Common use of Allocation of Capacity Clause in Contracts

Allocation of Capacity. Subject to LMM’s obligation to provide to Shipper first priority service up to the MDQ as described in Section 1.2 of the Agreement, if for any Day LMM determines that the capacity of its Gathering System is constrained through Force Majeure or as the result of Maintenance, LMM shall, without liability, allocate the available capacity as follows: (a) Capacity shall first be allocated pro rata to all shippers with Guaranteed Capacity based upon the lower of their respective (i) Maximum Daily Quantities, (ii) Available Supplies or (iii) Adjusted Available Supplies (to the extent such terms apply to any shipper); and (b) Any remaining capacity shall be allocated pro rata to all shippers with Non-Guaranteed Capacity based upon the lower of their respective (i) Maximum Daily Quantities, (ii) Available Supplies or (iii) Adjusted Available Supplies. However, if LMM can identify the location of the constraint, then LMM shall, without liability, endeavor to impose such allocation upon only those shippers whose Gas is affected by the constraint.