Common use of Methanol and Catalyst Clause in Contracts

Methanol and Catalyst. REG Marketing shall be responsible for the purchase and delivery of methanol and catalyst to the Facility. The maximum allowed usage of methanol shall be *** gal of methanol per gallon of biodiesel. The maximum allowed usage of catalyst shall be *** lbs per gallon of biodiesel. Blackhawk Biofuels will reimburse REG Marketing for usage of methanol and catalyst above the maximums. The reimbursement will be paid for overusage at the average price of the chemicals multiplied by the overusage amount based on the biodiesel produced on a monthly basis. REG Marketing will invoice Blackhawk Biofuels within the first week of the following month. Payment terms will be 7 days from receipt of invoice from REG Marketing. If the actual positive or negative usage variance performance is greater than 10% from the values given above, the parties will use data gathered while producing under steady state conditions and adjust the maximum allowed usages with approval to not be unreasonably withheld, conditioned or delayed by either party. Any changes will be contained in an addendum to this Agreement.