Gathering Volume Commitment Clause Samples
Gathering Volume Commitment. Shipper shall deliver to Processor a daily average of not less than 850,000 Mcf per Day of Committed Gas during each calendar year for the first five (5) years of the Initial Term (“Gathering Volume Commitment”). Subject to ARTICLE 3.3(c) and ARTICLE 3.3(d), in the event Shipper fails to deliver at least the Gathering Volume Commitment for any applicable calendar quarter, Shipper shall pay Processor an amount equal to the product of the (i) Gathering Fee, (ii) positive difference between (A) the product of the Gathering Volume Commitment and the number of days in such calendar quarter and (B) the Gathered Volume for such calendar quarter and (iii) the average Gross Heating Value of the Gathered Volume for such calendar quarter (“Gathering Volume Commitment Deficiency Payment”). Any Gathering Volume Commitment Deficiency Payment made by Shipper to Processor hereunder shall be considered liquidated damages and Processor’s sole and exclusively remedy regarding the delivery deficiency of the Gathering Volume Commitment.
Gathering Volume Commitment. Shipper shall deliver to Gatherer a quantity, in aggregate, of Committed Gas not less than 125,000 Mcf per Day as averaged for each quarter during each calendar year for the first five (5) years of the Initial Term (“Gathering Volume Commitment”). Subject to ARTICLE 3.3(b) and ARTICLE 3.3(c), in the event Shipper fails to deliver the Gathering Volume Commitment for any applicable calendar quarter, Shipper shall pay Gatherer an amount equal to the product of the (i) Gathering Fee and (ii) positive difference between the Gathering Volume Commitment and the Gathered Volume for such calendar quarter (“Gathering Volume Commitment Deficiency Payment”). Any Gathering Volume Commitment Deficiency Payment made by Shipper to Gatherer hereunder shall be considered liquidated damages and Gatherer’s sole and exclusively remedy regarding the delivery deficiency of the Gathering Volume Commitment.