Downward Quantity Tolerance (DQT)

Submitted by webmaster on Thu, 2018-07-26 11:40
Downward Quantity Tolerance (DQT)

The Downward Quantity Tolerance (DQT) is the amount by which a buyer may fall short of its full Annual Contract Quantity in a Take or Pay gas sales contract without incurring sanctions. If there is no provision requiring the buyer to take supplementary volumes in subsequent years to make good for the deficiency, the Annual Contract Quantity becomes in effect the ACQ minus the DQT. See also Make Good and Make Up.

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