Compensation for short delivery/lifting. 3.6.1 If for a Year, the Level of Delivery by the Seller, or the Level of Lifting by the Purchaser falls below ACQ with respect to that Year, the defaulting Party shall be liable to pay compensation to the other Party for such shortfall in Level of Delivery or Level of Lifting, as the case may be (“Failed Quantity”) in terms of the following: 1 Less than 100% but up to 80% NIL 2 Less than 80% 0.01%# 0.0001 x P x ((80-LD or LL)/100) x ACQ # to be operative after a period of three years from the date of signing of the FSA Where, P = Simple average of the Base Prices of Grades, as shown in Schedule II * Note: For the phasing period the annual coal requirements shall be based on the quantities mentioned by the Purchaser for the initial years under Schedule I of this agreement
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Sources: Coal Supply Agreement, Coal Supply Agreement