Example of Ordinary Monthly Deficiency Payment Sample Clauses

Example of Ordinary Monthly Deficiency Payment. Assume: Stepped-Up Minimum Volume Requirement is 10,000 bpd Volume actually shipped during the Month of October 2008 is 300,000 bbls (greater than 50% of Stepped-Up Minimum Volume Requirement) Thus: Stepped-up Minimum Volume Commitment = 10,000 bpd x 31 days = 310,000 Deficiency Rate = $0.75 per barrel* Monthly Deficiency Quantity = 310,000 - 300,000 = 10,000 barrels Therefore: Monthly Deficiency Payment = ($0.75 x 10,000) = $7,500 Duration: This deficiency payment will be carried forward on a barrel for barrel basis as prepaid transportation for a period of 12 calendar months after the month in which the deficiency occurred (i.e., it will be applicable to shipments in excess of the full Stepped-Up Minimum Volume Commitment in the months of November and December of 2008 and January through October 2009). * The $0.75 per barrel deficiency rate is subject to increase under Section 4.5 and to decrease under Section 4.6. If Shipper chooses to use the Cushing Terminal Service for Prepaid Volumes, a charge of $0.025 per barrel shall apply as provided in Section 4.3 hereof. Attachment D Proforma Rules and Regulations Tariff