Minimum Processing Volume Commitment Sample Clauses
A Minimum Processing Volume Commitment clause requires one party, typically a buyer or processor, to process or purchase a specified minimum quantity of goods or materials within a defined period. This clause often outlines the exact volume required, the timeframe for fulfillment, and any penalties or remedies if the minimum is not met. For example, a manufacturer may be obligated to process at least 10,000 units per month from a supplier. The core function of this clause is to provide certainty and stability for both parties by ensuring a predictable level of business activity and mitigating the risk of underutilization or revenue shortfalls.
Minimum Processing Volume Commitment. With respect to each of the first ten Contract Years, a volume of Dedicated Gas per Day, stated in MMcf, equal to 75% of the nameplate processing capacity of the Processing Plant from time to time (without taking into account any limitations to such processing capacity as a result of Maintenance or Force Majeure). If there is any Increased Capacity pursuant to Section 3.3, the Minimum Processing Volume Commitment will be increased by a volume of Dedicated Gas per Day, stated in MMcf, equal to 75% of such Increased Capacity with respect to the period from the date the Additional Processing Facilities are first placed in service by Processor through the end of the Contract Year in which such Additional Processing Facilities were placed in service and with respect to each of the ten following Contract Years.