Common use of Curtailment Fee Clause in Contracts

Curtailment Fee. For any Month during which TRMC does not throughput any volumes of Products at an affected Terminal, TRMC shall be permitted to reduce its Minimum Throughput Commitment by an amount equal to the Stipulated Volume for such affected Terminal(s), provided that TRMC pays TLO a fee for such Month (a “Curtailment Fee”). Curtailment Fees for each applicable Month shall be equal to (i) such Terminal’s Stipulated Volume multiplied by (ii) the number of days in the Month, multiplied by (iii) the weighted average monthly Terminalling Service Fee incurred by TRMC at such Terminal during the twelve (12) Months immediately preceding the Refinery’s suspension of operations. For the avoidance of doubt, for the purposes of calculating Shortfall Payments during any Month in which TRMC pays TLO a Curtailment Fee, volume shortfalls shall be determined by deducting volumes throughput at the Terminals by TRMC during such Month from the Minimum Throughput Commitment reduced by an amount equal to the Stipulated Volume for such affected Terminal(s).