Common use of Term Commitment Discussion Procedure Clause in Contracts

Term Commitment Discussion Procedure. Subject to the provisions set forth in the term Oil supply contracts previously entered into under this Agreement, the Parties shall agree, at the appropriate times to: (i) The volumes to be nominated to cover Buyer’s Tentative Requirements Schedule. (ii) The Requirements that shall be covered by such term volumes (after the third party supplier of Oil under such term Oil supply contract confirms the final nomination of such Oil with the loading dates and final volume). (iii) The Final Quality Differential for such volume. If such Cargo will be Supplied under the Execution Method then the FOB price will be set in principle to match the price reached by Seller with the supplier of the term volume, which if OSP-related will match the OSP of the respective Oil at the appropriate Loading Terminal, including any premium or discount. If the Cargo will be Supplied under the Supply Point Method then the price will be agreed between the Parties. (iv) The costs for Supplying a term Cargo under the Execution Method will be agreed between the Parties based on the Agreed Delivery Route for each specific Oil term contract Cargo. The “Agreed Delivery Route” will define the salient factors attributable to that Cargo, including, but not limited to; (1) the Loading Terminal, (2) Vessel size, (3) transportation route and (4) any Lightering requirements. For example for an Arab [REDACTED] term Cargo, the Agreed Delivery Route might be: (1) Oil Loading Terminal to be [REDACTED], (2) Cargo to be loaded on an Aframax vessel, (3) Vessel to be routed by the most expeditious method (always allowing for carrier’s safety requirements) to Bigstone Lightering Point, (4) where one or two Lightering Vessel(s) will be taken off prior to the mother Vessel Berthing at the Refinery. Each term contract Cargo under this Agreement will have a similar corresponding Agreed Delivery Route. If the Execution Method is used, Seller shall use [REDACTED], etc. Except as otherwise set forth in this Agreement, if the Supply Point Method is used all supply costs up to the Supply Port are [REDACTED].

Term Commitment Discussion Procedure. Subject to the provisions set forth in the term Oil or Feedstock supply contracts previously entered into under this Agreement, the Parties shall agree, at the appropriate times to: (i) The volumes to be nominated to cover Buyer’s Tentative Requirements Schedule. (ii) The Requirements that shall be covered by such term volumes (after the third party supplier of Oil or Feedstock under such term Oil or Feedstock supply contract confirms the final nomination of such Oil or Feedstock with the loading dates and final volume). (iii) The Final Quality Differential for such volume. If such Cargo will be Supplied under the Execution Method then the FOB price will be set in principle to match the price reached by Seller with the supplier of the term volume, which if OSP-related will match the OSP of the respective Oil or Feedstock at the appropriate Loading Terminal, including any premium or discount. If the Cargo will be Supplied under the Supply Point Method then the price will be agreed between the Parties. (iv) The costs for Supplying a term Cargo under the Execution Method will be agreed between the Parties based on the Agreed Delivery Route for each specific Oil or Feedstock term contract Cargo. The “Agreed Delivery Route” will define the salient factors attributable to that Cargo, including, but not limited to; (1) the Loading Terminal, (2) Vessel size, (3) transportation route and (4) any Lightering requirements. For example for an Arab [REDACTED] term a Urals Cargo, the Agreed Delivery Route might be: (1) Oil Loading Terminal to be [REDACTED]Primorsk, (2) Cargo to be loaded on an Aframax vessel, (3) Vessel to be routed by the most expeditious method (always allowing for carrier’s safety requirements) to Bigstone Lightering Point, (4) where one or two Lightering Vessel(s) will be taken off prior to the mother Vessel Berthing at the Refinery. Each term contract Cargo under this Agreement will have a similar corresponding Agreed Delivery Route. If the Execution Method is used, Seller shall use [REDACTED], etc. Except as otherwise set forth in this Agreement, if the Supply Point Method is used all supply Supply costs up to the Supply Port are [REDACTED].