Operational Tolerance definition

Operational Tolerance as defined in Section 5.6.3;
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Operational Tolerance means an annual delivery shortfall of not greater than an amount of LNG (in MMBtus) equal to *** of the AACQ for such Commercial Operations Period; provided that if Seller claims an Operational Tolerance during any Commercial Operations Period, (a) Seller shall not have the right to claim any Operational Tolerance in the immediately following Commercial Operations Period, (b) the ACQ in the immediately following Commercial Operations Period shall be increased by the amount of Seller’s shortfall during such Commercial Operations Period, not to exceed the maximum Operational Tolerance, and (c) Seller shall credit Buyer the Operational Tolerance Credit (as defined and calculated in accordance with paragraph VIII of Exhibit A (Pricing)).
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Operational Tolerance is as defined in Clause 7.9. EXECUTION VERSION
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Examples of Operational Tolerance in a sentence

  • Buyer shall always use commercially reasonable efforts to offtake Product volume in line with the Monthly Operational Tolerance, however, a monthly product offtake volume tolerance for Product supplies under this Contract of up to [*****] is permissible for as long as this higher monthly tolerance occurs only on an occasional basis, and under no circumstances for more than three (3) consecutive months.

  • In the event there is a deviation of Buyer from the Monthly Operational Tolerance for three (3) consecutive months, then the Parties will meet within ten (10) working days following the last day of the relevant month to discuss such consecutive deviation, with the aim to prevent a near-term reoccurrence of that deviation.

  • In the event there is a deviation of Buyer from the Monthly Operational Tolerance [*****], then the Parties will meet within ten (10) working days following the last day of the relevant month to discuss such consecutive deviation, with the aim to prevent a near-term reoccurrence of that deviation.

  • If the Quantity Delivered is less than [***] of the Scheduled Loading Quantity for a Cargo, the Scheduled Loading Quantity (excluding the Operational Tolerance) shall be used for the purpose of calculating amounts due in accordance with the provisions of Clauses 7.4 or 7.6, as applicable.


More Definitions of Operational Tolerance

Operational Tolerance means a quantity of LNG which is plus or minus five per cent (+/-5%) of the Nominal Quantity, unless otherwise agreed in the Confirmation Notice.
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Related to Operational Tolerance

  • Stormwater management planning area means the geographic area for which a stormwater management planning agency is authorized to prepare stormwater management plans, or a specific portion of that area identified in a stormwater management plan prepared by that agency.

  • Gasification means the substoichiometric oxidation or steam reformation of a substance to produce a gaseous mixture containing two or more of the following: (i) oxides of carbon; (ii) methane; and (iii) hydrogen;

  • Commissioning means the process for determining the need for and for obtaining the supply of healthcare and related services by the Trust within available resources.