Common use of Permanent Replacement Clause in Contracts

Permanent Replacement. (a) If the Transporter at any time is of the reasonable opinion that in respect of PI or any index required for the calculation of WPI: i such index is permanently not available or the Transporter is unable to determine whether it is temporarily or permanently unavailable; ii any required value or values for such index have been computed or published in an erroneous form; or iii such index is changed in the basis of calculation or no longer reflects the inflation rate in the relevant country so as to materially affect the validity of indicator comparison over time, then the Transporter shall have the right to notify the Shipper in writing of such circumstances, and the Transporter and the Shipper will consult upon an adjustment to or replacement of such index so as to achieve as closely as possible the same inflation indexation as the parties expect would have resulted had such event not occurred. (b) If there is a major change to the composition of the Euro area which is used to calculate the inflation index PI, the goal of maintaining the real value of equity investments in TAP in a major international currency shall be taken into consideration when suggesting any replacement index. (c) The Transporter, having consulted with the Shipper and the other Shippers and acting as a Reasonable and Prudent Operator, may notify the Shipper of an adjustment to or replacement of such index. Provided that the Transporter notifies all of its Shippers of the same adjustment or replacement then (without prejudice to any approval that may be required to be obtained by the Transporter from the Authorities), on and from the date of such notice, the relevant index will be amended or replaced in accordance with such notice.