Common use of Firm Clause in Contracts

Firm. Subject to the provisions hereof, Seller and Buyer shall Schedule, or cause to be Scheduled, at the Delivery Point(s) each Gas Day on a firm basis, if the Parties have so elected in a Transaction as evidenced in a Confirmation, the Designated Quantity. If on any Gas Day Seller or Buyer fails to Schedule the Designated Quantity, then such occurrence shall constitute a "Default" and the "Default Quantity" shall be the numerical difference between the Designated Quantity and the amount of Gas Scheduled and delivered for such Gas Day. Upon Default, the defaulting party shall pay to the other party an amount equal to the sum of the product of the Default Quantity multiplied by the Replacement Price Differential plus liquidated damages equal to $0.15 multiplied by the Default Quantity. "Replacement Price Differential" means (i) in the event of a Seller's Default, the positive difference obtained by subtracting the Contract Price from the cost to Buyer, including incremental transportation costs and other basis adjustments, to replace the Default Quantity for such Gas Day (but excluding penalties or charges for unauthorized receipts of Gas by Buyer) and (ii) in the event of a Buyer's Default, the positive difference obtained by subtracting (a) the price obtained by Seller in an arms-length sale(s) to a third party of a quantity equal to the Default Quantity for such Gas Day, less incremental transportation charges to Seller, and including other basis adjustments, from (b) the Contract Price.