Common use of Increases in Annual Service Fee Clause in Contracts

Increases in Annual Service Fee. (a) The Annual Service Fee shall be adjusted on July 1 of each calendar year commencing on July 1, 2012, by an amount equal to the upper change in the annual change rounded to four decimal places of the Producers Price Index-Commodities-Finished Goods, (PPI), et al. (“PPI”), produced by the U.S. Department of Labor, Bureaus of Labor Statistics; provided that the Annual Service Fee shall never be increased by more than 3% for any such calendar year. The series ID is WPUSOP3000 as of June 1, 2011 — located at xxxx://xxx.xxx.xxx/data/. The change factor shall be calculated as follows: annual PPI index (most current year) less annual PPI index (most current year minus 1) divided by annual PPI index (most current year minus 1). An example for year 2009 change is: [PPI (2008) — PPI (2007)] / PPI (2007) or (177.1 — 166.6) / 166.6 or .063 or 6.3%. If the PPI index change is negative in a given year then there will be no change in the Annual Service Fee. If the above index is no longer published, then Frontier El Dorado and El Dorado Logistics shall negotiate in good faith to agree on a new index that gives comparable protection against inflation, and the same method of adjustment for increases in the new index shall be used to calculate increases in the Annual Service Fee. If the Parties are unable to agree, a new index will be determined by binding arbitration in accordance with Section 9.1(d) herein. (b) Frontier El Dorado may also increase the Annual Service Fee for any calendar year by an amount equal to the actual cost to Frontier El Dorado of providing increased quantities of any SUMF Item or of providing any Additional SUMF Items pursuant to Sections 3.2(a) and (b) of this Agreement.

Increases in Annual Service Fee. (a) The Annual Service Fee shall be adjusted on July 1 of each calendar year commencing on July 1, 2012, by an amount equal to the upper change in the annual change rounded to four decimal places of the Producers Price Index-Commodities-Finished Goods, (PPI), et al. (“PPI”), produced by the U.S. Department of Labor, Bureaus of Labor Statistics; provided that the Annual Service Fee shall never be increased by more than 3% for any such calendar year. The series ID is WPUSOP3000 as of June 1, 2011 — located at xxxx://xxx.xxx.xxx/data/. The change factor shall be calculated as follows: annual PPI index (most current year) less annual PPI index (most current year minus 1) divided by annual PPI index (most current year minus 1). An example for year 2009 change is: [PPI (2008) — PPI (2007)] / PPI (2007) or (177.1 — 166.6) / 166.6 or .063 ..063 or 6.3%. If the PPI index change is negative in a given year then there will be no change in the Annual Service Fee. If the above index is no longer published, then Frontier El Dorado Cheyenne and El Dorado Cheyenne Logistics shall negotiate in good faith to agree on a new index that gives comparable protection against inflation, and the same method of adjustment for increases in the new index shall be used to calculate increases in the Annual Service Fee. If the Parties are unable to agree, a new index will be determined by binding arbitration in accordance with Section 9.1(d) herein. (b) Frontier El Dorado Cheyenne may also increase the Annual Service Fee for any calendar year by an amount equal to the actual cost to Frontier El Dorado Cheyenne of providing increased quantities of any SUMF Item or of providing any Additional SUMF Items pursuant to Sections 3.2(a) and (b) of this Agreement.