Firm Quantity Clause Samples
The Firm Quantity clause establishes a fixed amount of goods or services that one party is obligated to deliver or purchase under a contract. In practice, this means that the specified quantity cannot be changed unilaterally by either party, and both sides are bound to fulfill the agreed-upon amount regardless of fluctuations in demand or supply. This clause ensures certainty and predictability in contractual obligations, reducing the risk of disputes over quantity and helping both parties plan their operations with confidence.
Firm Quantity a. EXCO may deliver or cause to be delivered to HWR for EXCO’s account at the Billing Meter Point a total or aggregate amount of up to twenty five thousand (25,000) barrels of Water per day (the “Firm Quantity”), and HWR shall accept, transport and properly dispose of such Water;
b. HWR may accept and dispose of quantities greater than the Firm Quantity on any day as HWR in its sole discretion determines to accept and dispose from time to time at such points depending on HWR’s operating capabilities and requirements; and
c. EXCO shall be entitled to use all capacity in the Pipeline in excess of the Firm Quantity should HWR not be fully utilizing the total capacity of the Pipeline.
d. This
Section 3.1 constitutes HWR’s agreement and covenant to accept delivery of at least the Firm Quantity of Water from EXCO and such additional quantities of EXCO Water as provided in Section 3.1 during the Primary Term and any extension thereof, notwithstanding any other provision of this Agreement (including Sections 3.3 and 4.6) permitting HWR to temporarily suspend acceptance of Water. HWR covenants to promptly remedy any situation requiring a temporary suspension of acceptance of EXCO Water that meets the Water quality and pressure requirements set forth in this Agreement.
Firm Quantity a. EXCO may deliver or cause to be delivered to Charis for EXCO’s account at the Billing Meter Point a total or aggregate amount of up to ********************** (**,***) barrels of Water per day (the “Firm Quantity”), and Charis shall accept, transport and properly dispose of such Water;
b. Charis may accept and dispose of quantities greater than the Firm Quantity on any day as Charis in its sole discretion determines to accept and dispose from time to time at such points depending on Charis’ operating capabilities and requirements; and
c. EXCO shall be entitled to use all capacity in the Pipeline in excess of the Firm Quantity should Charis not be fully utilizing the total capacity of the Pipeline.
d. This
Section 3.1 constitutes Charis’s agreement and covenant to accept delivery of at least the Firm Quantity of Water from EXCO and such additional quantities of EXCO Water as provided in Section 3.1 during the Primary Term and any extension thereof, notwithstanding any other provision of this Agreement (including Sections 3.3 and 4.6) permitting Charis to temporarily suspend acceptance of Water. Charis covenants to promptly remedy any situation requiring a temporary suspension of acceptance of EXCO Water that meets the Water quality and pressure requirements set forth in this Agreement.
Firm Quantity. Item Description Firm Quantity Completion Date (Expected Date for all Firm Quantity to be Delivered)
Firm Quantity a. EXCO may deliver or cause to be delivered to Charis for EXCO’s account at the Delivery Point a total or aggregate amount of up to *************thousand (**,000) barrels of Water per day (the “Firm Quantity”), and HWR shall accept, transport and properly dispose of such Water;
b. Charis may accept and dispose of quantities greater than the Firm Quantity on any day as Charis in its sole discretion determines to accept and dispose from time to time at such points depending on Charis’ operating capabilities and requirements; and
c. EXCO shall be entitled to use all capacity in the Pipeline in excess of the Firm Quantity should Charis not be fully utilizing the total capacity of the Pipeline. Charis also hereby represents to EXCO that Charis and Silversword intend to consolidate (or otherwise combine) in 2008. EXCO may terminate this Agreement in the event Charis and Silversword have not consolidated, merged or otherwise combined their businesses (with the effect of Charis or a sucessor to Charis and party to this Agreement owning the disposal ▇▇▇▇▇ to which the Pipeline will be disposing of water as contemplated by this Agreement) on or before December 31, 2008
d. This Section 3.1 constitutes Charis’ agreement and covenant to accept delivery of at least the Firm Quantity of Water from EXCO and such additional quantities of EXCO Water as provided in Section 3.1 during the Primary Term and any extension thereof, notwithstanding any other provision of this Agreement (including Sections 3.3 and 4.6) permitting Charis to temporarily suspend acceptance of Water. Charis covenants to promptly remedy any situation requiring a temporary suspension of acceptance of EXCO Water that meets the Water quality and pressure requirements set forth in this Agreement.
Firm Quantity a. El Paso may deliver or cause to be delivered to Charis for El Paso’s account at the Delivery Points a total or aggregate amount of up to twenty thousand (20,000) barrels of Water per day (the “Firm Quantity”) and Charis shall accept and transport and dispose such Water;
b. Charis may accept and dispose of quantities greater than the Firm Quantity on any day as Charis in its sole discretion determines to accept and dispose from time to time at such points depending on Charis’ operating capabilities and requirements; and
c. The Firm Quantity shall have first priority to all capacity in the Pipeline up to the Firm Quantity, in preference to all other parties delivering water to the Pipeline under separate agreements. El Paso shall be entitled to use all capacity in the Pipeline in excess of the Firm Quantity should Charis not be fully utilizing the total capacity of the Pipeline.