Common use of DELIVERY AND NOMINATION Clause in Contracts

DELIVERY AND NOMINATION. (a) On or before the 15th of each calendar month, Frontier will submit to ETCo a Monthly Product Forecast ("MPF”). The MPF is the volume of Products estimated to be produced at the Refinery during the following month less Frontier retained volumes for that month as provided for in Schedule A. ETCo must purchase all volumes of Products included in the MPF. Frontier will also provide an estimate for informational purposes only of the Products to be produced for the two months following the MPF month. (b) If Frontier exceeds the MPF by more than three percent in three consecutive months, the parties shall need to discuss the inaccuracy of the forecasts. Where the actual production exceeds the MPF for three consecutive months by three percent, for each consecutive month following such three month period, Frontier shall pay ETCo five cents per barrel for every barrel produced in excess of the MPF. (c) Any known planned outage at the Refinery shall be reported by Frontier within ninety (90) days prior to the month of activity. Product deliveries to ETCo and Frontier retained volumes shall be pro-rated to the average of the previous ninety days activity during the outage period. (d) Subject to the provisions of Sections 4(c) and 13 hereof, if Frontier is unable to deliver the volumes for each Product in the MPF from its production volume at the Refinery, Frontier may elect to purchase additional product and deliver same to ETCo to cover any shortfall of production. If Frontier fails to deliver the MPF volumes (through its production or third party purchases), ETCo will be entitled to purchase the deficient volumes at market-based prices and to deduct the actual value from the formula value specified on that Product Schedule, and debit or credit the difference to Frontier. (e) Products shall be delivered to the pipeline, rack, and terminal locations as specified in each Schedule. Product deliveries and liftings shall be the MPF, equally divided by week unless otherwise agreed in writing by the Parties. Volumes tendered but not lifted will be sold in storage at the price posting of the commitment period provided that all volumes tendered by Frontier will be lifted by ETCo within three days after tender, except to the extent all the pipelines will not accept delivery. Other Products delivered or lifted will be sold on a mutually agreed basis as per Schedule F. (f) Deliveries of Frontier retained volumes into the Denver or Colorado Springs markets shall not, in any month of activity, exceed by more than five percent the contractual volume for those markets specified in Schedule A. Retained volumes supplied in excess of the contractual volume shall be delivered by Frontier into ▇▇▇▇▇▇▇▇, Kansas City or Kaneb pipelines, or the El Dorado truck rack. (g) On or about sixty (60) days prior to each calendar year-end, ETCo and Frontier shall revalidate or adjust the product off-take volumes for the following year as per the procedures set forth in Schedule A. (h) Frontier shall use the Equilon Pipeline system for any distribution, exchange, or third-party sale of all Products not sold to ETCo where (i) use of such pipeline is practical, (ii) that pipeline cost is equal to or less than the alternative method, and (iii) Frontier's customers are not adversely affected by the use of Equilon’s systems.

DELIVERY AND NOMINATION. (a) On or before the 15th of each calendar month, Frontier will submit to ETCo a Monthly Product Forecast ("MPF”). The MPF is the volume of Products estimated to be produced at the Refinery during the following month less Frontier retained volumes for that month as provided for in Schedule A. ETCo must purchase all volumes of Products included in the MPF. Frontier will also provide an estimate for informational purposes only of the Products to be produced for the two months following the MPF month. . (b) If Frontier exceeds the MPF by more than three percent in three consecutive months, the parties shall need to discuss the inaccuracy of the forecasts. Where the actual production exceeds the MPF for three consecutive months by three percent, for each consecutive month following such three month period, Frontier shall pay ETCo five cents per barrel for every barrel produced in excess of the MPF. (c) Any known planned outage at the Refinery shall be reported by Frontier within ninety (90) days prior to the month of activity. Product deliveries to ETCo and Frontier retained volumes shall be pro-rated to the average of the previous ninety days activity during the outage period. (d) Subject to the provisions of Sections 4(c) and 13 hereof, if Frontier is unable to deliver the volumes for each Product in the MPF from its production volume at the Refinery, Frontier may elect to purchase additional product and deliver same to ETCo to cover any shortfall of production. If Frontier fails to deliver the MPF volumes (through its production or third party purchases), ETCo will be entitled to purchase the deficient volumes at market-based prices and to deduct the actual value from the formula value specified on that Product Schedule, and debit or credit the difference to Frontier. . (e) Products shall be delivered to the pipeline, rack, and terminal locations as specified in each Schedule. Product deliveries and liftings shall be the MPF, equally divided by week unless otherwise agreed in writing by the Parties. Volumes tendered but not lifted will be sold in storage at the price posting of the commitment period provided that all volumes tendered by Frontier will be lifted by ETCo within three days after tender, except to the extent all the pipelines will not accept delivery. Other Products delivered or lifted will be sold on a mutually agreed basis as per Schedule F. F. (f) Deliveries of Frontier retained volumes into the Denver or Colorado Springs markets shall not, in any month of activity, exceed by more than five percent the contractual volume for those markets specified in Schedule A. Retained volumes supplied in excess of the contractual volume shall be delivered by Frontier into ▇▇▇▇▇▇▇▇, Kansas City or Kaneb pipelines, or the El Dorado truck rack. (g) On or about sixty (60) days prior to each calendar year-end, ETCo and Frontier shall revalidate or adjust the product off-take volumes for the following year as per the procedures set forth in Schedule A. (h) Frontier shall use the Equilon Pipeline system for any distribution, exchange, or third-party sale of all Products not sold to ETCo where (i) use of such pipeline is practical, (ii) that pipeline cost is equal to or less than the alternative method, and (iii) Frontier's customers are not adversely affected by the use of Equilon’s systems.