Common use of TransCanada Connection Commitment Clause in Contracts

TransCanada Connection Commitment. During each Calendar Quarter beginning upon the commencement of commercial transportation services on the MarketLink Pipeline from Cushing, Oklahoma to the Terminal (i) until such time as the Keystone XL pipeline commences commercial service, Customer shall tender or cause to be tendered an average of at least 45,000 Barrels per Day of Product to the Terminal through the TransCanada Connection, and (ii) upon commencement of commercial service of the Keystone XL pipeline, Customer shall tender or cause to be tendered an average of at least 150,000 Barrels per Day of Product to the Terminal through the TransCanada Connection, in each case for storage and handling and redelivery to Customer in approximately ratable quantities (such average, the “Minimum Quarterly TransCanada Commitment” and together with the Minimum Quarterly Terminal 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 for an Outage, Company Force Majeure or Customer Force Majeure, if during any Calendar Quarter, Customer fails to satisfy its Minimum Quarterly TransCanada Commitment during such Calendar Quarter, then Customer will pay Company a deficiency payment (each, a “TransCanada Deficiency Payment” and together with the Terminal Deficiency Payment, the “Quarterly Deficiency Payment”) in an amount equal to the volume of the deficiency (the “TransCanada Deficiency Volume” and together with the Terminal Deficiency Volume, the “Quarterly Deficiency Volume”) multiplied by the TransCanada Throughput Charge. Customer shall pay the amount of such Quarterly TransCanada Deficiency Payment along with any TransCanada Throughput Charge payable hereunder. The dollar amount of any TransCanada 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 to the Terminal through the TransCanada Connection in excess of the Minimum Quarterly TransCanada Commitment (or, if this Schedule expires or is terminated, to volumes delivered to the Terminal in excess of the applicable Minimum Quarterly TransCanada Commitment in effect as of the date of such expiration or termination) (such excess volume during any Calendar Quarter is referred to as the “TransCanada Surplus Volume”, and together with the Terminal Surplus Volume, the “Quarterly Surplus

TransCanada Connection Commitment. During each Calendar Quarter beginning upon the commencement of commercial transportation services on the MarketLink Pipeline from Cushing, Oklahoma to the Terminal (i) until such time as the Keystone XL pipeline commences commercial service, Customer shall tender or cause to be tendered an average of at least 45,000 Barrels per Day of Product to the Terminal through the TransCanada Connection, and (ii) upon commencement of commercial service of the Keystone XL pipeline, Customer shall tender or cause to be tendered an average of at least 150,000 Barrels per Day of Product to the Terminal through the TransCanada Connection, in each case for storage and handling and redelivery to Customer in approximately ratable quantities (such average, the “Minimum Quarterly TransCanada Commitment” and together with the Minimum Quarterly Terminal 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 for an Outage, Company Force Majeure or Customer Force Majeure, if during any Calendar Quarter, Customer fails to satisfy its Minimum Quarterly TransCanada Commitment during such Calendar Quarter, then Customer will pay Company a deficiency payment (each, a “TransCanada Deficiency Payment” and together with the Terminal Deficiency Payment, the “Quarterly Deficiency Payment”) in an amount equal to the volume of the deficiency (the “TransCanada Deficiency Volume” and together with the Terminal Deficiency Volume, the “Quarterly Deficiency Volume”) multiplied by the TransCanada Throughput Charge. Customer shall pay the amount of such Quarterly TransCanada Deficiency Payment along with any TransCanada Throughput Charge payable hereunder. The dollar amount of any TransCanada 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 to the Terminal through the TransCanada Connection in excess of the Minimum Quarterly TransCanada Commitment (or, if this Schedule expires or is terminated, to volumes delivered to the Terminal in excess of the applicable Minimum Quarterly TransCanada Commitment in effect as of the date of such expiration or termination) (such excess volume during any Calendar Quarter is referred to as the “TransCanada Surplus Volume”, and together with the Terminal Surplus Volume, the “Quarterly SurplusSurplus Volume”) during any of the succeeding four Calendar Quarters, after which time any unused credits will expire. This Section 8(b) shall survive the expiration or termination of this Schedule, if necessary for the application of any TransCanada Deficiency Payment against any TransCanada Surplus Volume as set forth herein. Company shall provide throughput capacity at the Terminal from TransCanada Connection to Customer in excess of the Minimum Quarterly TransCanada Commitment on an “as available” basis, and any use of such excess capacity shall be subject to the TransCanada Throughput Charge.