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Commercial Terms: Payment Adjustments <br /> - Flare and energy conversion percentages are subject to adjustment under any of the <br /> following circumstances: <br /> o Enactment of U. S. federal legislation restricting greenhouse gas emissions and <br /> establishing a market for the trading of carbon credits <br /> o Changes in methane's global warming potential <br /> o UNC's monetization of environmental benefits in a manner other than as carbon <br /> credits <br /> - Adjustments due to U. S. Federal Cap-and-Trade System <br /> o No adjustments before 2015 <br /> o Reflects differences between forecasted emission allowance prices and actual <br /> prices <br /> o Methodology determined by an independent consultant <br /> o Only applicable in months in which a Cap-and-Trade System is in effect <br /> o Adjustments are determined on a month-by-month basis <br /> o The 5.3% flare percentage cannot go lower than 2.09% or higher than 8.51% <br /> o The 16.6% energy conversion percentage cannot go lower than 6.52% or higher <br /> than 26.68% <br /> - Adjustments due to Changes in Methane's GWP <br /> o Commercial terms in the Agreement assume methane's GWP to be 21 <br /> o Monthly payment to County will be adjusted upwards by 25% if methane's GWP <br /> is determined to be greater than 23 <br /> o Monthly payment to County will be adjusted downwards by 25% if methane's <br /> GWP is determined to be less than 19 <br /> - Adjustment for Other Environmental Benefits <br /> o UNC shall consult with County, but has sole discretion in determining how to <br /> monetize other environmental benefits <br /> o Monthly payment to County will be adjusted up if UNC's monetization of <br /> environmental benefits in an alternative manner results in net surplus revenue to <br /> UNC <br /> Commercial Terms: Carbon Credits Option <br /> - The Agreements grants the County the right to obtain up to 15% of the carbon credits <br /> generated by the LFG Project through a carbon credit-exchange mechanism <br /> - County must exchange high-quality credits for credits generated by the LFG Project <br /> Commercial Terms: Taxes <br /> UNC will pay for any sales and use or other taxes that may arise from the transaction when <br /> due <br /> County agrees to reimburse UNC for 50% of any sales and use or other taxes that UNC may <br /> be required to pay in connection with the transaction <br /> Termination <br /> - Either party may terminate the Agreement in the event of the other party's uncured, <br /> material breach <br /> - Agreement terminates of its own accord if use of LFG as fuel is prohibited or if project <br /> operating permits are revoked <br />