Common use of Operational Tolerance Clause in Contracts

Operational Tolerance. It is the intent of the parties hereto that the quantity of Gas scheduled at each Delivery Point shall be the quantity delivered at such Delivery Point. However, Buyer and Seller recognize the inherent inaccuracies in the measurement and allocation of Gas due to the inability to maintain precise control. Such inaccuracies may at times occur through no fault of Buyer or Seller, such as in the case of allocations after actual deliveries which are the result of measurement. inaccuracies, or unpreventable variations in rates of flow at the Delivery Points, and may result in failure to deliver or receive the Scheduled Amounts (such inaccuracies are hereinafter called "Measurement and Allocation Inaccuracies"). To the extent the actual quantity delivered may vary from the quantity scheduled due to Measurement and Allocation Inaccuracies, the parties agree that Buyer's obligation to purchase and receive and Seller's obligation to sell and deliver shall be deemed to be fulfilled to the extent that, on a monthly basis, such deliveries and receipts are within the monthly operational tolerances of the Transporter.