Third Party Pipelines Clause Samples

The 'Third Party Pipelines' clause defines the rights and responsibilities of the parties regarding pipelines owned or operated by entities other than the contracting parties. Typically, this clause outlines how access, use, or connection to such third-party pipelines will be managed, including any necessary permissions, compliance with third-party requirements, and allocation of costs or liabilities associated with their use. Its core function is to clarify how third-party infrastructure is integrated into the agreement, thereby reducing uncertainty and potential disputes over access and responsibility.
Third Party Pipelines. For Product delivered into a third party pipeline, quantities shall be determined by the pipeline company’s meter tickets, with the volumes corrected for temperature based on the average temperature of the Product delivered into the pipeline. For Product delivered out of a third party pipeline, quantities shall be determined by the pipeline company’s meter ticket, and in the absence of this, by the receiving party’s tank measurement, with volumes of Product corrected for temperature based on the average temperature of the Product received from the pipeline, if available; otherwise, based on the average temperature of each of the receiving tanks into which the Product was delivered, determined before and after delivery. Each meter shall be a positive displacement meter conforming to the requirements of the Weights and Measures Act (Canada). Where a meter is not available either party shall have the right to require an independent inspector for purposes of verification of the volume of Product delivered or received. The selection of the independent inspector shall be mutually agreed upon. The cost of such independent inspector shall be shared equally by both parties. In those instances where an independent inspector is utilized, the delivered volumes in accordance with this Agreement, as determined by the independent inspector, shall govern the transaction. In the event that measurement is by meter, then prior to the volumes of Product being corrected for temperature, such volumes of Product shall be corrected by the appropriate meter factor for such meters determined by verification of meter calibration (“Meter Proving”). Meter Proving for all meters will be conducted at least once each year on all meters used to determine volumes of Product, by an independent Meter Proving company using the latest industry practices and API standards. The party which owns or has control over the meter shall select an independent Meter Proving company (“Independent Meter Proving Company”) to cause the meter to be proven; provided the other party approves of such Independent Meter Proving Company, which approval shall not be unreasonably withheld. Notwithstanding the foregoing, subject to the approval of the other party, which approval shall not be unreasonably withheld, the party who owns or has control of the meter shall have the option to do its own Meter Proving utilizing its own Meter Proving equipment and personnel, rather than using an Independent Meter Proving Compan...
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Third Party Pipelines. For Product delivered into a third party pipeline, quantities shall be determined by the pipeline company's meter tickets, with the volumes corrected for temperature based on the average temperature of the Product delivered into the pipeline. For Product delivered out of a third party pipeline, quantities shall be determined by the pipeline company's meter tickets, and in the absence of this, by the Receiver's tank measurements, with volumes of Product corrected for temperature based on the average temperature of the Product received from the pipeline, if available; otherwise, based on the average temperature of each of the Receiver's tanks into which the Product was delivered, determined before and after delivery.
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Related to Third Party Pipelines

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