OPERATIONAL AND PROCESS LOSSES Sample Clauses

OPERATIONAL AND PROCESS LOSSES. The parties acknowledge that in the course of operations and processes required for receiving, handling, storing, purifying, filtering, transporting, loading and unloading Felmont Sulphur, some portion of such sulphur will be lost and, from time to time, gained. The parties agree that such operational and process losses and gains shall be estimated and allocated among the particular processes in which such changes occur, by such method or methods as Freeport shall from time to time determine, subject to adjustment based on total loss or gain determinations made from time to time by actual physical measurement. The quantity of Felmont Sulphur which is held be Freeport from time to time shall be determined by totaling all receipts of Felmont Main Pass Sulphur and Felmont Blending Sulphur and subtracting (or adding in the case of the operational gains) therefrom (i) the operational and process losses and gains) (ii) all deliveries of Felmont Sulphur made to purchasers, and (iii) any Felmont Sulphur which is lost or destroyed due to reasons beyond Freeport's reasonable control. Freeport shall from time to time make analyses of sulphur in the course of such operations and processes in order to establish the quantities and characteristics of such sulphur. Freeport shall deliver to Felmont reports of such analyses at least monthly. Felmont shall have the right at Felmont's expense to have such records of such analyses audited by a chemist from time to time designated by Felmont and to take splits of such analyses for the purpose of making Felmont's own determinations of such quantities and characteristics.