Operational Tolerance Clause Samples

Operational Tolerance. It is the intent of the parties hereto that the quantity of Gas scheduled at each Delivery Point shall be the quantity delivered at such Delivery Point. However, Buyer and Seller recognize the inherent inaccuracies in the measurement and allocation of Gas due to the inability to maintain precise control. Such inaccuracies may at times occur through no fault of Buyer or Seller, such as in the case of allocations after actual deliveries which are the result of measurement. inaccuracies, or unpreventable variations in rates of flow at the Delivery Points, and may result in failure to deliver or receive the Scheduled Amounts (such inaccuracies are hereinafter called "Measurement and Allocation Inaccuracies"). To the extent the actual quantity delivered may vary from the quantity scheduled due to Measurement and Allocation Inaccuracies, the parties agree that Buyer's obligation to purchase and receive and Seller's obligation to sell and deliver shall be deemed to be fulfilled to the extent that, on a monthly basis, such deliveries and receipts are within the monthly operational tolerances of the Transporter.

Operational Tolerance. For each Cargo there shall be an operational tolerance of up to plus [***] or minus [***] of the Scheduled Loading Quantity (the “Operational Tolerance”). The provisions of Clauses 7.4 and 7.6 shall not apply to any Cargo if the Quantity Delivered for that Cargo is at least [***] of the Scheduled Loading Quantity. If the Quantity Delivered is less than [***] of the Scheduled Loading Quantity for a Cargo, the Scheduled Loading Quantity (excluding the Operational Tolerance) shall be used for the purpose of calculating amounts due in accordance with the provisions of Clauses 7.4 or 7.6, as applicable. For the avoidance of doubt, the Parties shall seek in good faith to deliver and take the Scheduled Loading Quantity for each Cargo (without any adjustment in respect of the Operational Tolerance) and the Operational Tolerance shall apply only in the manner described above in this Clause 7.9 and shall not be assumed or implied as reducing/increasing the Buyer’s obligations under Clause 7.4 or the Seller Group’s obligations under Clause 7.6.

Operational Tolerance. Notwithstanding the foregoing provisions of this Article 8, and subject to the provisions of Article 8.4, Buyer shall not be required to lift, nor be subject to any liability for lifting less than, the Contract Quantity in any Month if and to the extent that: (a) such underlifting is due to the operational inability of the Refinery to process the Contract Quantity despite the exercise of commercially reasonable efforts to overcome such operational inability; (b) such underlifting is due to demonstrated operational reasons concerning only the Loading Ports or the tankers involved and does not in any event exceed ten percent (10%) of the Contract Quantity for such Month; (c) such underlifting comes as a consequence of Buyer performing remedial work (whether planned or unplanned) or an annual turnaround at the Refinery, provided that Buyer notifies Seller of any planned turnaround at least ninety (90) Days prior to the Month in which the turnaround is planned and of any planned remedial work as soon as reasonably possible; (d) such underlifting is the result of Buyer decreasing inventories of Maya at the Refinery, having previously increased such inventories by lifting in excess of the Contract Quantity due to increased risk of weather-related interruption of supply; (e) such underlifting is the result of force majeure and excused pursuant to Article 16; or (f) such underlifting is due to an underdelivery by Seller, or due to Buyer acting in response thereto in accordance with Article 9.