Common use of Testing and Repair of Equipment Clause in Contracts

Testing and Repair of Equipment. 1. Company shall keep its own measuring equipment accurate and in repair, making periodic tests to verify the condition of meter tubes, orifice plate, and chart recorder or flow computer. Company agrees to give Shipper(s) seven (7) calendar days notice prior to such tests of the measuring equipment so that, if desired, Shipper(s) may have its representative present. Shipper(s) shall have the right to challenge the accuracy of Company’s equipment, and when challenged, the equipment shall be tested, calibrated and, if required, repaired by Company, the cost of such special test to be borne by Company if the percentage of the inaccuracy is found to be more than two percent (2%), but if the percentage of inaccuracy is found to be two percent (2%) or less, the cost of such special test shall be borne by the Shipper(s). If upon any test the percentage of inaccuracy is found to be in excess of two percent (2%), registrations thereof shall be corrected for a period extending back to the time such inaccuracy occurred, if such time is ascertainable, and if not ascertainable, then back one-half (1/2) of the time elapsed since the last date of calibration. Any measuring equipment found to be measuring inaccurately by one percent (1%) or more shall be adjusted at once to read accurately.

Appears in 4 contracts

Samples: Storage Agreement (Energysouth Inc), Storage Service Agreement (Energysouth Inc), Storage Service Agreement (Energysouth Inc)

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