Common use of Commitment Shipper Allocation Clause in Contracts

Commitment Shipper Allocation. If the total volume nominated by Commitment Shippers on a line segment is less than or equal to the available capacity on that segment, then Commitment Shippers shall receive their nominated volumes. Otherwise, each Commitment Shipper shall receive a prorated share of their nominated volumes equal to (a) the volume nominated by that Commitment Shipper multiplied by (b) the ratio of the line segment capacity divided by the total volumes nominated by Commitment Shippers.

Appears in 2 contracts

Sources: Connection and Shipping Agreement, Connection and Shipping Agreement (Alon USA Partners, LP)