Dedications; Minimum Volume Commitments Clause Samples
The "Dedications; Minimum Volume Commitments" clause establishes the obligation of a party, typically a supplier or customer, to dedicate certain resources or products and to commit to delivering or purchasing a specified minimum volume over a defined period. In practice, this means that the party must ensure that a set amount of goods, such as oil, gas, or other commodities, is supplied or taken, regardless of fluctuations in demand or production. This clause is commonly used in long-term supply agreements to provide certainty and stability for both parties. Its core function is to guarantee a baseline level of business, thereby reducing risk and supporting financial planning for both the supplier and the purchaser.
Dedications; Minimum Volume Commitments. (a) None of Seller or any of its Affiliates is a party to any Contract binding on or applicable to the Assets (i) that contains a commitment for Seller or any such Affiliate to provide a minimum volume of Hydrocarbons to another Person (except for and excluding any minimum volume of Hydrocarbons committed under a customary base contract for the sale and purchase of natural gas, as amended or supplemented) or (ii) that requires Seller or any such Affiliate to pay a deficiency payment or similar obligation (or become subject to any penalty or similar Damages) in the event Seller or any such Affiliate fails to provide the applicable minimum volume of Hydrocarbons in such relevant time period.
(b) Except as set forth on Schedule 4.22, none of Seller or any of its Affiliates is a party to any Contract binding on or applicable to the Assets pursuant to which any portion of the Assets is dedicated or Hydrocarbons produced therefrom are otherwise required to be delivered to a certain Person.
Dedications; Minimum Volume Commitments. (a) No Seller and none of their respective Affiliates is a party to any Contract binding on or applicable to the Assets (i) that contains a commitment for such Seller or any such Affiliate to provide or receive a minimum volume of Hydrocarbons, sand or water to or from another Person (except for and excluding any minimum volume of Hydrocarbons committed under a customary base contract for the sale and purchase of natural gas, as amended or supplemented) or (ii) that requires any Seller or any such Affiliate to pay, or receive from any Person, a deficiency payment or similar obligation (or become subject to any penalty or similar damages) in the event such Seller or any such Affiliate, or any such Person, fails to provide the applicable minimum volume of Hydrocarbons, sand or water in such relevant time period.
(b) Except as set forth on Schedule 4.22, no Seller or any of its Affiliates is a party to, and none of the Assets is subject to, any Contract binding on or applicable to the Assets pursuant to which any portion of the Assets is dedicated or Hydrocarbons produced therefrom are otherwise required to be delivered to a certain Person.
Dedications; Minimum Volume Commitments. (a) None of Seller or any of its Affiliates has directly entered into any, and to Seller’s knowledge there is no, Contract binding on or applicable to the Assets (i) that contains a commitment for Seller or any such Affiliate to provide a minimum volume of Hydrocarbons to another Person (except for and excluding any minimum volume of Hydrocarbons committed under a customary base contract for the sale and purchase of natural gas, as amended or supplemented) or (ii) that requires Seller or any such Affiliate to pay a deficiency payment or similar obligation (or become subject to any penalty or similar Damages) in the event Seller or any such Affiliate fails to provide the applicable minimum volume of Hydrocarbons in such relevant time period.
(b) Except as set forth on Schedule 4.20, none of Seller or any of its Affiliates has directly entered into any, and to Seller’s knowledge there is no, Contract binding on or applicable to the Assets pursuant to which any portion of the Assets is dedicated or Hydrocarbons produced therefrom are otherwise required to be delivered to a certain Person.