Common use of Remedies for Failure Clause in Contracts

Remedies for Failure. to Deliver and Receive ------------------------------------------- 2.3.1 Seller's Failure to Deliver --------------------------- (a) If Seller fails to deliver to Buyer its natural gas requirements up to the MDQ on any day, for reasons other than (i) imbalances or variations under transportation agreements or operational balancing agreements, which are governed by Article V or (ii) an event of force majeure or an event described in Section 5.5, then Seller shall reimburse or credit to Buyer for the following: (1) Seller will reimburse Buyer for the sum of (a) the difference, if positive, between (i) the price Buyer pays for a substitute supply of gas or other alterative fuel such as propane and (ii) the prices set forth in Section 3.1.1 of this Agreement (calculated based upon Buyer's actual load factor under this Agreement) multiplied by the quantity Seller failed to deliver in accordance with this subsection, (b) any reasonable incremental costs and expenses incurred in transporting the substitute supplies and (c) any reasonable incidental expenses incurred in purchasing the substitute supplies. Buyer agrees to act in good faith in purchasing such (2) If Buyer, through reasonable efforts, is unable to obtain substitute supplies, then Seller shall provide Buyer the difference between the highest commodity price that was paid by Buyer for the purchase of gas or an alterative fuel, such as propane, during the last two years (not to exceed $10 per MMBtu) and the prices set forth in Section 3.1.1 of this Agreement (calculated based upon Buyer's actual load factor under this Agreement) multiplied by the quantity of gas Seller failed to deliver in accordance with the above.

Remedies for Failure. to Deliver and Receive ------------------------------------------- 2.3.1 Seller's Failure to Deliver --------------------------- (a) If Seller fails to deliver to Buyer its natural gas requirements up to the MDQ on any day, for reasons other than (i) imbalances or variations under transportation agreements or operational balancing agreements, which are governed by Article V or (ii) an event of force majeure or an event described in Section 5.5, then Seller shall reimburse or credit to Buyer for the following: : (1) Seller will reimburse Buyer for the sum of (a) the difference, if positive, between (i) the price Buyer pays for a substitute supply of gas or other alterative fuel such as propane and (ii) the prices set forth in Section 3.1.1 of this Agreement (calculated based upon Buyer's actual load factor under this Agreement) multiplied by the quantity Seller failed to deliver in accordance with this subsection, (b) any reasonable incremental costs and expenses incurred in transporting the substitute supplies and (c) any reasonable incidental expenses incurred in purchasing the substitute supplies. Buyer agrees to act in good faith in purchasing such (2) If Buyer, through reasonable efforts, is unable such 3 <PAGE> <PAGE> substitute supplies so as to obtain substitute supplies, then Seller shall provide minimize Seller's obligations to Buyer the difference between the highest commodity price that was paid by Buyer for the purchase of gas or an alterative fuel, such as propane, during the last two years (not to exceed $10 per MMBtu) and the prices set forth in Section 3.1.1 of this Agreement (calculated based upon Buyer's actual load factor under this Agreement) multiplied by the quantity of gas Seller failed to deliver in accordance with the above.hereunder; or