Common use of MAOP Clause in Contracts

MAOP. From time to time, Operator may designate a maximum allowable operating pressure (“MAOP”) on each Pipeline, which may be changed by Operator in its sole discretion upon notice to TRMC; provided, however, that if Operator should ever reduce the maximum operating pressure of a Pipeline below 180 psig, then Operator shall use all reasonable efforts to restore the Pipelines to a MAOP of at least 180 psig as quickly as reasonably possible. As of the date hereof, the designated maximum operating pressure on each of the Pipelines is 180 psig. TRMC shall not deliver any Products into a Pipeline at a pressure that exceeds or could cause the Pipeline to exceed its MAOP, and in the event that TRMC determines that an ongoing delivery through a Pipeline may exceed the MAOP of that Pipeline, then TRMC shall immediately shut down the delivery and cause the pressure to be reduced. TRMC shall immediately notify Operator at any time that the MAOP of a Pipeline has been exceeded. TRMC shall conduct all pumping operations in accordance with applicable U.S. Department of Transportation regulations, using adequately trained and qualified personnel. TRMC shall maintain and make available for Operator’s inspection recording charts reflecting a true and accurate record of line pressure. Upon request, TRMC shall provide Operator with dynamic volumetric pipeline monitoring or volumetric flow rates and cumulative total volumes of total volumes. In the event that the difference between pipeline monitoring readings or shipper and receiver total volumes exceed three percent (3%) or becomes greater than two percent (2%) for longer than four (4) hours, TRMC shall shut down the transfer and shall not resume such transfer until the pipeline monitoring readings can be reconciled or the difference between shipper and receiver cumulative totals reconciles to within two percent (2%).

Appears in 2 contracts

Sources: Operating Agreement (Tesoro Corp /New/), Operating Agreement (Tesoro Logistics Lp)