Interim and Final Balancing Clause Samples
The "Interim and Final Balancing" clause establishes procedures for reconciling payments or obligations between parties at different stages of a contract, typically during and after the completion of work or delivery of goods. In practice, this clause may require an interim assessment of costs or quantities at a certain milestone, followed by a final review and adjustment once all relevant information is available. Its core function is to ensure that both parties are fairly compensated or charged based on actual performance or delivery, thereby preventing disputes and ensuring financial accuracy throughout the contractual relationship.
Interim and Final Balancing. If a cumulative Imbalance exists at a point in time when Shipper’s scheduled volumes are less than twenty-five percent (25%) of Shipper’s MDQ or less than twenty-five percent (25%) of the Shipper’s prior six (6) Months average scheduled volume, LMM, at its option, can elect to settle the Imbalance with a cash payment. LMM will either purchase from or sell to the Shipper the Imbalance volume. LMM will calculate the value of the cash payment by multiplying the cumulative Imbalance volume by the price as published in the Inside FERC Gas Market report for the Interconnecting Pipeline market location relevant to the agreement for the Month immediately following the statement Month. If an Imbalance exists at the termination of this Agreement, the cumulative Imbalance will be eliminated by cash settlement in the same manner as described above within sixty (60) Days after receipt by Shipper of LMM’s final regular Monthly statement.
Interim and Final Balancing. If a cumulative Imbalance exists at a point in time when ▇▇▇▇▇▇▇’s scheduled volumes are less than 25% of the applicable MDQ or less than 25% of the Shipper’s prior six (6) Months average scheduled volume, ▇▇▇▇▇▇▇▇, at its option, may elect to settle the Imbalance with a cash payment. ▇▇▇▇▇▇▇▇ will either purchase from or sell to the Shipper the Imbalance volume. ▇▇▇▇▇▇▇▇ will calculate the value of the cash payment by multiplying the cumulative Imbalance volume by the price as published in the Inside FERC Gas Market report for the Interconnecting Pipeline market location relevant to the Delivery Point(s) for the Month the Imbalance was created. If an Imbalance exists at the termination of this Agreement, the cumulative Imbalance will be eliminated by cash settlement in the same manner as described above within sixty (60) Days after receipt by ▇▇▇▇▇▇▇ of ▇▇▇▇▇▇▇▇’ final regular Monthly statement.