Common use of Failure to Take Clause in Contracts

Failure to Take. If Buyer fails to receive --------------- and purchase its full requirements in accordance with Section 2.1 above, then Buyer will pay Seller $0.035 per MMBtu plus the difference in the price stated in 3.1.1 and Gas Daily TGP 500 leg average index times the difference between (a) its full requirements and (b) the quantities actually taken by Buyer during the applicable seasonal period.

Appears in 2 contracts

Sources: Gas Sales Agreement, Gas Sales Agreement (Delta Natural Gas Co Inc)