Tariff Rates and Commitments Sample Clauses
The "Tariff Rates and Commitments" clause defines the agreed-upon pricing structure and the obligations of the parties regarding the rates charged for goods or services. Typically, this clause outlines the specific tariffs that will apply, any scheduled changes to rates, and the duration for which the rates are fixed or subject to review. For example, it may specify that certain rates are locked in for a contract term or detail the process for adjusting rates in response to regulatory changes. The core function of this clause is to provide transparency and predictability in pricing, thereby reducing the risk of disputes over charges and ensuring both parties understand their financial commitments.
Tariff Rates and Commitments. 3.1 During the Term, MPC shall ship on the Pipeline System each Quarter an aggregate volume of Crude Petroleum equal to its Quarterly Throughput Commitment for such Quarter or, in the event it fails to do so, shall remit to MPL the Quarterly Deficiency Payment pursuant to Section 3.5. All volumes shipped by MPC on the Pipeline System will be subject to the Tariffs, as may be amended from time to time in accordance with FERC methodologies and as provided herein.
3.2 MPC shall be deemed to have shipped its Quarterly Throughput Commitment on the Pipeline System if the average quantity of Crude Petroleum that MPC ships on the Pipeline System in any Quarter under the Tariffs equals at least the Quarterly Throughput Commitment for such Quarter.
3.3 Except during a Force Majeure event or a temporary shutdown of the applicable Pipeline Segment for pipeline testing, maintenance or repair, MPL agrees to maintain and operate each Pipeline Segment so that the actual operating capacity of such Pipeline Segment that is available for shipment of Crude Petroleum equals or exceeds 116,000 Light Equivalent Barrels per Day on the Samaria to Detroit Pipeline Segment and 108,000 Light Equivalent Barrels per Day on the Romulus to Detroit Pipeline Segment (collectively, the “Minimum Capacity”), and MPL may transport volumes in excess of any volumes shipped by MPC to the extent there is available capacity on such Pipeline Segment.
3.4 MPC agrees to pay MPL monthly: (a) the Tariff Rates in effect for all MPC Deliveries transported by MPL on the Pipeline System during such month; and (b) any viscosity surcharge, loading, handling, transfer and other charges incurred with respect to such MPC Deliveries for such month in accordance with the provisions as set forth in the Tariffs (or any other tariffs that may be applicable to such MPC Deliveries). Such monthly payments will be paid by MPC to MPL within fifteen (15) Days of the invoice date.
3.5 Subject to the provisions of Section 4, if the aggregate volumes of Crude Petroleum shipped by MPC on the Pipeline System during any Quarter are less than MPC’s Quarterly Throughput Commitment for such Quarter then, in addition to paying any amounts incurred by MPC pursuant to Section 3.4 with respect to the MPC Deliveries for such Quarter, MPC shall also pay MPL a deficiency payment (the “Quarterly Deficiency Payment”) equal to the product of:
(a) the difference between MPC’s Quarterly Throughput Commitment for such Quarter and the aggregate ...