Common use of Commingled Storage Clause in Contracts

Commingled Storage. For Product stored in any Non-Dedicated Tank or other commingled tank, Operator will determine and communicate via written report, the Normal Losses occurring on a monthly basis, and settle these determinations promptly after the end of each calendar year during the Term or as of the termination of this Agreement, whichever occurs first. Operator will pay Customer for any Normal Losses that exceed the Loss Allowance in accordance with Section 8.3 of the GTCs; provided that Operator, in its sole discretion, may physically replace Product with in‑kind Product. The basis for the distribution of Normal Losses of Product in a commingled tank shall be prorated among the storage parties.