Common use of Replacement Pecking Order Cargo Optimizations Clause in Contracts

Replacement Pecking Order Cargo Optimizations. To the extent any Replacement Pecking Order Cargo replaces a Cargo originally purchased for Supply to the Refinery in Month M, which is subsequently disposed of by Seller due to an alternative Cargo or alternative Cargoes (which shall be of equivalent volume to the original purchased Cargo and may consist of different Grades of Oil) being acquired by agreement between the Parties, the Buyer will pay for the replacement Cargo or Cargoes the price specified by Buyer in the RGPO and the Seller will retain all profit and loss associated with: (1) disposing of the Cargo originally purchased for Supply to the Refinery and (2) the price differences between the RGPO terms and the terms executed between the Seller and the third party supplier of such replacement Cargo or Cargoes. To the extent Seller identifies a potential replacement Cargo or Cargoes that is not on the RGPO for the current Cargo, then such RGPO can be modified to add such replacement Cargo or Cargoes upon the Parties’ mutual agreement.

Replacement Pecking Order Cargo Optimizations. To the extent any Replacement Pecking Order Cargo replaces a Cargo originally purchased for Supply to the Refinery in Month M, which is subsequently disposed of by Seller due to an alternative Cargo or alternative Cargoes (which shall be of equivalent volume to the original purchased Cargo and may consist of different Grades of OilOil or Feedstock) being acquired by agreement between the Parties, the Buyer will pay for the replacement Cargo or Cargoes the price specified by Buyer in the RGPO and the Seller will retain all profit and loss associated with: (1) disposing of the Cargo originally purchased for Supply to the Refinery and (2) the price differences between the RGPO terms and the terms executed between the Seller and the third party supplier of such replacement Cargo or Cargoes. To the extent Seller identifies a potential replacement Cargo or Cargoes that is not on the RGPO for the current Cargo, then such RGPO can be modified to add such replacement Cargo or Cargoes upon the Parties’ mutual agreement.