Gas Supply Arrangements. (i) Use and cause the Partnership to use ----------------------- reasonable efforts to pursue a gas procurement policy which (x) takes into consideration the gas purchasing policies of Con Ed so that on a long-term basis the risk that the Project's weighted average cost of gas will exceed the weighted average cost of gas of Con Ed is minimized and (y) provides for reasonable diversity in the sources of supply of natural gas to the Project; and prior to the execution of any Gas Purchase Agreement that has a term of two years or more, use and cause the Partnership to use reasonable efforts to obtain verification by an independent engineer of the natural gas reserves of any supplier with whom the Managing General Partner or the Partnership proposes to enter into a Gas Purchase Agreement (or any group of Gas Purchase Agreements from the same or related suppliers) representing more than 5% of the projected annual gas requirements of the Facility; provided, however, that neither the Managing General Partner nor --------- ------- the Partnership need obtain independent verification of the natural gas reserves of any supplier which has an investment grade rating and is a party to a Gas Purchase Agreement which does not contain any limitation on recourse to such supplier other than limitations on consequential damages and provisions for liquidated damages.
Gas Supply Arrangements. Borrower shall at all times during the term hereof maintain gas supply arrangements which are, to the reasonable satisfaction of Term Lenders, sufficient in form and substance to satisfy the Base Requirement. Without limiting the foregoing, Borrower acknowledges and agrees that at any time after the date which is one (1) year prior to the date of expiration of the Natural Gas Clearinghouse Inc. Contract, or at any time during which such contract is not in full force and effect, upon the reasonable recommendation of the Independent Engineer taking into account any term remaining under the Natural Gas Clearinghouse Contract and any other existing Qualified gas supply arrangements pursuant to Section 2.3(l)(iii) above, Term Lenders may require that any portion, or all, of the gas reserves which are to be utilized under Section 2.3(l)(ii) necessary to supply the gas required by the Facility for a period of up to two (2) years as determined in calculating the Base Requirement, at a price not in excess of that specified on Exhibit H, must be categorized by the Independent Engineer as proved developed producing reserves."
Gas Supply Arrangements. (a) The Borrower shall use its reasonable efforts to pursue a gas procurement policy which (i) takes into consideration the gas purchasing policies of PSE&G so that on a long-term basis the extent that the Project's weighted average cost of gas will exceed the weighted average cost of gas of PSE&G is minimized and (ii) provides for reasonable diversity in the sources of supply of natural gas to the Borrower. In addition, prior to the execution of any Gas Purchase Agreement that has a term of two years or more, the Borrower shall use its reasonable efforts to obtain verification by an independent engineer of the natural gas reserves of any supplier with whom the Borrower proposes to enter into a Gas Purchase Agreement (or any group of Gas Purchase Agreements from the same or related suppliers) representing more than 5% of the projected annual gas requirements of the Facility; provided, however, that the Borrower need not obtain independent verification of the natural gas reserves of any supplier if (x) such supplier has an investment grade rating and (y) the Gas Purchase Agreement to which such supplier is a party contains a "keep-whole" provision reasonably acceptable to the Required Lenders with respect to the supplier's failure to deliver the nominated quantity of gas.
