Common use of Minimum Group 2 Loading Rack Revenue Commitment Clause in Contracts

Minimum Group 2 Loading Rack Revenue Commitment. (i) Subject to Section 4, Xxxxx Tulsa shall pay HEP Storage-Tulsa throughput fees associated with the Group 2 Loading Rack that will satisfy the Minimum Group 2 Loading rack Revenue Commitment in exchange for HEP Storage-Tulsa providing Xxxxx Tulsa a minimum of 1,800 barrels per day of aggregate capacity at the Group 2 Loading Rack. The “Minimum Group 2 Loading Rack Revenue Commitment” shall be an amount of revenue to HEP Storage-Tulsa for each Contract Quarter determined by multiplying the Minimum Group 2 Loading Rack Throughput by the Group 2 Loading Rack Tariff as such Group 2 Loading Rack Tariff may be revised pursuant to Section 2(c)(ii)(e)(ii). Xxxxx Tulsa will pay HEP Storage-Tulsa the Group 2 Loading Rack Tariff for all quantities of Products loaded at the Group 2 Loading Rack. Notwithstanding the foregoing, in the event that the Closing Date for the Group 2 Tankage is any date other than the first day of a Contract Quarter, then the Minimum Group 2 Loading Rack Revenue Commitment for the initial Contract Quarter shall be prorated based upon the number of days actually in such contract quarter and the initial Contract Quarter. (ii) The Group 2 Loading Rack Tariff shall be adjusted on July 1 of each calendar year commencing on July 1, 2011, by an amount equal to the upper change in the annual change rounded to four decimal places of the PPI following the same procedure as set forth in Section 2(a)(ii) above (including the provisions regarding binding arbitration); provided that the Group 2 Loading Rack Tariff shall never be increased by more than 3% for any such calendar year. To evidence the Parties’ agreement to each adjusted Group 2 Loading Rack Tariff, the Parties shall execute an amended, modified, revised or updated Schedule VI and attach it to this Agreement. Such amended, modified, revised or updated Schedule VI shall be sequentially numbered (e.g. Schedule VI-1, Schedule VI-2, etc.), dated and appended as an additional schedule to this Agreement and shall replace the prior version of Schedule VI in its entirety. (iii) If Xxxxx Tulsa is unable to load at the Group 2 Loading Rack the volumes of Products, in the aggregate, required to meet the Minimum Group 2 Loading Rack Revenue Commitment as a result of HEP Storage-Tulsa’s operational difficulties, prorationing or the inability to provide sufficient capacity, then the Minimum Group 2 Loading Rack Revenue Commitment applicable to the Contract Quarter during which Xxxxx Tulsa is unable to load such volumes of Products will be reduced for such period of time by an amount equal to: (A) the volume of Products, in the aggregate, that Xxxxx Tulsa was unable to load at the Group 2 Loading Rack (but not to exceed the Minimum Group 2 Loading Rack Throughput), as a result of HEP Storage-Tulsa’s operational difficulties, prorationing or inability to provide sufficient capacity to achieve the Minimum Group 2 Loading Rack Throughput, multiplied by (B) the Group 2 Loading Rack Tariff. This Section 2(c)(iii)(e)(iii) shall not apply in the event HEP Storage-Tulsa gives notice of a Force Majeure event in accordance with Section 4, in which case the Minimum Group 2 Loading Rack Revenue Commitment shall be suspended in accordance with and as provided in Section 4.

Minimum Group 2 Loading Rack Revenue Commitment. (i) Subject to Section 4, Xxxxx Tulsa shall pay HEP Storage-Tulsa throughput fees associated with the Group 2 Loading Rack that will satisfy the Minimum Group 2 Loading rack Revenue Commitment in exchange for HEP Storage-Tulsa providing Xxxxx Tulsa a minimum of 1,800 barrels per day of aggregate capacity at the Group 2 Loading Rack. The “Minimum Group 2 Loading Rack Revenue Commitment” shall be an amount of revenue to HEP Storage-Tulsa for each Contract Quarter determined by multiplying the Minimum Group 2 Loading Rack Throughput by the Group 2 Loading Rack Tariff as such Group 2 Loading Rack Tariff may be revised pursuant to Section 2(c)(ii)(e)(ii2(e)(ii) or Section 2(q)(ii). Xxxxx Tulsa will pay HEP Storage-Tulsa the Group 2 Loading Rack Tariff for all quantities of Products loaded at the Group 2 Loading Rack. Notwithstanding the foregoing, in the event that the Closing Date for the Group 2 Tankage is any date other than the first day of a Contract Quarter, then the Minimum Group 2 Loading Rack Revenue Commitment for the initial Contract Quarter shall be prorated based upon the number of days actually in such contract quarter and the initial Contract Quarter. (ii) The Group 2 Loading Rack Tariff shall be adjusted on July 1 of each calendar year commencing on July 1, 2011, by an amount equal to the upper change in the annual change rounded to four decimal places of the PPI following the same procedure as set forth in Section 2(a)(ii) above (including the provisions regarding binding arbitration); provided that the Group 2 Loading Rack Tariff shall never be increased by more than 3% for any such calendar year. To evidence the Parties’ agreement to each adjusted Group 2 Loading Rack Tariff, the Parties shall execute an amended, modified, revised or updated Schedule VI and attach it to this Agreement. Such amended, modified, revised or updated Schedule VI shall be sequentially numbered (e.g. Schedule VI-1, Schedule VI-2, etc.), dated and appended as an additional schedule to this Agreement and shall replace the prior version of Schedule VI in its entirety. (iii) If Xxxxx Tulsa is unable to load at the Group 2 Loading Rack the volumes of Products, in the aggregate, required to meet the Minimum Group 2 Loading Rack Revenue Commitment as a result of HEP Storage-Tulsa’s operational difficulties, prorationing or the inability to provide sufficient capacity, then the Minimum Group 2 Loading Rack Revenue Commitment applicable to the Contract Quarter during which Xxxxx Tulsa is unable to load such volumes of Products will be reduced for such period of time by an amount equal to: (A) the volume of Products, in the aggregate, that Xxxxx Tulsa was unable to load at the Group 2 Loading Rack (but not to exceed the Minimum Group 2 Loading Rack Throughput), as a result of HEP Storage-Tulsa’s operational difficulties, prorationing or inability to provide sufficient capacity to achieve the Minimum Group 2 Loading Rack Throughput, multiplied by (B) the Group 2 Loading Rack Tariff. This Section 2(c)(iii)(e)(iiiSection(e)(iii) shall not apply in the event HEP Storage-Tulsa gives notice of a Force Majeure event in accordance with Section 4, in which case the Minimum Group 2 Loading Rack Revenue Commitment shall be suspended in accordance with and as provided in Section 4.