Common use of ACCEPTANCE OPTION Clause in Contracts

ACCEPTANCE OPTION. During any Contract Year, USL has the option, but not the obligation, to accept for disposal an amount of NOW from NESI in excess of the Annual Volume (the "Excess Volume"). USL may decline to accept Excess Volume for any reason. Should USL exercise its option to accept delivery of an amount of Excess Volume of NOW, NESI agrees to pay the "Excess Volume Rate" (as defined below) for disposal of the Excess Volume. In the event USL elects not to accept NOW delivered by NESI in excess of the Annual Volume during any Contract Year for any reason, including but not limited to rejection in accordance with Section 6.6 of this Agreement, such election shall not cause (i) the Annual Volume for any Contract Year to increase or (ii) the payments required under this Agreement to decrease.