23.4  Additional Waste50

23.4.1  The Contractor shall use reasonable endeavours to accept Additional Waste on written request of the Authority. Without prejudice to the generality of the expression such reasonable endeavours shall be interpreted as meaning in relation to capacity for the Additional Waste:

(a)  that the Contractor shall not be obliged to terminate any existing Third Party Waste Contract or reduce capacity committed to Third Party Waste customers unless the Authority has agreed to pay for any costs arising from such reduction in capacity or termination; and

(b)  that from the date of receipt of written request from the Authority pursuant to Clause 23.4.1, the Contractor shall allocate any spare capacity at the Facility to the Authority when it becomes available and shall not enter into new or extend existing Third Party Waste Contracts in respect of such capacity.

23.4.2  Where pursuant to Clause 23.4.1 Additional Waste is accepted by the Contractor the payment per tonne for such Additional Waste shall be as set out in paragraph [  ] 51 of Schedule 4 (Payment Mechanism) but for all other purposes the Additional Waste shall be treated as Contract Waste and all other components of Schedule 4 (Payment Mechanism) shall apply. 52

______________________________________________________________________________________

50  The Payment Mechanism should ensure that revenue generated by the Contractor from Additional Waste forms part of Third Party Income to be shared with the Authority and that where the Authority has paid the Base Payment during any Shortfall Period (see Clause 25.2) but this has not been recouped, then this is recognised in the price charged to the Authority for Additional Waste.

51  Payment for Additional Waste to be discussed in dialogue and included in Payment Mechanism on a project specific basis.

52  To be agreed on a project specific basis.