Common use of Determination of the Reduction Factor Clause in Contracts

Determination of the Reduction Factor. (a) If: (i) Nominated Access Rights are intended to be relinquished under clauses 11, 12, 13 or 14; (ii) an Access Holder has executed an Access Agreement (or a variation to this Agreement or any other existing Access Agreement) in respect of access rights that Aurizon Network could not grant to that Access Holder without using the Available Capacity to be created by the relinquishment of the Nominated Access Rights under clauses 11, 12, 13 or 14; (iii) Aurizon Network’s provision of the access rights referred to in clause 15.1(a)(ii) will commence on and from the date of the relinquishment of the Nominated Access Rights under clauses 11, 12, 13 or 14; (iv) the relevant Train Services of the Operator and the Network Train Services of the Access Holder are coal carrying Network Train Services; and (v) the Access Holder’s Network Train Services that will use the access rights referred to in clause 15.1(a)(ii) will operate predominantly in and have an unloading facility that is a Nominated Unloading Facility for a Reference Train Service in the same Coal System as the Train Services of the Operator that used the Nominated Access Rights to be relinquished under clauses 11, 12, 13 or 14, then the Reduction Factor is an amount calculated as follows: TOPB / TOPA where: TOPA is the amount equivalent to the present value, calculated at the Discount Rate, of the payment of the aggregate TOP Charges (ATPY) that would have been payable for the remainder of the Term if the Nominated Access Rights were not to be relinquished under clauses 11, 12, 13 or 14 but the Operator did not operate the relevant Train Services for a reason other than Aurizon Network Cause; and TOPB is the amount equivalent to the present value, calculated at the Discount Rate, of the payment of the aggregate TOP Charges (ATPY) that would be payable in accordance with this Agreement or the other Access Agreement (as applicable) referred to in clause 15.1(a)(ii) if the Access Holder’s Network Train Services using the access rights referred to in clause 15.1(a)(ii) were not operated by or for the Access Holder for a reason other than Aurizon Network Cause during the same period as the remainder of the Term. (b) If: (i) Nominated Access Rights are intended to be relinquished under clauses 11, 12, 13 or 14; and (ii) clauses 15.1(a)(ii) and 15.1(a)(iii) are both satisfied but clause 15.1(a)(iv) or 15.1(a)(v) is not satisfied, then the Reduction Factor is an amount calculated as follows: A / B where: A is the annual train kilometres over that part of the Common Corridor attributable to the Access Holder’s Network Train Services to be operated using the access rights referred to in clause 15.1(a)(ii); and B is the annual train kilometres over the Infrastructure attributable to the Train Services operated using the Nominated Access Rights to be relinquished under clauses 11, 12, 13 or 14, provided that to the extent that the Access Holder’s average contribution to Common Costs per train kilometre for its relevant Network Train Services is less than the Operator’s average contribution to Common Costs per train kilometre for its relevant Train Services, the Reduction Factor will be decreased in proportion to that relative contribution.

Determination of the Reduction Factor. (a) If: (i) Nominated Access Rights are intended to be relinquished under clauses 1113, 12, 13 14 or 1415; (ii) an Access Holder has executed an Access Agreement (or a variation to this Agreement or any other existing Access Agreement) in respect of access rights that Aurizon Network could not grant to that Access Holder without using the Available Capacity to be created by the relinquishment of the Nominated Access Rights under clauses 1113, 12, 13 14 or 1415; (iii) Aurizon Network’s provision of the access rights referred to in clause 15.1(a)(ii16.1(a)(ii) will commence on and from the date of the relinquishment of the Nominated Access Rights under clauses 1113, 12, 13 14 or 1415; (iv) the relevant Train Services of the Operator and the Network Train Services of the Access Holder are coal carrying Network Train Services; and (v) the Access Holder’s Network Train Services that will use the access rights referred to in clause 15.1(a)(ii16.1(a)(ii) will operate predominantly in and have an unloading facility that is a Nominated Unloading Facility for a Reference Train Service in the same Coal System as the Train Services of the Operator that used the Nominated Access Rights to be relinquished under clauses 1113, 12, 13 14 or 1415, then the Reduction Factor is an amount calculated as follows: TOPB / TOPA where: TOPA is the amount equivalent to the present value, calculated at the Discount Rate, of the payment of the aggregate TOP Charges (ATPY) that would have been payable for the remainder of the Term if assuming: (A) the Nominated Access Rights were not to be relinquished under clauses 1113, 12, 13 14 or 14 but 15; and (B) the Operator did not operate the relevant Train Services for a reason other than Aurizon Network Cause; and TOPB is the amount equivalent to the present value, calculated at the Discount Rate, of the payment of the aggregate TOP Charges (ATPY) that would be payable in accordance with this Agreement or the other Access Agreement (as applicable) referred to in clause 15.1(a)(ii16.1(a)(ii) if assuming the Access Holder’s Network Train Services using the access rights referred to in clause 15.1(a)(ii16.1(a)(ii) were not operated by or for the Access Holder for a reason other than Aurizon Network Cause during the same period as the remainder of the Term. (b) If: (i) Nominated Access Rights are intended to be relinquished under clauses 1113, 12, 13 14 or 1415; and (ii) clauses 15.1(a)(ii16.1(a)(ii) and 15.1(a)(iii16.1(a)(iii) are both satisfied but clause 15.1(a)(iv16.1(a)(iv) or 15.1(a)(v16.1(a)(v) is not satisfied, then the Reduction Factor is an amount calculated as follows: A / B where: A is the annual train kilometres over that part of the Common Corridor attributable to the Access Holder’s Network Train Services to be operated using the access rights referred to in clause 15.1(a)(ii16.1(a)(ii); and B is the annual train kilometres over the Infrastructure attributable to the Train Services operated using the Nominated Access Rights to be relinquished under clauses 1113, 12, 13 14 or 1415, provided that to the extent that the Access Holder’s average contribution to Common Costs per train kilometre for its relevant Network Train Services is less than the Operator’s average contribution to Common Costs per train kilometre for its relevant Train Services, the Reduction Factor will be decreased in proportion to that relative contribution. (c) If: (i) Nominated Access Rights are intended to be relinquished under clauses 13, 14 or 15; and (ii) clauses 16.1(a) and 16.1(b) do not apply, the Reduction Factor is zero. (d) If Aurizon Network requires information about future events to calculate the Reduction Factor (for example, assumptions about Reference Train Services or Train Services), then Aurizon Network: (i) may make assumptions about those future events so as to calculate the maximum amount of aggregate TOP Charges (ATPY) that could potentially be payable, provided that: (A) if an Access Charge Rate is based on a Reference Tariff, Aurizon Network must not make assumptions about the amount of future Reference Tariffs applicable to that Access Charge Rate; and (B) if an Access Charge Rate has been determined in accordance with the pricing principles in Part 6 of the Access Undertaking, where there is not yet a Reference Tariff for the Access Charge Rate but it is reasonably anticipated by Aurizon Network that a Reference Tariff applicable to that Access Charge Rate will be made or approved, Aurizon Network may make assumptions about the amount of the anticipated Reference Tariff and the variation that Aurizon Network could make to that Access Charge Rate to apply in the future in accordance with schedule 4 (if applicable) when the anticipated Reference Tariff is made or approved; and (ii) may assume that each of the Access Charge Rates (as at the Transfer Date) will escalate, on each 1 July, at the rate of 2.5% per annum for the remainder of the Term.

Determination of the Reduction Factor. (a) If:: Deleted: 10.8, (i) Nominated Access Rights are intended to be relinquished under clauses 11, 12, 13 12 or 14;13; Deleted: 10.8, (ii) an Access Holder has executed an Access Agreement (or a variation to this Agreement or any other existing Access Agreement) in respect of access rights that Aurizon Network could not grant to that Access Holder without using the Available Capacity to be created by the relinquishment of the Nominated Access Rights under clauses 11, 12, 13 12 or 14;13; Deleted: 10.8, (iii) Aurizon Network’s provision of the access rights referred to in clause 15.1(a)(ii14.1(a)(ii) will commence on and from the date of the relinquishment of the Nominated Access Rights under clauses 11, 12, 13 12 or 1413; (iv) the relevant Train Services of the Operator End User and the Network Train Services of the Access Holder are coal carrying Network Train Services; andand Deleted: 10.8, (v) the Access Holder’s Network Train Services that will use the access rights referred to in clause 15.1(a)(ii14.1(a)(ii) will operate predominantly in and have an unloading facility that is a Nominated Unloading Facility for a Reference Train Service in the same Coal System as the Train Services of the Operator End User that used the Nominated Access Rights to be relinquished under clauses 11, 12, 13 12 or 1413, then the Reduction Factor is an amount calculated as follows: TOPB / TOPA where: Deleted: 10.8, TOPA is the amount equivalent to the present value, calculated at the Discount Rate, of the payment of the aggregate TOP Charges (ATPY) that would have been payable for the remainder of the Term if the Nominated Access Rights were not to be relinquished under clauses 11, 12, 12 or 13 or 14 but the Operator did not operate the relevant Train Services did not operate for a reason other than Aurizon Network Cause; and TOPB is the amount equivalent to the present value, calculated at the Discount Rate, of the payment of the aggregate TOP Charges (ATPY) that would be payable in accordance with this Agreement or the other Access Agreement (as applicable) referred to in clause 15.1(a)(ii14.1(a)(ii) if the Access Holder’s Network Train Services using the access rights referred to in clause 15.1(a)(ii14.1(a)(ii) were not operated by or for the Access Holder for a reason other than Aurizon Network Cause during the same period as the remainder of the Term. (b) If:: Deleted: 10.8, (i) Nominated Access Rights are intended to be relinquished under clauses 11, 12, 13 12 or 1413; and (ii) clauses 15.1(a)(ii14.1(a)(ii) and 15.1(a)(iii) are 14.1(a)(iii)are both satisfied but clause 15.1(a)(iv14.1(a)(iv) or 15.1(a)(v14.1(a)(v) is not satisfied, then the Reduction Factor is an amount calculated as follows: A / B where: A is the annual train kilometres over that part of the Common Corridor attributable to the Access Holder’s Network Train Services to be operated using the access rights referred to in clause 15.1(a)(ii14.1(a)(ii); and B is the annual train kilometres over the Infrastructure attributable to the Train Services operated using the Nominated Access Rights to be relinquished under clauses 11, 12, 13 12 or 14, provided that to the extent that the Access Holder’s average contribution to Common Costs per train kilometre for its relevant Network Train Services is less than the Operator’s average contribution to Common Costs per train kilometre for its relevant Train Services, the Reduction Factor will be decreased in proportion to that relative contribution.13,