Consequences of Delays. (a) If Seller does not reasonably expect to achieve the Commercial Operation Date Milestone by October 1, 2010 in accordance with Section 3.1, Seller shall provide prompt written notice (a “Commercial Operation Delay Notice”) to Purchaser of such expectation, the expected period of delay and the cause of the delay. Seller’s estimate of the expected period of delay shall be based on the best information available to Seller, and Seller shall promptly notify Purchaser of any expected changes in such period. Notwithstanding any such Commercial Operation Delay Notice or any failure of the Commercial Operation Date to occur on or before February 1, 2011, the Delivery Start Date shall nevertheless be the date specified in Section 3.1(a). With respect to nominations of Gas during the Commercial Operation Delay Period, Purchaser may make nominations for Scheduled Gas in an amount up to the Baseload Quantity on any Day during the Commercial Operation Delay Period, notwithstanding the fact that the quantity of Gas available from the Facility on such Day specified in the applicable Monthly Availability Plan or Daily Availability Schedule may be none, but otherwise in accordance with Article VI. If Purchaser makes such nominations for Scheduled Gas during the Commercial Operation Delay Period, Seller shall compensate Purchaser for all Replacement Gas Costs for the Scheduled Gas, except to the extent Seller delivers Replacement Gas therefor at the Delivery Point. (b) Notwithstanding any provisions in this Agreement to the contrary, Purchaser may terminate this Agreement if the Commercial Operation Delay Period is longer than three-hundred and sixty five (365) consecutive Days. To exercise the termination right pursuant to this Section 3.2(b), Purchaser shall provide written notice of termination to Seller within ten (10) Days after the earliest possible Early Termination Date. Upon termination pursuant to this Section 3.2(b), neither Party shall have any further liabilities with respect to this Agreement, except with respect to obligations of such Party that became due or accrued prior to such termination and, in the case of Seller, its obligations set forth in Article XV.
Appears in 3 contracts
Samples: Synthetic Natural Gas Purchase and Sale Agreement (USA Synthetic Fuel Corp), Synthetic Natural Gas Purchase and Sale Agreement (USA Synthetic Fuel Corp), Synthetic Natural Gas Purchase and Sale Agreement (Global Energy, Inc.)
Consequences of Delays. (a) If Seller does not reasonably expect to achieve the Commercial Operation Date Milestone by October January 1, 2010 in accordance with Section 3.1, Seller shall provide prompt written notice (a “Commercial Operation Delay Notice”) to Purchaser of such expectation, the expected period of delay and the cause of the delay. Seller’s estimate of the expected period of delay shall be based on the best information available to Seller, and Seller shall promptly notify Purchaser of any expected changes in such period. Notwithstanding any such Commercial Operation Delay Notice or any failure of the Commercial Operation Date to occur on or before February 1June 30, 20112010, the Delivery Start Date shall nevertheless be the date specified in Section 3.1(a). With respect to nominations of Gas during the Commercial Operation Delay Period, Purchaser may make nominations for Scheduled Gas in an amount up to the Baseload Quantity on any Day during the Commercial Operation Delay Period, notwithstanding the fact that the quantity of Gas available from the Facility on such Day specified in the applicable Monthly Availability Plan or Daily Availability Schedule may be none, but otherwise in accordance with Article VI. If Purchaser makes such nominations for Scheduled Gas during the Commercial Operation Delay Period, Seller shall compensate Purchaser for all Replacement Gas Costs for the Scheduled Gas, except to the extent Seller delivers Replacement Gas therefor at the Delivery Point.
(b) Notwithstanding any provisions in this Agreement to the contrary, Purchaser may terminate this Agreement if the Commercial Operation Delay Period is longer than three-hundred and sixty five (365) consecutive Days. To exercise the termination right pursuant to this Section 3.2(b), Purchaser shall provide written notice of termination to Seller within ten (10) Days after the earliest possible Early Termination Date. Upon termination pursuant to this Section 3.2(b), neither Party shall have any further liabilities with respect to this Agreement, except with respect to obligations of such Party that became due or accrued prior to such termination and, in the case of Seller, its obligations set forth in Article XV.
Appears in 1 contract
Samples: Synthetic Natural Gas Purchase and Sale Agreement (Global Energy, Inc.)
Consequences of Delays. (a) If Seller does not reasonably expect to achieve the Commercial Operation Date Milestone by October 1, 2010 in accordance with Section 3.1the Delivery Start Date, Seller shall provide prompt written notice thereof not later than ninety (90) Days prior to the Delivery Start Date, (a “"Commercial Operation Delay Notice”") to Purchaser of such expectation, the expected period of delay and the cause of the delay. Seller’s 's estimate of the expected period of delay shall be based on the best information available to obtained by Seller, and Seller shall promptly notify Purchaser of any expected changes in such period. Notwithstanding any such Seller shall provide Purchaser with written notice not later than eighty (80) Days prior to the Delivery Start Date as to whether Seller will either (i) elect to be responsible for Replacement Power for the duration of the Commercial Operation Delay Period in accordance with Section 3.2(b), or (ii) elect to incur a Delivery Delay Adjustment for the duration of the Commercial Operation Delay Period in accordance with Section 10.2(a).
(b) If Seller elects to be responsible for Replacement Power, then within five (5) Business Days of the second notice given in Section 3.2(a), the Seller shall provide written notice to Purchaser indicating whether (i) Seller elects to provide Replacement Power, or (ii) Seller elects to have Purchaser provide Replacement Power in which case Seller shall compensate Purchaser for Incremental Replacement Power Costs for the duration of the Commercial Operation Delay Period in accordance with Appendix F.
(c) If Seller has not provided the Commercial Operation Delay Notice or any failure of the Commercial Operation Date to occur on or before February 1, 2011, the Delivery Start Date shall nevertheless be by the date specified in Section 3.1(a3.2(a). With respect to nominations , but in any case has not provided at least ninety (90) Days notice of Gas during any delay in the Commercial Operation Delay PeriodOperations Date, then Replacement Power shall be provided by the Purchaser may make nominations for Scheduled Gas in an amount up to the Baseload Quantity on any Day during the Commercial Operation Delay Period, notwithstanding the fact that the quantity of Gas available from the Facility on such Day specified in the applicable Monthly Availability Plan or Daily Availability Schedule may be none, but otherwise in accordance with Article VI. If Purchaser makes such nominations for Scheduled Gas during the Commercial Operation Delay Period, and Seller shall compensate Purchaser for all the Incremental Replacement Gas Power Costs for the Scheduled Gas, except duration of the Commercial Operation Delay Period in accordance with Appendix F.
(d) Notwithstanding any provision in this Agreement to the extent contrary, the Seller delivers shall not be responsible for delays and any associated requirement for Replacement Gas therefor at the Power attributable to a Force Majeure Event or Delivery PointExcuse.
(be) Notwithstanding any provisions provision in this Agreement to the contrary, Purchaser may terminate this Agreement if the Commercial Operation Delay Period Date is longer than three-hundred not achieved by June 1, 2001; provided that if: (i) the delay in achieving the Commercial Operation Date is due to a Force Majeure Event or a Delivery Excuse, and sixty five (365ii) consecutive Days. To exercise the termination right pursuant to this Section 3.2(b), Purchaser shall provide written notice of termination to Seller within ten (10) Days after the earliest possible Early Termination Date. Upon termination pursuant to this Section 3.2(b), neither Party shall have any further liabilities with respect to this Agreement, except with respect to obligations of such Party that became due or accrued Delivery Start Date has occurred prior to June 1, 2001, then the Commercial Operation Date shall be extended one Day for each Day of the delay, however such termination anddate shall be no later than June 1, in the case of Seller, its obligations set forth in Article XV2002.
Appears in 1 contract
Samples: Power Purchase Agreement (LSP Batesville Funding Corp)