Common use of Hedging Activity Due to Refinery Operational Upsets Clause in Contracts

Hedging Activity Due to Refinery Operational Upsets. Buyer shall have the option to request that Seller adjust the number of futures contracts held in any Hedge-Month Pool by contacting Seller and requesting that Seller perform a futures transaction outside the normal hedging and pricing activity as described above. This request shall be at Buyer’s discretion for reasons including, but not limited to, unplanned changes in running plan or unscheduled shutdowns caused by Refinery upsets. Seller shall perform such transactions according to the principles above and shall not unreasonably refuse such requests. However, Seller shall only be required to act within the following limitations: (A) All transactions shall be at achievable market prices, either settlement prices with due notice, or if Buyer requests, transactions concluded during the trading day whereby Buyer accepts Seller’s achieved transaction prices. (B) The total number of futures in any purchase transaction must equal the total number of futures in a corresponding sales transaction, and vice versa: Buyer does not have the option to request Seller to take a net longer or net shorter futures position. Should any Hedge-Month Pool be changed by Buyer requesting and Seller accepting a non-standard hedging activity, the Parties shall agree to a corresponding adjustment to the Cargo Basis Differential (and thereby the Cargo Bank Differential) and the Hedge-Month for any Cargo or part of Cargo that is affected by such change, in order that the Hedge-Month Pools and Cargo Banks remain in balance and the other principles of this Agreement are maintained.

Hedging Activity Due to Refinery Operational Upsets. Buyer shall have the option to request that Seller adjust the number of futures contracts held in any Hedge-Month Pool by contacting Seller and requesting that Seller perform a futures transaction outside the normal hedging and pricing activity as described above. This request shall be at Buyer’s discretion for reasons including, but not limited to, unplanned changes in running plan or unscheduled shutdowns caused by Refinery upsets. Seller shall perform such transactions according to the principles above and shall not unreasonably refuse such requests. However, Seller shall only be required to act within the following limitations: (A) All transactions shall be at achievable market prices, either settlement prices with due notice, or if Buyer requests, transactions concluded during the trading day whereby Buyer accepts Seller’s achieved transaction prices. (B) The total number of futures in any purchase transaction must equal the total number of futures in a corresponding sales transaction, and vice versa: Buyer does not have the option to request Seller to take a net longer or net shorter futures position. Should any Hedge-Month Pool be changed by Buyer requesting and Seller accepting a non-standard hedging activity, the Parties shall agree to a corresponding adjustment to the Cargo Basis Differential (and thereby the Cargo Bank Differential) and the Hedge-Month for any Cargo or part of Cargo that is affected by such change, in order that the Hedge-Month Pools and Cargo Banks remain in balance and the other principles of this Agreement are ate maintained.