Product Meter Adjustments Clause Samples
The 'Product Meter Adjustments' clause defines the process for correcting or reconciling measurements recorded by product meters, such as those used to track quantities of gas, oil, or other commodities. In practice, this clause outlines the circumstances under which meter readings may be adjusted, the methods for determining the correct quantities if discrepancies are found, and the responsibilities of each party in reporting and resolving such issues. Its core function is to ensure accurate accounting and fair settlement between parties by addressing errors or malfunctions in measurement equipment.
Product Meter Adjustments. If a Measurement Device is out of service or registering inaccurately, the Parties shall determine the quantities of Product received or delivered during such period as follows:
(a) By using the registration of any check meter or meters, if installed and accurately registering; or in the absence of such check meters,
(b) By using a meter operating in parallel with the estimated volume corrected for any differences found when the meters are operating properly,
(c) By correcting the error if the percentage of error is ascertainable by calibration, tests or mathematical calculation, such as step change, uncertainty calculation or balance adjustment; or in the absence of check meters and the ability to make corrections under this Section 4.3(c), then,
(d) By estimating the quantity received or delivered by receipts or deliveries during periods under similar conditions when the meter was registering accurately.