Common use of Decommissioning Assurance Clause in Contracts

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. Upon the issuance of the Completion Notice, System Owner shall establish and maintain thereafter adequate financial assurance, in a form 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.