Common use of Shortfall Payments Clause in Contracts

Shortfall Payments. If, during any Month during the Term, Customer throughputs aggregate volumes at a Terminal less than the Terminal Minimum Throughput Commitment for the particular Terminal for such Month, then Customer shall pay TLO an amount (a “Shortfall Payment”) for any shortfall. Shortfall Payments shall be equal to the amount determined by taking the difference between (i) the Terminal Minimum Throughput Commitment for the particular Terminal multiplied by the Terminalling Service Fee for the particular Terminal and (ii) the actual volumes throughput by Customer at the particular Terminal multiplied by the Terminalling Service Fee for the particular Terminal. The dollar amount of any Shortfall Payment paid by Customer shall be posted as a credit to Customer’s account and may be applied against any Terminal Excess Amounts owed by Customer during any of the succeeding three (3) Months. Credits will be applied in the order in which such credits accrue and any remaining portion of the credit that is not used by Customer during the succeeding three (3) Months shall expire (e.g., a credit that 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).

Shortfall Payments. If, during any Month during the Term, Customer throughputs aggregate volumes at a the respective Terminal less than the Terminal Minimum Throughput Commitment for the particular such respective Terminal for such Month, then Customer shall pay TLO Provider an amount (a “Terminalling Shortfall Payment”) for any shortfall. Terminalling Shortfall Payments shall be equal to the amount determined by taking the difference between (i) the Terminal Minimum Throughput Commitment for the particular such respective Terminal multiplied by the Terminalling Service Fee for the particular such respective Terminal and (ii) the actual volumes throughput by Customer at the particular such respective Terminal multiplied by the Terminalling Service Fee for the particular such respective Terminal. The dollar amount of any Terminalling Shortfall Payment paid by Customer shall be posted as a credit to Customer’s account and may be applied against any Terminal Excess Amounts owed by Customer during any of the succeeding three (3) Months. Credits will be applied in the order in which such credits accrue and any remaining portion of the credit that is not used by Customer during the succeeding three (3) Months shall expire (e.g., a credit that 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).