Daily Volume Commitment definition
Examples of Daily Volume Commitment in a sentence
After the Commencement Date, Shipper shall have the right to increase the Daily Volume Commitment (in increments of 5,000) by any amount up to 30,000 barrels (in increments of 5,000), less any increases in the Daily Volume Commitment by Shipper pre-Commencement Date, and will notify the Carrier in writing of such volumes within a commercially reasonable timeframe.
On the Effective Date, the Daily Volume Commitment is 40,000 barrels.
Shipper shall have the right to increase the Daily Volume Commitment by any amount up to 30,000 barrels (in increments of 5,000), prior to the Commencement Date, subject to Carrier’s availability on the Knight Warrior Pipeline, by providing written notice to Carrier.
During the initial Term and any Additional Term (if any), the Shipper shall receive a *** reduction in Shipper’s Daily Volume Commitment, up to a maximum Daily Volume Commitment reduction of *** barrels (“Committed Shipper Credit”), for the time during which ***.
At no time shall the Shipper’s Daily Volume Commitment, taking into account the Committed Shipper Credit, be lower than *** barrels, during the Term or any Additional Term.
Carrier will not support any modification to the applicable Rules and Regulations that would change Shipper’s rights as a Committed Shipper to transport up to the Daily Volume Commitment without proration if nominations by non-Committed Shippers exceed available capacity, except to the extent required by Applicable Law.
For any Month, Shipper can nominate (pursuant to the Tariff) volumes of Crude Petroleum as Committed Volumes up to [***]% of its applicable Daily Volume Commitment for each Day of the Month and such volumes nominated by Shipper shall be considered Committed Volumes and therefore shall receive Committed Firm Capacity on the ▇▇▇▇▇▇▇’▇ Corner Pipeline System.
Carrier and Shipper shall amend Exhibit A to reflect the increase in Shipper’s Daily Volume Commitment and Annual Commitment, in any, pursuant to this Section 6.2.
Such requests shall be for a Term of at least one year and submitted in writing from Shipper to Carrier and specify the Term and additional Daily Volume Commitment and Annual Commitment in the format of Exhibit A.