Common use of Shortfall Payments Clause in Contracts

Shortfall Payments. If, for any Contract Quarter, Actual Shipments for such Contract Quarter on any Pipeline are less than the applicable Minimum Throughput Commitment, then the Company shall pay the Partnership Parties an amount (a “Shortfall Payment”) with respect to such Pipeline equal to the difference between (i) the applicable Minimum Throughput Commitment multiplied by the applicable Throughput Fee and (ii) the aggregate Throughput Fees for such Contract Quarter payable with respect to such Pipeline under Section 4.2. For purposes of calculating the Shortfall Payment with respect to any Pipeline, all Actual Shipments on any other Pipeline for such Contract Quarter shall be disregarded. The Parties acknowledge and agree that there shall be no carry-over of deficiency volumes with respect to the applicable Minimum Throughput Commitments and the payment of the Shortfall Payment shall relieve the Company of any obligation to meet such Minimum Throughput Commitments for the relevant Contract Quarter. The Parties further acknowledge and agree that there shall not be any carry-over of volumes in excess of the Minimum Throughput Commitments to any subsequent Contract Quarter.

Shortfall Payments. If, for any Contract Quarter, Actual Shipments for such Contract Quarter on any Pipeline Pipeline, the Rail Racks, the Product Racks, or at the Xxxxxx Terminal are less than the applicable Minimum Throughput Commitment, then the Company Customer shall pay the Partnership Parties Owner an amount (a “Shortfall Payment”) with respect to such Pipeline equal to the difference between (ia) the applicable Minimum Throughput Commitment multiplied by the applicable Throughput Fee and (iib) the aggregate Throughput Fees for such Contract Quarter payable for Actual Shipments with respect to such Pipeline under Section 4.2the Pipelines, the Rail Racks, the Product Racks, or the Xxxxxx Terminal, as applicable. For purposes of calculating the Shortfall Payment with respect to any Pipeline, all Actual Shipments on any other Pipeline (or on the Rail Racks, the Product Racks, or the Xxxxxx Terminal, as applicable) for such Contract Quarter shall be disregarded. The Parties acknowledge and agree that there shall be no carry-over of deficiency volumes with respect to the applicable Minimum Throughput Commitments and the payment of the Shortfall Payment shall relieve the Company Customer of any obligation to meet such Minimum Throughput Commitments for the relevant Contract Quarter. The Parties further acknowledge and agree that there shall not be any carry-over of volumes in excess of the Minimum Throughput Commitments to any subsequent Contract Quarter.