Fuel Allocation Clause Samples
The Fuel Allocation clause defines how fuel resources are distributed or assigned among parties involved in a contract, typically in contexts such as energy supply agreements or transportation services. It specifies the method for determining each party's share of fuel, which may be based on usage, operational needs, or pre-agreed formulas, and can include procedures for adjusting allocations in response to shortages or surpluses. This clause ensures that all parties have a clear understanding of their fuel entitlements, thereby preventing disputes and promoting efficient resource management.
Fuel Allocation. Shipper’s share of Fuel consumed in the operations of the System shall be determined and allocated by Gatherer to each Receipt Point upstream of the applicable point Gas is actually consumed by multiplying the Gas consumed at such point on the System by a fraction calculated by the Receipt Point Volume upstream of such point divided by all Gas volume attributable for all Receipt Points upstream of such point.