Common use of Unintentional Reversal Clause in Contracts

Unintentional Reversal. (1) Following a finding by the Administrator (or the Sagebrush Ecosystem Council, if the issue is elevated by Participant under Section 13.b.3 of this Contract) of Credit Project failure as a result of Unintentional Reversal, the Administrator may withdraw Credits from the Reserve Account to cover any invalidated Credits at no cost to Participant. Administrator and Participant shall discuss whether to continue with the Credit Project. (2) If the entire Project Area is affected by the Unintentional Reversal, and if either or both Parties choose not to Remediate the Project Area, Participant has the option to cancel this Contract without penalties and retain the ability to re-enroll the Project Area at a later time. The Administrator’s right to cancel this Contract is addressed in Sections 12.a.4, 12.b.2, and 16 of this Contract. If the Participant cancels this Contract, the Participant relinquishes the right to withdraw funds from the Financial Assurance for Management and Monitoring. The Administrator shall use the remaining amount of funds in the Financial Assurances Fund for Management and Monitoring to purchase credits on a different Project Area. (3) If the Parties agree to fully or partially Remediate the Project Area (or the portion of the Project Area affected by the Credit Project Failure), Participant, in coordination with the Administrator, must initiate development of a Remedial Action Plan as an amendment to this Contract and the Management Plan within 30 days following identification of Credit Project failure. The Remedial Action Plan must be completed within 120 days following identification of Credit Project failure, unless the Parties mutually agree to an extension. Funds remaining in the Financial Assurances Fund for Management and Monitoring may be used to pay for activities in the remedial action plan. If only a portion of the credits are recoverable, the Administrator may use funds remaining in the Financial Assurance Fund for Management and Monitoring to purchase credits from a different property to make up the deficit. (4) If all or a portion of the Project Area is affected by the Unintentional Reversal and if conditions on the Project Area have not improved by, or continue to deteriorate for, three growing seasons after the date that the Parties agreed to the Remedial Action Plan, then the Administrator may elect to revisit the decision to continue the Credit Project. Participant will provide, at a minimum, annual progress reports on the implementation of the Remedial Action Plan. If the Administrator decides to cancel this Contract, the payment provisions in Section 12.a.2 of this Contract apply.

Unintentional Reversal. (1) Following a finding by the Administrator (or the Sagebrush Ecosystem Council, if the issue is elevated by Participant under Section 13.b.3 of this Contract) of Credit Project failure as a result of Unintentional Reversal, the Administrator may withdraw Credits from the Reserve Account to cover any invalidated Credits at no cost to Participant. Administrator and Participant shall discuss whether to continue with the Credit Project. (2) If the entire Project Area is affected by the Unintentional Reversal, and if either or both Parties choose not to Remediate the Project Area, Participant has the option to cancel this Contract without penalties and retain the ability to re-enroll the Project Area at a later time. The Administrator’s right to cancel this Contract is addressed in Sections 12.a.4, 12.b.2, and 16 of this Contract. If the Participant cancels this Contract, the Participant relinquishes the right to withdraw funds from the Financial Assurance for Management and MonitoringMonitoring that is proportional to the number of Credits that were invalidated. The Administrator shall use the remaining amount of funds in the Financial Assurances Fund for Management and Monitoring to purchase credits on Credits proportional to the number of Credits that were invalidated and that were sold or otherwise applied to offset Debits from a different Project Area. (3) If the Parties agree to fully or partially Remediate the Project Area (or the portion of the Project Area affected by the Credit Project Failurefailure), Participant, in coordination with the Administrator, must initiate development of a Remedial Action Plan as an amendment to this Contract and the Management Plan within 30 days following identification of Credit Project failure. The Remedial Action Plan must be completed within 120 days following identification of Credit Project failure, unless the Parties mutually agree to an extension. Funds remaining in the Financial Assurances Fund for Management and Monitoring may be used to pay for activities in the remedial action plan. If only the Parties agree not to Remediate a portion of the credits are recoverablerecoverable Credits, and those Credits have been sold or otherwise applied to offset Debits, the Administrator may use funds remaining in the Financial Assurance Fund for Management and Monitoring to purchase credits from a different property to make up the deficit. (4) If all or a portion of the Project Area is affected by the Unintentional Reversal and if conditions on the Project Area have not improved by, or continue to deteriorate for, three growing seasons after the date that the Parties agreed to the Remedial Action Plan, then the Administrator may elect to revisit the decision to continue the Credit Project. Participant will provide, at a minimum, annual progress reports on the implementation of the Remedial Action Plan. If the Administrator decides to cancel this Contract, the payment provisions in Section 12.a.2 of this Contract apply.

Unintentional Reversal. Participant(s) is not liable for Credit Project failure if Participant(s) is otherwise in compliance and such failure is a result of force majeure or competing land uses not under the control of the Participant(s) as defined in the Conservation Credit System Manual. (1) If Participant(s) asserts Credit Project failure as a result of Unintentional Reversal then Participant(s) must prove that reasonable steps were taken to minimize delay or damages caused by foreseeable events, that Participant(s) substantially fulfilled all non-excused obligations, and that the Administrator was timely notified of the likelihood or actual occurrence of an event described in this section. The Administrator may request and require Participant(s) to provide necessary information. (2) Following a finding by the Administrator (or the Sagebrush Ecosystem Council, if the issue is elevated by Participant under Section 13.b.3 of this Contract) of Credit Project failure as a result of Unintentional Reversal, the Administrator may withdraw Credits credits from the Reserve Account reserve account to cover any invalidated Credits credits at no cost to ParticipantParticipant(s). Administrator and Participant Participant(s) shall discuss decide whether to continue with the Credit Project. (2i) If the entire Project Area is affected by the Unintentional Reversal, and if either or both Parties choose not to Remediate remediate the Project Area, Participant has Participant(s) have the option to cancel this Contract without penalties and retain the ability to re-enroll the Project Area at a later time. The Administrator’s right to cancel If this Contract is addressed in Sections 12.a.4, 12.b.2, and 16 of this Contract. If the Participant cancels this Contractcanceled, the Participant Participant(s) relinquishes the right to withdraw funds from the Financial Assurance Fund for Management and Monitoring. The Administrator shall use the remaining amount of funds in the Financial Assurances Fund for Management and Monitoring to purchase credits on a different Project Area. (3ii) If the Parties agree choose to fully or partially Remediate remediate the Project Area (or Area, the portion of the Project Area affected by the Credit Project Failure), Participant, in coordination with the Administrator, must initiate development of Parties shall develop and agree to a Remedial Action Plan remedial action plan as an amendment to this Contract and the Management Plan within 30 90 days following identification of Credit Project failure. The Remedial Action Plan must be completed within 120 days following identification of Credit Project failure, unless the Parties mutually agree to an extension. Funds remaining in the Financial Assurances Fund for Management and Monitoring may be used to pay for activities in the remedial action plan. If only a portion of the credits are recoverable, the Administrator may use funds remaining in the Financial Assurance Fund for Management and Monitoring to purchase credits from a different property to make up the deficit. (43) If all or a portion of the Project Area is affected by the Unintentional Reversal and if conditions on the Project Area have not improved by, or continue to deteriorate for, three growing seasons one year after the date that the Parties agreed to the Remedial Action Planremedial action plan, then the Administrator may elect to revisit the decision to continue the Credit Project. Participant will provideIf this Contract is canceled, at a minimum, annual progress reports on the implementation of Participant(s) relinquishes all access to the Remedial Action Plan. If Financial Assurances Fund for Management and Monitoring and the Administrator decides shall use the remaining amount in the fund to cancel this Contract, the payment provisions in Section 12.a.2 of this Contract applypurchase credits on a different property.

Unintentional Reversal. Participant is not liable for Credit Project failure if Participant is otherwise in compliance and such failure is a result of Force Majeure or Competing Land Uses not under the control of the Participant as defined in the Manual. (1) Following a finding by the Administrator (or the Sagebrush Ecosystem Council, if the issue is elevated by Participant under Section 13.b.3 14.b.3 of this Contract) of Credit Project failure as a result of Unintentional Reversal, the Administrator may withdraw Credits from the Reserve Account to cover any invalidated Credits at no cost to Participant. Administrator and Participant shall discuss whether to continue with the Credit Project. (2) If the entire Project Area is affected by the Unintentional Reversal, and if either or both Parties choose not to Remediate the Project Area, Participant has the option to cancel this Contract without penalties and retain the ability to re-enroll the Project Area at a later time. The Administrator’s right to cancel this Contract is addressed in Sections 12.a.413.a.4, 12.b.213.b.2, and 16 17 of this Contract. If the Participant cancels this Contract, the Participant relinquishes the right to withdraw funds from the Financial Assurance for Management and Monitoring. The Administrator shall use the remaining amount of funds in the Financial Assurances Fund for Management and Monitoring to purchase credits on a different Project Area. (3) If the Parties agree to fully or partially Remediate the Project Area (or the portion of the Project Area affected by the Credit Project Failure), Participant, in coordination with the Administrator, must initiate development of a Remedial Action Plan as an amendment to this Contract and the Management Plan within 30 days following identification of Credit Project failure. The Remedial Action Plan must be completed within 120 days following identification of Credit Project failure, unless the Parties mutually agree to an extension. Funds remaining in the Financial Assurances Fund for Management and Monitoring may be used to pay for activities in the remedial action plan. If only a portion of the credits are recoverable, the Administrator may use funds remaining in the Financial Assurance Fund for Management and Monitoring to purchase credits from a different property to make up the deficit. (4) If all or a portion of the entire Project Area is affected by the Unintentional Reversal and if conditions on the Project Area have not improved by, by or continue to deteriorate for, for three growing seasons after the date that the Parties agreed to the Remedial Action Plan, then the Administrator may elect to revisit the decision to continue the Credit Project. Participant will provide, at a minimum, annual progress reports on the implementation of the Remedial Action Plan. If the Administrator decides to cancel this Contract, the payment provisions in Section 12.a.2 13.a.2 of this Contract apply.