plant expire at the end of 2020. OTP has an agreement with Peabody COALSALES, LLC for the purchase of subbituminous coal for Big Stone Plants coal requirements through December 31, 2020. There is no fixed minimum purchase requirement under this agreement but all of Big Stone Plants coal requirements for the period covered must be purchased under this agreement. OTP has an all-requirements agreement with Navajo Transitional Energy Co. (NTEC) for the purchase of subbituminous coal for Hoot Lake Plant through December 31, 2023. There are no fixed minimum purchase requirements under this agreement. In October 2019, NTEC purchased the assets of Cloud Peak Energy Resources LLC, including its Spring Creek Mine in southeast Montana, through bankruptcy court. For a two -day period in October, operations at the Spring Creek Mine were suspended due to a disagreement between the Montana Department of Environmental Quality and the NTEC. Subsequent to the suspension of operations, the two parties agreed to allow the mine to operate for an additional seventy-five days while they work to resolve differences regarding the NTECs waiver of sovereign immunity from the states environmental laws. OTP Land Easements OTP has commitments to make future payments for land easements not classified as leases, extending into 2034 of approximately $10.4 million. Contingencies OTP had a $1.6 million refund liability on its balance sheet as of September 30, 2019 representing its best estimate of the refund obligations that would arise, net of amounts that would be subject to recovery under state jurisdictional TCR riders, based on the likelihood of the FERC reducing the ROE component of the MISO Tariff and ordering MISO to refund amounts charged in excess of the lower rate. As discussed in note 3 in greater detail, OTP believes its estimated accrued refund liability is appropriate based on the current facts and circumstances and is awaiting further action by the FERC before determining if a change in this estimate will be needed. Contingencies, by their nature, relate to uncertainties that require the Companys management to exercise judgment both in assessing the likelihood a liability has been incurred as well as in estimating the amount of potential loss. In addition to the potential ROE refund described above, the most significant contingencies that could impact the Companys consolidated financial statements are those related to environmental remediation, risks associated with warranty claims relating to divested businesses that could exceed established reserve amounts, and litigation matters. In 2015 the Environmental Protection Agency (EPA), acting under Section 111 (d) of the Clean Air Act, issued the Clean Power Plan which required states to submit plans to limit carbon dioxide emissions from certain fossil fuel-fired power plants. The rule is not currently in effect as a result of a stay by the Supreme Court in 2016. In 2017, the EPA issued a Notice of Proposed Rulemaking to repeal the Clean Power Plan; comments were due in April 2018. On August 21, 2018 the EPA proposed a replacement for the Clean Power Plan -- the Affordable Clean Energy (ACE) Rule. The final version of the ACE Rule, which went into effect on September 6, 2019, establishes guidelines for states to use in developing plans to address greenhouse gas emissions from existing coal-fired power plants and was finalized in conjunction with two related but separate and distinct rulemakings, which include repealing the Clean Power Plan and providing revisions to state implementation plan guidance. The ACE Rule establishes heat rate improvements, or efficiency improvements, as the best system of emissions reduction for carbon dioxide from existing coal-fired generation units. Heat rate is a measure of the amount of energy required to generate a unit of electricity. States will establish unit-specific standards of performance that reflect the emission limitation achievable through certain candidate heat-rate improvement technologies. The final ACE Rule does not include any final action regarding New Source Review. States have until mid- 2022 to submit a state implementation plan to EPA for approval. Other The Company is a party to litigation and regulatory enforcement matters arising in the normal course of business. The Company regularly analyzes current information and, as necessary, provides accruals for liabilities that are probable of occurring and that can be reasonably estimated. The Company believes the effect on its consolidated results of operations, financial position and cash flows, if any, for the disposition of all matters pending as of September 30, 2019, including those described above, will not be material.