Common use of Volume Losses Clause in Contracts

Volume Losses. (a) WECU shall have the right at any time, acting reasonably in accordance with good industry practice, to flare Project Group Substances free of charge. (b) Project Group shall bear its share of any losses suffered during a Month due to operational losses, evaporation, flaring, cavern loss or Force Majeure on a fair and non-preferential basis and in accordance with customary industry practices and standards. (c) If and when it cannot be determined to whom a loss should be allocated, any such loss shall be borne by Project Group in the proportion to the volume of Project Group Substances Handled through the particular WECU Facility during the appropriate prior period as compared to the total volume of substances handled through that facility during such period.

Appears in 2 contracts

Sources: Contribution Agreement, Contribution Agreement (Williams Partners L.P.)