Common use of Remedies for Environmental Defects Clause in Contracts

Remedies for Environmental Defects. If Enerplus delivers a valid and complete Environmental Defect Notice to American, American may elect one of the following options: (i) American remediates the Environmental Defect, such remediation to be consistent with Environmental Laws; or (ii) American contests the existence of the Environmental Defect or the Remediation Costs in accordance with Section 4.5; or (iii) American pays Enerplus’s estimate of the Remediation Cost (“Environmental Defect Adjustment”). If American elects one of the foregoing three alternatives in respect of a particular Environmental Defect, American shall have no Retained Environmental Liability as to that Environmental Defect.