Cover Protocols Clause Samples

Cover Protocols. PESRM and MLC shall mutually agree on all of the Principal Cover Terms applicable to each proposed Cover Transaction, other than a Butane Cover Transaction, in accordance with the protocols set forth below (such protocols, the “Cover Protocols”). (a) On any Day during the Term, PESRM may present to MLC a request (a “Cover Transaction Notice”) specifying (i) the proposed Cover Transaction(s) that PESRM desires that MLC enter into with third party suppliers (including, without limitation, PESRM in such capacity) or third party purchasers, as applicable, (such suppliers and purchasers, “Cover Counterparties”), (ii) the proposed Principal Cover Terms associated with each such proposed Cover Transaction (which Principal Cover Terms must be acceptable to MLC) and (iii) the RP Sales Contracts or CO Supply Contracts and any PESRM-MLC Secured Prepay Transactions that correspond to each such proposed Cover Transaction. (b) Promptly following receipt of a Cover Transaction Notice, MLC shall review such notice and shall notify PESRM (by telephone, email, instant message or other means of communication) (x) of any objections that MLC may have with respect to PESRM’s categorization of the Cover Transactions specified therein, or (y) if MLC does not object to any such categorizations, of MLC’s acceptance of such categorizations. (c) Except as otherwise provided in this Agreement, PESRM may from time to time identify opportunities to enter into Cover Transactions specified in a Cover Transaction Notice with one or more specified Cover Counterparties and shall promptly notify MLC of such opportunities. MLC may, but is not required to, identify opportunities to enter into Cover Transactions with one or more potential Cover Counterparties and may notify PESRM of any such opportunities. Notwithstanding the foregoing, except as otherwise mutually agreed by PESRM and MLC, MLC shall have no obligation to enter into any Cover Transaction that would provide for (x) the delivery of Crude Oil to third party purchasers, as applicable, more than sixty (60) days after the date of entry into such transaction or (y) the receipt of Refined Product by MLC more than sixty (60) days after the date of entry into such transaction. (d) PESRM may negotiate directly with potential Cover Counterparties in respect of any or all of the Principal Cover Terms that, subject to MLC’s agreement, will be applicable to the proposed Cover Transaction(s) specified in the applicable Cover Transaction Notice. ...