Common use of Measurement Systems Malfunction Clause in Contracts

Measurement Systems Malfunction. If as a result of any test or supervision it is shown that any component of the measurement systems does not comply with the specifications, presents a malfunction or is incorrectly calibrated, the Contractor shall repair it immediately and ensure it is in good working order within no more than seventy-two (72) hours after the defect is detected or notice of the defect was received from the CNH. If as a result of any test or supervision it is determined that any element of a measurement system is inaccurate by more than one per cent (1%) or is out of order, the Contractor shall perform an adjustment to correct the inaccuracy of the readings taken by the defective measurement system during the period in which the inaccuracy was found or the measurement system remained nonoperational. If the period of inaccuracy or operational failure cannot be determined by testing or supervision, the Contractor will propose an appropriate adjustment to the CNH. If the CNH does not consider the proposal to be adequate, within ten (10) Days from the date the inaccuracy or operational failure was discovered, as the case may be, the measurement shall be conducted using appropriate backup meters. In the case of failures or inaccuracies of the measurement systems where backup meters have failed, or have been found to be inaccurate by more than one percent (1%), the following shall apply: (i) the period during which measurements shall be adjusted will be the second half of the period beginning at the time of the last test of the malfunctioning measurement systems, and (ii) the amounts of Hydrocarbons delivered during such adjustment period shall be estimated based on all available information, including the records of any Hydrocarbon marketing. To the extent that such adjustment period includes a period during which the State Consideration has been paid as a percentage of the Contractual Value of Hydrocarbons, measurements adjusted pursuant to this Article 12.5 shall be used to recalculate the amount due for the period of inaccuracy as provided in Annex 3. If as a result of applying the adjusted measurements, adjustments for the paid balance of the State Considerations are required, such adjustments shall be made as provided by in Annex 3.

Measurement Systems Malfunction. If as a result of any test or supervision it is shown that any component of the measurement systems does not comply with the specifications, presents a malfunction or is incorrectly calibrated, the Contractor shall repair it immediately and ensure it is in good working order within no more than seventy-two (72) hours after the defect is detected or notice of the defect was received from the CNH. If as a result of any test or supervision it is determined that any element of a measurement system is inaccurate by more than one per cent (1%) or is out of order, the Contractor shall perform an adjustment to correct the inaccuracy of the readings taken by the defective measurement system during the period in which the inaccuracy was found or the measurement system remained nonoperational. If the period of inaccuracy or operational failure cannot be determined by testing or supervision, the Contractor will propose an appropriate adjustment to the CNH. If the CNH does not consider the proposal to be adequate, within ten (10) Days from the date the inaccuracy or operational failure was discovered, as the case may be, the measurement shall be conducted using appropriate backup meters. In the case of failures or inaccuracies of the measurement systems where backup meters have failed, or have been found to be inaccurate by more than one percent (1%), the following shall apply: (i) the period during which measurements shall be adjusted will be the second half of the period beginning at the time of the last test of the malfunctioning measurement systems, and (ii) the amounts of Hydrocarbons delivered during such adjustment period shall be estimated based on all available information, including the records of any Hydrocarbon marketing. To the extent that such adjustment period includes a period during which the State Consideration has been paid as a percentage of the Contractual Value of Hydrocarbons, measurements adjusted pursuant to this Article 12.5 shall be used to recalculate the amount due for the period of inaccuracy as provided in Annex 3. If as a result of applying the adjusted measurements, adjustments for the paid balance of the State Considerations are required, such adjustments shall be made as provided by in Annex 3.