BY MGPI AND MANUFACTURER UNLESS MGPI AND MANUFACTURER AGREE THAT
MANUFACTURER MAY CONDUCT TESTING.
(II)
QUALITY OF THE PRODUCT SHALL BE BASED UPON LABORATORY ANALYSIS OF
A REPRESENTATIVE COMPOSITE SAMPLE TAKEN FROM STORAGE TANK(S) OF THE ENTIRE LOT
TO BE LOADED AND A VALID COA SHALL BE PROVIDED BY THE TESTING LABORATORY TO MGPI
FOR ALL DELIVERED PRODUCTS.
(B)
MEASUREMENT.
(I)
METERS AND OTHER MEASURING DEVICES BELONGING TO THE MANUFACTURER
OR ITS AGENTS OR SUPPLIERS AND USED HEREUNDER SHALL BE DEEMED CONCLUSIVE OF THE
QUANTITIES OF PRODUCT DELIVERED TO MGPI BY MANUFACTURER HEREUNDER, UNLESS EITHER
PARTY NOTIFIES THE OTHER OF ANY ERRORS IN MEASUREMENT.
(II)
MANUFACTURER SHALL BE RESPONSIBLE FOR THE ACCURACY OF ITS
MEASURING EQUIPMENT AT THE LOADING LOCATION, INCLUDING ALL GAUGES AND METERS,
AND SHALL ENSURE THAT SUCH EQUIPMENT COMPLIES IN ALL RESPECTS WITH APPLICABLE
LAWS, RULES, AND REGULATIONS AND WILL BE CERTIFIED AT LEAST EVERY THREE MONTHS
OR 10,000,000 GALLONS OR PER TTB REQUIREMENTS, WHICHEVER OCCURS FIRST.
MGPI
SHALL HAVE THE RIGHT, BUT NOT THE OBLIGATION, DURING THE TERM TO HAVE A
REPRESENTATIVE INSPECT MANUFACTURER'S MEASUREMENT EQUIPMENT FOR SUITABILITY AND
ACCURACY AND BE PRESENT FOR PROVING AND CALIBRATION.
SUCH MGPI INSPECTION,
TESTING, OR ADDITIONAL CERTIFICATION SHALL BE AT MGPI'S EXPENSE.
MGPI SHALL BE
GIVEN ACCESS TO ALL TRANSACTION AND METER PROVING RECORDS.
ALL CUSTODY METERS
SHALL BE PROVED AND CALIBRATED WITH THE LATEST API MPMS.
ALL CALIBRATION
EQUIPMENT SHALL BE CERTIFIED
8
AND TRACEABLE TO NIST.
METERS SHALL BE PROVED ON A NET BASIS UNLESS OTHERWISE
REQUIRED BY REGULATORY AGENCIES.
(III)
ALL VOLUMES OR QUANTITIES OF PRODUCT SHALL BE NET VOLUMES OR
QUANTITIES AS ADJUSTED PER ASTM/API STANDARDS.
PRODUCT SHALL BE MEASURED AND
BILLED ON A PER GALLON BASIS.
THE TERM "GALLON" AS USED HEREIN SHALL MEAN A
U.S. GALLON OR 231 CUBIC INCHES.
ALL QUANTITIES DELIVERED SHALL BE ADJUSTED TO
A TEMPERATURE OF 60 DEGREES FAHRENHEIT IN ACCORDANCE WITH THE LATEST APPLICABLE
ASTM STANDARDS
(IV)
TRUCK/RAIL CAR.
QUANTITIES OF PRODUCT DELIVERED PURSUANT TO THIS
AGREEMENT INTO OR FROM TANK TRUCKS/CARS OR RAIL CARS SHALL BE MEASURED USING
CALIBRATED METERS LOCATED AT OR NEAR THE DELIVERY POINT OR, IF SUCH METERS ARE
UNAVAILABLE, BY CERTIFIED CALIBRATED SCALES OR APPLICABLE CALIBRATION TABLES.
(V)
MARINE VESSEL.
UNLESS OTHERWISE AGREED, INSPECTION AND
MEASUREMENT OF PRODUCT DELIVERED PURSUANT TO THIS AGREEMENT INTO OR FROM MARINE
VESSELS SHALL BE MADE BY A MUTUALLY LICENSED INDEPENDENT INSPECTOR, THE COST OF
WHICH SHALL BE BORN EQUALLY BY MGPI AND MANUFACTURER.
SAID INSPECTOR'S
DETERMINATIONS SHALL BE REPORTED TO MGPI AND MANUFACTURER AND SHALL SERVE AS THE
BASIS FOR THE INVOICE, EXCEPT IN CASES OF MANIFEST ERROR OR FRAUD.
THE QUANTITY OF PRODUCT SHALL BE DETERMINED BY PROVEN METERS, IN THE IMMEDIATE
VICINITY OF THE BERTH LOCATED AT THE DESIGNATED POINT OF CUSTODY AND TITLE
TRANSFER.
IF METERS ARE UNAVAILABLE, NOT PROVEN, NOT FUNCTIONING CORRECTLY, OR
DETERMINED BY THE INDEPENDENT INSPECTOR TO BE INACCURATE OR OTHERWISE NOT TO
REPRESENT THE VOLUME DELIVERED TO OR FROM THE VESSEL, THEN THE QUANTITY SHALL BE
SHALL BE BASED