Common use of Termination Prior to Commencement Date Clause in Contracts

Termination Prior to Commencement Date. In the event that the Contract terminates for any reason before the Commencement Date, Shipper shall pay to Enbridge a termination charge (“Termination Charge”). The Termination Charge will be calculated by Enbridge based upon the aggregate of all internal and external costs, expenses and overheads incurred by Enbridge in relation to the construction, installation and connection of the meter station as contemplated under the Contract and/or resulting from the termination, including but not limited to those relating to: site, meter station and pipeline design and studies, obtaining regulatory approvals, permitting fees, site preparation, construction, material, equipment, third party parts and components, maintenance, decommissioning, site restoration and associated cancellation fees. The parties agree, in the event the calculation of the Termination Charge is necessary pursuant to this paragraph (a), that the second paragraph of Article XII Default and Termination of M13 Rate Schedule “A 2013” (or any subsequent replacement or amendment thereof) is of no force and effect, and is instead replaced by the following: “In the event that the Contract is terminated pursuant to Section 2. Termination and Default, paragraph (a) of the Special Provisions contained in Schedule 1, the parties hereto agree that they shall continue to be bound only by the terms and conditions set forth in the Contract but only for the purpose of: (i) determining the actual quantities in Xxxxxxx's Producer Balancing Account with such determination being subject to Article X. Such extended period of time shall not exceed one (1) year from the date of termination of the Contract; and (ii) Shipper paying to Enbridge the Termination Charge, which amount shall be paid to Enbridge within 30 days after such invoice is issued by Enbridge. Should Shipper fail to pay all or part of the invoice Shipper shall pay to Enbridge interest on the unpaid portion of the invoice accruing at a rate per annum equal to the minimum commercial lending rate of Enbridge's principal banker in effect from time to time from the due date until the date of payment.”