Demand Increase Sample Clauses

Demand Increase. If there is a need for an increase in the Contract Demand, Seller and Dairyland shall determine whether any additions or modifications to existing facilities will be required to accommodate the increased demand. Customer shall provide advance payment of the estimated cost of any required studies. If Customer is the sole beneficiary of the increased demand capacity they will assume the entire cost of the studies, however if other entities will benefit from these studies Customer will only pay their equitable share. If Seller and Dairyland determine that additions or modifications are required, Seller and Dairyland shall estimate the installed cost of such additional or modified facilities (the “Additional Facilities”) and the estimated time required to install Additional Facilities. The need for Additional Facilities and the estimated installed cost and installation time shall be communicated to Customer, in writing, within forty-five (45) days of the date of Customer’s notice of the need for an increased demand, or as soon as practicable thereafter if there is a need to consult with third parties. After reviewing the estimated installed cost and installation time, Customer may withdraw its notice of intent to increase its demand or Customer may elect to increase its demand. If Customer elects to increase its maximum demand, Customer shall reimburse Seller and Dairyland for its share of the quoted cost (or a portion thereof) of the Additional Facilities on a progress payment basis with payments made by Customer within thirty (30) days of billing. Customer shall reimburse Seller and Dairyland for the full cost of the Additional Facilities if Customer is the only entity benefited by the Additional Facilities. Customer shall reimburse Seller and Dairyland for an equitable share of the cost of the Additional Facilities if other entities are benefited by the Additional Facilities. Additional Facilities may require a modification of the rate as negotiated by the parties.