Oil Quality Specifications Clause Samples

Oil Quality Specifications. (a) Producer’s Oil received and delivered at each Receipt Point will meet the following quality specifications: Constituent or PropertyLimit Sediment (excluding water)Not more than 4.0% by volume Temperature Not more than 135°F Hydrogen Sulfide Not more than 100 ppm ViscosityNot to exceed 1.5 centistokes at 135°F Total Sulphur Not more than 0.3% by weight Organic Chlorides Not more than 1.5 ppm Olefins Not more than 0.5% MercaptansNot more than 0.025% by weight ​ Gatherer hereby acknowledges and agrees that nothing herein shall be deemed to obligate Producer to separate Oil from Producer’s Products and other hydrocarbons (including all components contained therein and water therewith) that are received and delivered at each Receipt Point. ​ (b) If Producer delivers Oil not meeting the specifications set forth in Section ‎10.2(a), Gatherer shall accept such non-specification Oil, provided that Gatherer is only required to accept such non-specification Oil to the extent (i) after separation, processing and stabilization pursuant and subject to the terms of Section ‎10.3, such non-specification Oil will not be rejected by any Person receiving such Oil at the Delivery Point(s) or any point downstream thereof and (ii) Gatherer determines, in its sole reasonable discretion, that such non-specification Oil will not cause damage to person or property. Subject to the foregoing and Section ‎10.3, to the extent that Gatherer incurs out-of-pocket costs in connection with delivering Producer’s Oil not meeting the specifications set forth in this Section ‎10.2 to the Delivery Point(s) or any point downstream thereof (including without limitation, any downstream intrastate or interstate pipeline), Producer shall reimburse Gatherer for such out-of-pocket costs.