immediately upon becoming aware of a natural disturbance, third party action or reversal on the project area, notify GT; and take reasonable mitigation action within a reasonable period if reversal of carbon sequestered by the project on the project area is due to natural disturbance or action of third party not under the Farmer’s control. GT must comply with any relinquishment notice issued in respect of a significant reversal under the CFI Act. If significant reversal (as defined under the CFI Act) occurs, in whole or in part, as a result of the act or omission of the Farmer or any other person under their control, GT may recover from the Farmer the costs of complying with the relinquishment notice and the Carbon Abatement Contract to deliver ACCUs lost due to the act or omission of the Farmer or any person under their control. In complying with the relinquishment notice and meeting obligations under the Carbon Abatement Contract to deliver ACCUs lost due to the act or omission of the Farmer or any person under their control, GT will use reasonable endeavours to minimise the costs of compliance or delivery. If the project area becomes subject to a carbon maintenance obligation, as defined under the CFI Act, the Farmer must use reasonable endeavours to comply with the terms of that carbon maintenance obligation. If the carbon maintenance obligation is placed on the project area for reasons other than the default, the Farmer may recover the costs associated with complying and removing the Farmer’s carbon maintenance obligation from GT, and GT will cooperate with the Farmer in this regard. The Farmer will use reasonable endeavours to minimise the costs of compliance with, and removal of, the carbon maintenance obligation. 13. The agreement The occurrence of any of the following events with respect to a party constitutes an Event of Question 13 will end if certain Default: things happen. a party fails to make any payment required when due; a party fails to perform a material obligation under this agreement; any Regulatory Approval or Consent is revoked, not renewed or suspended; or there is or has been an insolvency event in respect of a party. If a party commits an Event of Default (Defaulting Party), the other party (Non-Defaulting Party) may
immediately upon becoming aware of a natural disturbance, third party action or reversal on the project area, notify GT; and take reasonable mitigation action within a reasonable period if reversal of carbon sequestered by the project on the project area is due to natural disturbance or action of third party not under the Farmer’s control. GT must comply with any relinquishment notice issued in respect of a significant reversal under the CFI Act. If significant reversal (as defined under the CFI Act) occurs, in whole or in part, as a result of the act or omission of the Farmer or any other person under their control, GT may recover from the Farmer the costs of complying with the relinquishment notice and the Carbon Abatement Contract to deliver ACCUs lost due to the act or omission of the Farmer or any person under their control. In complying with the relinquishment notice and meeting obligations under the Carbon Abatement Contract to deliver ACCUs lost due to the act or omission of the Farmer or any person under their control, GT will use reasonable endeavours to minimise the costs of compliance or delivery. If the project area becomes subject to a carbon maintenance obligation, as defined under the CFI Act, the Farmer must use reasonable endeavours to comply with the terms of that carbon maintenance obligation. If the carbon maintenance obligation is placed on the project area for reasons other than the Farmer’s default, the Farmer may recover the costs associated with complying and removing the carbon maintenance obligation from GT, and GT will cooperate with the Farmer in this regard. The Farmer will use reasonable endeavours to minimise the costs of compliance with, and removal of, the carbon maintenance obligation. 13. The agreement will end if certain things happen. The occurrence of any of the following events with respect to a party constitutes an Event of Default: a party fails to make any payment required when due; a party fails to perform a material obligation under this agreement; any Regulatory Approval or Consent is revoked, not renewed or suspended; or there is or has been an insolvency event in respect of a party. If a party commits an Event of Default (Defaulting Party), the other party (Non-Defaulting Party) may Question 13