Common use of Extended-Term Obligations Clause in Contracts

Extended-Term Obligations. The Parties acknowledge that any Fuel Supply Plan may include obligations provided by either Party which extend beyond the applicable Fuel Supply Period ("Extended-Term Obligations"). Extended-Term Obligations may include, but are not limited to, long-term commitments for pipeline capacity, storage rights, or financial risk products pertaining to the commodity price (such as fixed prices, costless collars, basis purchases, caps, or other price management mechanisms). Any Extended-Term Obligation that the Parties specifically approve in a separate letter agreement of approval shall be deemed effective and approved for the duration of the period to which it applies, regardless of whether such period extends beyond the term of any Fuel Supply Plan. For the avoidance of doubt, if Department is providing Fuel from Department’s own Fuel purchases or if Seller is providing Fuel on the Spot Market pursuant to Section 2.05(c), such provisions must be consistent with, and are limited by, the terms of any Extended-Term Obligations that the Parties have specifically approved in a separate letter agreement of approval. Within forty-five (45) Days prior to the termination of a Fuel Supply Plan, Department may assume all effective and approved Extended- Term Obligations (except for Seller's firm transportation rights) provided that Department obtains a release from the counter party to the Extended-Term Obligations releasing Seller from any future obligations Seller has with regard to such Extended-Term Obligations. Without limiting Seller’s right to enter into long-term commitments for its own accounts, unless otherwise specified in the appropriate separate letter agreement of approval, which approval shall not be unreasonably withheld or delayed, any Extended-Term Obligations (except for Seller’s firm intrastate transportation rights) that constitute long-term commitments for interstate pipeline capacity, storage rights, or any other physical handling of Fuel, shall be for the exclusive benefit and at the sole cost of Department and Seller shall not make use of any unused or excess capacity or rights to such Extended-Term Obligations for the benefit of any other party without the written consent of Department, which consent shall not be unreasonably withheld or delayed. Department may, in its sole discretion, make use of any such excess capacity in connection with its larger fuel program and Seller shall allow Department to direct Fuel Manager as appropriate in connection with any such use.

Extended-Term Obligations. The Parties acknowledge that any Fuel Supply Plan may include obligations provided by either Party which that extend beyond the applicable Fuel Supply Period ("Extended-Extended- Term Obligations"). Extended-Term Obligations shall be memorialized in separate agreements and may include, but are not limited to, long-term commitments for pipeline capacity, storage rights, or financial risk management products pertaining to the commodity price (such as fixed prices, costless collars, basis purchases, caps, or other price management mechanisms). Any Extended-Term Obligation that the Parties specifically approve in a separate letter agreement of approval shall be deemed effective and approved for the duration of the period to which it applies, regardless of whether such period extends beyond the term of any Fuel Supply Plan. For the avoidance of doubt, if Department is providing Fuel from Department’s own Fuel purchases or if Seller is providing Fuel on the Spot Market pursuant to Section 2.05(c), such provisions must be consistent with, and are limited by, the terms of any Extended-Term Obligations that the Parties have specifically approved in a separate letter agreement of approval. Within forty-five (45) Days prior to the termination of a Fuel Supply Plan, Department CDWR may assume all effective and approved Extended- Term Obligations and all costs associated therewith (except for SellerHDPP's firm transportation rights) provided that Department CDWR obtains a release from the counter party to the Extended-Extended- Term Obligations releasing Seller HDPP from any future obligations Seller HDPP has with regard to such Extended-Term Obligations. Without limiting Seller’s right If any Agreement relating to enter into longan Extended-Term Obligation is terminated for default during the term commitments of such Extended-Term Obligation, then the defaulting Party shall be obligated to bear and shall pay all costs associated with performance for its own accountsthe remaining term or the close-out of such Extended-Term Obligation, unless and the defaulting Party shall likewise be entitled to any benefits associated with performance for the remaining term or the close-out of such Extended-Term Obligation. Unless otherwise specified in the appropriate separate letter agreement of approval, which approval shall not be unreasonably withheld or delayed, any Extended-Term Obligations (except for Seller’s firm intrastate transportation rights) that constitute long-term commitments for interstate pipeline capacity, storage rights, or any other physical handling of Fuel, shall be for the exclusive benefit of CDWR, all costs associated with suc h Extended-Term Obligations shall be exclusively for CDWR's account and at the sole cost of Department and Seller HDPP shall not make use of any unused or excess capacity or rights to such Extended-Term Obligations for the benefit of any other party without the written consent of Department, which consent shall not be unreasonably withheld or delayedparty. Department CDWR may, in its sole discretion, make use of any such excess capacity in connection with its larger fuel program and Seller shall allow Department program, provided such use does not hinder HDPP or its designee in its ability to direct provide Fuel Manager as appropriate to the Project if it were originally contemplated that HDPP or its designee would have access to such Extended-Term Obligations in connection with any such useorder to support deliveries of Fuel to the Project.