Decommissioning Assurance Clause Samples
The Decommissioning Assurance clause requires a party, typically the operator of a facility or project, to provide financial security or guarantees to ensure that decommissioning obligations will be met at the end of the asset’s useful life. This may involve setting aside funds, obtaining bonds, or providing other forms of financial assurance to cover the costs of dismantling, removing, and restoring the site. The core function of this clause is to protect the other party or relevant stakeholders from the risk that decommissioning will not be properly funded or completed, thereby ensuring environmental and contractual responsibilities are fulfilled.
Decommissioning Assurance. No later than the beginning of the nineteenth (19th) year of the Operations Period, Provider shall establish the Decommissioning Assurance, and shall se1ect the form and amount of such Decommissioning Assurance, subject to the approval of Host, not to be unreasonably withheld, conditioned or delayed. Failure to timely establish and/or fund in accordance with this paragraph such Decommissioning Assurance shall constitute a Provider Event of Default, for which the Host shall be entitled to exercise any of the remedies for default afforded under Section 19.
Decommissioning Assurance. Upon the issuance of the Notice of Commercial Operation, Developer’s obligation to provide Development Security shall cease and the funds in the Deposit Control Account shall instead be used to cover the cost of decommissioning the PV System and restoring the Premises as specified in this Agreement (such assurance, the “Decommissioning Assurance”). Within one hundred eighty (180) days receipt of Notice of Commercial Operation, CVEC will determine (using Good Engineering Practice) that if the amount of Development Security is sufficient to cover the costs of the cost of decommissioning the PV System and restoring the Premises. If there is a shortfall, Developer will provide additional funds within sixty (60) days of receipt of the shortfall notice from CVEC. CVEC may draw upon the Decommissioning Assurance in the event of Developer’s failure to comply with its PV System removal and Premises restoration obligations under the Inter-Governmental PDA.
Decommissioning Assurance. Prior to the issuance of the Notice of Commercial Operation, Owner shall establish and maintain thereafter Decommissioning Assurance. If the Owner has satisfied its obligations to remove the System and restore the Premises as set forth in Section 3.7 of the Energy Management Services Agreement, the User shall promptly return such Decommissioning Assurance to the Owner. In the event Owner fails to remove the System or restore the Premises as set forth in Sections 3.7, 7.3, 8.3 or 8.4, as applicable, of the Energy Management Services Agreement, User may retain the Decommissioning Assurance. The parties agree that the form of Decommissioning Assurance attached as Exhibit H to the Energy Management Services Contract has been preapproved by the User and Owner.
Decommissioning Assurance. Upon the issuance of the Notice of Commercial Operation, Contractor shall establish and maintain thereafter adequate financial assurance, in substantially the form set forth in Exhibit G hereto, or another form reasonably acceptable to the User, to fully cover the cost of decommissioning the PV System and restoring the Premises as specified in this Agreement (such assurance, the “Decommissioning Assurance”). Depending on the circumstances, and subject to User’s approval, appropriate forms of financial assurance may include, without limitation, an escrow fund, irrevocable letter of credit, surety bond or third party guaranty; provided, however, that any form of financial assurance must provide User with adequate rights to access the Decommissioning Assurance in the event of Contractor’s failure to comply with its PV System removal and Premises restoration obligations under the Agreement. The guaranteed Decommissioning Assurance amount for the PV System is set forth in Exhibit C.
Decommissioning Assurance. Upon the issuance of the Notice of Commercial Operation, Lessee shall establish and maintain thereafter the Decommissioning Assurance.
Decommissioning Assurance. Upon the issuance of the Completion Notice, System Owner shall establish and maintain thereafter adequate financial assurance, subject to the reasonable approval of Host, to fully cover the cost of decommissioning the System and restoring the Leased Area as specified in this Agreement and the Lease. Appropriate forms of financial assurance may include, without limitation, an escrow fund, irrevocable letter of credit, surety bond or third party guaranty, which third party guaranty shall be approved by Host; provided, however, that any form of financial assurance must provide Host with adequate rights to access the Decommissioning Assurance in the event of System Owner’s failure to comply with its System removal and Leased Area restoration obligations under the Agreement, even if System Owner is Bankrupt.
Decommissioning Assurance. Optionee must provide adequate financial assurance, in a form reasonably satisfactory to the Owner, to fully cover the cost of decommissioning the PV System and restoration of the underlying property.
Decommissioning Assurance. Ameresco must provide adequate financial assurance, in a form reasonably satisfactory to the Landlord, to fully cover the cost of decommissioning the PV System and restoration of the underlying property.
Decommissioning Assurance. Tenant agrees to provide one of the following means of assurance, at Tenant’s sole discretion, for Tenant Removal Obligations contained in the Lease in an amount as reasonably determined by Tenant in its professional opinion (but in no event more than $0.10 per Watt AC of installed capacity of the Solar Array) (the “Removal Assurance”), for the purpose of covering the costs to remove the Solar Array from the Leased Premises: (i) a letter of credit funded over five (5) years, such letter of credit being established after the fifteenth (15th) anniversary of the Commercial Operation Date with an initial amount of 20% of the aggregate amount necessary to cover Tenant’s removal obligations (but in no event to exceed $0.02 per Watt AC of installed capacity at the Solar Array) and increasing by an additional 20% on each anniversary of the Commercial Operation Date thereafter; or (ii) a corporate or other guaranty running to Landlord from an entity that, in Landlord’s reasonable judgment, has the financial wherewithal to perform the removal obligations of Tenant set forth in the Agreement; or (iii) a decommissioning bond funded over five (5) years, such decommissioning bond being established after the fifteenth (15th) anniversary of the Commercial Operation Date with an initial amount of twenty percent (20%) of the aggregate amount necessary to cover Tenant Removal Obligations (but in no event to exceed $0.02 per Watt AC of installed capacity at the Solar Array) and increasing by an additional twenty percent (20%) on each anniversary of the Commercial Operation Date thereafter; or (iv) Tenant may establish an account that is pledged to Landlord funded over five (5) years, such account being established after the fifteenth (15th) anniversary of the Commercial Operation Date with an initial amount of twenty percent (20%) of the aggregate amount necessary to cover Tenant Removal Obligations (but in no event to exceed $0.02 per Watt AC of installed capacity at the Solar Array) and increasing by an additional twenty percent (20%) on each anniversary of the Commercial Operation Date thereafter. For the purpose of clarity, nothing in this section shall in any way operate to limit Tenant’s financial obligations to properly and lawfully remove, and thereafter repurpose or dispose of the Solar Array pursuant to this Agreement and as more fully described in Section 4(j).
Decommissioning Assurance. Upon the issuance of the Notice of Commercial Operation, Developer shall establish and maintain thereafter adequate financial assurance in the amount specified in Exhibit D, to fully cover the cost of decommissioning the PV System and restoring the Premises as specified in this Agreement (such assurance, the “Decommissioning Assurance”). Depending on the circumstances, and subject to Host’s approval, appropriate forms of financial assurance may include, without limitation, an escrow fund, irrevocable letter of credit, surety bond or third party guaranty; provided, however, that any form of financial assurance must provide Host with adequate rights to access the Decommissioning Assurance in the event of Developer’s failure to comply with its PV System removal and Premises restoration obligations under the Agreement.