Common use of Prorationing Clause in Contracts

Prorationing. Capacity on the Monarch Pipeline shall be allocated in accordance with Monarch’s Rules and Regulations Tariff or its successor. A. Monarch and Shipper shall measure Crude Oil delivered hereunder as provided in accordance with Monarch’s Rules and Regulations Tariff and pursuant to the Quality Bank set forth in Monarch’s Rules and Regulations Tariff. B. Control and possession of the Crude Oil received under this Agreement shall pass from Shipper to Monarch at the Receipt Point(s). C. Control and possession of the Crude Oil delivered under this Agreement shall pass from Monarch to Shipper at the Delivery Point(s). D. Each Shipper shall be allocated a pro-rata share of actual volumetric losses incurred on the Pipeline due to evaporation, measurement, and other losses in transit (“Line Loss” or “Pipeline Loss Allowance) Pipeline adjustments will be made on the basis of total quantities received and will be assessed at the CRP(s).