include a comparison of such items to the corresponding values for the preceding month
and for the corresponding portion of the previous Contract Year, a listing of any
significant operating problems along with immediately planned remedial actions, and a
brief summary of major activities planned for the next reporting period, and (ii) a
statement setting forth all Reimbursable Costs paid or incurred in such month, which
statement shall itemize, in detail acceptable to Owner, the computation of such
Reimbursable Costs and shall state whether or not the Project operations have conformed
to the applicable Annual Project Operating Plan and Annual Budget during such
reporting period and if not, the extent and reasons for any deviation and the planned
remedial action. An example of this report is attached to Appendix C of this Agreement.
(b) Litigation, Permit Lapses. Upon obtaining knowledge thereof, Operator shall
promptly notify Owner in writing of: (i) any event of default under any of the Project
Agreements; (ii) any litigation, claims, disputes or actions, threatened or filed, concerning
the Project or the Services; (iii) any refusal or threatened refusal to grant, renew or extend
(or any action pending or threatened that might affect the granting, renewal or extension
of) any license, permit, warranty, approval, authorization or consent relating to the
Project or the Services; and (iv) any dispute with any governmental authority relating to
the Project or the Services.
(c) Other Information. Operator shall promptly submit to Owner any material
information concerning new or significant aspects of the Project's activities and, upon
Owner's request, shall promptly submit any other information concerning the Project or
the Services.
Section 6.5 - Additional Communications. Operator shall communicate certain
additional events specified in Appendix C to Owner and third parties in accordance with
the communication protocols set forth in Appendix C to this Agreement.
ARTICLE 7
LIMITATIONS ON AUTHORITY
Section 7.1 - General Limitations. Notwithstanding any provision in this
Agreement to the contrary, unless previously approved by Owner in writing or through
Owner's approval of the Annual Budget, or modifications thereto, Operator and any
employee, representative, contractor or other agent of Operator are prohibited from
taking the specified actions with respect to the matters indicated below.
(a) Disposition of Assets. Sell, lease, pledge, mortgage, convey, or make any
license, exchange or other transfer or disposition of any property or assets of Owner,
including any property or assets purchased by Operator where the purchase cost is a
Reimbursable Cost;
(b) Contract. Make, enter into, execute, amend, modify or supplement any
contract or agreement (i) on behalf of, in the name of, or purporting to bind Owner or (11)
that prohibits or otherwise restricts Operator's right to assign such contract or agreement
to Owner at any time;
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