Pipeline Delivery. (a) Pipeline Deliveries shall be made by SELLER from SELLER’s local on-island supply through SELLER’s pipelines to HECO at HECO’s BPTF. Title to Product and the risk of loss of Product Delivered by Pipeline Delivery shall pass from SELLER to HECO as per Article IX (Title, Custody And Risk Of Loss). (b) The Parties shall mutually coordinate Pipeline Deliveries of Product into HECO’s BPTF to minimize operational difficulties and costs. (c) All samples, measurements and determinations drawn, taken and made, respectively, under this Section 6.6 (Pipeline Delivery) shall be under the supervision of the Independent Inspector. SELLER and HECO shall share equally the cost of the inspections. (d) The quality and BTU Content of the Product Delivered by Pipeline Delivery shall be determined on the basis of a volumetric weighted average composite of samples drawn by the Independent Inspector from SELLER’s issuing tank(s) in such manner as to be representative of each individual Pipeline Delivery (“Tank Final Sample”). (e) The Tank Final Sample shall be divided into a minimum of three (3) parts as follows: (1) One part shall be provided to SELLER’s laboratory for analysis to determine quality including BTU Content per Barrel. (2) One part shall be provided to HECO for the purpose of verifying SELLER’s determinations. (3) At least one part shall be sealed and provided to the Independent Inspector to be retained for a period of at least three (3) Months. (f) SELLER agrees to provide HECO and the Independent Inspector with a copy of SELLER’s preliminary laboratory analyses of the Tank Final Sample (“Pre-shipment Report”) and shall provide this Pre-shipment Report prior to shipment of the Product. (g) SELLER agrees to provide HECO and the Independent Inspector with the Certificate of Quality representing the Tank Final Sample and will make a reasonable good faith effort to provide this Certificate of Quality no later than twenty-four (24) hours after the completion of the Pipeline Delivery. If the completed Certificate of Quality is not available within said 24-hour period, SELLER will advise HECO and the Independent Inspector, within said 24-hour period, will provide the final determination of API gravity, flash point, sulfur content and sediment and water representing the Tank Final Sample. (h) HECO shall have the right to perform laboratory analyses in order to verify the results of SELLER’s laboratory analyses; provided however, that such verification analyses shall be performed in a timely manner. SELLER and HECO will make reasonable good faith efforts to evaluate BTU Content and exchange results within three (3) business days of the completion of the Pipeline Delivery. (i) In order to eliminate or minimize the volume of SELLER’s Pipeline Fill received by HECO in the course of a Pipeline Delivery operation, HECO shall have the option to perform a Reverse Line Displacement whereby SELLER’s Pipeline Fill is displaced to SELLER using HECO’s Product at the commencement of Pipeline Delivery operations. If HECO elects not to commence Pipeline Delivery operations by displacing SELLER’s Pipeline Fill with HECO’s LSFO, or if such displacement is operationally unfeasible or impractical for any other cause, SELLER and HECO recognize that the Product received by HECO in a Pipeline Delivery may be a blend which includes some amount of SELLER’s Pipeline Fill (“Pipeline Blend”). In such instance, the specification of SELLER’s Pipeline Fill shall be determined by SELLER on the basis of SELLER’s samples representative of the contents of the storage tank from which SELLER’s Pipeline Fill was issued. SELLER agrees to provide HECO, HECO’s representative and the Independent Inspector with a copy of its laboratory analysis of the quality of SELLER’s Pipeline Fill prior to commencing the Pipeline Delivery.
Appears in 2 contracts
Samples: Supply Contract for Low Sulfur Fuel Oil (Hawaiian Electric Co Inc), Supply Contract for Low Sulfur Fuel Oil (Hawaiian Electric Industries Inc)
Pipeline Delivery. (a) Pipeline Deliveries shall be made by SELLER from SELLER’s local on-island supply through SELLER’s pipelines to HECO at HECO’s BPTF. Title to Product and the risk of loss of Product Delivered by Pipeline Delivery shall pass from SELLER to HECO as per Article IX (Title, Custody And Risk Of Loss).
(b) The Parties shall mutually coordinate Pipeline Deliveries of Product into HECO’s BPTF to minimize operational difficulties and costs.
(c) All samples, measurements and determinations drawn, taken and made, respectively, under this Section 6.6 (Pipeline Delivery) shall be under the supervision of the Independent Inspector. SELLER and HECO shall share equally the cost of the inspections.
(d) The quality and BTU Content of the Product Delivered by Pipeline Delivery shall be determined on the basis of a volumetric weighted average composite of samples drawn by the Independent Inspector from SELLER’s issuing tank(s) in such manner as to be representative of each individual Pipeline Delivery (“Tank Final Sample”).
(e) The Tank Final Sample shall be divided into a minimum of three (3) parts as follows:
(1) One part shall be provided to SELLER’s laboratory for analysis to determine quality including BTU Content per Barrel.
(2) One part shall be provided to HECO for the purpose of verifying SELLER’s determinations.
(3) At least one part shall be sealed and provided to the Independent Inspector to be retained for a period of at least three (3) Months.
(f) SELLER agrees to provide HECO and the Independent Inspector with a copy of SELLER’s preliminary laboratory analyses of the Tank Final Sample (“Pre-shipment Report”) and shall provide this Pre-shipment Report prior to shipment of the Product.
(g) SELLER agrees to provide HECO and the Independent Inspector with the Certificate of Quality representing the Tank Final Sample and will make a reasonable good faith effort to provide this Certificate of Quality no later than twenty-four (24) hours after the completion of the Pipeline Delivery. If the completed Certificate of Quality is not available within said 24-hour period, SELLER will advise HECO and the Independent Inspector, within said 24-hour period, will provide the final determination of API gravity, flash point, sulfur content and sediment and water representing the Tank Final Sample.
(h) HECO shall have the right to perform laboratory analyses in order to verify the results of SELLER’s laboratory analyses; provided however, that such verification analyses shall be performed in a timely manner. SELLER and HECO will make reasonable good faith efforts to evaluate BTU Content and exchange results within three (3) business days of the completion of the Pipeline Delivery.
(i) In order to eliminate or minimize the volume of SELLER’s Pipeline Fill [ - - - ] received by HECO in the course of a Pipeline Delivery operation, HECO shall have the option to perform a Reverse Line Displacement whereby SELLER’s Pipeline Fill [ - - - ] is displaced to SELLER using HECO’s Product at the commencement of Pipeline Delivery operations. .
(j) If HECO elects not to commence Pipeline Delivery operations by displacing SELLER’s Pipeline Fill [ - - - ] with HECO’s LSFO, or if such displacement is operationally unfeasible or impractical for any other cause, SELLER and HECO recognize that the Product received by HECO in a Pipeline Delivery may be a blend which includes some amount of SELLER’s Pipeline Fill [ - - - ] (“Pipeline Blend”). In such instance, the specification of SELLER’s Pipeline Fill [ - - - ] shall be determined by SELLER on the basis of SELLER’s samples representative of the contents of the storage tank from which SELLER’s Pipeline Fill [ - - - ] was issued. SELLER agrees to provide HECO, HECO’s representative and the Independent Inspector with a copy of its laboratory analysis of the quality of SELLER’s Pipeline Fill [ - - - ] prior to commencing the Pipeline Delivery.
(k) To provide an early warning of any quality problems with the Product Delivered via a Pipeline Blend, SELLER agrees to perform a pre-shipment computer blend simulation representing the quantity and quality of SELLER’s Product from the issuing tank(s) as indicated in the relevant Certificates of Quality or preliminary laboratory analyses of the Tank Final Samples and the quantity and quality of SELLER’s [ - - - ] as indicated in the relevant laboratory analyses. The computer blend simulation shall provide preliminary confirmation of the Pipeline Blend’s conformance with the limits for API gravity, viscosity and percent by weight sulfur content specified in Article IV (Quality). SELLER agrees to provide HECO or HECO’s representative and the Independent Inspector a copy of the computer blend simulation results prior to shipment. SELLER agrees that under no circumstances shall it make a Pipeline Delivery of Product to HECO should the computer blend simulation or any other information available to SELLER indicate a quality problem with the Pipeline Blend that would cause a Pipeline Delivery to not conform to the Specifications, without HECO’s express written permission.
(l) The quantity of Product in a Pipeline Delivery shall be determined at the time of each Pipeline Delivery by gauging SELLER’s issuing tank(s) immediately before and after pumping under the supervision of the Independent Inspector. Should HECO elect to perform a Reverse Line Displacement, the total quantity of Product Delivered to HECO shall be reduced by reference to the rise in SELLER’s tank(s) receiving SELLER’s [ - - - ], determined by gauging such tank(s) immediately before and after pipeline displacement under the supervision of the Independent Inspector. Both HECO and SELLER agree that if measurement of SELLER’s tank(s) is, in the opinion of the Independent Inspector, considered to have been rendered inaccurate for reasons including, but not limited to, operational constraints or inadvertent transfer of Product or of SELLER’s [ - - - ] within SELLER’s facilities, then the quantity of Product or SELLER’s [ - - - ] may be determined by gauging HECO’s receiving tank(s) before and after pumping under the supervision of the Independent Inspector.
(m) Quantities of Product sold and Delivered by SELLER and purchased and received by HECO hereunder shall be calculated in accordance with the current measurement standards adopted by industry, ASTM, API and other recognized standard-setting bodies as are applicable in the opinion of the Independent Inspector and shall be expressed in G.S.V., U.S. Barrels @ 60 DF.
Appears in 1 contract
Samples: Supply Contract for Low Sulfur Fuel Oil (Hawaiian Electric Industries Inc)
Pipeline Delivery. (a) Pipeline Deliveries shall be made by SELLER Seller from SELLERSeller’s local on-island supply through SELLERSeller’s pipelines to HECO Hawaiian Electric at HECOHawaiian Electric’s BPTF. If Buyer decides to purchase LSFO and Diesel fuel as a blended product, Pipeline Deliveries shall be of Product blended accordingly and not as separate deliveries of LSFO and Diesel. Title to Product and the risk of loss of Product Delivered by Pipeline Delivery shall pass from SELLER Seller to HECO as per Hawaiian Electric pursuant to Article IX (Title, Custody And Risk Of Loss)IX.
(b) The Parties shall mutually coordinate Pipeline Deliveries of Product into HECO’s BPTF to minimize operational difficulties and costs.
(c) All samples, measurements and determinations drawn, taken and made, respectively, under this Section 6.6 (6.5 shall be for LSFO and Diesel prior to blending, and if necessary, for the Product as blended in Seller’s tank prior to Pipeline Delivery) . All samples described above shall be under the supervision of the Independent Inspector. SELLER Seller and HECO Hawaiian Electric shall share equally the cost of the inspectionsIndependent Inspector.
(d) The quality and BTU Content of the Product Delivered by Pipeline Delivery shall be determined on the basis of a volumetric weighted average composite of samples drawn by the Independent Inspector from SELLERSeller’s issuing tank(s) in such manner as to be representative of each individual Pipeline Delivery (“Tank Final Sample”).
(e) The Tank Final Sample shall be divided into a minimum of three (3) parts as follows:
(1) . One part shall be provided to SELLERSeller’s laboratory for analysis to determine quality including BTU Content per Barrelbarrel.
(2) . One part shall be provided to HECO Hawaiian Electric for the purpose of verifying SELLERSeller’s determinations.
(3) . At least one part shall be sealed and provided to the Independent Inspector to be retained for a period of at least three (3) Monthsmonths.
(f) SELLER agrees to Seller shall provide HECO Hawaiian Electric and the Independent Inspector with a copy of SELLERSeller’s preliminary laboratory analyses of LSFO and Diesel prior to blending, and if necessary, the final blended Product Tank Final Sample (“Pre-shipment Report”) ), and shall provide this Pre-shipment Report prior to shipment of the Product.
(g) SELLER Seller agrees to provide HECO Hawaiian Electric and the Independent Inspector with the Certificate of Quality representing the samples of LSFO and Diesel prior to blending or if necessary, samples of the blended Product Tank Final Sample Sample, and will make a reasonable good faith effort to provide this Certificate of Quality no later than twenty-four (24) hours after the completion of the Pipeline Delivery. If the completed Certificate of Quality is not available within said 24-hour period, SELLER Seller will advise HECO Hawaiian Electric and the Independent InspectorInspector of the same and, within said 24-hour period, Seller will provide to Hawaiian Electric and the Independent Inspector the final determination of API gravity, flash point, sulfur content and sediment and water representing the Tank Final Sample.
(h) HECO Hawaiian Electric shall have the right to perform laboratory analyses in order to verify the results of SELLERSeller’s laboratory analyses; provided however, that such verification analyses shall be performed in a timely manner. SELLER Seller and HECO Hawaiian Electric will make reasonable good faith efforts to evaluate BTU Content and exchange results within three (3) business days of the completion of the Pipeline Delivery.
(i) In order to eliminate or minimize the volume of SELLERSeller’s Pipeline Fill received by HECO Hawaiian Electric in the course of a Pipeline Delivery operation, HECO Hawaiian Electric shall have the option to perform a Reverse Line Displacement whereby SELLERSeller’s Pipeline Fill is displaced to SELLER Seller using HECOHawaiian Electric’s Product fuel at the commencement of Pipeline Delivery operations. .
(j) If HECO Hawaiian Electric elects not to commence Pipeline Delivery operations by displacing SELLERSeller’s Pipeline Fill with HECOHawaiian Electric’s LSFOfuel, or if such displacement is operationally unfeasible or impractical for any other cause, SELLER Seller and HECO Hawaiian Electric recognize that the Product received by HECO Hawaiian Electric in a Pipeline Delivery may be a blend which includes some amount of SELLERSeller’s Pipeline Fill (“"Pipeline Blend”"). In such instance, the specification of SELLERSeller’s Pipeline Fill shall be determined by SELLER Seller on the basis of SELLERSeller’s samples representative of the contents of the storage tank from which SELLERSeller’s Pipeline Fill was issued. SELLER agrees to Seller shall provide HECOHawaiian Electric, HECOHawaiian Electric’s representative and the Independent Inspector with a copy of its laboratory analysis of the quality of SELLERSeller’s Pipeline Fill prior to commencing the Pipeline Delivery.
(k) To provide an early warning of any quality problems with the Product Delivered as a result of a Pipeline Blend, Seller shall perform a pre-shipment computer blend simulation representing the quality of Seller’s LSFO and Diesel from the issuing tank(s) as indicated in the relevant Certificates of Quality or preliminary laboratory analyses of the Tank Final Samples and the quality of Seller’s Pipeline Fill as indicated in the relevant laboratory analyses. The computer blend simulation shall provide preliminary confirmation of the Pipeline Blend’s conformance with the limits for API gravity, viscosity and percent by weight sulfur content specified in Article IV. Seller shall provide to Hawaiian Electric or Hawaiian Electric’s representative and the Independent Inspector a copy of the computer blend simulation results prior to shipment. Seller agrees that under no circumstances shall it make a Pipeline Delivery of Product to Hawaiian Electric should the computer blend simulation or any other information available to Seller indicate a quality problem with the Product or Pipeline Blend, without Hawaiian Electric’s express written permission.
(l) The quantity of Product in a Pipeline Delivery shall be determined at the time of each Pipeline Delivery by gauging Seller’s issuing tank(s) immediately before and after pumping under the supervision of the Independent Inspector. Should Hawaiian Electric elect to perform a Reverse Line Displacement, the total quantity of Product Delivered to Hawaiian Electric shall be reduced by reference to the rise in Seller’s tank(s) receiving Seller’s Pipeline Fill, determined by gauging such tank(s) immediately before and after pipeline displacement under the supervision of the Independent Inspector. Both Hawaiian Electric and Seller agree that if measurement of Seller’s tank(s) is, in the opinion of the Independent Inspector, considered to have been rendered inaccurate for reasons including, but not limited to, operational constraints or inadvertent transfer of Product or of Seller’s Pipeline Fill within Seller’s facilities, then the quantity of Product or Seller’s Pipeline Fill may be determined by gauging Hawaiian Electric’s receiving tank(s) before and after pumping under the supervision of the Independent Inspector.
(m) Quantities of Product sold and Delivered by Seller and purchased and received by Hawaiian Electric hereunder shall be calculated in accordance with the current measurement standards adopted by industry, ASTM, API and other recognized standard-setting bodies as are applicable in the opinion of the Independent Inspector and shall be expressed in U.S. barrels @ 60 DF.
Appears in 1 contract
Samples: Supply Contract
