Capacity Condition Precedent Clause Samples

Capacity Condition Precedent. (a) ARTC’s obligation to first make available each tranche of Path Usages in clause 3 of this Schedule and the Access Holder’s entitlement to have access to each tranche of Path Usages in clause 3 is conditional upon the Access Holder providing: (i) evidence to the reasonable satisfaction of ARTC that it has sufficient Network Exit Capability, based on the applicable Service Assumptions, to offload the anticipated coal associated with the Path Usages in that tranche (and any other unconditional Path Usages) at the discharge point specified in clause 3 of this Schedule for a period of at least 10 years from the applicable Start Date; and. (ii) where the tranche of Path Usages are for the purpose of transporting coal to a coal terminal at the Port of Newcastle, written confirmation from the HVCCC that there is sufficient Coal Chain Capacity to offload the anticipated coal associated with the Path Usages in that tranche (and any other unconditional Path Usages) at the discharge point specified in clause 3 of this Schedule for a period commencing at the Start Date and ending at the end of the first full Contract Year after the Start Date. The Capacity Condition Precedent does not apply to a negative tranche of Path Usages. (b) Where the tranche of Path Usages are for the purpose of transporting coal to a coal terminal at the Port of Newcastle, ARTC will be satisfied that the Access Holder has sufficient Network Exit Capability if the Access Holder provides ARTC with a copy of an executed contract with a Terminal Operator which provides for sufficient terminal allocations to offload the anticipated coal for a period of 10 years from the applicable Start Date after taking into account any other unconditional Path Usages. (c) If the Access Holder is able to: (i) satisfy the Capacity Condition Precedent at the Start Date for some but not all of the tranche of Path Usages; or (ii) subsequently satisfy the Capacity Condition Precedent in relation to some or all of the Path Usages (to the extent not already removed by ARTC under clause 4.2 of this Schedule) at a later date (on the basis that the reference in the Capacity Condition Precedent to the Start Date is read as being that later date),