Operational Imbalances Clause Samples
The Operational Imbalances clause defines how discrepancies between the quantities of goods or services delivered and those received are identified and managed during ongoing operations. Typically, this clause outlines the procedures for measuring, reporting, and reconciling such imbalances, often specifying timeframes for notification and methods for financial or physical settlement. Its core function is to ensure that both parties have a clear and fair process for addressing mismatches, thereby minimizing disputes and maintaining operational continuity.
Operational Imbalances. JPM CCC and Purchaser recognize that due to the normal operation of one or more of the Transporters’ pipeline systems and/or storage facilities, certain Operational Imbalances may arise from time to time with respect to Oil sold and delivered hereunder, due to, among other things, a Transporter’s batch scheduling processes, variations in rates of the flow of Oil, Oil transit time, inaccuracies in the measurement and allocation of Oil, and other physical reasons. Notwithstanding any other term or provision in this Agreement to the contrary, to the extent any such Operational Imbalance occurs with respect to any Transaction during any Delivery Month and causes either JPM CCC or Purchaser to be unable to satisfy all or any part of its delivery or purchase obligation for such Transaction, such Party shall not be deemed to be in default hereunder with respect to its delivery or purchase obligation for such Transaction and the shortfall or excess quantity of Oil (as the case may be) (the “Imbalance Quantity”) shall be carried forward to the following Delivery Month or Delivery Months, as applicable, and settled in cash or physically settled by delivery or redelivery as soon as possible as agreed by the Parties. JPM CCC and Purchaser shall take all necessary steps to account for and settle any such Imbalance Quantity in a commercially reasonable manner and shall adjust future nominations and deliveries of Oil in accordance with the foregoing provisions. If an imbalance has been settled through the Enbridge Pipeline auto balancing procedure, then the quantity of the imbalance so settled will be flowed through directly by JPM CCC to Purchaser, such that any quantity sold to Enbridge Pipeline shall be deducted from such delivery obligation and any quantity purchased from Enbridge Pipeline will be added to such delivery obligation, and the gains or losses incurred by JPM CCC (calculated (i) with respect to quantities sold to Enbridge Pipeline, as the difference between the Contract Value for the affected quantity, except that the date on which such amount would otherwise be due, and the price discounted, using LIBOR interest rates, to such re-determined date, shall each be determined by JPM CCC in a commercially reasonable manner, and the amount received by JPM CCC for the quantity it was required to sell to Enbridge Pipeline in accordance with such auto balancing, and (ii) with respect to quantities purchased from Enbridge Pipeline, as the price paid to Enbridge Pip...
Operational Imbalances. MLC and PESRM recognize that due to the normal operation of one or more pipeline systems, storage facilities, dock facilities and other loading and unloading facilities and the like, certain operational imbalances (each, an “Operational Imbalance”) may arise from time to time with respect to Hydrocarbons to be sold and delivered under this Agreement due to, among other things, variations in rates of the flow of such Hydrocarbons, transit times, inaccuracies in the measurement and allocation of such Hydrocarbons and other physical reasons. To the extent any such Operational Imbalance occurs and causes either Party to be unable to satisfy all or any part of its delivery or purchase obligations with respect to a PESRM Transaction, such Party shall not be deemed to be in default hereunder with respect to its delivery or purchase obligation for such PESRM Transaction and the shortfall or excess quantity of Hydrocarbon, as applicable (the “Imbalance Quantity”), shall be carried forward to the following delivery month or delivery months, as applicable, and settled in cash or physically settled by delivery or redelivery as soon as possible as agreed by the Parties. MLC and PESRM shall take all necessary steps to account for and settle any such Imbalance Quantity in a commercially reasonable manner and shall adjust future nominations and deliveries of Hydrocarbon in accordance with the foregoing provisions.
Operational Imbalances. The Parties intend that the MMBtu of Gas actually delivered and received each day at each Interconnection Point will equal the confirmed scheduled nominations of the Parties to be delivered or received therefrom. Any variance between the actual physical flow of Gas at an Interconnection Point each day and the confirmed scheduled nominations of receipts and deliveries for that Interconnection Point for such day is an “Operational Imbalance”, which Operational Imbalance is the responsibility of the Parties to eliminate pursuant to this Agreement.
Operational Imbalances. Operator and Customer recognize and agree that from time to time and when circumstances may require, Operator shall have the right to withdraw and utilize Customer's Gas for operational purposes without notice to Customer, provided that (i) such withdrawals shall not affect the Parties' rights and obligations under this Agreement, (ii) absent an event of Force Majeure, Operator shall remain liable to meet the daily delivery obligations, up to the MDWQ, according to the terms of the applicable Confirmation, and (iii) Operator shall, as soon as practicable and at its sole cost, risk and expense, reinject into the Storage Facility for Customer's account a quantity of Gas equal to any quantities withdrawn according to the terms of this Section 2.4. article 12 RATES Customer agrees to pay (i) the fee for the reservation of storage capacity to store the Working Gas set forth in the Confirmation (the “Storage Fee”), plus (ii) the fee for injection of Working Gas set forth in the Confirmation (the “Injection Fee”), plus (iii) the fee for withdrawal of Working Gas set forth in the Confirmation (the “Withdrawal Fee”); provided, the total of the above referenced fees for each Month shall not exceed the maximum amount allowed by applicable law or regulation (the “Maximum Legal Rate”). Operator may at any time adjust the above referenced fees in whatever manner is necessary to implement discounts or other fee adjustments. article 13 related transactions and end of term matters 14 Related Transactions. Customer shall be responsible for all matters arising from or ancillary to the purchase and sale of Gas to be stored on its behalf in the Storage Facility and for the transportation of such Gas to the Receipt Point(s) and from the Delivery Point(s), including, without limitation, securing and maintaining all necessary transportation services with Transporting Pipelines, complying with all reporting requirements and payment obligations arising in respect of Gas sales proceeds, paying or delivering all royalties and other third party interests, securing and maintaining all required permits and authorizations and paying all taxes, levies and charges associated with its purchase hereunder of storage services or its nominating from time‑to‑time for injection and withdrawal of Gas from the Storage Facility.