Estimate of Variable Toll Sample Clauses

Estimate of Variable Toll. On an annual basis during the Term of the Agreement, Carrier will estimate the “Operating, Maintenance and Administration Costs” that Carrier will incur in operating, maintaining and administering the Pipeline System for the upcoming Year, and allocate such costs over estimated volumes, to estimate the “Variable Toll” for the upcoming Year. For the purposes of calculating the Variable Toll, “Operating, Maintenance and Administration Costs” shall include all operating, maintenance and administration costs and expenses incurred by or on behalf of Carrier in respect of the Pipeline System (determined in accordance with the TransCanada PipeLines Limited typical cost allocation policy and procedures), including: (a) operating, maintenance, administrative and general costs and expenses (including pipeline inspection and pipeline repairs) and other overhead costs or expenses allocable to the Pipeline System (not otherwise reimbursed by insurance), including capitalized operating and maintenance costs (not otherwise included in the Capital Costs forming part of the Fixed Toll); (b) property taxes and any periodic payments required in respect of land rights, including right-of-way or site lease payments; (c) capital taxes; (d) insurance; (e) power; (f) regulatory costs; (g) abandonment/environmental reserve fund calculated in accordance with reasonable industry practice; (h) costs attributable to changes in Applicable Law (including income taxes based on changes in income tax rates or taxing methodology) that apply to Carrier or the Pipeline System; (i) all costs and expenses associated with ongoing environmental remediation or leak cleanup except to the extent arising from a Carrier Liability Event (as defined in the Rules and Regulations); and (j) all other costs and expenses similar in nature to any of the foregoing.