Common use of Fuel Supply Clause in Contracts

Fuel Supply. Fuel Supply After COD Commencing as of the Phase 1 Commercial Operation Date, GPA shall deliver Fuel to Project Company in compliance with the Fuel Specifications for each day of operation, at such times as it may be required by Project Company to satisfy the hourly dispatch requirements to be provided by GPA (the “Fuel Supply Requirement”). All Fuel required to be delivered by GPA to Project Company under this Article shall be delivered to the corresponding Fuel Delivery Point and shall be measured at the corresponding Fuel Measurement Point in accordance with the provisions set forth in Schedule 12. Project Company shall be responsible for the installation, operation and maintenance of the Fuel measurement facilities. Unless Project Company informs GPA otherwise, the Fuel Supply Requirement shall be consistent with the Guaranteed Heat Rate specified in Schedule 2, adjusted to Site Conditions and expressed in BTUs per kWh. In the event the expected operating heat rate applicable to any period of operation is higher than the corresponding Guaranteed Heat Rate, Project Company shall inform the magnitude of the deviation, the likely cause of such deviation, and the way this deviation is going to be corrected. Project Company shall use its best efforts to meet the Guaranteed Heat Rate. GPA shall supply the Fuel Supply Requirement even if the expected operating heat rate is higher than the Guaranteed Heat Rate. Each Party shall cooperate reasonably with the other Party to coordinate the supply and transportation of Fuel to the Fuel Delivery Point with the operation of the Plant as follows: (x) by providing the other Party such information as the first Party shall reasonably request regarding the supply and transportation of the Fuel to the Fuel Delivery Point (on both a historical and estimated future basis); and (y) by maintaining personnel available at all times to address scheduling of Fuel supply and transportation. Subject to the foregoing, GPA shall have the right to change the quantities of Fuel nominated and received on a daily basis, or more frequently, to the extent permitted, so long as such changes do not disrupt Project Company’s operations. GPA shall be deemed to be in exclusive control of, and responsible for any damage or personal injury caused by, Fuel up to the Fuel Delivery Point. Project Company shall be deemed to be in exclusive control of, and responsible for any losses of Fuel, and any damages or injury caused by, such Fuel at and from the Fuel Delivery Point. GPA warrants that Fuel caused to be delivered hereunder to Project Company shall be free and clear of all liens or other encumbrances. Title to and risk of loss of all Fuel shall transfer from GPA to Project Company upon delivery to the Fuel Delivery Point. GPA undertakes that all Fuel delivered at the Fuel Delivery Point shall meet the Fuel Specifications. Project Company shall have the right to reject Fuel which fails to meet the Fuel Specification at the Fuel Delivery Point (“Non-Conforming Fuel”) provided that Project Company has made commercially reasonable efforts to receive such Non-Conforming Fuel. If Project Company erroneously rejects Fuel that in fact meets the Fuel Specification, Project Company shall be liable to GPA for all damages caused by said rejection and shall indemnify and hold GPA harmless therefor. If either Party becomes aware that Fuel that is being or will be delivered by GPA to the Project Company fails to meet the Fuel Specification, such Party shall inform the other Party of this fact as soon as possible after becoming aware thereof. Project Company shall, in accordance with Schedule 1, construct and maintain storage facilities at the Site for the supply of ULSD for the operation of the Facility (the “ULSD Storage Facilities”). Such storage facilities shall be capable of holding an inventory equivalent to the amount of ULSD necessary to operate the Facility at the full Contracted Facility Capacity (in accordance with the Guaranteed Heat Rate) for at least fourteen (14) consecutive Days or such larger quantities as may be required by Lenders. Project Company shall, in accordance with Schedule 1 finance, design and construct the ULSD Supply Infrastructure and transfer it to GPA at no cost on the Phase 1 Commercial Operation Date. GPA will own, operate, and maintain the ULSD Supply Infrastructure during the Term of the ECA. Fuel Supply During Testing and Commissioning GPA shall procure and deliver the Fuel required for start-up and commissioning prior to the Phase 1 Commercial Operation Date to the ULSD Bulk Storage pursuant to the specifications in Schedule 7. GPA shall pay for the Fuel required for start-up and commissioning up to a maximum of [ ]MMBtu and Project Company shall pay for any Fuel required and delivered in excess thereof. The Project Company shall be responsible for the operation and maintenance of the ULSD supply infrastructure prior to the Phase 1 Commercial Operation Date and the cost of first fill of ULSD in an amount equal to the Fuel storage requirements in Article 4.3.1(g) (the “First Fill”). At least eighteen (18) Months prior to the Expected Phase 1 Commercial Operation Date, Project Company and GPA shall agree to a procedure to periodically estimate and forecast the necessary amount of Fuel expected to be required for commissioning and start-up, provided, however, that the final amount of Fuel required shall be set no later than 120 days prior to the Expected Phase 1 Commercial Operation Date. Natural Gas Supply The following is applicable for Natural Gas if and when it becomes available and if and when GPA so elects to supply Natural Gas to the Facility.