Capacity and Revenue Commitment Sample Clauses
The Capacity and Revenue Commitment clause establishes the obligations of one or both parties to provide or purchase a specified level of service capacity and/or to guarantee a minimum revenue over a defined period. In practice, this may require a supplier to reserve a certain amount of resources or production capability for the buyer, while the buyer commits to purchasing a minimum volume or value of goods or services. This clause ensures predictability and financial stability for both parties by reducing uncertainty around demand and supply, and it helps prevent shortfalls or overcommitment that could disrupt business operations.
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Capacity and Revenue Commitment. Subject to Article 4, HFRM shall pay HEP Operating Applicable Tariffs for use of the Applicable Assets and associated services as provided herein that result in the payment of an amount that will satisfy the Minimum Revenue Commitment in exchange for HEP Operating providing HFRM a minimum capacity in each of the Applicable Assets equal to the Minimum Capacity Commitment. The “Minimum Revenue Commitment” shall be the aggregate sum of the revenue to HEP Operating for each Contract Quarter determined by multiplying the Minimum Throughput Commitment for each Applicable Asset for such Contract Quarter, by the Base Tariff for such Applicable Asset in effect for such Contract Quarter. The “Minimum Capacity Commitment” means the amount set forth on Exhibit C for each Applicable Asset.
Capacity and Revenue Commitment. Subject to Section 5, HFRM shall pay HEP Operating service tariffs set forth in this Agreement for use of the Facility that result in the payment of an amount that will satisfy the Minimum Revenue Commitment in exchange for HEP Operating providing HFRM a minimum aggregate capacity for unloading and blending services at the Facility equal to the Minimum Capacity Commitment. The “Minimum Revenue Commitment” shall be an amount of revenue to HEP Operating for each Contract Quarter determined by multiplying the Minimum Throughput for such Contract Quarter, by the Base Tariff in effect for such Contract Quarter, as such Base Tariff may be revised pursuant to Section 3(a)(iii). The “Minimum Capacity Commitment” means an amount equal to 450 bpd.
Capacity and Revenue Commitment. Subject to Section 5, HFRM shall pay HEP Operating transportation service tariffs for use of the Pipeline System that result in the payment of an amount that will satisfy the Minimum Pipeline Revenue Commitment in exchange for HEP Operating providing HFRM a minimum aggregate capacity in the Pipeline System equal to the Minimum Capacity Commitment. The “Minimum Pipeline Revenue Commitment” shall be an amount of revenue to HEP Operating for each Contract Quarter determined by multiplying the Minimum Pipeline Throughput for such Contract Quarter, as such Minimum Pipeline Throughput may be revised pursuant to Section 3(a)(iv)(D), by the Pipeline Base Tariff in effect for such Contract Quarter, as such Pipeline Base Tariff may be revised pursuant to Section 3(a)(iii). The “Minimum Capacity Commitment” means an amount equal to 40,000 bpd, as such amount may be adjusted pursuant to Section 3(a)(iv)(D).