Cutting lugs to fit needs

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Cutting the compression lug flat to make it shorter exposes the bare metal to whatever environmental air mix there is. Certainly having the coating is better than not having it, yes?

Environmental air is not the reason for the coating.
I don't think I have ever seen a copper compression lug with plating inside of the punched mounting hole. Most tin-plated copper bussing, in switchboards is the same way.
Almost every lug manufacturer sells a plated lug with a blank tang in which it is intended for holes to be drilled or punched in the field.

It is up to the AHJ to decide if field modifications require a listed product to be re-evaluated.

As has been mentioned, the second hole is to keep the lug from twisting, it does not impact the current carrying capability of the lug.
 
Field drill would almost seem like the specs for the studs are not known, so you measure and drill when you get there. Would not be my preferred method.

Copper compression, plated in hole and everything.
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