Take or Pay
Take or Pay (TOP) is a common provision in gas contracts under which, if the Buyer’s annual purchased volume is less than the Annual Contract Quantity minus any shortfall in the Seller’s deliveries, minus any Downward Quantity Tolerance, the Buyer pays for such a shortfall as if the gas had been received. The Buyer may have the right in subsequent years to take the gas paid for but not received, either free or for an amount to reflect changes in indexed prices. See also Make Up Gas.