Common use of Pipeline Commitment Clause in Contracts

Pipeline Commitment. For each Calendar Quarter during the Term, Customer shall tender an average of at least 27,880 Barrels per Day of Product to the Terminal for storage and handling and redelivery across the SFPP Pipeline Connection in approximately ratable quantities (such average, the “Minimum Quarterly Pipeline Commitment” and together with the Minimum Quarterly Truck Rack Commitment, the “Minimum Quarterly Commitment”) and Company shall accept, store and redeliver such Product in accordance with the terms of this Schedule. Except as expressly provided in the Agreement in connection with an Outage, a Company Force Majeure or a Customer Force Majeure, if during any Calendar Quarter, Customer fails to satisfy its Minimum Quarterly Pipeline Commitment during such Calendar Quarter, then Customer will pay Company a deficiency payment (each, a “Pipeline Deficiency Payment” and together with the Truck Rack Deficiency Payment, the “Quarterly Deficiency Payment”) in an amount equal to the volume of the deficiency (the “Pipeline Deficiency Volume” and together with the Truck Rack Deficiency Volume, the “Quarterly Deficiency Volume”) multiplied by the Pipeline Throughput Charge. Customer shall pay Company the amount of such Quarterly Deficiency Payment along with any Pipeline Throughput Charge payable hereunder. The dollar amount of any Pipeline Deficiency Payment paid by Customer may be applied as a credit against any amounts incurred by Customer and owed to Company with respect to volumes of Product delivered through the SFPP Pipeline Connection in excess of Customer’s Minimum Quarterly Pipeline Commitment (or, if this Schedule expires or is terminated, to volumes delivered through the SFPP Pipeline Connection in excess of the applicable Minimum Quarterly Pipeline Commitment in effect as of the date of such expiration or termination) (such excess volume in any Calendar Quarter during the Term is referred to as the “Pipeline Surplus Volume”, and together with the Truck Rack Surplus Volume, the “Quarterly Surplus Volume”) during any of the succeeding four Calendar Quarters, after which time any unused credits will expire. This Section 7(b) shall survive the expiration or termination of this Schedule, if necessary for the application of any Pipeline Deficiency Payment against any Pipeline Surplus Volume as set forth herein. During the Term, Company shall provide throughput capacity to the SFPP Pipeline Connection to Customer in excess of the Minimum Quarterly Pipeline Commitment on an “as available” basis, and any use of such excess capacity shall be subject to the Pipeline Throughput Charge.

Pipeline Commitment. For each Calendar Quarter during the Term, Customer shall tender an average of at least 27,880 Barrels per Day of Product to the Terminal for storage and handling and redelivery across the SFPP Pipeline Connection in approximately ratable quantities (such average, the “Minimum Quarterly Pipeline Commitment” and together with the Minimum Quarterly Truck Rack Commitment, the “Minimum Quarterly Commitment”) and Company shall accept, store and redeliver such Product in accordance with the terms of this Schedule. Except as expressly provided in the Agreement in connection with an Outage, a Company Force Majeure or a Customer Force Majeure, if during any Calendar Quarter, Customer fails to satisfy its Minimum Quarterly Pipeline Commitment during such Calendar Quarter, then Customer will pay Company a deficiency payment (each, a “Pipeline Deficiency Payment” and together with the Truck Rack Deficiency Payment, the “Quarterly Deficiency Payment”) in an amount equal to the volume of the deficiency (the “Pipeline Deficiency Volume” and together with the Truck Rack Deficiency Volume, the “Quarterly Deficiency Volume”) multiplied by the Pipeline Throughput Charge. Customer shall pay Company the amount of such Quarterly Deficiency Payment along with any Pipeline Throughput Charge payable hereunder. The dollar amount of any Pipeline Deficiency Payment paid by Customer may be applied as a credit against any amounts incurred by Customer and owed to Company with respect to volumes of Product delivered through the SFPP Pipeline Connection in excess of Customer’s Minimum Quarterly Pipeline Commitment (or, if this Schedule expires or is terminated, to volumes delivered through the SFPP Pipeline Connection in excess of the applicable Minimum Quarterly Pipeline Commitment in effect as of the date of such expiration or termination) (such excess volume in any Calendar Quarter during the Term is referred to as the “Pipeline Surplus Volume”, and together with the Truck Rack Surplus Volume, the “Quarterly Surplus Volume”) during any of the succeeding four Calendar Quarters, after which time any unused credits will expire. This Section 7(b) shall survive the expiration or termination of this Schedule, if necessary for the application of any Pipeline Deficiency Payment against any Pipeline Surplus Volume as set forth herein. During the Term, Company shall provide throughput capacity to the SFPP Pipeline Connection to Customer in excess of the Minimum Quarterly Pipeline Commitment on an “as available” basis, and any use of such excess capacity shall be subject to the Pipeline Throughput Charge. 8.