Commodity Price Adjustment definition
Commodity Price Adjustment means, for each Fiscal Year period within the Performance Period, $20 million multiplied by the result of (i) Forecasted BOE Price specified in Appendix A to this Award minus (ii) the Realized BOE Price.
Commodity Price Adjustment shall have meaning as set forth below:
(a) Each Nomination Revision during a Delivery Month shall result in a Commodity Price Adjustment equal to the OPIS average for each Component for the balance of the month starting the day after Seller notifies Buyer of the Nomination Revision. If Seller notifies Buyer of a Nomination Revision on the last day of the month, the Commodity Price Adjustment would equal the OPIS average for each Component for the balance of the month starting that day. For changes increasing the Original Nomination, Buyer shall pay Seller the balance of the month price for the increased Nomination Revision added to the monthly average price for the Original Nomination. For changes decreasing the Original Nomination, Buyer shall deduct the balance of the month price for the decreased Nomination Revision from the monthly average price for the Original Nomination. The Commodity Price Adjustment shall be included in determining the Commodity Price as demonstrated in the attached Exhibits A and B.
(b) The prior month’s Component Imbalance Volume shall also result in a Commodity Price Adjustment equal to the OPIS average for each Component for the balance of the month starting the day of the Component Imbalance Determination Date. A positive Component Imbalance Volume and price shall be included in the Commodity Price Adjustment by increasing the volume and pricing as demonstrated in the attached Exhibit A. A negative Component Imbalance Volume and price shall be included in the Commodity Price Adjustment by decreasing the volume and related pricing as demonstrated in the attached Exhibit B.
(c) Both the Nomination Revision and Component Imbalance Volume calculations and pricing described in 4.2 (a) and 4.2 (b) will be applied to the Actual Delivered Volume as demonstrated in the attached Exhibit C.
Commodity Price Adjustment has the meaning set forth in Section 4.2.
Examples of Commodity Price Adjustment in a sentence
Notwithstanding a Party’s responsibility for any imbalance according to the foregoing, the provisions for Commodity Price Adjustment for each Component Imbalance Volume during the Delivery Period shall apply.