Common use of Shortfall Gas Clause in Contracts

Shortfall Gas. 17.1.1 With effect from the later of the Commencement Date and October 1, 2013, if the Sellers fail in respect of any Hour to deliver the quantity of Specification Gas Properly Nominated for delivery for any reason other than the Buyer’s failure to take Specification Gas otherwise properly tendered for delivery in accordance with this Agreement, such amount will be “Shortfall Gas”, provided however that (**). 17.1.2 Notwithstanding the above, for the purposes of calculating Shortfall Gas, a Proper Nomination in respect of any Hour shall not include any quantity of Specification Gas: (a) which exceeds the quantity taken by the Buyer in respect of the immediately preceding Hour (other than by reason of Sellers’ failure to tender for delivery Properly Nominated Gas in such preceding Hour) by more than: (i) (**) MMBTU if the quantity taken by the Buyer in the preceding Hour was equal to or lower than (**) MMBTU; (ii) (**) MMBTU if the quantity taken by the Buyer in the preceding Hour was higher than (**) MMBTU (**) or (**) MMBTU if the quantity taken by the Buyer in the preceding Hour was higher than (**) MMBTU (**). (b) (**); (c) which exceeds zero (0) during the first three (3) Hours after a Cold Start (**); or (d) which exceeds (**) during the first (**) Hours after any Hour in which the Buyer and others nominated a total quantity of less than (**) MMBTU for delivery from the Reservoir to the Delivery Point or from the fourth Hour after such Hour quantities which exceeds the rates as set out in Article 17.1.2(a) above. 17.1.3 If any correction of quantities delivered in any Hour is made under the provisions of Article 15, then the actual amount of any Shortfall Gas accrued shall be adjusted when the corrected amounts are available under the provisions of Article 15 and the appropriate adjustments shall be made for the purposes of Article 17.2. 17.1.4 In order to avoid any doubt, Shortfall Gas shall not include any quantity for which the Sellers are relieved from liability in accordance with Article 16. 17.1.5 It is agreed that the provisions of Article 17.1 shall not apply in circumstances where in any Hour, the quantity of Gas delivered by the Sellers in respect of that Hour, is within the (**). 17.1.6 In respect of each Day and each Week, if the aggregate quantity of Gas delivered by the Sellers in respect of such periods, is not within the (**), respectively, then the extent to which the aggregate delivery falls short of the aggregate Proper Nominations for the applicable period (“Period Shortfall”) will be Shortfall Gas in respect of the Month in which such period falls. It is agreed that each such quantity of Period Shortfall will be reduced by any quantities of Shortfall Gas already taken into account in respect of any Hour or Day falling within any longer aforesaid period. For the purposes of calculating the Week periods in any Month, there shall be included only those whole Weeks which end in that Month.