Common use of BLENDING Clause in Contracts

BLENDING. Because of impurities which may be present in sulphur produced from the Main Pass Mine, it may be necessary from time to time to blend higher quality sulphur with Felmont Main Pass Sulphur in order for Felmont Main Pass Sulphur to meet commercial specifications. Freeport agrees to use its best efforts, and in the order of priority provided in Sections 7.1 through 7.3 below (unless transportation charges can be reduced by altering the order of priority), to obtain recovered sulphur or other higher quality sulphur for purposes of such blending in a manner to minimize the cost thereof. The following provisions shall apply from time to time in determining Operating Cost Reimbursement under Article VI, the quality of Felmont Sulphur sold and the quantity of Felmont Tonnage for the purposes of Schedule C. Freeport agrees that in allocating blending sulphur Felmont Sulphur will be treated on a parity with Freeport Sulphur in priority of allocation of sulphur under Section 7.1 through 7.3.

Appears in 2 contracts

Sources: Processing and Marketing Agreement (Freeport McMoran Sulphur Inc), Processing and Marketing Agreement (McMoran Exploration Co /De/)