Common use of Gas Sales Contracts Clause in Contracts

Gas Sales Contracts. The Borrower will not, and will not permit any of its Subsidiaries to (the Borrower or any such Subsidiary being the “Seller” for purposes of this Section), enter into any Gas Sales Contract (i) such Gas Sales Contract is with a counterparty (the “Purchaser”) who is an Approved Purchaser at the time such Gas Sales Contract is entered into or the Purchaser has posted Acceptable Collateral to secure the Purchaser’s obligations thereunder, (ii) the terms of such Gas Sales Contract provide that if the Purchaser is not, or is no longer, an Approved Purchaser, such counterparty will, within three (3) Business Days, post Acceptable Collateral to secure the Purchaser’s obligations thereunder, (iii) the terms of such Gas Sales Contract provide that upon the failure to provide such Acceptable Collateral, the Seller may immediately terminate such Gas Sales Contract and sell the volumes of gas subject of the Gas Sales Contract to third party Purchasers and (iv) the proceeds of such Gas Sales Contract shall be deposited directly into the account of the Seller. Such Gas Sales Contract may also provide that if following any posting of Acceptable Collateral the Purchaser becomes an Approved Purchaser, any Acceptable Collateral previously posted by such Purchaser shall be immediately released and returned to such Purchaser; provided that, notwithstanding the foregoing, the Seller may enter into one or more Gas Sales Contracts which do not comply with the requirements of this sentence so long as the unpaid Exposure on all such Gas Sales Contracts does not, in the aggregate, exceed $2,500,000 at any one time. The terms of any Gas Sales Contract that contemplates the posting of Acceptable Collateral of the type described in clause (b) of the definition thereof shall require (A) the Seller, for each day during any delivery month, to calculate and notify the Purchaser of the Seller’s Exposure (as defined below) for the prior day (or “days” in the event any day or days are skipped) and (B) the Purchaser to deliver to the Seller, by the close of business on the day next following the date of such notice, to the deposit account maintained with the depository bank, in each case, specified in the Control Agreement (the “Margin Account”), collateral in the form of cash in an amount equal to such Exposure. For purposes of this Section, the term “Exposure” means, for any day, the volume of physical gas flow delivered during the previous day multiplied by the contract price therefor. Any such Gas Sales Contract shall provide that (i) if at any time the Purchaser fails to pay any amount when due (after giving effect to any applicable grace periods), the Seller may apply any posted collateral in respect of such Gas Sales Contract to amounts then due thereunder and (ii) upon the payment in full of the invoice price for any delivery month, the amount of cash collateral posted by the Purchaser in respect of such delivery month shall be returned to the Purchaser. Any such Gas Sales Contract may provide that any posted collateral at any time held in the Margin Account in excess of the amount required to be posted at such time may be applied toward the payment of gas in respect of the relevant delivery month.

Gas Sales Contracts. The Borrower will not, and will not permit any of its Subsidiaries to (the Borrower or any such Subsidiary being the “Seller” for purposes of this Section), enter into any Gas Sales Contract unless (i1) such Gas Sales Contract is with a counterparty (the “Purchaser”) who that is an Approved Purchaser at the time such Gas Sales Contract is entered into or the Purchaser has posted Acceptable Collateral to secure the Purchaser’s obligations thereunder, (ii2) the terms of such Gas Sales Contract provide that if the Purchaser is not, or is no longer, an Approved Purchaser, and if reasonable grounds for insecurity exists regarding performance of the obligations under the Gas Sales Contract by the counterparty, the Borrower will or may demand Adequate Assurance of Performance from such counterparty will, within three (3) Business Days, post Acceptable Collateral to secure the Purchaser’s obligations thereunderunder the Gas Sales Contract, (iii3) the terms of such Gas Sales Contract provide that upon the failure to provide such Acceptable CollateralAdequate Assurance of Performance, the Seller may immediately terminate suspend deliveries of gas as provided in such Gas Sales Contract and sell all or substantially all of the volumes of gas subject of the Gas Sales Contract to third party Purchasers and (iv4) the proceeds of such Gas Sales Contract shall be deposited directly into the account of the Seller. Such Gas Sales Contract may also provide that if following any posting of Acceptable Collateral the Purchaser becomes an Approved Purchaser, any Acceptable Collateral previously posted by such Purchaser shall be immediately released and returned to such Purchaser; provided that, notwithstanding the foregoing, the Seller may enter into one or more Gas Sales Contracts which do not comply with the requirements of this sentence Section 9.20 so long as the unpaid Exposure on all such Gas Sales Contracts does not, in the aggregate, exceed $2,500,000 15,000,000 at any one time. The terms of any Gas Sales Contract that contemplates the posting of Acceptable Collateral of the type described in clause (b) of the definition thereof shall require (A) the Seller, for each day during any delivery month, to calculate and notify the Purchaser of the Seller’s Exposure (as defined below) for the prior day (or “days” in the event any day or days are skipped) and (B) the Purchaser to deliver to the Seller, by the close of business on the day next following the date of such notice, to the deposit account maintained with the depository bank, in each case, specified in the Control Agreement (the “Margin Account”), collateral in the form of cash in an amount equal to such Exposure. For purposes of this Section, the term “Exposure” means, for any day, the volume of physical gas flow delivered during the previous day multiplied by the contract price therefor. Any such Gas Sales Contract shall provide that (i) if at any time the Purchaser fails to pay any amount when due (after giving effect to any applicable grace periods), the Seller may apply any posted collateral in respect of such Gas Sales Contract to amounts then due thereunder and (ii) upon the payment in full of the invoice price for any delivery month, the amount of cash collateral posted by the Purchaser in respect of such delivery month shall be returned to the Purchaser. Any such Gas Sales Contract may provide that any posted collateral at any time held in the Margin Account in excess of the amount required to be posted at such time may be applied toward the payment of gas in respect of the relevant delivery month.

Gas Sales Contracts. The Borrower will not, and will not permit any of its Subsidiaries to (the Borrower or any such Subsidiary being the “Seller” for purposes of this Section), enter into any Gas Sales Contract unless (i6) such Gas Sales Contract is with a counterparty (the “Purchaser”) who that is an Approved Purchaser at the time such Gas Sales Contract is entered into or the Purchaser has posted Acceptable Collateral to secure the Purchaser’s obligations thereunder, (ii7) the terms of such Gas Sales Contract provide that if the Purchaser is not, or is no longer, an Approved Purchaser, and if reasonable grounds for insecurity exists regarding performance of the obligations under the Gas Sales Contract by the counterparty, the Borrower will or may demand Adequate Assurance of Performance from such counterparty will, within three (3) Business Days, post Acceptable Collateral to secure the Purchaser’s obligations thereunderunder the Gas Sales Contract, (iii) 8) the terms of such Gas Sales Contract provide that upon the failure to provide such Acceptable CollateralAdequate Assurance of Performance, the Seller may immediately terminate suspend deliveries of gas as provided in such Gas Sales Contract and sell all or substantially all of the volumes of gas subject of the Gas Sales Contract to third party Purchasers and (iv9) the proceeds of such Gas Sales Contract shall be deposited directly into the account of the Seller. Such Gas Sales Contract may also provide that if following any posting of Acceptable Collateral the Purchaser becomes an Approved Purchaser, any Acceptable Collateral previously posted by such Purchaser shall be immediately released and returned to such Purchaser; provided that, notwithstanding the foregoing, the Seller may enter into one or more Gas Sales Contracts which do not comply with the requirements of this sentence Section 9.20 so long as the unpaid Exposure on all such Gas Sales Contracts does not, in the aggregate, exceed $2,500,000 15,000,000 at any one time. The terms of any Gas Sales Contract that contemplates the posting of Acceptable Collateral of the type described in clause (b) of the definition thereof shall require (A) the Seller, for each day during any delivery month, to calculate and notify the Purchaser of the Seller’s Exposure (as defined below) for the prior day (or “days” in the event any day or days are skipped) and (B) the Purchaser to deliver to the Seller, by the close of business on the day next following the date of such notice, to the deposit account maintained with the depository bank, in each case, specified in the Control Agreement (the “Margin Account”), collateral in the form of cash in an amount equal to such Exposure. For purposes of this Section, the term “Exposure” means, for any day, the volume of physical gas flow delivered during the previous day multiplied by the contract price therefor. Any such Gas Sales Contract shall provide that (i) if at any time the Purchaser fails to pay any amount when due (after giving effect to any applicable grace periods), the Seller may apply any posted collateral in respect of such Gas Sales Contract to amounts then due thereunder and (ii) upon the payment in full of the invoice price for any delivery month, the amount of cash collateral posted by the Purchaser in respect of such delivery month shall be returned to the Purchaser. Any such Gas Sales Contract may provide that any posted collateral at any time held in the Margin Account in excess of the amount required to be posted at such time may be applied toward the payment of gas in respect of the relevant delivery month.