Shortfall Credits Sample Clauses
The Shortfall Credits clause establishes a mechanism for addressing situations where a party fails to deliver the agreed quantity of goods or services. Typically, if a supplier underdelivers, the clause outlines how credits are calculated and applied to compensate the buyer, such as through future invoice deductions or account credits. This clause ensures that shortfalls are fairly remedied, protecting the buyer from losses due to incomplete fulfillment and incentivizing the supplier to meet their obligations.
Shortfall Credits. (a) If Customer pays any NGL Shortfall Fee with respect to any Quarter in the NGL Services Secondary Term or thereafter, then, subject to the other provisions of this Section 6.2, for a period of four Quarters from the end of the Quarter in which such NGL Shortfall Fee was accrued, Customer shall be entitled to a credit with respect to the NGL Fees payable by Customer during any such Quarter in connection with volumes of Customer NGLs Tendered into the Terminals System by Customer during any such Quarter, but only to the extent such volumes so Tendered are in excess of the applicable System NGL Estimate for such Quarter (each such volume credit, stated in Barrels, a “Shortfall Credit”). TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS (**).
(i) During any subsequent Quarter in which an earned Shortfall Credit may be utilized by Customer, Customer may only utilize such Shortfall Credit for volumes of Customer NGLs Tendered into the Terminals System by Customer in excess of the applicable System NGL Estimate for such Quarter as contained in the then-currently agreed Development Plan.
(ii) The use of a Shortfall Credit shall result in Customer not being obligated to pay an NGL Fee attributable to volumes of Customer NGLs, stated in Barrels, Tendered into the Terminals System by Customer, but only up to the amount of such Shortfall Credit and only with respect to volumes of Customer NGLs so Tendered in excess of the applicable System NGL Estimate for such Quarter as contained in the then-currently agreed Development Plan.
(b) Each Shortfall Credit shall expire at the end of the fourth full Quarter following the date on which the applicable Shortfall Fee was accrued.
(c) Provider shall be responsible for keeping records and balances of any applicable Shortfall Credits that have been earned by Customer and providing such balances to Customer upon Customer’s request.
(d) The Parties agree that, as of January 1, 2017, there shall be no outstanding “Terminals Shortfall Credits”, “Loading Shortfall Credits”, “Tank Car Shortfall Credits” and “NGL Shortfall Credits” (in each case, as such terms are defined in the Original Agreement), and any such amounts that (i) have accrued on or prior to January 1, 2017 pursuant to the Original Agreement, but...
Shortfall Credits any payments due under Clause 18.5 of this Schedule 2; or
Shortfall Credits. The Shortfall in any year shall be subject to reduction as follows:
(a) the volume of any Logs purchased in that year by FCCL (and any of its Affiliates other than TimberWest and its Subsidiaries) as a result of, or in order to remedy, a default by TimberWest under this Agreement;
(b) any credit to the Shortfall under Sections 8.2, 8.3 or 8.4 in respect of that year; and
(c) at the option of FCCL, all or any part of the volume of Logs which remains an outstanding obligation to Fibre Suppliers at the end of that year in respect of wood chips purchased by FCCL under the Fibre Exchange Agreements during that year.