R-Payment Alternative Sample Clauses

R-Payment Alternative. (i) The R-Payment Alternative shall be calculated as follows: (A) an amount equal to one million, eight hundred thirty-four thousand, six hundred sixty-five dollars ($1,834,665), which may be adjusted from time to time pursuant to Section 2.3(b)(iii) (“Base Rental Payment”); (B) the Incremental Capacity Revenue calculated for the month; and (C) the Sunrise Volumetric Revenue. (ii) The R-Payment Alternative shall be reduced each month by the following deductions: (A) a deduction equal to the Sunrise O&M Expenses plus the Sunrise A&G Expenses (collectively, the “Operational Deductions”). (B) a deduction for the payment of taxes, fees, charges, and assessments, exclusive of federal and state taxes based on Sunrise’s net income, as provided in Section 2.3(g), below (“Deduction for Other Taxes”); (C) a deduction for maintenance expenditures in connection with emergency situations or repairs as contemplated in Section 4.4, below, and for the operating expenses incurred in constructing, repairing, maintaining, and placing into service Additional Facilities associated with the Sunrise Facilities under the provisions of Section 3.2, below (“Other Deductions”). (iii) To the extent that any Base Contract Capacity is turned back to Equitrans or surrendered to Equitrans due to the termination or expiration of any Base Contract, the Base Rental Payment shall be reduced by an amount equal to the volume of any such capacity turned back or surrendered to Equitrans (measured in Dth) multiplied by $9.20. In no event shall the Base Rental Payment be reduced below zero dollars ($0) pursuant to this paragraph. (iv) The deductions specified in Section 2.3(b)(ii), above, shall not include any amount for the depreciation of the Sunrise Facilities, capital costs to construct the Sunrise Facilities (which shall be assigned or reimbursed pursuant to Article III of this Lease Agreement and the provisions of the Construction Management Agreement), interest expenses incurred to finance the capital costs of the Sunrise Facilities, or to pay federal and state taxes based on Sunrise’s net income. Sunrise shall be solely liable for the payment of capital costs to construct the Sunrise Facilities, interest expenses incurred to finance the capital costs of the Sunrise Facilities, and federal and state taxes based on Sunrise’s net income derived from the Sunrise Facilities, including its net income received from Lease Payments. (v) To the extent reasonably practicable, the expenses underlying ...