Provision Regarding Output Contract Laws Sample Clauses

Provision Regarding Output Contract Laws. The Parties acknowledge that deliveries of Committed Gas hereunder may increase or decrease significantly from Month to Month as a consequence of the routine conduct of the Parties' operations and a variety of factors affecting the market for Gas generally. Accordingly, the Parties agree that (a) the obligations of UPR (i) to sell and deliver Committed Gas and (ii) of UPFUELS to purchase and receive Committed Gas, and (b) the methods used by UPFUELS and UPR pursuant to Section 2.3 to estimate the quantities of Committed Gas to be sold by UPFUELS and purchased by UPR from Month to Month hereunder, are all commercially reasonable means, arrived at by both Parties, acting in good faith, to minimize the severity of such increases and decreases in deliveries, consistent with the commercial realities of producing and marketing the Committed Gas and the realities of Gas markets generally. The Parties agree that Section 2.306 of the Texas Business and Commerce Code, or any provision of any law with similar provisions (collectively, "Output Contract Laws"), is inapplicable to this Agreement and the transactions hereby contemplated. To the extent that any Output Contract Laws are held to apply to this Agreement and the transactions hereby contemplated, the Parties hereby WAIVE, RELEASE AND RELINQUISH any defenses to the enforcement of this Agreement arising from such Output Contract Laws, and any claims that may be asserted by either Party arising from such Output Contract Laws.
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Related to Provision Regarding Output Contract Laws

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