Stock Pile Management. (a) SSS shall, throughout the Supply Period, be responsible for the Wet Sand Stock Pile Area, Dry Sand Silos, and the Byproduct Stock Pile Area. SSS shall, throughout the Term, be responsible for operating and maintaining the Wet Sand Stock Pile Area, Dry Sand Silos, and the Byproduct Stock Pile Area and managing all Wet Sand, Dry Sand Byproduct, and Dry Sand thereon. SSS shall maintain the Dry Sand in the Dry Sand Silos in a condition consistent with the Dry Sand requirements set forth in Schedule 5. SSS may intermingle Dry Sand produced hereunder with SSS’s dry sand produced under other agreements and stored in the Dry Sand Silos. SSS shall not intermingle other Wet Sand or any other products with Producer’s Wet Sand or Dry Sand Byproduct in the Wet Sand Stock Pile Area or the Byproduct Stock Pile Area and shall be responsible for any loss or deterioration of Producer’s Wet Sand, Dry Sand Byproduct, or Dry Sand at the Wet Sand Stock Pile Area, Dry Sand Silos, and the Byproduct Stock Pile Area. (b) Within five (5) days following the conclusion of each Agreement Year, SSS shall retain an independent third-party to conduct at SSS’s cost an inventory of the Dry Sand in the Dry Sand Silos to determine the Product Loss Factor, if any. The “Product Loss Factor” is the percentage of Dry Sand which SSS has produced and placed in the Dry Sand Silos during the Agreement Year that is lost, damaged, contaminated or cannot otherwise reasonably be taken or used by Producer, including the initial deposit of Wet Sand used to line the Wet Sand Stock Pile Area. If the amount of Dry Sand which has been lost, damaged, contaminated or cannot otherwise reasonably be taken or used by Producer does not exceed two percent (2%) of the total amount of Dry Sand produced and placed by SSS in the Dry Sand Silos in the Agreement Year, the Product Loss Factor shall be deemed to be 0%. Within ten (10) days following the conclusion of such inventory, SSS shall prepare and deliver to Producer an accounting of (i) pricing based on the initial estimate and adjustments thereto, (ii) the actual number of tons of Dry Sand produced and placed into the Dry Sand Silos, (iii) the Product Loss Factor, and (iv) the amount of overpayment by Producer as a result of any Product Loss Factor above two percent (2%), calculated using the price per ton applicable for such Agreement Year (or, if more than one price is applicable during such Agreement Year, then the average for such Agreement Year) and the conversion factor (reflecting the amount of Wet Sand converted to Dry Sand, for which the Dry Sand Production Price was paid) applicable during the Agreement Year.
Appears in 1 contract
Stock Pile Management. (a) SSS Seller shall, throughout the Supply Period, be responsible for own the Wet Sand Stock Pile Area, Dry Sand Silos, and the Byproduct Stock Pile Area. SSS Seller shall, throughout the Term, be responsible for operating and maintaining the Wet Sand Stock Pile Area, Dry Sand Silos, and the Byproduct Stock Pile Area and managing all Wet Sand, Dry Sand Byproduct, and Dry Sand thereon. SSS Seller shall maintain the Dry Wet Sand in the Dry Wet Sand Silos Stock Pile Area in a condition consistent with the Dry Wet Sand requirements set forth in Schedule 57. SSS may intermingle Dry Sand produced hereunder with SSS’s dry sand produced under other agreements and stored in the Dry Sand Silos. SSS Seller shall not intermingle other Wet Sand or any other products with ProducerSSS’s Wet Sand or Dry Sand Byproduct in delivered to the Wet Sand Stock Pile Area or the Byproduct Stock Pile Area and shall be responsible for any loss or deterioration of ProducerSSS’s Wet Sand, Dry Sand Byproduct, or Dry Sand at the Wet Sand Stock Pile Area, Dry Sand Silos, and the Byproduct Stock Pile Area.
(b) Within five (5) days following the conclusion of each Agreement Year, SSS shall retain an independent third-party to conduct at SSS’s cost an inventory of the Dry Wet Sand in the Dry Wet Sand Silos Stock Pile Area to determine the Product Loss Factor, if any. The “Product Loss Factor” is the percentage of Dry Wet Sand which SSS Seller has produced and placed in the Dry Wet Sand Silos Stock Pile Area during the Agreement Year that is lost, damaged, contaminated or cannot otherwise reasonably be taken or used by ProducerSSS, including excluding the initial deposit of Wet Sand used to line the Wet Sand Stock Pile Area. If the amount of Dry Wet Sand which has been lost, damaged, contaminated or cannot otherwise reasonably be taken or used by Producer SSS does not exceed two percent (2%) of the total amount of Dry Wet Sand produced and placed by SSS Seller in the Dry Wet Sand Silos Stock Pile Area in the Agreement Year, the Product Loss Factor shall be deemed to be 0%. Within ten (10) days following the conclusion of such inventory, SSS Seller shall prepare and deliver to Producer SSS an accounting of (i) pricing based on the initial estimate and adjustments thereto, (ii) the actual number of tons of Dry Wet Sand produced and placed into the Dry Wet Sand SilosStock Pile Area, (iii) the Product Loss FactorFactor of such Wet Sand, and (iv) the amount of overpayment by Producer SSS as a result of any Product Loss Factor above two percent (2%), calculated using the price per ton applicable for such Agreement Year (or, if more than one price is applicable during such Agreement Year, then the average for such Agreement Year) and the applicable conversion factor (reflecting the amount of Wet for Raw Feed Sand converted to Dry Sand, for which Wet Sand over such period. *** Certain information in this document has been omitted and filed separately with the Dry Sand Production Price was paid) applicable during Securities and Exchange Commission. Confidential treatment has been requested with respect to the Agreement Yearomitted portions.
Appears in 1 contract
Samples: Wet Sand Supply Agreement (Emerge Energy Services LP)
Stock Pile Management. (a) SSS Seller shall, throughout the Supply Period, be responsible for own the Wet Sand Stock Pile Area, Dry Sand Silos, and the Byproduct Stock Pile Area. SSS Seller shall, throughout the Term, be responsible for operating and maintaining the Wet Sand Stock Pile Area, Dry Sand Silos, and the Byproduct Stock Pile Area and managing all Wet Sand, Dry Sand Byproduct, and Dry Sand thereon. SSS Seller shall maintain the Dry Wet Sand in the Dry Wet Sand Silos Stock Pile Area in a condition consistent with the Dry Wet Sand requirements set forth in Schedule 57. SSS may intermingle Dry Sand produced hereunder with SSS’s dry sand produced under other agreements and stored in the Dry Sand Silos. SSS Seller shall not intermingle other Wet Sand or any other products with ProducerSSS’s Wet Sand or Dry Sand Byproduct in delivered to the Wet Sand Stock Pile Area or the Byproduct Stock Pile Area and shall be responsible for any loss or deterioration of ProducerSSS’s Wet Sand, Dry Sand Byproduct, or Dry Sand at the Wet Sand Stock Pile Area, Dry Sand Silos, and the Byproduct Stock Pile Area.
(b) Within five (5) days following the conclusion of each Agreement Year, SSS shall retain an independent third-party to conduct at SSS’s cost an inventory of the Dry Wet Sand in the Dry Wet Sand Silos Stock Pile Area to determine the Product Loss Factor, if any. The “Product Loss Factor” is the percentage of Dry Wet Sand which SSS Seller has produced and placed in the Dry Wet Sand Silos Stock Pile Area during the Agreement Year that is lost, damaged, contaminated or cannot otherwise reasonably be taken or used by ProducerSSS, including excluding the initial deposit of Wet Sand used to line the Wet Sand Stock Pile Area. If the amount of Dry Wet Sand which has been lost, damaged, contaminated or cannot otherwise reasonably be taken or used by Producer SSS does not exceed two percent (2%) of the total amount of Dry Wet Sand produced and placed by SSS Seller in the Dry Wet Sand Silos Stock Pile Area in the Agreement Year, the Product Loss Factor shall be deemed to be 0%. Within ten (10) days following the conclusion of such inventory, SSS Seller shall prepare and deliver to Producer SSS an accounting of (i) pricing based on the initial estimate and adjustments thereto, (ii) the actual number of tons of Dry Wet Sand produced and placed into the Dry Wet Sand SilosStock Pile Area, (iii) the Product Loss FactorFactor of such Wet Sand, and (iv) the amount of overpayment by Producer SSS as a result of any Product Loss Factor above two percent (2%), calculated using the price per ton applicable for such Agreement Year (or, if more than one price is applicable during such Agreement Year, then the average for such Agreement Year) and the applicable conversion factor (reflecting the amount of Wet for Raw Feed Sand converted to Dry Sand, for which the Dry Wet Sand Production Price was paid) applicable during the Agreement Yearover such period.
Appears in 1 contract
Samples: Wet Sand Supply Agreement (Emerge Energy Services LP)
Stock Pile Management. (a) SSS shall, throughout the Supply Period, be responsible for the Wet Sand Stock Pile Area, Dry Sand Silos, and the Byproduct Stock Pile Area. SSS shall, throughout the Term, be responsible for operating and maintaining the Wet Sand Stock Pile Area, Dry Sand Silos, and the Byproduct Stock Pile Area and managing all Wet Sand, Dry Sand Byproduct, and Dry Sand thereon. SSS shall maintain the Dry Sand in the Dry Sand Silos in a condition consistent with the Dry Sand requirements set forth in Schedule 5. *** Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. SSS may intermingle Dry Sand produced hereunder with SSS’s dry sand produced under other agreements and stored in the Dry Sand Silos. SSS shall not intermingle other Wet Sand or any other products with Producer’s Wet Sand or Dry Sand Byproduct in the Wet Sand Stock Pile Area or the Byproduct Stock Pile Area and shall be responsible for any loss or deterioration of Producer’s Wet Sand, Dry Sand Byproduct, or Dry Sand at the Wet Sand Stock Pile Area, Dry Sand Silos, and the Byproduct Stock Pile Area.
(b) Within five (5) days following the conclusion of each Agreement Year, SSS shall retain an independent third-party to conduct at SSS’s cost an inventory of the Dry Sand in the Dry Sand Silos to determine the Product Loss Factor, if any. The “Product Loss Factor” is the percentage of Dry Sand which SSS has produced and placed in the Dry Sand Silos during the Agreement Year that is lost, damaged, contaminated or cannot otherwise reasonably be taken or used by Producer, including the initial deposit of Wet Sand used to line the Wet Sand Stock Pile Area. If the amount of Dry Sand which has been lost, damaged, contaminated or cannot otherwise reasonably be taken or used by Producer does not exceed two percent (2%) of the total amount of Dry Sand produced and placed by SSS in the Dry Sand Silos in the Agreement Year, the Product Loss Factor shall be deemed to be 0%. Within ten (10) days following the conclusion of such inventory, SSS shall prepare and deliver to Producer an accounting of (i) pricing based on the initial estimate and adjustments thereto, (ii) the actual number of tons of Dry Sand produced and placed into the Dry Sand Silos, (iii) the Product Loss Factor, and (iv) the amount of overpayment by Producer as a result of any Product Loss Factor above two percent (2%), calculated using the price per ton applicable for such Agreement Year (or, if more than one price is applicable during such Agreement Year, then the average for such Agreement Year) and the conversion factor (reflecting the amount of Wet Sand converted to Dry Sand, for which the Dry Sand Production Price was paid) applicable during the Agreement Year.
Appears in 1 contract
Samples: Dry Sand Tolling Agreement (Emerge Energy Services LP)