Common use of Permanent Assignment Clause in Contracts

Permanent Assignment. If Customer desires to assign all or any portion of its MCSQ or MDDQ under this Agreement to an Assignee for the full remaining term of this Agreement, it shall provide Operator at least two months advance written notice of that desire. Such permanent assignment shall require the express written consent of Operator, which shall not be unreasonably withheld. In addition, any permanent assignment shall be for a commercially reasonable minimum quantity, shall reflect the proportion of MCSQ and MDDQ originally provided to Customer, and must convey all Customer’s rights to the capacity, including its rights pursuant to Section 3.3, and may not contain any reversion or recall rights for Customer. If Operator agrees to a permanent assignment pursuant to this provision, its agreement shall be conditioned upon the execution of all necessary agreements with the Assignee, including comparable assurance of payment from an entity with an Investment Grade Credit Rating or the posting of collateral or other payment assurance which, in the reasonable judgment of Operator, will provide similar assurance of payment. Customer shall remain fully obligated with respect to the assigned quantities unless and until the Assignee expressly assumes such obligations in writing, at which time (i) Customer will be released from all obligations with respect to the assigned quantities, (ii) Customer shall have no further rights with respect to the assigned quantities, and (iii) the amount of the Statoil Guarantee will be reduced in proportion to the amount of capacity assigned.