Common use of Storage Fee Clause in Contracts

Storage Fee. During the Term of this Agreement, the Refining Entity shall pay the Logistics Entity a fee associated with the Tankage initially in the amount of $250,000 per month in exchange for the Logistics Entity making available to the Refining Entity 600,000 barrels of Crude Oil storage capacity in the Tankage (the “Storage Fee”). The Crude Oil storage capacity provided to the Refining Entity may be temporarily reduced by the Logistics Entity (without any adjustment to the Storage Fee) as a result of repairs and/or maintenance on storage tanks that reduce the storage capacity available in the Tankage, so long as the reduced storage capacity will not result in the inability of the Logistics Entity to provide the Minimum Storage Capacity. The amount of the Storage Fee shall be adjusted on July 1 of each Contract Year commencing on July 1, 2013, by an amount equal to the increase or decrease, if any, in the FERC Oil Pipeline Index, provided, however, that the Storage Fee shall not be decreased below the initial Storage Fee provided in this Section 2(c). If the FERC Oil Pipeline Index is no longer published, the Refining Entity and the Logistics Entity shall negotiate in good faith to agree an a new index that gives comparable protection against inflation and the same method of adjustment for increases or decreases in the new index shall be used to calculate increases or decreases in the Storage Fee. If the Refining Entity and the Logistics Entity are unable to agree upon a new index, the new index will be determined by arbitration in accordance with Section 13(i). Notwithstanding the foregoing, in the event that the Effective Date is any date other than the first day of a calendar month, then the Storage Fee for the initial contract month shall be prorated based upon the number of days remaining in such month.

Storage Fee. During the Term of this Agreement, the Refining Entity DKTS shall pay the Logistics Entity a fee associated with the Tankage initially in the amount of $250,000 405,594.673 per month in exchange for the Logistics Entity making available to the Refining Entity DKTS 600,000 barrels of Crude Oil storage capacity in the Tankage (the “Storage Fee”). The Crude Oil storage capacity provided to the Refining Entity DKTS may be temporarily reduced by the Logistics Entity (without any adjustment to the Storage Fee) as a result of repairs and/or maintenance on storage tanks that reduce the storage capacity available in the Tankage, so long as the reduced storage capacity will not result in the inability of the Logistics Entity to provide the Minimum Storage Capacity. The amount of the Storage Fee shall be adjusted on July 1 of each Contract Year commencing on July 1, 2013, 2025 by an amount equal to the increase or decrease, if any, in the FERC Oil Pipeline Index, provided, however, that the Storage Fee shall not be decreased below the initial Storage Fee provided in this Section 2(c). If the FERC Oil Pipeline Index is no longer published, the Refining Entity DKTS and the Logistics Entity shall negotiate in good faith to agree an a new index that gives comparable protection against inflation and the same method of adjustment for increases or decreases in the new index shall be used to calculate increases or decreases in the Storage Fee. If the Refining Entity DKTS and the Logistics Entity are unable to agree upon a new index, the new index will be determined by arbitration in accordance with Section 13(i). Notwithstanding the foregoing, in the event that the Effective Date is any date other than the first day of a calendar month, then the Storage Fee for the initial contract month shall be prorated based upon the number of days remaining in such month.