Common use of PRODUCT MEASUREMENT Clause in Contracts

PRODUCT MEASUREMENT. 8.1 Quantities of Product received into and delivered from the Terminals shall be determined as follows: (a) for pipeline deliveries and receipts, volumes shall be determined by pipeline meters or, if pipeline meters are not available, Owner's tank gauges (as verified by an Independent Inspector at Customer's expense); (b) for Vessel deliveries and receipts, volumes shall be based on shore tank gauges at discharge (net barrels at 60°F in accordance with the table 6-B of ASTM designation D-1250) as certified by the Independent Inspector. Subject to the mutual agreement of the Parties, a full line displacement shall be made under the Independent Inspector's supervision, and displacement volumes shall be incorporated into the discharged volumes. During such measurement, shore tanks shall be static where possible, and, if active, truck loading rack Barrels shall be corrected to 60°F and added back into the receipt volumes; (c) for any transfer or shipment of Product between Terminals and a Third Party terminal or pipeline, which is made at Customer's request, the measurement of Owner's tank gauges (as verified by an Independent Inspector, at Customer's expense) shall control and any measurement discrepancy between the receiving or shipping Third Party and Owner shall be for Customer's account; (d) If tankage has movements in or out except for truck loading rack liftings (active Tanks) during the pipeline measurement process, the applicable gauges and meters will be observed and recorded by an Independent Inspector, unless otherwise agreed to between the Parties in advance, to reflect actual quantities received into and delivered from such active Tanks. If shore tanks are active, except for truck loading rack liftings, or the Independent Inspector cannot verify shore tank measurements during inbound marine movements, then the Vessel's discharge figures with valid Vessel experience factor (VEF) shall be applied as certified by the Independent Inspector. If Vessel VEF is not available, Vessel figures without VEF will apply; and (e) Absent fraud or manifest error, the quantities of Products in storage at any time will be determined from Terminal inventory records of receipts and Throughput. Unless indicated otherwise, quantity determinations will be based on a Barrel of Product and shall be determined in accordance with the latest established API/ASTM standards for the method of delivery. All volumes shall be temperature corrected to 60°F in accordance with the latest supplement or amendment to ASTM-IP petroleum measurement tables (ASTM designated D#1250, table 6(B)). Gauging of Product received, Throughput and in storage will be taken jointly by representatives of the Parties; provided, however, that if Customer does not have representatives present for gauging, then pipeline meter tickets, or, where pipeline meter tickets are not available, Owner's gauging, will be conclusive, absent fraud or manifest error. Customer may use an Independent Inspector at its own expense at any time. 8.2 Terminal meters will be calibrated periodically and upon each completion of repair or replacement of a meter, at the meter owner's expense. Such calibration shall be in accordance with the latest applicable state and county standards including applicable API/ASTM standards to the extent adopted by and incorporated in the applicable state and county standards. If a meter is determined by either Party to be defective or inoperative, such Party shall immediately notify the other Party, and it will be the responsibility of the Owner to promptly make repairs or replacements. Product received or delivered through a facility having an inoperative or defective meter will be measured based upon before and after static Tank gauges and any active Tanks measured in accordance with Section 8.1. In such event, the Parties shall appoint a mutually acceptable Independent Inspector to gauge the applicable Tanks and the findings of the Independent Inspector shall be final and binding on the Parties, except for fraud or manifest error. The Parties shall share equally the cost of the Independent Inspector under this Section 8.2.

PRODUCT MEASUREMENT. 8.1 Quantities of Product received into and delivered from the Terminals shall be determined as follows: (a) for pipeline deliveries and receipts, volumes shall be determined by pipeline meters or, if pipeline meters are not available, Owner's ’s tank gauges (as verified by an Independent Inspector at Customer's ’s expense); (b) for Vessel deliveries and receipts, volumes shall be based on shore tank gauges at discharge (net barrels at 60°F in accordance with the table 6-B of ASTM designation D-1250) as certified by the Independent Inspector. Subject to the mutual agreement of the Parties, a full line displacement shall be made under the Independent Inspector's ’s supervision, and displacement volumes shall be incorporated into the discharged volumes. During such measurement, shore tanks shall be static where possible, and, if active, truck loading rack Barrels shall be corrected to 60°F and added back into the receipt volumes; (c) for any transfer or shipment of Product between Terminals and a Third Party terminal or pipeline, which is made at Customer's ’s request, the measurement of Owner's ’s tank gauges (as verified by an Independent Inspector, at Customer's ’s expense) shall control and any measurement discrepancy between the receiving or shipping Third Party and Owner shall be for Customer's ’s account; (d) If tankage has movements in or out except for truck loading rack liftings (active Tanks) during the pipeline measurement process, the applicable gauges and meters will be observed and recorded by an Independent Inspector, unless otherwise agreed to between the Parties in advance, to reflect actual quantities received into and delivered from such active Tanks. If shore tanks are active, except for truck loading rack liftings, or the Independent Inspector cannot verify shore tank measurements during inbound marine movements, then the Vessel's ’s discharge figures with valid Vessel experience factor (VEF) shall be applied as certified by the Independent Inspector. If Vessel VEF is not available, Vessel figures without VEF will apply; and (e) Absent fraud or manifest error, the quantities of Products in storage at any time will be determined from Terminal each Terminal’s inventory records of receipts and Throughput. Unless indicated otherwise, quantity determinations will be based on a Barrel of Product and shall be determined in accordance with the latest established API/ASTM standards for the method of delivery. All volumes shall be temperature corrected to 60°F in accordance with the latest supplement or amendment to ASTM-IP petroleum measurement tables (ASTM designated D#1250, table 6(B)). Gauging of Product received, Throughput and in storage will be taken jointly by representatives of the Parties; provided, however, that if Customer does not have representatives present for gauging, then pipeline meter tickets, or, where pipeline meter tickets are not available, Owner's ’s gauging, will be conclusive, absent fraud or manifest error. Customer may use an Independent Inspector at its own expense at any time. 8.2 Terminal meters will be calibrated periodically and upon each completion of repair or replacement of a meter, at the meter owner's ’s expense. Such calibration shall be in accordance with the latest applicable state and county standards including applicable API/ASTM standards to the extent adopted by and incorporated in the applicable state and county standards. If a meter is determined by either Party to be defective or inoperative, such Party shall immediately notify the other Party, and it will be the responsibility of the Owner to promptly make repairs or replacements. Product received or delivered through a facility having an inoperative or defective meter will be measured based upon before and after static Tank gauges and any active Tanks measured in accordance with Section 8.1. In such event, the Parties shall appoint a mutually acceptable Independent Inspector to gauge the applicable Tanks and the findings of the Independent Inspector shall be final and binding on the Parties, except for fraud or manifest error. The Parties shall share equally the cost of the Independent Inspector under this Section 8.2.

PRODUCT MEASUREMENT. 8.1 Quantities a. Measurements of Product received into and delivered from the Terminals all Products shall be determined as follows: taken by SPMT and shall be based upon United States gallons of 231 cubic inches, 42 gallons to the barrel, corrected to 60 degrees (F.), using ASTM-IP Petroleum Measurement Table No. 6B-ASTM Designation D-1250. Unless otherwise specified, quantities delivered: (a) for from pipeline deliveries and receipts, volumes shall be determined measured by calibrated meters at a Terminal’s inlet flange at the pipeline meters or, if pipeline meters are not available, Owner's tank gauges (as verified by an Independent Inspector at Customer's expense); manifold; (b) for Vessel deliveries and receipts, volumes into transport truck shall be based on shore tank gauges at discharge (net barrels at 60°F in accordance with the table 6-B of ASTM designation D-1250) as certified measured by the Independent Inspector. Subject to the mutual agreement of the Parties, a full line displacement shall be made under the Independent Inspector's supervision, and displacement volumes shall be incorporated into the discharged volumes. During such measurement, shore tanks shall be static where possible, and, if active, truck calibrated loading rack Barrels shall be corrected to 60°F meters; and added back into the receipt volumes; (c) for any transfer from vessel, rail car or shipment of Product between Terminals and a Third Party terminal or pipeline, which is made at Customer's request, the measurement of Owner's tank gauges (as verified by an Independent Inspector, at Customer's expense) shall control and any measurement discrepancy between the receiving or shipping Third Party and Owner transport truck shall be for Customer's account; (d) If tankage has movements in or out except for truck loading rack liftings (active Tanks) during the pipeline measurement process, the applicable gauges and measured by calibrated meters will be observed and recorded by an Independent Inspector, unless otherwise agreed to between the Parties in advance, to reflect actual quantities received into and delivered from such active Tanks. If shore tanks are active, except for truck loading rack liftings, or the Independent Inspector cannot verify shore tank measurements during inbound marine movements, then the Vessel's discharge figures with valid Vessel experience factor (VEF) shall be applied as certified by the Independent Inspector. If Vessel VEF is not where available, Vessel figures without VEF will apply; and (e) Absent fraud or manifest error, the quantities of Products in storage at any time will be determined from Terminal inventory records of receipts and Throughput. Unless indicated otherwise, quantity determinations will be based on a Barrel of Product and shall be determined in accordance with the latest established API/ASTM standards for the method of delivery. All volumes shall be temperature corrected to 60°F in accordance with the latest supplement or amendment to ASTM-IP petroleum measurement tables (ASTM designated D#1250, table 6(B)). Gauging of Product received, Throughput and in storage measurements will be taken jointly using the Terminal’s tank gauge system utilizing still tank(s). In the case of ethanol deliveries by representatives of rail and truck without metering, the Parties; provided, however, that if Customer does not have representatives present for gauging, then pipeline meter tickets, or, where pipeline meter tickets are not available, Owner's gauging, volume stated on the BOL will be conclusivedeemed the correct volume. Customer shall have the right to participate with SPMT in any measurement; but, absent in the absence of such participation, the measurements taken by SPMT shall be binding upon both parties in the absence of fraud or manifest error. If Customer may use requires an Independent Inspector at its own expense at any time. 8.2 Terminal meters will be calibrated periodically and upon each completion of repair or replacement of a meter, at the meter owner's expense. Such calibration shall be in accordance with the latest applicable state and county standards including applicable API/ASTM standards to the extent adopted independent certified gauging by and incorporated in the applicable state and county standards. If a meter is determined by either Party to be defective or inoperative, such Party shall immediately notify the other Party, and it will be the responsibility of the Owner to promptly make repairs or replacements. Product received or delivered through a facility having an inoperative or defective meter will be measured based upon before and after static Tank gauges and any active Tanks measured in accordance with Section 8.1. In such event, the Parties shall appoint a mutually acceptable Independent Inspector to gauge the applicable Tanks and the findings of the Independent Inspector independent gxxxxx, such gauging will be at Customer’s expense. The independent inspector’s report shall be final and binding on the Partiesparties hereto. In the event a certified meter or gauge is found to be in error, except for fraud the parties will agree upon the best alternate measurement method as the situation dictates. Measurements shall follow one or manifest error. The Parties shall share equally the cost more of the Independent Inspector under this Section 8.2following guidelines: i) API Standard 2545, “Method of Gauging Petroleum and Petroleum Products.” ii) API Standard 2550, “Method of Measurement and Calibration of Upright Cylindrical Tanks.” iii) API “Manual of Petroleum Standards”, chapters 4, 5, and 12. b For all sampling, gravity, and temperature measurements: i) API “Manual of Petroleum Standards”, chapters 8 and 9. c SPMT will maintain and furnish monthly Customer in-bound and out-bound stock activity reports.