Plant Expansion Clause Samples

Plant Expansion. Subject to the provisions of Subparagraph 7.2 below, Lessee shall have the right to increase the capacity of the Existing Plant or build the New Plants on the leased land, if operations under the Lease demonstrate the availability of an adequate supply of geothermal resources, on the terms and conditions set forth herein. Subject to the provisions of Subparagraph 7.2 below and the first and second provisos to this sentence, Lessee shall have the right of first refusal for the development of electricity available from utilization of geothermal resources underlying the Adjacent Lease; provided that Lessee's operation proves the adequacy of the geothermal resources and the commercial feasibility of producing electricity therefrom; and provided further, that Lessee shall have committed to construction of or more of the New Plants associated with the Standard Offer Number Four Power Purchase Contracts between Lessee and Southern California Edison Company bearing Document Numbers 2433H and 2435H (the "Standard Offer Number Four Contracts") or expanded the Existing Plant in an amount of no less than ten (10) megawatts nameplate rating prior to the expiration of the Standard Offer Number Four Contracts. Lessee hereby agrees to exercise good faith efforts to obtain all necessary governmental permits, authorizations, and approvals to build and operate two (2) New Plants on the leased land or on adjacent land leased or otherwise controlled by Lessor and, if it obtains governmental permits, authorizations, and approvals which, in its sole discretion, are such that make construction of the two New Plants economically viable, agrees to seek all necessary internal corporate and partnership authorizations, and sufficient financing for the construction of such two New Plants. In the event that Lessee is unable, in the exercise of good faith efforts, to obtain all necessary external and internal permits, authorizations, approval and financing to build and operate any New Plants or determine not to build any New Plants for any reason or no reason, Lessee shall proceed in accordance with the terms of Subparagraph 7.2, below. Regardless of ownership of the land or geothermal resource dedicated to any New Plant, Lessee shall pay Lessor royalties on the Gross Proceeds of such New Plants as provided in Subparagraphs 5.2 and 5.3, above.

Plant Expansion. Lessee shall have the right to increase the capacity of its plant or build additional plants on the leased land if operations under this Lease demonstrate the availability of an adequate supply of geothermal resources on the same terms and conditions as set forth herein. Lessee shall have the right of first refusal for the development of electricity available from geothermal resources on adjacent or nearby lands leased or otherwise controlled by Lessor, in the event Lessee's operation proves the adequacy of the geothermal resources and the commercial feasibility of producing electricity therefrom. Lessee shall have four (4) years from the date of firm operation of the plant to determine if an increase in plant and production capacity is warranted by the geothermal resources underlying the leased land on the basis of its operations. Lessee will notify Lessor of its determination on or before the fourth anniversary of said date. If an increase in the size of the plant or construction of additional plants is not warranted in Lessee's sole judgment, Lessee will relinquish its rights to the surface area not actually used for the original plant or plants, gathering and injection lines, and ▇▇▇▇▇, Lessor shall assume full responsibility for compliance with any necessary governmental approvals of such a relinquishment by Lessee. A release of surface rights to any part of the leased land shall not constitute a release of any part of the geothermal resources underlying the leased land.

Plant Expansion. 6.1. At any time if it appears the Plant will meet its maximum 1.3 million gallon per day (“MGD”) capacity, or if any other reasons would dictate, the City and County shall meet to negotiate in good faith any new construction and associated matters associated with new or additional processes or basins.

Plant Expansion. The Plant Expansion shall have been completed and operational under applicable Law as evidenced by HH Water having received an Authorization to Operate the Plant Expansion by the Jackson County, North Carolina Health Department pursuant to G.S. 130A-336.2(m), together with any other licenses, permits and registrations which may be required in order for HH Water to operate the Plant Expansion. 4862-1741-7610.9

Plant Expansion. The Bond Financing has been sized to accommodate a plant expansion within ten (10) years from the sale of the first bonds. If, after the construction of the initial plant is completed and revenue generation operations begin, any Buildings or Leased Equipment are thereafter purchased through the Bond Financing as part of a plant expansion, such Buildings and Leased Equipment shall be entitled to a twenty year tax abatement (with the Lease accordingly extended as necessary) on the same methodology described in paragraphs 1, 2 and 3 above. The plant expansion will not be taxed during its construction, as set forth in paragraph 1, and a separate twenty (20) year hypothetical amortization of the bonds issued in connection with such plant expansion will be established based upon the EPC for such plant

Plant Expansion. Equipment should be located so that it can be conveniently tied in with any future expansion of the process. Space should be left on pipe paths for future needs, service pipes over-sized to allow for future requirements.