Common use of Monthly Shortfall Payment Clause in Contracts

Monthly Shortfall Payment. If, during any Month, actual shipments by TRMC on the Short Haul Pipelines are less than the Minimum Throughput Commitment, then TRMC shall pay to TLO, in addition to Transportation Fee owed for actual barrels shipped during such Month, an amount equal to (i) the amount of such shortfall (in Barrels) multiplied by (ii) the Transportation Fee (the “Shortfall Payment”). The dollar amount of any Shortfall Payment included in the monthly invoice described in Section 6(c) below and paid by TRMC shall be posted as a credit to TRMC’s account (the “Credit”), and such Credit shall be applied in subsequent monthly invoices against amounts owed by TRMC for Transportation Fees on Excess Barrels shipped on the Short Haul Pipelines during any of the succeeding three (3) Months. Credits will be applied in the order in which such Credits accrue and any portion of the Credit that is not used by TRMC during the succeeding three (3) Months will expire (e.g., a Credit which accrues in January will be available in February, March and April, will expire at the end of April, and must be applied prior to applying any Credit which accrues in February).

Monthly Shortfall Payment. If, during any Month, actual shipments by TRMC on the LAR Short Haul Pipelines are less than the Minimum Throughput CommitmentVolume, then TRMC shall pay to TLO, in addition to Transportation Throughput Fee owed for actual barrels shipped during such Month, an amount equal to (i) the amount of such shortfall (in Barrels) multiplied by (ii) the Transportation Throughput Fee (the “Shortfall Payment”). The dollar amount of any Shortfall Payment included in the monthly invoice described in Section 6(c6(d) below and paid by TRMC shall be posted as a credit to TRMC’s account (the “Credit”), and such Credit shall be applied in subsequent monthly invoices against amounts owed by TRMC for Transportation Throughput Fees on Excess Barrels shipped on the LAR Short Haul Pipelines during any of the succeeding three (3) Months. Credits will be applied in the order in which such Credits accrue and any portion of the Credit that is not used by TRMC during the succeeding three (3) Months will expire (e.g., a Credit which accrues in January will be available in February, March and April, will expire at the end of April, and must be applied prior to applying any Credit which accrues in February).

Monthly Shortfall Payment. If, during any Shipping Month, actual shipments Actual Shipments by TRMC on the Short Haul Pipelines are less than the Minimum Throughput CommitmentCommitment for such Shipping Month, then TRMC shall pay to TLO, in addition to Transportation Fee owed for actual barrels shipped during such Month, THPP an amount equal to (i) the amount of such shortfall (in Barrels) multiplied by (ii) the Transportation Fee Weighted Average Committed Tariff Rate for such Shipping Month (the “Shortfall Payment”). The dollar amount of any Shortfall Payment included in the monthly invoice described in Section 6(c) below and paid by TRMC shall be posted as a credit to TRMC’s account (the “Credit”), and such Credit shall be applied in subsequent monthly invoices against amounts owed by TRMC for Transportation Fees on Excess Barrels shipped on the Short Haul Pipelines intrastate portion of the Pipeline System during any of the succeeding three (3) Months. Credits will be applied in the order in which such Credits accrue and any portion of the Credit that is not used by TRMC during the succeeding three (3) Months will expire (e.g., a Credit which accrues in January will be available in February, March and April, will expire at the end of April, and must be applied prior to applying any Credit which accrues in February).