Minimum Pipeline Revenue Commitment Sample Clauses
POPULAR SAMPLE Copied 2 times
Minimum Pipeline Revenue Commitment. During the Term and subject to the terms and conditions of this Agreement, the H▇▇▇▇ Entities agree as follows:
(i) Subject to Section 3, commencing on the Effective Time, the H▇▇▇▇ Entities will ship (1) on the Crude Oil Trunk Pipelines an amount of Crude Oil in the aggregate having a quantity and consistency that will produce revenue to the Partnership Entities in an amount at least equal to $13,552,450 annually (the “Minimum Trunk Pipeline Revenue Commitment”); (2) on the Crude Oil Gathering Pipelines and store at the Artesia Crude Oil Pipeline Tankage and the Lovington Crude Oil Pipeline Tankage, an amount of Crude Oil in the aggregate that will produce revenue to the Partnership Entities in an amount at least equal to $8,688,750 annually (the “Minimum Gathering Pipeline Revenue Commitment”); (3) on the W▇▇▇▇ Cross Pipelines an amount of Crude Oil and Refined Product that will, in the aggregate, produce revenue to the Partnership Entities in an amount at least equal to $730,000 annually (the “Minimum W▇▇▇▇ Cross Pipeline Revenue Commitment”); and (4) on the Roswell Products Pipeline an amount of Refined Product in the aggregate that will produce revenue to the Partnership Entities in an amount at least equal to $35,000 per Contract Quarter (the “Minimum Roswell Pipeline Revenue Commitment”, together with the Minimum Trunk Pipeline Revenue Commitment, the Minimum Gathering Pipeline Revenue Commitment and the Minimum W▇▇▇▇ Cross Pipeline Revenue Commitment, collectively, the “Minimum Pipeline Revenue Commitment”). Notwithstanding the foregoing, in the event that the Effective Time is any date other than the first day of a Contract Year or Contract Quarter, then the Minimum Trunk Pipeline Revenue Commitment, Minimum Gathering Pipeline Revenue Commitment and Minimum W▇▇▇▇ Cross Pipeline Revenue Commitment for the initial Contract Year shall each be prorated based upon the number of days actually in such contract year and the initial Contract Year, and the Minimum Roswell Pipeline Revenue Commitment for the initial Contract Quarter shall be prorated based upon the number of days actually in such calendar quarter and the initial Contract Quarter.
(ii) The Minimum Pipeline Revenue Commitment shall be adjusted on July 1 of each Contract Year commencing on July 1, 2008, by an amount equal to the percentage increase, if any, between the two (2) preceding calendar years, in the Producer Price Index for Finished Goods, seasonally adjusted, as published by the Depa...
Minimum Pipeline Revenue Commitment. During the Term and subject to the terms and conditions of this Agreement, ▇▇▇▇▇ Tulsa agrees as follows:
(i) Subject to Section 4, ▇▇▇▇▇ Tulsa shall pay HEP Tulsa throughput fees associated with the Pipelines that will satisfy the Minimum Pipeline Revenue Commitment in exchange for HEP Tulsa providing ▇▇▇▇▇ Tulsa a minimum of 60,000 barrels per day of aggregate capacity in the Pipelines. The “Minimum Pipeline Revenue Commitment” shall be an amount of revenue to HEP Tulsa for each Contract Quarter determined by multiplying the Minimum Pipeline Throughput by the Pipeline Tariff as such Pipeline Tariff may be revised pursuant to Section 2(a)(ii) or Section 2(q)(i). ▇▇▇▇▇ Tulsa will pay HEP Tulsa the Pipeline Tariff for all quantities of Refined Products shipped on the Pipelines. Notwithstanding the foregoing, in the event that the Closing Date for the Pipeline is any date other than the first day of a Contract Quarter, then the Minimum Pipeline 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 Pipeline 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 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 Pipeline Tariff shall never be increased by more than 3% for any such calendar year. The series ID is WPUSOP3000 as of September 7, 2009 – located at ▇▇▇▇://▇▇▇.▇▇▇.▇▇▇/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 Pipeline Tariff. If the above index is no longer published, then ▇▇▇▇▇ Tulsa and HEP Tulsa 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 Pipeline Tariff. If ▇▇▇▇▇ Tulsa and HEP Tulsa are unable to agree, a new index will be determined by binding arbitration in accor...
Minimum Pipeline Revenue Commitment. During the Term and subject to the terms and conditions of this Agreement, the HollyFrontier Entities agree as follows:
Minimum Pipeline Revenue Commitment. Subject to Section 3, the HollyFrontier Entities will ship the Product indicated in the following table, using the Pipeline Asset indicated for such Product, which shipments will, in the aggregate, have the quantity and consistency that will produce the revenue per Contract Year or Contract Quarter indicated in the final column as a result of the tariffs charged to the HollyFrontier Entities under this Agreement (in each case, as may be adjusted pursuant to Section 2(q)(i) and Schedule I attached hereto):
Minimum Pipeline Revenue Commitment. During the Term, following the Commencement Date, and subject to the terms and conditions of this Agreement, HFRM agrees as follows:
Minimum Pipeline Revenue Commitment. During the Term and subject to the terms and conditions of this Agreement, Navajo Refining agrees as follows:
(i) Subject to Section 4, Navajo Refining shall pay HEP Operating throughput fees associated with the Roadrunner Pipeline that will satisfy the Minimum Pipeline Revenue Commitment in exchange for HEP Operating providing Navajo Refining a minimum of 40,000 barrels per day of aggregate capacity in the Roadrunner Pipeline. In the event that any third party transports Crude Oil on the Roadrunner Pipeline for ultimate delivery to ▇▇▇▇▇ or any of its subsidiaries and such third party pays throughput fees equal to or greater than the Pipeline Base Tariff for each such barrel of Crude Oil transported on the Roadrunner Pipeline for ultimate delivery to ▇▇▇▇▇ or any of its subsidiaries (“Qualified Third-Party Throughput”), then revenues paid to HEP Operating by such third party for such Qualified Third-Party Throughput shall be credited towards the Minimum Pipeline Revenue Commitment hereunder. The “Minimum Pipeline Revenue Commitment” shall be an amount of revenue to HEP Operating for each Contract Quarter determined by multiplying the Minimum Pipeline Throughput by the Pipeline Base Tariff, as such Pipeline Base Tariff may be revised pursuant to Section 2(a)(iii). Notwithstanding the foregoing, in the event that the Effective Time is any date other than the first day of a Contract Quarter, then the Minimum Pipeline 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.