Common use of Emission Allowances Clause in Contracts

Emission Allowances. where applicable, the Parties acknowledge that some Provinces or States in the United States and Canada have created cap-and-trade systems pursuant to which Seller may need to acquire greenhouse gas emission allowances (the “Emission Allowances”) to cover the greenhouse gas emissions attributable to the Products sold hereunder, and the Parties acknowledge that other Provinces or States may, from time to time, create similar systems. a) At such time as the cost of the Emission Allowances is known to Seller, Seller will invoice to Buyer and Buyer will pay to Seller, in addition to the price of Products sold hereunder, an amount equivalent to the value of Emission Allowances, where the Product sold is subject to such Emission Allowances and as determined by Seller from time to time, necessary to cover the emissions reasonably attributable to the volume of Products sold to Buyer hereunder, unless such value has otherwise been included in the price of the Products. b) Upon receipt of the first invoice including said value of Emission Allowances, Buyer shall have ten (10) Days to express its disagreement with the value determined by Seller, in which case Buyer shall be entitled to immediately terminate this Agreement by written notice to Seller, subject to the obligation of Buyer to pay the value of Emission Allowances attributable to the sales of Products made before said termination. c) Notwithstanding the above, Buyer shall comply with all applicable laws, regulations, rules and orders applicable to Emission Allowances, and shall within thirty (30) Days of Seller’s written request, provide evidence of compliance which is satisfactory to ERM, acting reasonably.