Decommissioning Bond Sample Clauses
A Decommissioning Bond clause requires a party, typically the operator of a facility or project, to provide a financial guarantee ensuring that funds will be available to cover the costs of dismantling and removing equipment or infrastructure at the end of its useful life. This bond is usually posted before operations begin and remains in place until decommissioning obligations are fulfilled, applying to activities such as oil rigs, wind farms, or industrial plants. The core function of this clause is to protect landowners, regulators, or other stakeholders from being left with the financial burden of decommissioning, ensuring that the responsible party fulfills its environmental and contractual obligations.
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Decommissioning Bond. As security for the performance of Seller’s obligations under Section 8.1 (collectively, “Decommissioning”), prior to the issuance of the Installation Notice to Proceed, Seller shall, at its sole cost and expense, obtain and cause to be issued and delivered to Purchaser by a Qualified Surety a decommissioning bond (“Decommissioning Bond”), in form and substance as provided in Schedule 12 (Form of Decommissioning Bond) or as may otherwise be acceptable to Purchaser. The Decommissioning Bond shall specify that it shall be subject to and governed by Virginia law.
Decommissioning Bond. Seller shall have obtained and delivered the Decommissioning Bond, satisfying the requirements set forth in Section 8.2, to Purchaser.
Decommissioning Bond. A. The Operator hereby agrees to execute and file with the Town Clerk a bond in a form acceptable to the Town Attorney which shall identify the Town as an Obligee and/or Beneficiary consistent with this Agreement (the “Decommissioning Bond”). The Decommissioning Bond shall also identify the landowner of the Property as a co- beneficiary of the Decommissioning Bond. The Decommissioning Bond, or a renewal or replacement thereof, shall be in place until the removal of the Solar Energy System, and in the amount of $148,807.21 representing the estimated cost of removal of the Solar Energy System and restoration of the Property in accordance with the Decommissioning Plan. The Parties agree that the Decommissioning Bond shall be used solely to pay for any decommissioning costs of the Project pursuant to the terms and conditions of this Agreement and the Decommissioning Plan. The Operator shall have no further payment obligations in connection with decommissioning the Project during the operation of the Project, provided that the Operator complies with posting the Decommissioning Bond in accordance with this Agreement.
B. Should the Decommissioning Bond be cancelled for any reason during the life of the Project, the Operator shall replace the respective Decommissioning Bond with an alternative form of surety acceptable to the Town Attorney within sixty (60) days of such cancellation.
Decommissioning Bond. Prior to obtaining a building permit to start physical construction of the Project (the "Bond Start Date"), the Owner (or its successor in title) shall post an annually renewing Decommissioning Bond (the "Decommissioning Bond"),which Decommissioning Bond may be renewed on an annual basis, throughout the operational life of the solar project and until the decommissioning agreement is fully completed, by a rated lending institution or other surety company acceptable to the Town. The Decommissioning Bond shall name the Town as the bonded or benefitted party. Said Decommissioning Bond shall be in the initial amount of $677,224.93 (the "Initial Bond Amount"), which represents no less than 150% of the estimated removal cost to Decommission the Project as determined by the Owner and Town’s engineering consultant, and the lending institution or other surety issuing the Decommissioning Bond shall have an AM Best rating of A- or higher. Details of the expected Decommissioning activities and costs are described on the Decommissioning Plan (Attachment 1), which is incorporated herein and made a part hereof.
(a) Upon posting of the Decommissioning Bond, the Owner (or its successor in title) will provide the Town with the original Decommissioning Bond policy and all related documents with contact information for the financial provider.
(b) The Decommissioning Bond will be increased or decreased annually via a continuation certificate to maintain the required decommissioning security. In the event of an increase of the Decommissioning Bond, such increase shall increase the amount of coverage to offset inflation, which shall be determined based on the annual rate of inflation (as determined by the Consumer Price Index as published by the U.S. Bureau of Labor Statistics, utilizing the index for all items less food and energy).
(c) On an annual basis, the Owner or its successor in title to the Project shall be responsible for providing the Town with proof of the renewal or non renewal of the Decommissioning Bond on at least 30 days notice but no earlier than 90 days, prior to the end of the term of the then current Decommissioning Bond. The above obligation of the Owner to provide timely proof of renewal or non renewal of the Decommissioning Bond may be satisfied by the surety, and the surety’s providing of timely proof to the Town under this Section shall be deemed to satisfy the Owner’s proof requirements under this Section 1c. However, if the surety fails to provide time...
Decommissioning Bond. Tenant shall, prior to the tenth (10th) anniversary of the Operation Date, post and deliver to Landlord a bond, letter of credit, or any other such surety instrument secured in an amount sufficient to cover the costs of the decommissioning and removal of the Solar Project Improvements (net of the salvage value thereof) and restoration in accordance with Section 4.1, which estimated amount shall be determined by a professional engineer or contractor who has the expertise in the removal and or construction of like improvements and restoration of real property, at Tenant’s expense (the “Decommissioning Bond”). Once posted, the Decommissioning Bond shall be maintained in effect until Tenant’s satisfaction of its removal and restoration obligations pursuant to Section 4.1 hereof.
Decommissioning Bond. A. The Operator hereby agrees to execute and file with the Town Clerk a bond in a form acceptable to the Town Attorney which shall identify the Town as an Obligee and/or Beneficiary consistent with this Agreement (the “Decommissioning Bond”). The Decommissioning Bond, or a renewal or replacement thereof, shall be in place until the removal of the Solar Energy System, and in the amount of $106,602.23 representing the estimated cost of removal of the Solar Energy System and restoration of the Property in accordance with the Decommissioning Plan. The Parties agree that the Decommissioning Bond shall be used solely to pay for any decommissioning costs of the Project pursuant to the terms and conditions of this Agreement and the Decommissioning Plan. The Operator shall have no further payment obligations in connection with decommissioning the Project during the operation of the Project, provided that the Operator complies with posting the Decommissioning Bond in accordance with this Agreement.
B. Should the Decommissioning Bond be cancelled for any reason during the life of the Project, the Operator shall replace the respective Decommissioning Bond with an alternative form of surety acceptable to the Town Attorney within sixty (60) days of such cancellation.
Decommissioning Bond. Tenant shall provide to Landlord a decommissioning and removal bond, naming Landlord as an obligee, in the amount sufficient to perform its Restoration obligations set forth in Section 17.2 herein as determined by an independent, qualified third party (the “Decommissioning Bond”). For Restoration of the area of the Leased Premises containing the Solar Energy Facilities (the “Solar Premises”), the Decommissioning Bond shall be provided no later than thirty (30) days prior to the Construction Commencement Date and shall contain only the costs estimated for Restoration of the Solar Premises. For Restoration of the Hydrogen Premises, the Parties acknowledge that, given the early stage of hydrogen production technology, the decommissioning costs for the Hydrogen Premises may not be possible to estimate in the initial years of operation of the Hydrogen Production Facilities, a determination of the decommissioning costs for the Hydrogen Premises shall be obtained no later than ten (10) years after the Operations Date, and the Decommissioning Bond amount shall be updated to include decommissioning costs for the Hydrogen Premises on the date that is ten (10) years after the Operations Date. Notwithstanding the foregoing, if the municipality in which the Leased Premises is located or other governmental agency shall require a decommissioning bond in connection with the Improvements, then satisfaction by Tenant of such requirement shall be deemed to satisfy Tenant’s obligation to provide a decommissioning and removal bond and no additional bond shall be required to be provided to Landlord hereunder.
Decommissioning Bond. Commencing on or before the Construction Period, Tenant shall provide to Landlord a decommissioning bond in the amount of Seven Hundred Fifty Thousand and No/100 Dollars ($750,000) (the "Decommissioning Bomf'). Once in place, Tenant shall keep the Decommissioning Bond in force throughout the Operating Period and Decommissioning Period until Tenant has completed the Removal Requirements. Landlord shall release and return the Decommissioning Bond upon Landlord's reasonable satisfaction that Tenant has completed the Removal Requirements. If Tenant fails to complete the Removal Requirements by the end of the Decommissioning Period, Tenant shall be responsible for liquidated damages in the amount of one hundred dollars ($100) per day the System remains on the Premises beyond the end of the Decommissioning Period. Landlord may provide notice to Tenant stating that ▇▇▇▇▇▇ has failed to remove the System (the "Abandonment Notice"). If Tenant fails to remove the System within thirty (30) days after receipt of the Abandonment Notice, Landlord shall have the right, at its option, in its sole discretion, to cause the removal the System by a qualified licensed contractor and complete restoration of the Premises, at Tenant's cost and expense. Landlord may draw on the Decommissioning Bond for such purpose, provided however Tenant shall remain responsible for any cost and expense in excess of the amount of the Decommissioning Bond. Tenant shall make payment of the liquidated damages and removal costs to Landlord within ten (10) days of receipt of notice of the same.