Physical Compensation Sample Clauses

Physical Compensation. Buyer may elect, upon sixty (60) days’ Notice to Seller, to physically compensate Seller towards its AB 32 Carbon Dioxide Costs by transferring Compliance Instruments to Seller. During the time period for which Buyer has elected to physically compensate Seller according to Buyer’s Notices in this Section 9.3, Seller shall calculate the amount of Emissions Quantity for such time period and shall provide such calculation to Buyer according to Article VI. Subject to Article VI, Buyer shall transfer the amount of Compliance Instruments equal to the amount of Emissions Quantity rounded to the nearest metric ton for the period in which Buyer has elected by its Notice to physically compensate Seller. Buyer shall have no obligation to make Carbon Dioxide Emissions Payments during the period that Buyer has elected to physically compensate Seller towards its AB 32