Common use of Quality Specifications’ Adjustments Clause in Contracts

Quality Specifications’ Adjustments. (a) The Parties acknowledge and accept that the Effective Capacity of the Pipeline can have variations as a function of the quality of the Crude Oil delivered by the Sender. (b) In the event that the Sender nominates for transportation Crude Oil that does not meet the Quality Specifications established in Annex C, which together with all the Crude Oils nominated in the Pipeline may generate a reduction of the Effective Capacity of the Pipeline, or can affect or be disadvantageous for the quality of the other Crude Oils to be delivered for transportation on the Pipeline, Cenit will consider this effect and it could be reflected in a reduction of the capacity to be assigned to the Sender as a consequence of the change of Quality Specifications and that will not vary or reduce the amount payable by the Sender, in the terms and conditions set forth by Clause 5 of this Agreement. (c) In the event that the Sender delivers for the provision of the Service Crude Oil that does not meet the Quality Specifications set forth in Annex C and that affects the Effective Capacity of the Pipeline, the Sender accepts, provided that it is operationally possible, that a smaller amount will be transported due to the change of quality of the Crude Oil to be delivered or that the Service will not be provided if such change of the quality of the Crude Oil prevents its transportation without varying or reducing the amount payable by the Sender, in the terms and conditions set forth in Clause 5 of this Agreement. Notwithstanding the foregoing, the Sender will be the sole responsible for the impacts that may occur because of the delivery of a quantity different from the one nominated, in relation to the mix of Crude Oil transported by Cenit to the other Senders of the Pipeline, and therefore, as from this moment, the Sender ensures and guarantees that it will hold Cenit harmless for this reason if any claim, damage cost or loss derived from affecting the blend occurs. Clause 4. Term for the Provision of the Service and Extensions Section 4.01 Term for the Provision of the Service: (a) The initial term for the provision of the Service for up to the Contracted Capacity corresponds to twelve (12) months as from the first day of December of two thousand and fourteen (2014). Such term will be automatically extended by equal or (sic) successive twelve (12) – month periods according to the provisions of Section 4.02 (hereinafter the initial term and its extensions shall be called the “Term for the Provision of the Service”). (b) Without prejudice to the provisions of 0 above, the Term for the Provision of the Service will end in the cases of early termination of the Agreement as peer the provisions of Clause 16.