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Feedstock Services Agreement Term Sheet
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Feedstock Services Agreement Term Sheet - attorney-drafted template. Party names and deal-specific details have been replaced with neutral placeholders. Review before use.
Overview and Parties | A [COMPANY] Servicing Entity is intended to be the sole feedstock servicer with respect to Fuel from certain agreed upon sources for Biomass Power Plants mutually agreed to be jointly developed by the [COMPANY] Plant Owner and [COMPANY] Servicing Entity. As sole feedstock servicer, the [COMPANY] Servicing Entity will arrange and be responsible for the collection, bundling, processing, loading, transport and delivery of identified volumes of Fuel to the feedstock yard at each such identified Biomass Power Plant (the “Services”).
The [COMPANY] Servicing Entity will ensure that the provision of the Services will be in compliance with applicable law, regulations, permit conditions and the terms and conditions of any Fuel Supply Agreements. The Parties will determine in each final negotiated Feedstock Services Agreement the division of responsibility and liability between the Parties in the event of a change in law or the occurrence of other specifically identified conditions.
Feedstock Services Agreement Term | The term for each Feedstock Services Agreement will be at least as long as the term of the longest Fuel Supply Agreement pursuant to which fuel will be acquired for the applicable Biomass Power Plant, but in any event not less than twenty (20) years.
Biomass | Woody biomass consistent with Section 45 of the tax code.
Biomass Quality | The [COMPANY] Servicing Entity shall manage the delivery of various types and quantities of Biomass to the Biomass Power Plant to ensure that the Biomass delivered to the Biomass Power Plant has an agreed upon average moisture content (expected generally to be 45%), measured on a rolling 30-day basis. A testing protocol will be established to test the moisture content of the Fuel on an as delivered basis, with samples for any such testing obtained at the weighing station just inside the gate to the Biomass Power Plant or another mutually agreed upon location. [COMPANY] and [COMPANY] will design a manageable process for the acceptance and rejection of Biomass based on specific project characteristics, physical and efficiency requirements of the boiler, and operating requires of the O&M operator.
The [COMPANY] Servicing Entity shall not knowingly deliver Biomass to the Biomass Power Plant if it has any hazardous materials or exceeds mutually agreed upon levels of: (a) dirt, sand, tramp, rock or other ash-forming material, (b) rocks, large rocks, or abundant or large metal that will physically damage the Biomass Power Plant; or (c) compost.
The [COMPANY] Servicing Entity shall manage the sizing of pre-processed hogged fuel (nominally 4”x0”) materials flowing to the Biomass Power Plant so that it will have a fines content of no greater than 10% on a weekly average basis.
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Feedstock Services Agreement Term Sheet
Investment Agreements -- US - General