Common use of Underdelivery Clause in Contracts

Underdelivery. If in respect of a Time Unit and an Individual Contract, the Contract Quantity exceeds the Delivered Quantity by more than the Tolerance by reason of Seller's Default, the Seller shall pay to the Buyer as compensation for its resulting losses an amount equal to the product of: (a) the amount, if positive, by which the price, at which the Buyer acting in a commercially reasonable manner is or would be able to contract to purchase or otherwise acquire in an arm's length purchase from a third party (which may include the relevant Network Operator) an equivalent quantity of Natural Gas to replace the Default Quantity for such Time Unit, exceeds the Contract Price; and (b) the Default Quantity. Such amount shall be increased by the amount of any incremental transportation costs and charges and other reasonable and verifiable costs or expenses incurred by the Buyer in respect of the Default Quantity.

Underdelivery. If in respect of a Time Unit and an Individual Contract, the Contract Quantity exceeds the Delivered Quantity by more than the Tolerance by reason of Seller's Default, the Seller shall pay to the Buyer as compensation for its resulting losses an amount equal to the product of: (a) the amount, if positive, by which the price, at which the Buyer acting in a commercially reasonable manner is or would be able to contract to purchase or otherwise acquire in an arm's length purchase from a third party (which may include the relevant Network Operator) an equivalent quantity of Natural Gas to replace the Default Quantity for such Time Unit, exceeds the Contract Price; and (b) the Default Quantity. Such amount shall be increased by the amount of any incremental transportation costs and charges and other reasonable and verifiable costs or expenses incurred by the Buyer in respect of the Default Quantity.