Common use of Precautionary Sampling Prior to Loading Clause in Contracts

Precautionary Sampling Prior to Loading. In order to reduce the likelihood of Seller’s Delivery resulting in quality problems arising in the receiving tank(s) at the Receiving Facility, Seller agrees to use, and cause its transporter to use, all prudent and industry standard operating practices and procedures during the loading, transport and unloading of Biodiesel from Seller’s facility to the Receiving Facility. Seller shall, or shall cause its transporter to, thoroughly maintain, clean and prepare all Transport Containers or tanker trucks consistent with such industry standard operating procedures. Testing shall be conducted on Biodiesel and certified on the representative Biodiesel lot to be Delivered with sampling performed prior to loading of the Biodiesel into Transport Containers or prior to loading of terminalled Biodiesel into tanker trucks using the following procedure: (a) The quality and Btu content of the Biodiesel Delivered by Seller’s Transport Containers to the Receiving Facility shall be determined on the basis of a volumetric weighted average composite of samples drawn from Seller’s tank(s) issuing Biodiesel to the truck loading system at Seller’s facility in such a manner as to be representative of the Biodiesel contained in said issuing tank since the time of that tank’s most recent receipt of Biodiesel (“Batch”). A Sample (“Precautionary Sample”) shall be drawn under the supervision of the Independent Inspector from Seller’s tanks in such a manner as to be representative of (i) the Biodiesel contained in said issuing tank since the time of that tank’s most recent receipt of Biodiesel, and (ii) the Biodiesel after the arrival at Receiving Facility, but prior to commencement of loading from the Transport Container. The Precautionary 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 Btu content per Gallon and quality; 2. One part shall be provided to Hawaiian Electric, or at Hawaiian Electric’s option, Hawaiian Electric’s designated laboratory, for analysis for the purpose of verifying Seller’s Btu content and quality determinations; and 3. At least one part shall be sealed and provided to the Independent Inspector to be retained for a period of not less than ninety (90) Days. Seller agrees to provide Hawaiian Electric and the Independent Inspector with the results of its determinations (a “Certificate of Quality”) representing the quality of the Precautionary Sample no later than the earlier of (i) seventy-two (72) hours after the completion of the loading of Seller’s Transport Container(s) or tanker trucks, or (ii) one (1) business day prior to the first Transport Container Delivery of Biodiesel loaded from said Batch. Should Seller’s laboratory be unable to determine the Biodiesel to be Delivered conforms with the Specification within such a period, Hawaiian Electric shall not be obligated to receive or store any nonconforming Biodiesel on Seller’s behalf. It is expressly understood and agreed that Hawaiian Electric shall have no obligation to accept any Biodiesel for which Seller has not provided the Certificate of Quality required by this Section 9.2(a). (b) Seller agrees that should its laboratory testing of the Precautionary Sample indicate a potential quality problem, including but not limited to, a quality as determined that does not conform to the Specification, the Transport Containers will not ship to the Receiving Facility until such time as the loaded Biodiesel is determined to conform to the Specification. (c) Seller agrees to provide Hawaiian Electric with the information necessary to reference Seller’s Biodiesel Batch lot to the Biodiesel held in each specific Transport Container. (d) If Seller’s tank(s) issuing Biodiesel to the truck loading system at Seller’s production facility receive additional Biodiesel or any other material, the loading of Transport Containers for the Delivery of Biodiesel by Seller to the Receiving Facility must stop immediately on the basis that a new, different Batch of Biodiesel will be deemed to have been produced by Seller. In such case, this new Batch shall be sampled, such samples analyzed and quality documented and reported as provided herein before Biodiesel from said new Batch shall be loaded in a truck for Delivery by Seller to the Receiving Facility. (e) In addition, Hawaiian Electric, in its sole and absolute discretion, may, at any time and from time to time, take a sample from any Transport Container prior to the Transport Container Delivering the Biodiesel to the Receiving Facility.

Precautionary Sampling Prior to Loading. In order to reduce the likelihood of Seller’s Delivery resulting in quality problems arising in the receiving tank(s) at the Receiving Facility, Seller agrees to use, and cause its transporter to use, all prudent and industry standard operating practices and procedures during the loading, transport and unloading of Biodiesel from Seller’s facility to the Receiving Facility. Seller shall, or shall cause its transporter to, thoroughly maintain, clean and prepare all Transport Containers or tanker trucks consistent with such industry standard operating procedures. Testing shall be conducted on Biodiesel and certified on the representative Biodiesel biodiesel lot to be Delivered with sampling performed prior to loading of the Biodiesel biodiesel into Transport Containers or prior to loading of terminalled Biodiesel biodiesel into tanker trucks using the following procedure: (a) The quality and Btu content of the Biodiesel Delivered by Seller’s Transport Containers to the Receiving Facility shall be determined on the basis of a volumetric weighted average composite of samples drawn from Seller’s tank(s) issuing Biodiesel to the truck loading system at Seller’s facility in such a manner as to be representative of the Biodiesel contained in said issuing tank since the time of that tank’s most recent receipt of Biodiesel (“Batch”). A Sample (“Precautionary Sample”) shall be drawn under the supervision of the Independent Inspector from Seller’s tanks in such a manner as to be representative of (i) the Biodiesel contained in said issuing tank since the time of that tank’s most recent receipt of Biodiesel, and (ii) the Biodiesel after the arrival at Receiving Facility, but prior to commencement of loading from the Transport Container. The Precautionary 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 Btu content per Gallon and quality; 2. One part shall be provided to Hawaiian Electric, or at Hawaiian Electric’s option, Hawaiian Electric’s designated laboratory, for analysis for the purpose of verifying Seller’s Btu content and quality determinations; and 3. At least one part shall be sealed and provided to the Independent Inspector to be retained for a period of not less than ninety (90) Days. Seller agrees to provide Hawaiian Electric and the Independent Inspector with the results of its determinations (a “Certificate of Quality”) representing the quality of the Precautionary Sample no later than the earlier of (i) seventy-seventy two (72) hours after the completion of the loading of Seller’s Transport Container(s) or tanker trucks), or (ii) one (1) business day prior to the first Transport Container Delivery of Biodiesel loaded from said Batch. Should Seller’s laboratory be unable to determine the Biodiesel to be Delivered conforms with the Specification Specifications within such a period, Hawaiian Electric shall not be obligated to receive or store any nonconforming Biodiesel on Seller’s behalf. It is expressly understood and agreed that Hawaiian Electric shall have no obligation to accept any Biodiesel for which Seller has not provided the Certificate of Quality required by this Section 9.2(a). (b) Seller agrees that should its laboratory testing of the Precautionary Sample indicate a potential quality problem, including but not limited to, a quality as determined that does not conform to the Specification, the Transport Containers will not ship to the Receiving Facility until such time as the loaded Biodiesel is determined to conform to the SpecificationSpecifications. (c) Seller agrees to provide Hawaiian Electric with the information necessary to reference Seller’s Biodiesel Batch lot to the Biodiesel held in each specific Transport Container. (d) If Seller’s tank(s) issuing Biodiesel to the truck loading system at Seller’s production facility receive additional Biodiesel or any other material, the loading of Transport Containers for the Delivery of Biodiesel by Seller to the Receiving Facility must stop immediately on the basis that a new, different Batch of Biodiesel will be deemed to have been produced by Seller. In such case, this new Batch shall be sampled, such samples analyzed and quality documented and reported as provided herein before Biodiesel from said new Batch shall be loaded in a truck for Delivery by Seller to the Receiving Facility. (e) In addition, Hawaiian Electric, in its sole and absolute discretion, may, at any time and from time to time, take a sample from any Transport Container prior to the Transport Container Delivering the Biodiesel to the Receiving Facility.

Precautionary Sampling Prior to Loading. In order to reduce the likelihood of Seller’s Delivery delivery resulting in quality problems arising in the receiving tank(s) at the Receiving Facility, Seller agrees to use, and cause its transporter to use, all prudent and industry standard operating practices and procedures during the loading, transport and unloading of Biodiesel from Seller’s facility Facility to the Receiving Facility. Seller shall, or shall cause its transporter to, thoroughly maintain, clean and prepare all Transport Containers or tanker trucks consistent with such industry standard operating procedures. Testing shall be conducted on Biodiesel and certified on the representative Biodiesel biodiesel lot to be Delivered delivered with sampling performed prior to loading of the Biodiesel biodiesel into Transport Containers or prior to loading of terminalled Biodiesel biodiesel into tanker trucks using the following procedure: (a) The quality and Btu content of the Biodiesel Delivered by Seller’s Transport Containers to the Receiving Facility shall be determined on the basis of Test a volumetric weighted average composite of samples drawn from Seller’s tank(s) issuing Biodiesel to the truck loading system at Seller’s facility in such a manner as to be representative of the Biodiesel contained in said issuing tank since the time of that tank’s most recent receipt of Biodiesel (“Batch”). A Sample cargo (“Precautionary Sample”) ). The Precautionary Sample shall be drawn under the supervision of the Independent Inspector from Seller’s tanks in such a manner as to be representative of (i) the Biodiesel contained in said issuing tank since the time of that tank’s most recent receipt of Biodiesel, and (ii) the Biodiesel relevant cargo after the arrival at Receiving HECO’s CIP Facility, but prior to commencement of loading from the Transport ContainerContainer or tanker truck. This sample should be divided into three (3) parts, one of which is to be tested by Seller, one to be sent via air freight to HECO (or if biodiesel is to be loaded into tanker trucks on the island of Oahu, delivered to HECO via on-island courier within 24 hours) and one part retained by the Independent Inspector. The Precautionary 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 Btu content per Gallon and quality; 2. One part shall be provided to Hawaiian Electric, or at Hawaiian Electric’s option, Hawaiian Electric’s designated laboratory, for analysis HECO for the purpose of verifying Seller’s Btu content and quality determinations; and; 3. At least one part shall be sealed and provided to the Independent Inspector to be retained for a period of not less than ninety (90) Days45 days. Seller agrees to provide Hawaiian Electric HECO and the Independent Inspector with the results of its determinations (a “Certificate of Quality”) representing the quality of the Precautionary Sample no later than the earlier of (i) seventy-seventy two (72) hours after the completion of the loading of Seller’s Transport Container(s) or tanker trucks, or (ii) one (1) business day prior to the first Transport Container Delivery of Biodiesel loaded from said Batch). Should Seller’s laboratory be unable to determine the Biodiesel to be Delivered conforms delivered is in conformance with the Specification within such a period, Hawaiian Electric HECO shall not be obligated have an obligation to receive or store any nonconforming Biodiesel on Seller’s behalf. It is expressly understood and agreed that Hawaiian Electric shall have no obligation to accept any Biodiesel for which Seller has not provided the Certificate of Quality required by this Section 9.2(a). (b) Seller agrees that should its laboratory testing of the Precautionary Sample indicate a potential quality problem, including but not limited to, a quality as determined that does not conform to the Specification, the Transport Containers will not ship to the Receiving Facility HECO until such time as the loaded Biodiesel is determined to conform to with the Specification. (c) Seller agrees to provide Hawaiian Electric with the information necessary to reference Seller’s Biodiesel Batch lot to the Biodiesel held in each specific Transport Container. (d) If Seller’s tank(s) issuing Biodiesel to the truck loading system at Seller’s production facility receive additional Biodiesel or any other material, the loading of Transport Containers for the Delivery of Biodiesel by Seller to the Receiving Facility must stop immediately on the basis that a new, different Batch of Biodiesel will be deemed to have been produced by Seller. In such case, this new Batch shall be sampled, such samples analyzed and quality documented and reported as provided herein before Biodiesel from said new Batch shall be loaded in a truck for Delivery by Seller to the Receiving Facility. (e) In addition, Hawaiian Electric, in its sole and absolute discretion, may, at any time and from time to time, take a sample from any Transport Container prior to the Transport Container Delivering the Biodiesel to the Receiving Facility.

Precautionary Sampling Prior to Loading. In order to reduce the likelihood of Seller’s Delivery delivery resulting in quality problems arising in the receiving tank(s) at the Receiving Facility, Seller agrees to use, and cause its transporter to use, all prudent and industry standard operating practices and procedures during the loading, transport and unloading of Biodiesel Biofuel from Seller’s facility Facility to the Receiving Facility. Seller shall, or shall cause its transporter to, thoroughly maintain, clean and prepare all Transport Containers or tanker trucks consistent with such industry standard operating procedures. Testing shall be conducted on Biodiesel Biofuel and certified on the representative Biodiesel biofuel lot to be Delivered delivered with sampling performed prior to loading of the Biodiesel biofuel into Transport Containers or prior to loading of terminalled Biodiesel biofuel into tanker trucks using the following procedure: (a) The quality and Btu content of the Biodiesel Delivered by Seller’s Transport Containers to the Receiving Facility shall be determined on the basis of Test a volumetric weighted average composite of samples drawn from Seller’s tank(s) issuing Biodiesel to the truck loading system at Seller’s facility in such a manner as to be representative of the Biodiesel contained in said issuing tank since the time of that tank’s most recent receipt of Biodiesel (“Batch”). A Sample Biofuel cargo (“Precautionary Sample”) ). The Precautionary Sample shall be drawn under the supervision of the Independent Inspector from Seller’s tanks in such a manner as to be representative of (i) the Biodiesel contained in said issuing tank since the time of that tank’s most recent receipt of Biodiesel, and (ii) the Biodiesel relevant cargo after the arrival at Receiving HECO’s Facility, but prior to commencement of loading from the Transport ContainerContainer or tanker truck. The Precautionary 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 Btu content per Gallon and quality; 2. One part shall be provided to Hawaiian Electric, or at Hawaiian Electric’s option, Hawaiian Electric’s designated laboratory, for analysis HECO for the purpose of verifying Seller’s Btu content and quality determinations; and; 3. At least one part shall be sealed and provided to the Independent Inspector to be retained for a period of not less than ninety (90) Days45 days. Seller agrees to provide Hawaiian Electric HECO and the Independent Inspector with the results of its determinations (a “Certificate of Quality”) representing the quality of the Precautionary Sample no later than the earlier of (i) seventy-seventy two (72) hours after the completion of the loading of Seller’s Transport Container(s) or tanker trucks, or (ii) one (1) business day prior to the first Transport Container Delivery of Biodiesel loaded from said Batch). Should Seller’s laboratory be unable to determine the Biodiesel Biofuel to be Delivered conforms delivered is in conformance with the Specification within such a period, Hawaiian Electric HECO shall not be obligated have an obligation to receive or store any nonconforming Biodiesel Biofuel on Seller’s behalf. It is expressly understood and agreed that Hawaiian Electric shall have no obligation to accept any Biodiesel for which Seller has not provided the Certificate of Quality required by this Section 9.2(a). (b) Seller agrees that should its laboratory testing of the Precautionary Sample indicate a potential quality problem, including but not limited to, a quality as determined that does not conform to the Specification, the Transport Containers will not ship to the Receiving Facility HECO until such time as the loaded Biodiesel Biofuel is determined to conform to the Specification. (c) Seller agrees to provide Hawaiian Electric with the information necessary to reference Seller’s Biodiesel Batch lot to the Biodiesel held in each specific Transport Container. (d) If Seller’s tank(s) issuing Biodiesel to the truck loading system at Seller’s production facility receive additional Biodiesel or any other material, the loading of Transport Containers for the Delivery of Biodiesel by Seller to the Receiving Facility must stop immediately on the basis that a new, different Batch of Biodiesel will be deemed to have been produced by Seller. In such case, this new Batch shall be sampled, such samples analyzed and quality documented and reported as provided herein before Biodiesel from said new Batch shall be loaded in a truck for Delivery by Seller to the Receiving Facility. (e) In addition, Hawaiian Electric, in its sole and absolute discretion, may, at any time and from time to time, take a sample from any Transport Container prior to the Transport Container Delivering the Biodiesel to the Receiving Facility.

Precautionary Sampling Prior to Loading. In order to reduce the likelihood of Seller’s Delivery resulting in quality problems arising in the receiving tank(s) at the Receiving Facility, Seller agrees to use, and cause its transporter to use, all prudent and industry standard operating practices and procedures during the loading, transport and unloading of Biodiesel from Seller’s facility to the Receiving Facility. Seller shall, or shall cause its transporter to, thoroughly maintain, clean and prepare all Transport Containers or tanker trucks consistent with such industry standard operating procedures. Testing shall be conducted on Biodiesel and certified on the representative Biodiesel biodiesel lot to be Delivered with sampling performed prior to loading of the Biodiesel biodiesel into Transport Containers or prior to loading of terminalled Biodiesel biodiesel into tanker trucks using the following procedure: (a) The quality and Btu content of the Biodiesel Delivered by Seller’s Transport Containers to the Receiving Facility shall be determined on the basis of a volumetric weighted average composite of samples drawn from Seller’s tank(s) issuing Biodiesel to the truck loading system at Seller’s facility in such a manner as to be representative of the Biodiesel contained in said issuing tank since the time of that tank’s most recent receipt of Biodiesel (“Batch”). A Sample (“Precautionary Sample”) shall be drawn under the supervision of the Independent Inspector from Seller’s tanks in such a manner as to be representative of (i) the Biodiesel contained in said issuing tank since the time of that tank’s most recent receipt of Biodiesel, and (ii) the Biodiesel after the arrival at Receiving Facility, but prior to commencement of loading from the Transport Container. The Precautionary 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 Btu content per Gallon and quality; 2. One part shall be provided to Hawaiian Electric, or at Hawaiian Electric’s option, Hawaiian Electric’s designated laboratory, for analysis for the purpose of verifying Seller’s Btu content and quality determinations; and 3. At least one part shall be sealed and provided to the Independent Inspector to be retained for a period of not less than ninety (90) Days. Seller agrees to provide Hawaiian Electric and the Independent Inspector with the results of its determinations (a “Certificate of Quality”) representing the quality of the Precautionary Sample no later than the earlier of (i) seventy-two (72) hours after the completion of the loading of Seller’s Transport Container(s) or tanker trucks, or (ii) one (1) business day prior to the first Transport Container Delivery of Biodiesel loaded from said Batch. Should Seller’s laboratory be unable to determine the Biodiesel to be Delivered conforms with the Specification within such a period, Hawaiian Electric shall not be obligated to receive or store any nonconforming Biodiesel on Seller’s behalf. It is expressly understood and agreed that Hawaiian Electric shall have no obligation to accept any Biodiesel for which Seller has not provided the Certificate of Quality required by this Section 9.2(a). (b) Seller agrees that should its laboratory testing of the Precautionary Sample indicate a potential quality problem, including but not limited to, a quality as determined that does not conform to the Specification, the Transport Containers will not ship to the Receiving Facility until such time as the loaded Biodiesel is determined to conform to the Specification. (c) Seller agrees to provide Hawaiian Electric with the information necessary to reference Seller’s Biodiesel Batch lot to the Biodiesel held in each specific Transport Container. (d) If Seller’s tank(s) issuing Biodiesel to the truck loading system at Seller’s production facility receive additional Biodiesel or any other material, the loading of Transport Containers for the Delivery of Biodiesel by Seller to the Receiving Facility must stop immediately on the basis that a new, different Batch of Biodiesel will be deemed to have been produced by Seller. In such case, this new Batch shall be sampled, such samples analyzed and quality documented and reported as provided herein before Biodiesel from said new Batch shall be loaded in a truck for Delivery by Seller to the Receiving Facility. (e) In addition, Hawaiian Electric, in its sole and absolute discretion, may, at any time and from time to time, take a sample from any Transport Container prior to the Transport Container Delivering the Biodiesel to the Receiving Facility.three