Common use of Group 1 Assets Clause in Contracts

Group 1 Assets. At the end of the first four (4) Contract Quarters following the Closing Date for the Group 1 Assets, HEP Tulsa shall calculate the aggregate operating expenses incurred in the operation of the Group 1 Assets (but such calculation shall not include extraordinary and non-recurring items of expense that are not reasonably expected to recur in future periods during the Term). In the event that such aggregate operating expenses exceed the Group 1 Assets Assumed OPEX, (A) Xxxxx Tulsa shall reimburse HEP Tulsa for such operating expenses incurred in excess of the Group 1 Assets Assumed OPEX, and (B) HEP Tulsa shall increase the Group 1 Tankage Base Tariff by the amount necessary to increase the Minimum Group 1 Tankage Revenue Commitment by an amount equal to such aggregate operating expenses in excess of the Group 1 Assets Assumed OPEX for the remainder of the Term, and the Parties shall execute an amended, modified, revised or updated Schedule IV reflecting such aggregate operating expenses as the new Group 1 Assets Assumed OPEX. In the event that such aggregate operating expenses are less than the Group 1 Assets Assumed OPEX, HEP Tulsa shall decrease the Group 1 Tankage Base Tariff by the amount necessary to decrease the Minimum Group 1 Tankage Revenue Commitment by an amount equal to the difference between the Group 1 Assets Assumed OPEX and such actual operating expenses for the remainder of the Term, and the Parties shall execute an amended, modified, revised or updated Schedule IV reflecting such aggregate operating expenses as the new Group 1 Assets Assumed OPEX. In the event that the PPI increase for any given year is greater than seven percent (7%), then, in addition to any other applicable increases during such year, HEP Tulsa shall increase the Group 1 Tankage Base Tariff by an additional amount necessary to increase the Minimum Group 1 Tankage Revenue Commitment by the Group 1 Assets OPEX Recovery Amount. Such Group 1 Assets OPEX Recovery Amount shall be added to the then-current Group 1 Assets Assumed OPEX, and the Parties shall execute an amended, modified, revised or updated Schedule IV reflecting the addition of such Group 1 Assets OPEX Recovery Amount to the Group 1 Assets Assumed OPEX.

Group 1 Assets. At the end of the first four (4) Contract Quarters following the Closing Date for the Group 1 Assets, HEP Tulsa shall calculate the aggregate operating expenses incurred in the operation of the Group 1 Assets (but such calculation shall not include extraordinary and non-recurring items of expense that are not reasonably expected to recur in future periods during the Term). In the event that such aggregate operating expenses exceed the Group 1 Assets Assumed OPEX, (A) First Amended and Pestated Pipelines, Tankage and Loading Rack Throughput Agreement (Tulsa East) Xxxxx Tulsa shall reimburse HEP Tulsa for such operating expenses incurred in excess of the Group 1 Assets Assumed OPEX, and (B) HEP Tulsa shall increase the Group 1 Tankage Base Tariff by the amount necessary to increase the Minimum Group 1 Tankage Revenue Commitment by an amount equal to such aggregate operating expenses in excess of the Group 1 Assets Assumed OPEX for the remainder of the Term, and the Parties shall execute an amended, modified, revised or updated Schedule IV reflecting such aggregate operating expenses as the new Group 1 Assets Assumed OPEX. In the event that such aggregate operating expenses are less than the Group 1 Assets Assumed OPEX, HEP Tulsa shall decrease the Group 1 Tankage Base Tariff by the amount necessary to decrease the Minimum Group 1 Tankage Revenue Commitment by an amount equal to the difference between the Group 1 Assets Assumed OPEX and such actual operating expenses for the remainder of the Term, and the Parties shall execute an amended, modified, revised or updated Schedule IV reflecting such aggregate operating expenses as the new Group 1 Assets Assumed OPEX. In the event that the PPI increase for any given year is greater than seven percent (7%), then, in addition to any other applicable increases during such year, HEP Tulsa shall increase the Group 1 Tankage Base Tariff by an additional amount necessary to increase the Minimum Group 1 Tankage Revenue Commitment by the Group 1 Assets OPEX Recovery Amount. Such Group 1 Assets OPEX Recovery Amount shall be added to the then-current Group 1 Assets Assumed OPEX, and the Parties shall execute an amended, modified, revised or updated Schedule IV reflecting the addition of such Group 1 Assets OPEX Recovery Amount to the Group 1 Assets Assumed OPEX.