Shortfall Quantities Clause Samples

Shortfall Quantities. In respect of each Ship-or-Pay CT Agreement if on a Day, for reasons other than any failure of the Shipper to deliver Gas at the Delivery Point (while the Transporter is in compliance with the CT Agreement), or any failure of the Shipper to offtake Gas at the Redelivery Point (while Transporter is in compliance with the CT Agreement): (a) the Transporter fails to schedule the Firm Daily Nominated Quantities (FDNQ) such that the Scheduled Quantity at the Redelivery Point is less than the Firm Daily Nominated Quantity (FDNQ); or (b) the Transporter fails to provide the Gas Transmission Services for the Scheduled Quantity, or (c) the Shipper rejects Gas that Transporter delivers at the Redelivery Point that fails to conform to the Specifications (unless the failure to meet Specification at the Redelivery Point is due to Shipper’s delivery of Gas at the Delivery Point that did not meet Specification unless accepted by Transporter in accordance with the Operating Code), then the “Shortfall Quantity” in respect of any Month or for any period of CT Agreement in case the Period of CT Agreement is less than a Month (as the case may be) shall be determined as below: (i) 80% of the lower of: a. the aggregate FDNQ for the Redelivery Point as reduced by quantities not transported on account of Force Majeure or Planned Works or in circumstances where the Transporter is expressly excused pursuant to the Operating Code or as a result of ▇▇▇▇▇▇▇’s breach of its obligations under the CT Agreement; or b. the aggregate of the CT Redelivery Point MDQ as reduced by quantities not transported as a consequence of reductions from the MDQ on account of Force Majeure or Planned Works or in circumstances where the Transporter is expressly excused pursuant to the Operating Code or as a result of ▇▇▇▇▇▇▇’s breach of its obligations under the CT Agreement, for the relevant Month; minus (ii) aggregate of the Shipper’s Allocated Quantity at that Redelivery Point for the relevant Month.