Common use of Compensation Mechanism Clause in Contracts

Compensation Mechanism. In the event of the inability to nominate a negative Send-Out as per Article 23.3.2 and the modification of the Terminal's Send-Out in accordance with Article 23.3.2, resulting in a modification to the Forecasted Daily Send-Out of the other Shippers ("Affected Shippers"), the Shipper behind this modification ("Responsible Shipper") shall accept that the following compensation mechanism shall apply. The "Quantity to be Compensated" each Day by the Responsible Shipper shall be calculated by the Operator and shall be equal at most to the difference between the Forecasted Daily Send-Out of the Affected Shippers before the date on which the aforementioned modification came into force, and the Forecasted Daily Send- Out of the Affected Shippers following said modification. The Quantity to be Compensated shall be delivered each Day by the Responsible Shipper to each Affected Shipper. The Quantity to be Compensated shall be delivered in kind on the PEG. At the same time, the Inventory Level of the Affected Shipper shall be cut by a quantity equal to the Quantity to be Compensated and the Inventory Level of the Responsible Shipper shall be supplemented by the same quantity. The Shipper's compensation obligations shall be suspended under the same circumstances and according to the same terms and conditions as those explained in Articles 9, 10 and 11. The Shipper shall waive the right to recourse against the other Shippers in respect of the damages that it may suffer in the situations referred to in Article 23.3 above the amounts specified in Article 27.2.3. There is no joint and several liability between Shippers under Article 27.