Common use of Risk Management Requirements Clause in Contracts

Risk Management Requirements. Genesis Energy, L.P. will not have any Open Positions in Petroleum Inventory (crude oil or other products that Genesis Energy, L.P. markets). Open Position means (i) any physical Petroleum Inventory or (ii) any purchase or sale contract for Petroleum Inventory that does not have an Offsetting Position. Offsetting Position means any offsetting sale or purchase agreement, an offsetting NYMEX contract, an offsetting physical inventory position (excluding Minimum Inventories) or an offsetting swap, collar or option contract, in each case substantially eliminating price risk. Genesis Energy, L.P. will not write (i.e. sell) or otherwise participate in any swap, collar or similar agreement relating to Petroleum Inventory, or write (i.e. sell) any option, unless it (i) has an Offsetting Position in Petroleum Inventory volumes and (ii) the counter-party (or guarantor to the obligations of such counter-party) at the time such financial instrument is made has one or more long term unsecured debt obligations rated A or A2 or better, respectively, by either S&P or Xxxxx’x. SCHEDULE 6.01