Common use of Capacity Reservation Clause in Contracts

Capacity Reservation. Subject to Section 7 and the Return Flow Management Agreement, the Cities shall reserve for TRIGID and commit to deliver TMWRF Supply in the maximum amount of the Capacity Reservation. The Cities acknowledge that the maximum amount of the Capacity Reservation will not be utilized for some time. The demand will ramp up over time as TRIGID Customers commence operation of facilities using non-potable Process Water. TRIGID can only accept the amount of TMWRF Supply its TRIGID Customers can utilize. If TRIGID has sufficient TRIGID Customer demand in the future to use more than 4,000 acre feet, TRIGID may request the Cities increase the Capacity Reservation and the Cities shall decide, in their sole discretion, whether to commit and deliver additional TMWRF Supply above the Capacity Reservation.