Crude Balancing Sample Clauses
The Crude Balancing clause establishes the procedures and obligations for reconciling differences between the quantities of crude oil delivered and received under a contract. In practice, this clause outlines how parties will measure, report, and adjust for any discrepancies in crude volumes, often specifying timeframes for reconciliation and methods for resolving imbalances, such as through financial settlement or future deliveries. Its core function is to ensure that both parties are fairly compensated or credited for any over- or under-deliveries, thereby maintaining the integrity of the contractual relationship and preventing disputes over quantity differences.
Crude Balancing. The volumes sold and purchased by the Parties pursuant to a Transaction are intended to be equal. If the actual volume shipped differs from the number of NYMEX contracts sold/bought under an EFP by an amount greater than 1,000 Barrels, then the Parties will balance the difference to the nearest 500 Barrels by posting (within the current month’s NYMEX contract) an additional EFP for the amount. If the current month’s NYMEX contract has expired at the time that the differing delivery occurs, the Parties will post the additional EFP within the next nearby month’s NYMEX contract and the spread shall be a fixed number based on the difference between the first month’s settlement price and second month’s settlement price on the date of Transaction or as specifically agreed to by both Parties in the pricing provision of the Confirmation.
Crude Balancing. If this Agreement is part of an EFP Transaction, the volumes sold and purchased by the Parties pursuant to this Agreement are intended to be equal. If the actual volume shipped differs from the number of NYMEX contracts sold/bought under an EFP by an amount greater than 1,000 Barrels, then the Parties will balance the difference to the nearest 1,000 by posting (within the current month’s NYMEX contract) an additional EFP for the amount. If the current month’s NYMEX contract has expired at the time that the differing delivery occurs, the parties will post the additional EFP within the next nearby month’s NYMEX contract and the spread shall be a fixed number based on the difference between the first month’s settlement price and the second month’s settlement price on the Trade Date or a specifically agreed to by both Parties in the pricing provision of the Confirmation.