Material Crude Grade Changes Sample Clauses
The Material Crude Grade Changes clause defines the procedures and obligations that apply when there is a significant alteration in the quality or type of crude oil delivered under a contract. Typically, this clause outlines how parties must notify each other of such changes, the criteria for determining what constitutes a 'material' change, and the rights of the buyer or seller to accept, reject, or renegotiate terms based on the new crude grade. Its core practical function is to ensure that both parties are protected from unexpected shifts in product quality, thereby reducing disputes and maintaining fairness in the contractual relationship.
Material Crude Grade Changes. If either the Company or ▇▇▇▇ concludes in its reasonable judgment that the specifications (including specific gravity and sulfur content of the Crude Oil) of the Crude Oil procured, or projected to be procured, differ materially from the grades that have generally been run by the Refinery, then the Company and ▇▇▇▇ will endeavor in good faith to mutually agree on (i) acceptable price indices for such Crude Oil, and (ii) a settlement payment from one Party to the other sufficient to compensate the relevant Party for the relative costs and benefits to each of the price differences between the prior price indices and the amended price indices.
Material Crude Grade Changes. If either the Company or ▇▇▇▇ concludes in its reasonable judgment that the specifications (including specific gravity and sulfur content of the Crude Oil) of the Crude Oil procured, or projected to be procured, differ materially from the grades that have generally been run by the Refinery or such grades that the Company may run from time to time acting as a prudent refinery operator, then the Company and ▇▇▇▇ will endeavor in good faith to mutually agree on (i) acceptable price indices for such Crude Oil, and (ii) a settlement payment from one Party to the other that is sufficient to compensate the relevant Party for the relative costs and benefits to each of the price differences between the prior price indices and the amended price indices.
Material Crude Grade Changes. If either of LW or Macquarie concludes in its reasonable judgment that the specifications (including specific gravity and sulfur content of the Crude Oil) of the Crude Oil procured, or projected to be procured, differ materially from the grades that have generally been run by the Refinery or such grades that LW may run from time to time acting as a prudent refinery operator, then LW and Macquarie shall endeavor in good faith to mutually agree on (i) acceptable price indices for such Crude Oil, and (ii) a settlement payment from one Party to the other that is sufficient to compensate the relevant Party for the relative costs and benefits to each of the price differences between the prior price indices and the amended price indices.
Material Crude Grade Changes. If either the Company or ▇▇▇▇ concludes in its reasonable judgment that the specifications (including specific gravity and sulfur content of the Crude Oil) of the Crude Oil procured, or projected to be procured, differ materially from the grades PORTIONS OF THIS EXHIBIT DENOTED WITH THREE ASTERISKS (***) HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. that have generally been run by the Refinery, then the Company and ▇▇▇▇ will endeavor in good faith to mutually agree on (i) acceptable price indices for such Crude Oil, and (ii) a settlement payment from one Party to the other that is sufficient to compensate the relevant Party for the relative costs and benefits to each of the price differences between the prior price indices and the amended price indices.