Common use of INVENTORY QUANTIFICATION PROCEDURES Clause in Contracts

INVENTORY QUANTIFICATION PROCEDURES. Prior to the Hydrocarbon Inventory Transfer Dates, the Inventory Team shall develop and mutually agree upon a gauging and sampling schedule by Tank (the “Inventory Schedule”). The Inventory Schedule shall include all Product Tanks, in or out of service, and shall indicate the following for each Tank comprising the Hydrocarbon Inventory: • Tank location, Tank number, type of roof and Tank type by site; • Status at Hydrocarbon Inventory Transfer Dates (active, inactive or out of service); • Tank contents (product/grade); • Tank equipment (i.e., mixers, heating coils or tubes); • Tank reference gauge height; • Tank calibration (ullage or innage), last Tank calibration date and Tank “critical zone”; • Total Tank volume and heel volume; • Design of Tank gauging tube (slotted or solid) and estimation of bottom sludge; and • Any specific gauging or sampling limitations (i.e. fresh air, no roof ladder). The gauging, temperature correction, sampling and API gravity for each Tank shall be done at the agreed time at each location by the IIC. Members of the Inventory Team may observe the gauging, sampling and measurement readings taken by the IIC. Hand gauges, temperature readings, samples (as agreed by the Inventory Team) and/or automatic gauge readings in the case of spheres will be taken at the storage Tanks, spheres and pre-loaded rail cars containing Hydrocarbon Inventory. Inventory quantity is determined by calculating total net volume in each identified Tank, including tank heels, and adjusting for free water and BS&W. The Parties shall be deemed to have accepted the accuracy of the gauging and temperature measurements of a Tank, pipeline, sphere or rail car as recorded by the IIC on the tank gauge ticket, as agreed by the Inventory Team, if the authorized representatives of PRC and Xxxx “sign-off” agreeing to the data recorded on the tank gauge ticket. Tanks that have been certified will not require further testing. In the event a determination of the quality of some Products must be performed, the Inventory Team will direct that samples be obtained and tested. Samples of such Products shall be jointly taken as described in this Schedule D, and such test shall be conducted at PRC’s laboratory. Xxxx and PRC may witness, or assign a representative to witness, any laboratory testing. The results of the tests so run shall be binding on the Parties. All Products in the process of unit rundown or blending are deemed to be within Product specification since all Product shipped must conform to manufacturing and/or customer specifications. Adjustments in value shall be made by the Inventory Team for all Products that do not meet prevailing and common quality specifications, for example ASTM or Colonial Pipeline Product Specifications. All Hydrocarbon Inventory measurement disputes shall be resolved by noon by the Inventory Team on the following working day (or in the case of quality disputes, promptly following receipt of test results by the Inventory Team).

INVENTORY QUANTIFICATION PROCEDURES. Prior to the Hydrocarbon Inventory Transfer Dates, the Inventory Team shall develop and mutually agree upon a gauging and sampling schedule by Tank (the “Inventory Schedule”). The Inventory Schedule shall include all Product Tanks, in or out of service, and shall indicate the following for each Tank comprising the Hydrocarbon Inventory: • Tank location, Tank number, type of roof and Tank type by site; • Status at Hydrocarbon Inventory Transfer Dates (active, inactive or out of service); • Tank contents (product/grade); • Tank equipment (i.e., mixers, heating coils or tubes); • Tank reference gauge height; • Tank calibration (ullage or innage), last Tank calibration date and Tank “critical zone”; • Total Tank volume and heel volume; • Design of Tank gauging tube (slotted or solid) and estimation of bottom sludge; and • Any specific gauging or sampling limitations (i.e. fresh air, no roof ladder). The gauging, temperature correction, sampling and API gravity for each Tank shall be done at the agreed time at each location by the IIC. Members of the Inventory Team may observe the gauging, sampling and measurement readings taken by the IIC. Hand gauges, temperature readings, samples (as agreed by the Inventory Team) and/or automatic gauge readings in the case of spheres will be taken at the storage Tanks, spheres and pre-loaded rail cars containing Hydrocarbon Inventory. Inventory quantity is determined by calculating total net volume in each identified Tank, including tank heels, and adjusting for free water and BS&W. The Parties shall be deemed to have accepted the accuracy of the gauging and temperature measurements of a Tank, pipeline, sphere or rail car as recorded by the IIC on the tank gauge ticket, as agreed by the Inventory Team, if the authorized representatives of PRC DCR and Xxxx “sign-off” agreeing to the data recorded on the tank gauge ticket. Tanks that have been certified will not require further testing. In the event a determination of the quality of some Products must be performed, the Inventory Team will direct that samples be obtained and tested. Samples of such Products shall be jointly taken as described in this Schedule D, and such test shall be conducted at PRCDCR’s laboratory. Xxxx and PRC DCR may witness, or assign a representative to witness, any laboratory testing. The results of the tests so run shall be binding on the Parties. All Products in the process of unit rundown or blending are deemed to be within Product specification since all Product shipped must conform to manufacturing and/or customer specifications. Adjustments in value shall be made by the Inventory Team for all Products that do not meet prevailing and common quality specifications, for example ASTM or Colonial Pipeline Product Specifications. All Hydrocarbon Inventory measurement disputes shall be resolved by noon by the Inventory Team on the following working day (or in the case of quality disputes, promptly following receipt of test results by the Inventory Team).

INVENTORY QUANTIFICATION PROCEDURES. Prior to the Hydrocarbon Inventory Transfer DatesCommencement Date, the Inventory Team shall develop and mutually agree upon a gauging and sampling schedule by Tank (the “Inventory Schedule”). The Inventory Schedule shall include all Product Tanks, in or out of service, and shall indicate the following for each Tank comprising the Hydrocarbon Inventory: • Tank location, Tank number, type of roof and Tank type by site; • Status at Hydrocarbon Inventory Transfer Dates Commencement Date (active, inactive or out of service); • Tank contents (product/grade); • Tank equipment (i.e., mixers, heating coils or tubes); • Tank reference gauge height; • Tank calibration (ullage or innage), last Tank calibration date and Tank “critical zone”; • Total Tank volume and heel volume; • Design of Tank gauging tube (slotted or solid) and estimation of bottom sludge; and • Any specific gauging or sampling limitations (i.e. fresh air, no roof ladder). The gauging, temperature correction, sampling and API gravity for each Tank shall be done at the agreed time at each location by the IIC. Members of the Inventory Team may observe the gauging, sampling and measurement readings taken by the IIC. Hand gauges, temperature readings, samples (as agreed by the Inventory Team) and/or automatic gauge readings in the case of spheres will be taken at the storage Tanks, spheres and pre-loaded rail cars containing Hydrocarbon Inventory. Inventory quantity is determined by calculating total net volume in each identified Tank, including tank heels, and adjusting for free water and BS&W. The Parties shall be deemed to have accepted the accuracy of the gauging and temperature measurements of a Tank, pipeline, sphere or rail car as recorded by the IIC on the tank gauge ticket, as agreed by the Inventory Team, if the authorized representatives of PRC and Xxxx “sign-off” agreeing to the data recorded on the tank gauge ticket. Tanks that have been certified will not require further testing. In the event a determination of the quality of some Products must be performed, the Inventory Team will direct that samples be obtained and tested. Samples of such Products shall be jointly taken as described in this Schedule D, and such test shall be conducted at PRC’s laboratory. Xxxx and PRC may witness, or assign a representative to witness, any laboratory testing. The results of the tests so run shall be binding on the Parties. All Products in the process of unit rundown or blending are deemed to be within Product specification since all Product shipped must conform to manufacturing and/or customer specifications. Adjustments in value shall be made by the Inventory Team for all Products that do not meet prevailing and common quality specifications, for example ASTM or Colonial Pipeline Product Specifications. All Hydrocarbon Inventory measurement disputes shall be resolved by noon by the Inventory Team on the following working day (or in the case of quality disputes, promptly following receipt of test results by the Inventory Team).

INVENTORY QUANTIFICATION PROCEDURES. Prior to the Hydrocarbon Inventory Transfer DatesCommencement Date, the Inventory Team shall develop and mutually agree upon a gauging and sampling schedule by Tank (the “Inventory Schedule”). The Inventory Schedule shall include all Product Tanks, in or out of service, and shall indicate the following for each Tank comprising the Hydrocarbon Inventory: • Tank location, Tank number, type of roof and Tank type by site; • Status at Hydrocarbon Inventory Transfer Dates Commencement Date (active, inactive or out of service); • Tank contents (product/grade); • Tank equipment (i.e., mixers, heating coils or tubes); • Tank reference gauge height; • Tank calibration (ullage or innage), last Tank calibration date and Tank “critical zone”; • Total Tank volume and heel volume; • Design of Tank gauging tube (slotted or solid) and estimation of bottom sludge; and • Any specific gauging or sampling limitations (i.e. fresh air, no roof ladder). The gauging, temperature correction, sampling and API gravity for each Tank shall be done at the agreed time at each location by the IIC. Members of the Inventory Team may observe the gauging, sampling and measurement readings taken by the IIC. Hand gauges, temperature readings, samples (as agreed by the Inventory Team) and/or automatic gauge readings in the case of spheres will be taken at the storage Tanks, spheres and pre-loaded rail cars containing Hydrocarbon Inventory. Inventory quantity is determined by calculating total net volume in each identified Tank, including tank heels, and adjusting for free water and BS&W. The Parties shall be deemed to have accepted the accuracy of the gauging and temperature measurements of a Tank, pipeline, sphere or rail car as recorded by the IIC on the tank gauge ticket, as agreed by the Inventory Team, if the authorized representatives of PRC DCR and Xxxx “sign-off” agreeing to the data recorded on the tank gauge ticket. Tanks that have been certified will not require further testing. In the event a determination of the quality of some Products must be performed, the Inventory Team will direct that samples be obtained and tested. Samples of such Products shall be jointly taken as described in this Schedule D, and such test shall be conducted at PRCDCR’s laboratory. Xxxx and PRC DCR may witness, or assign a representative to witness, any laboratory testing. The results of the tests so run shall be binding on the Parties. All Products in the process of unit rundown or blending are deemed to be within Product specification since all Product shipped must conform to manufacturing and/or customer specifications. Adjustments in value shall be made by the Inventory Team for all Products that do not meet prevailing and common quality specifications, for example ASTM or Colonial Pipeline Product Specifications. All Hydrocarbon Inventory measurement disputes shall be resolved by noon by the Inventory Team on the following working day (or in the case of quality disputes, promptly following receipt of test results by the Inventory Team).