Failure to Meet Specifications. (a) Should any of the Gas delivered by Seller hereunder at a given delivery point fail to meet the quality specifications herein, Buyer may at its option accept, or immediately discontinue or curtail receipt of Seller’s delivery of Gas at such delivery point. (b) Should Seller’s operations or any of the Gas delivered by Seller hereunder create a condition which in the exclusive judgment of Buyer tend to endanger the Plant or property of Buyer or the lives or property of Buyer’s employees or any third party, Buyer may discontinue receipt of Seller’s Gas. (c) Buyer shall notify Seller of such failure and Seller shall make diligent effort to deliver such Gas conforming to the specifications. If Seller concludes in its sole opinion that it cannot economically deliver Gas conforming to the specifications, Seller shall so advise Buyer in writing within thirty (30) days of receipt of Buyer’s notice. Within thirty (30) days of receipt of Seller’s notice, Buyer shall give notice to Seller in writing of its election to accept or reject delivery of the Gas from such delivery point. If Buyer rejects delivery of such Gas, then this Contract shall terminate with respect to the producing formation of the well delivering the Gas to the delivery point and the acreage attributable thereto upon receipt of said notice by Seller.
Appears in 3 contracts
Sources: Gas Purchase Contract (Resaca Exploitation, Inc.), Gas Purchase Contract (Resaca Exploitation, Inc.), Gas Purchase Contract (Resaca Exploitation, Inc.)