Operational Tolerance definition

Operational Tolerance as defined in Section 5.6.3;
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Operational Tolerance means an annual delivery shortfall of not greater than an amount of LNG (in MMBtus) equal to *** of the AACQ for such Commercial Operations Period; provided that if Seller claims an Operational Tolerance during any Commercial Operations Period, (a) Seller shall not have the right to claim any Operational Tolerance in the immediately following Commercial Operations Period, (b) the ACQ in the immediately following Commercial Operations Period shall be increased by the amount of Seller’s shortfall during such Commercial Operations Period, not to exceed the maximum Operational Tolerance, and (c) Seller shall credit Buyer the Operational Tolerance Credit (as defined and calculated in accordance with paragraph VIII of Exhibit A (Pricing)).
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Operational Tolerance as defined in Paragraph 11.1.3(C) of Part B of Schedule 2;
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Examples of Operational Tolerance in a sentence

  • In the event there is a deviation of Buyer from the Monthly Operational Tolerance for three (3) consecutive months, then the Parties will meet within ten (10) working days following the last day of the relevant month to discuss such consecutive deviation, with the aim to prevent a near-term reoccurrence of that deviation.

  • Buyer shall always use commercially reasonable efforts to offtake Product volume in line with the Monthly Operational Tolerance, however, a monthly product offtake volume tolerance for Product supplies under this Contract of up to [*****] is permissible for as long as this higher monthly tolerance occurs only on an occasional basis, and under no circumstances for more than three (3) consecutive months.

  • In the event there is a deviation of Buyer from the Monthly Operational Tolerance [*****], then the Parties will meet within ten (10) working days following the last day of the relevant month to discuss such consecutive deviation, with the aim to prevent a near-term reoccurrence of that deviation.

  • If the Quantity Delivered is less than [***] of the Scheduled Loading Quantity for a Cargo, the Scheduled Loading Quantity (excluding the Operational Tolerance) shall be used for the purpose of calculating amounts due in accordance with the provisions of Clauses 7.4 or 7.6, as applicable.

  • If Buyer’s LNG Tanker is not capable of loading the applicable Scheduled Cargo Quantity (subject to the Operational Tolerance), Buyer shall be deemed to have failed to take the shortfall quantity and Section 5.5 shall apply, except to the extent that such failure is attributable to Seller’s delivery of LNG that has a Gross Heating Value that is less than the value identified by Seller pursuant to Section 8.1.1(a).

  • For the avoidance of doubt, the Parties shall seek in good faith to deliver and take the Scheduled Loading Quantity for each Cargo (without any adjustment in respect of the Operational Tolerance) and the Operational Tolerance shall apply only in the manner described above in this Clause 7.9 and shall not be assumed or implied as reducing/increasing the Buyer’s obligations under Clause 7.4 or the Seller Group’s obligations under Clause 7.6.


More Definitions of Operational Tolerance

Operational Tolerance is as defined in Clause 7.9.
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Operational Tolerance means a quantity of LNG which is plus or minus five per cent (+/-5%) of the Nominal Quantity, unless otherwise agreed in the Confirmation Notice.
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Operational Tolerance means a quantity of Product which is plus or minus five percent (+/-5%) of the Firm Quantity, unless provided otherwise in the Transaction Documents. Parties: means Buyer and Seller collectively. Party: means Buyer or Seller individually. Personal Data: means information related to an identified or directly or indirectly identifiable individual. Product: means Marine LNG or such other product as specified in the Transaction Documents.
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