Common use of Capacity Expansion Clause in Contracts

Capacity Expansion. TRMC may at any time make a written request to TLO to increase the throughput capacity of any Segment or to construct any new pipelines between the SLC Refinery, the Storage Facility or any local third party terminals (a “Capacity Expansion”), and shall include in such written request the parameters and specifications of the requested Capacity Expansion. Upon the receiving such a request, TLO shall promptly evaluate the relevant factors related to such request, including, without limitation: engineering and design criteria, limitations affecting such Capacity Expansion and any related tankage, cost and financing factors and the effect of such Capacity Expansion on the overall operation of the Short Haul Pipelines. If TLO determines that such a Capacity Expansion is operationally and commercially feasible, TLO shall present a proposal to TRMC concerning the design of such Capacity Expansion, its projected costs and how such costs might be funded by or recovered from TRMC. If TLO determines that such a Capacity Expansion is not commercially or operationally feasible, it shall provide TRMC with an explanation of and justification for why it made such determination. If TLO notifies TRMC that the Capacity Expansion may be commercially and operationally feasible, the Parties shall negotiate reasonably and in good faith to determine appropriate terms and conditions for the Capacity Expansion, which shall include, without limitation, the scope of the Capacity Expansion, the appropriate timing for constructing the Capacity Expansion and a mechanism for TLO to recover its costs, plus a reasonable return on capital associated with such Capacity Expansion, which may include, without limitation, direct funding of all or part of the costs by TRMC, an increase in Transportation Fee and/or an increase in the Minimum Throughput Commitment.

Capacity Expansion. TRMC may at any time make a written request to TLO to increase the throughput capacity of any Segment the Segments or to construct any new pipelines between the SLC Refinery, the Storage Facility or Wilmington Refinery and any local third party terminals terminal or storage facility (a “Capacity Expansion”), and shall include in such written request the parameters and specifications of the requested Capacity Expansion. Upon the receiving such a request, TLO shall promptly evaluate the relevant factors related to such request, including, without limitation: engineering and design criteria, limitations affecting such Capacity Expansion and any related tankage, cost and financing factors and the effect of such Capacity Expansion on the overall operation of the LAR Short Haul Pipelines. If TLO determines that such a Capacity Expansion is operationally and commercially feasible, TLO shall present a proposal to TRMC concerning the design of such Capacity Expansion, its projected costs and how such costs might be funded by or recovered from TRMC. If TLO determines that such a Capacity Expansion is not commercially or operationally feasible, it shall provide TRMC with an explanation of and justification for why it made such determination. If TLO notifies TRMC that the Capacity Expansion may be commercially and operationally feasible, the Parties shall negotiate reasonably and in good faith to determine appropriate terms and conditions for the Capacity Expansion, which shall include, without limitation, the scope of the Capacity Expansion, the appropriate timing for constructing the Capacity Expansion and a mechanism for TLO to recover its costs, plus a reasonable return on capital associated with such Capacity Expansion, which may include, without limitation, direct funding of all or part of the costs by TRMC, an increase in Transportation Fee and/or an increase in the Minimum Throughput CommitmentFee.

Capacity Expansion. TRMC may at any time make a written request to TLO TSPC to increase the throughput capacity of any Segment or to construct any new pipelines between related to the SLC Refineryoperation of the Refinery in southern California, including the Storage Facility or any local third party terminals acquisition of Crude Oil feedstocks and marketing of Refined Products (a “Capacity Expansion”), and shall include in such written request the parameters and specifications of the requested Capacity Expansion. Upon the receiving such a request, TLO TSPC shall promptly evaluate the relevant factors related to such request, including, without limitation: engineering and design criteria, limitations affecting such Capacity Expansion and any related tankage, cost and financing factors and the effect of such Capacity Expansion on the overall operation of the Short Haul SoCal Pipelines. If TLO TSPC determines that such a Capacity Expansion is operationally and commercially feasible, TLO TSPC shall present a proposal to TRMC concerning the design of such Capacity Expansion, its projected costs and how and what portion of such costs might be funded by or recovered from TRMC. If TLO TSPC determines that such a Capacity Expansion is not commercially or operationally feasible, it shall provide TRMC with an explanation of and justification for why it made such determination. If TLO TSPC notifies TRMC that the Capacity Expansion may be commercially and operationally feasible, the Parties shall negotiate reasonably and in good faith to determine appropriate terms and conditions for the Capacity Expansion, which shall include, without limitation, the scope of the Capacity Expansion, the appropriate timing for constructing the Capacity Expansion and a mechanism for TLO TSPC to recover an appropriate portion of its costs, plus a reasonable return on capital associated with such Capacity Expansion, which may include, without limitation, direct funding of all or part of the costs by TRMC, an increase in Transportation Fee and/or an increase in the applicable Minimum Throughput Commitment.

Capacity Expansion. TRMC Customer may at any time make a written request to TLO Provider to increase the throughput capacity of any Segment the LAR Interconnecting Pipelines or to construct any new pipelines between within the SLC Refinery, the Storage Facility or any local third party terminals Refinery (a “Capacity Expansion”), and shall include in such written request the parameters and specifications of the requested Capacity Expansion. Upon the receiving such a request, TLO Provider shall promptly evaluate the relevant factors related to such request, including, without limitation: engineering and design criteria, ; limitations affecting such Capacity Expansion and any related tankage, ; cost and financing factors factors; and the effect of such Capacity Expansion on the overall operation of of, and regulations applicable to, the Short Haul LAR Interconnecting Pipelines. If TLO Provider determines that such a Capacity Expansion is operationally and commercially feasible, TLO Provider shall present a proposal to TRMC Customer concerning the design of such Capacity Expansion, its projected costs and how such costs might be funded by or recovered from TRMCCustomer. If TLO Provider determines that such a Capacity Expansion is not commercially or operationally feasible, it shall provide TRMC Customer with an explanation of and justification for why it made such determination. If TLO Provider notifies TRMC Customer that the Capacity Expansion may be commercially and operationally feasible, the Parties shall negotiate reasonably and in good faith to determine appropriate terms and conditions for the Capacity Expansion, which shall include, without limitation, the scope of the Capacity Expansion, the appropriate timing for constructing the Capacity Expansion Expansion, and a mechanism for TLO Provider to recover its costs, costs plus a reasonable return on capital associated with such Capacity Expansion, which may include, without limitation, direct funding of all or part of the costs by TRMC, an increase in Transportation Fee and/or Customer and an increase in the Minimum Throughput CommitmentTransportation Services Fee. Any agreed upon Capacity Expansion hereunder shall be set forth in a Transportation Service Order.

Capacity Expansion. TRMC may at any time make a written request to TLO to increase the throughput capacity of any Segment or to construct any new pipelines between the SLC Refinery, the Storage Facility or any local third party terminals (a “"Capacity Expansion”"), and shall include in such written request the parameters and specifications of the requested Capacity Expansion. Upon the receiving such a request, TLO shall promptly evaluate the relevant factors related to such request, including, without limitation: engineering and design criteria, limitations affecting such Capacity Expansion and any related tankage, cost and financing factors and the effect of such Capacity Expansion on the overall operation of the Short Haul Pipelines. If TLO determines that such a Capacity Expansion is operationally and commercially feasible, TLO shall present a proposal to TRMC concerning the design of such Capacity Expansion, its projected costs and how such costs might be funded by or recovered from TRMC. If TLO determines that such a Capacity Expansion is not commercially or operationally feasible, it shall provide TRMC with an explanation of and justification for why it made such a determination. If TLO notifies TRMC that the Capacity Expansion may be commercially and operationally feasible, the Parties shall negotiate reasonably and in good faith to determine appropriate terms and conditions for the Capacity Expansion, which shall include, without limitation, the scope of the Capacity Expansion, the appropriate timing for constructing the Capacity Expansion and a mechanism for TLO to recover its costs, plus a reasonable return on capital associated with such Capacity Expansion, which may include, without limitation, direct funding of all or part of the costs by TRMC, an increase in Transportation Fee and/or an increase in the Minimum Throughput Commitment.

Capacity Expansion. TRMC PBF Holding may at any time make a written request to TLO TVPC to increase the throughput capacity of any Segment or to construct any new pipelines between the SLC Refinery, the Storage Facility or any local third party terminals (a “Capacity Expansion”), and shall include in such written request the parameters and specifications of the requested Capacity Expansion. Upon the receiving such a request, TLO TVPC shall promptly evaluate the relevant factors related to such request, including, without limitation: engineering and design criteria, limitations affecting such Capacity Expansion and any related tankage, cost and financing factors and the effect of such Capacity Expansion on the overall operation of the Short Haul Crude Pipelines. If TLO TVPC determines that such a Capacity Expansion is operationally and commercially feasible, TLO TVPC shall present a proposal to TRMC PBF Holding concerning the design of such Capacity Expansion, its projected costs and how and what portion of such costs might be funded by or recovered from TRMCPBF Holding. If TLO TVPC determines that such a Capacity Expansion is not commercially or operationally feasible, it shall provide TRMC PBF Holding with an explanation of and justification for why it made such determination. If TLO TVPC notifies TRMC PBF Holding that the Capacity Expansion may be commercially and operationally feasible, the Parties shall negotiate reasonably and in good faith to determine appropriate terms and conditions for the Capacity Expansion, which shall include, without limitation, the scope of the Capacity Expansion, the appropriate timing for constructing the Capacity Expansion and a mechanism for TLO TVPC to recover an appropriate portion of its costs, plus a reasonable return on capital associated with such Capacity Expansion, which may include, without limitation, direct funding of all or part of the costs by TRMCPBF Holding, an increase in Transportation Fee and/or an increase in the Minimum Throughput CommitmentCrude MTC.