Common use of Failure to Process Clause in Contracts

Failure to Process. If for any reason other than REG Marketing’s failure to deliver Feedstocks, methanol, and catalyst as required under this Agreement (and other than a matter covered by the force majeure provisions of this Agreement) Blackhawk Biofuels fails to process the Feedstocks in to the certified Biodiesel within the time frame contemplated by this Agreement, Blackhawk Biofuels will pay to REG Marketing the amount determined by first dividing the number of pounds of Feedstocks delivered to Blackhawk Biofuels by the Maximum Feedstock Usage per gallon yield under Section 7 and converting to gallons to determine the gallons of Biodiesel which should have been processed (“Required Gallons”); second, subtracting the actual gallons of Biodiesel received by REG Marketing from the Required Gallons to determine the number of gallons which Blackhawk Biofuels failed to process (“Biodiesel Shortage”); and third, multiply the Biodiesel Shortage by REG Marketing’s average market price per gallon of Biodiesel delivered by Blackhawk Biofuels to REG Marketing up to such time of computation (or if none delivered another reasonable method of determining the market value of Biodiesel FOB Danville as may be agreed by the Parties, or otherwise determined if the Parties can not so agree).