Project Efficiency Guaranty Clause Samples

Project Efficiency Guaranty. (a) During the Warranty Period, Operator shall determine within twenty (20) days after the end of each calendar month, whether the Project has performed at the Minimum Project Efficiency Level during such calendar month (“Efficiency Guaranty”). (b) If such calculation indicates that the Actual Gas Consumption of the Project was less than the Guaranteed Gas Consumption of the Project for a calendar month, then the difference (in MMBtu) between Guaranteed Gas Consumption and Actual Gas Consumption shall be recorded as a positive balance in the Efficiency Guaranty Bank. (c) If such calculation indicates that the Actual Gas Consumption of the Project was greater than the Guaranteed Gas Consumption for a calendar month, then the difference (in MMBtu) between Actual Gas Consumption less Guaranteed DM_US 164459510-10.107145.0012 Gas Consumption shall be recorded as a negative balance in the Efficiency Guaranty Bank. (d) Operator shall report the balance of the Efficiency Guaranty Bank to Owner within thirty (30) days of the end of each calendar month. If Operator fails to report the results of any Efficiency Guaranty calculation within the period required by this Section 4.3(d), Owner may perform its own calculations and notify Operator of the results of such calculation and, if applicable, make a claim under Section 4.9. (e) The Parties acknowledge and agree that the balance of Efficiency Guaranty Bank as of the Agreement Date (as updated to reflect the Project’s operations through November 30, 2019) equals 45,171 MMBtu.