Makeup Gas Sample Clauses
The Makeup Gas clause defines the terms under which a party can supply additional gas to compensate for any shortfall in delivery or receipt obligations under a gas supply agreement. Typically, if a buyer or seller fails to take or deliver the agreed quantity of gas in a given period, the clause allows for the shortfall to be made up in subsequent periods, often within a specified timeframe and subject to certain limits. This mechanism ensures that both parties have flexibility to address temporary imbalances in supply or demand, thereby reducing the risk of penalties and promoting the fulfillment of long-term contractual commitments.
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Makeup Gas. 4.3.1 If the Buyer has paid MGNT Amount during a Month, subject to availability of the Gas, the Buyer shall be entitled to a credit for the quantity of Sales Gas, up to a quantity equal in value to that of MGNT Amount in subsequent Months, until the expiry of the Recovery Period (“Makeup Gas”); provided, that the Buyer must first have taken delivery of the MTOPQ for that Month in which the Buyer wishes to draw Makeup Gas. However, Sellers shall not be under an obligation to supply Sales Gas beyond DCQ for the purpose of supplying such Makeup Gas.
4.3.2 The price ascribed to Makeup Gas quantity for the purpose of setting off against MGNT Amount shall be the Arithmetic Average of the Sales Gas Price applicable during the Month in which Makeup Gas is offtaken by the Buyer. Sellers shall provide a credit towards the Makeup Gas quantities taken by Buyer up to MGNT Amount.
4.3.3 The order in which Makeup Gas shall be offtaken shall be the same order in which the Makeup Gas is accrued. It is hereby agreed between the Parties that the Buyer shall offtake all quantities of Makeup Gas as per this Clause 4.3 before the expiry of the Recovery Period. For avoidance of doubt, there shall be no obligations like Take-or-Pay or shortfall applicable for Makeup Gas.
4.3.4 If upon expiry of the Recovery Period, ▇▇▇▇▇ has failed to take any remaining Makeup Gas, then the Buyer’s right to such remaining - Makeup Gas shall be forfeited without any further recourse.
Makeup Gas. (a) If the Buyer has paid GNT Amount during a Term of the Agreement, subject to availability of the Gas, the Buyer shall be entitled to a credit for the quantity of Sales Gas, up to a quantity equal in value to that of GNT Amount until the expiry of the Recovery Period (“Makeup Gas”). However, Sellers shall not be under an obligation to supply Sales Gas beyond DCQ for the purpose of supplying such Make-up Gas.
(b) The price ascribed to Makeup Gas quantity for the purpose of setting off against GNT Amount shall be the Arithmetic Average of the Sales Gas Price applicable during the Term of the Agreement in which Makeup Gas is offtaken by the Buyer. Sellers shall provide a credit towards the Makeup Gas quantities taken by Buyer up to GNT Amount.
(c) The order in which Makeup Gas shall be offtaken shall be the same order in which the Makeup Gas is accrued. It is hereby agreed between the Parties that the Buyer shall offtake all quantities of Makeup Gas as per this Clause 4.3 before the expiry of the Recovery Period. For avoidance of doubt, there shall be no obligations like Take-or-Pay or shortfall applicable for Make-up Gas.
(d) If upon expiry of the Recovery Period, ▇▇▇▇▇ has failed to take any remaining Make Up Gas, then the Buyer’s right to such remaining Make Up Gas shall be forfeited without any further recourse.