Carrier Facilities Sample Clauses

Carrier Facilities. (i) Carrier shall design, construct, install, place into service, and maintain, at its sole cost and expense, all crude oil gathering pipelines, crude oil transmission pipelines, ancillary facilities and equipment including all Lease Automatic Custody Transfer (“LACT”) units (which shall consist of two separate LACTs at all new locations to accommodate both truck loading and pipeline injection of Crude Oil). Carrier shall own the truck loading LACTs at new locations through the term and at the conclusion of this agreement, however Producer or its Designated Producer shall be responsible for maintaining and proving the truck LACTs and Carrier provides Producer or its Designated Producer permission to operate the truck LACTs during events of Curtailment subject to Article 2.3 of this Agreement. (ii) Carrier’s Central Oil Storage Facility shall initially include a Crude Oil storage tank with a nominal capacity of 20,000 Barrels. Carrier shall endeavor to have the Central Oil Storage Facility in service by August 1, 2017; however, in no instance shall the in-service date be later than September 15, 2017. Beginning on January 1, 2018 and an annual basis thereafter, Producer shall provide to Carrier a good faith projection of the anticipated production of Crude Oil for the upcoming 12 month period. In the event that the anticipated average daily production of Crude Oil for the period is more than 0.5 times the aggregate volume capacity of the storage tanks then installed at Carrier’s Central Oil Storage Facility, then Carrier shall reasonably promptly begin construction of incremental tank(s) and shall use commercially reasonable efforts to place such additional tankage into service within 180 days of the notice from Producer such that Carrier will provide storage for approximately 2 times the average daily volume of Crude Oil at any time, up to a maximum of 40,000 barrels of capacity. The costs of construction and placement into service of all Crude Oil storage tanks and other facilities at Carrier’s Central Oil Storage Facility (up to 40,000 barrels of capacity) shall be borne by Carrier and there shall be no adjustment to the fees payable under this Agreement for such additional tankage. The aggregate volume capacity of the tankage referred to above included in Carrier’s Central Oil Storage Facility shall refer to the tankage that is available for Producer’s Crude Oil production and as to which Producer shall have the highest service priority level. (iii) Pro...