Annualized Average Calculation Clause Samples

Annualized Average Calculation. A. Any hour that Seller does not have at least 50,000 pounds per hour of Deliverable Steam available for Buyer shall be excluded from the annual average calculation. Any steam purchased by Buyer from Seller during any such hour shall also be excluded from the annual average calculation. If this occurs between September 1 and May 31 of any year, then Buyer shall be credited for 15,000 pounds for each hour of unavailability. At Buyer's discretion, the provisions of this paragraph may be waived with written notice to Seller within thirty (30) days of the date of such waiver so long as such waiver applies to each of the foregoing provisions of this paragraph (3.2A). B. Any hour that Buyer's steam demand, including sales by Buyer, is under 75,000 pounds per hour shall also be excluded from the annualized average calculation, along with any steam purchase by Buyer from Seller during the same period. If this occurs between September 1 and May 31 of any year, then Buyer shall also be credited for 15,000 pounds for each such hour as provided herein (3.2B). C. The 35,000 pound per hour annual average is based on Buyer's 1986 actual and projected steam demand for its operation, including outside sales. Buyer shall have the right to reduce the 35,000 pound per hour annual average to the extent that Buyer demonstrates that there are changes in Buyer's operation, including outside sales, which will result in lower annual steam requirements, provided, however, that in such event, Seller's 50,000 pounds per hour minimum Deliverable Steam obligation shall be reduced on a pro rata basis. (See Appendix C.) Such right may be exercised no earlier than sixty (60) days after Buyer presents supporting documentation to Seller.