3.1 Each WCA acknowledges and accepts that the WDA has agreed with the PFI Contractor under the Project Agreement that it will pay for, deliver or secure the delivery of at least a guaranteed minimum tonnage of Contract Waste for the duration of the Project Agreement.
3.2 The WCA shall be relieved of any obligations under this Clause to the extent that the WDA is relieved from its obligations to deliver Contract Waste under the Project Agreement.
3.3 Subject to agreement or direction to the contrary, the amount of Municipal Waste that the WCAs retain for their own Recycling at the date of this Agreement and not deliver to the PFI Contractor is set out in Schedule 7 (WCA Baseline). The WDA will use such amount as the basis for agreement with the PFI Contractor.
3.4 The WCAs hereby agree not to retain any Municipal Waste pursuant to section 48(2) of the EPA other than:
3.4.1 as provided for in Schedule 7 (WCA Baseline); or
3.4.2 as otherwise agreed between the Parties and effected in accordance with Clause 15 (Changes in WCA Waste) below.
3.5 The WCAs acknowledge that, in accordance with the provisions of the Project Agreement, failure to comply with the Project Agreement referred to in this Clause 3 (Minimum Delivery of Waste) may give rise to either an adjustment to the Unitary Charge and/or a claim for compensation by the PFI Contractor against the WDA.
3.6 The parties acknowledge that the WDA may deliver Waste with waste of a similar composition to Contract Waste (Substitute Waste) to meet its guaranteed tonnage obligations under the Project Agreement. In such circumstances, the WCA will assist the WDA in meeting such delivery requirements.