Common use of Setting FOB Grade Differentials Clause in Contracts

Setting FOB Grade Differentials. The FOB Grade Differentials shall be determined using the methodology set forth in Schedule 5 (as component B of the Price formula in Schedule 5). As described in Schedule 5, the FOB Grade Differential will be established either by a formula utilizing published prices or by mutual agreement based on then-current spot market conditions. If the Parties are unable to agree upon an FOB Grade Differential for any volumes, then MSCG shall be deemed not to have entered into a commitment to sell, and TRC shall be deemed not to have entered into a commitment to purchase, such volumes. In this event, the Parties shall cooperate in identifying alternative grades and volumes for sale, as outlined in Section 5.1.

Setting FOB Grade Differentials. The FOB Grade Differentials shall be determined using the methodology set forth in Schedule 5 (as component B of the Price formula in Schedule 5). As described in Schedule 5, the FOB Grade Differential will be established either by a formula utilizing published prices or by mutual agreement based on then-current spot market conditions. If the Parties are unable to agree upon an FOB Grade Differential for any volumes, then MSCG shall be deemed not to have entered into a commitment to sell, and TRC PBF shall be deemed not to have entered into a commitment to purchase, such volumes. In this event, the Parties shall cooperate in identifying alternative grades and volumes for sale, as outlined in Section 5.1.