Common use of Cargo Basis Differential Clause in Contracts

Cargo Basis Differential. If the pricing basis for a Cargo negotiated between Seller and a third party supplier is based on [REDACTED] index pricing for the Cargo Bank Hedge-Month, then the Cargo Basis Differential for such Cargo shall be $[REDACTED]. If the pricing basis negotiated by Seller with the third party supplier is not based on [REDACTED] index pricing for the Cargo Bank Hedge-Month (such as a transaction based on “Dated Xxxxx” pricing), then the Cargo Basis Differential will be [REDACTED]. As a part of the hedge based pricing process described in this Clause 9(b)(ii), the Parties agree that, no later than the Business Day prior to the first day of pricing being set between the parties by Buyer nominating that Buyer is being delivered such Cargo, the third party pricing basis shall be converted to an appropriate [REDACTED] futures contract basis, with an appropriate corresponding hedging month to be used in such pricing (the “Hedge-Month”). Should Buyer fail to follow the procedure below to designate the Hedge-Month and or set the [REDACTED] based index pricing for the Cargo Bank Hedge-Month within the allowed time period, Seller, in its sole discretion, can hedge the Cargo in the best way Seller sees fit and using the hedging futures contracts it deems most appropriate, and the actual difference between such hedging contracts and the third party pricing basis shall be used as the Cargo Basis Differential. For any Cargo that has been acquired to cover a Requirement, Buyer shall have the option at all times (subject to the limitations detailed later in this Clause 9) to contact Seller and request a fair market price assessment for the difference between:

Cargo Basis Differential. If the pricing basis for a Cargo negotiated between Seller and a third party supplier is based on [REDACTED] index pricing for the Cargo Bank Hedge-Month, Month then the Cargo Basis Differential for such Cargo shall be $[REDACTED]. If ] if the pricing basis negotiated by Seller with the third party supplier is not based on [REDACTED] index pricing for the Cargo Bank Hedge-Month (such as a transaction based on “Dated Xxxxx” pricing), then ) the Cargo Basis Differential will be [REDACTED]. As a part of the hedge based pricing process described in this Clause 9(b)(ii), the Parties agree that, no later than the Business Day prior to the first day of pricing being set between the parties by Buyer nominating that Buyer it is being delivered such Cargo, the third party pricing basis shall be converted to an appropriate [REDACTED] futures contract basis, with an appropriate corresponding hedging month to be used in such pricing (the “Hedge-Month”). Should Buyer fail to follow the procedure below to designate the Hedge-Month and or set the [REDACTED] based index pricing for the Cargo Bank Hedge-Month within the allowed time period, Seller, in its sole discretion, can hedge the Cargo in the best way Seller sees fit and using the hedging futures contracts it deems most appropriate, and the actual difference between such hedging contracts and the third party pricing basis shall be used as the Cargo Basis Differential. For any Cargo that has been acquired to cover a Requirement, Buyer shall have the option at all times (subject to the limitations detailed later in this Clause 9) to contact Seller and request a fair market price assessment for the difference between: