Common use of Minimum Purchase Volume Clause in Contracts

Minimum Purchase Volume. For the first 120 months following the Effective Date of this Agreement, ▇▇▇▇▇▇▇ District shall purchase a minimum of 6,500,000 gallons of water each month (“Agreed Monthly Minimum Volume”), provided, however, that ▇▇▇▇▇▇▇ District shall be excused of its obligation to purchase the Agreed Monthly Minimum Volume in any month in which Augusta is unable to furnish that volume or in which ▇▇▇▇▇▇▇ District suffers a major service interruption similar to that described in Paragraph 9 that limits its ability to receive and distribute water. At the end of this 120-month period, ▇▇▇▇▇▇▇ District shall not be required to purchase the Agreed Monthly Minimum Volume from Augusta provided it serves upon Augusta notice of its intent to purchase a lesser volume. Such notice must be in writing and must be provided a minimum of 24 months in advance of the first monthly period in which ▇▇▇▇▇▇▇ District intends to purchase less than the Agreed Monthly Minimum Volume. If ▇▇▇▇▇▇▇ District does not reduce its purchases below the Agreed Monthly Minimum Volume within 90 days of the start of the period identified in its written notice, ▇▇▇▇▇▇▇ District’s notice shall be deemed ineffective. ▇▇▇▇▇▇▇ District’s notice shall not be deemed ineffective if, after reducing its purchases in accordance with its notice, it subs volume of water equal or above the Agreed Monthly Minimu

Appears in 2 contracts

Sources: Water Purchase Contract, Water Purchase Contract