Throughput Obligation. Subject to the early termination provisions set forth in paragraph 5, above, and subparagraph 6.G, below, during each Contract Year, Shipper will ship, or cause to be shipped, in the aggregate, along (1) the N-[*****] Pipeline Route, from the Nederland Terminal to the [*****] Terminal or the [*****] Terminal, and (2) the C-[*****] Pipeline Route, through the Corsicana Terminal to the [*****] Terminal or the [*****] Terminal, each pursuant to the applicable tariff for such origin and destination points, at least THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED WITH "[*****]" AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION [*****] ([*****]) barrels of Feedstocks (the "MINIMUM ANNUAL THROUGHPUT OBLIGATION"), which equals a minimum throughput of [*****] ([*****]) barrels of Feedstock per calendar month (the "MINIMUM MONTHLY THROUGHPUT OBLIGATION"), and [*****] barrels of Feedstock of the entire term of this Agreement (the "AGGREGATE THROUGHPUT OBLIGATION"). In the event that Shipper's shipments are prorated for any reason whatsoever through the N-[*****] Pipeline Route or any portion thereof affecting such movements, during any calendar month and, as a result, is unable to transport any portion of the quantity of Feedstocks that was nominated by Shipper (in accordance with subparagraph 6.B, below) to be shipped under this Agreement during such month, then Shipper shall still be given credit by Carrier against Shipper's Minimum Monthly Throughput Obligation for that same calendar month, on a barrel-for barrel basis, for the greater of either (1) the actual quantity of Feedstocks that Shipper was able to transport along such route (or any portion thereof) during the applicable time period, or (2) the lesser of (i) Shipper's Minimum Monthly Throughput Obligation, and (ii) Shipper's nominated volume of Feedstocks for such calendar month.
Throughput Obligation. The transportation performed by Carrier for --------------------- Shipper hereunder shall be at the rates set forth herein and shall otherwise be subject to the rules and regulations in Carrier's applicable tariffs in effect during the Term of this Agreement (which tariffs are incorporated herein by reference for all purposes). If there is a conflict between the terms of this Agreement and the terms of Carrier's published tariffs, the terms of this Agreement shall be deemed controlling. During the Term commencing November 1, 1999, Shipper shall tender and deliver to Carrier one hundred percent (100%) of Shipper's equity Crude plus any third party Crude controlled by the Shipper. The amount of Crude tendered by Shipper to Carrier for transportation during each Annual Term shall hereinafter be referred to as the "Throughput Obligation". Carrier agrees to transport the volumes of Crude represented by the Throughput Obligation from Vastar Resources, Inc.'s South Pass Platforms to Equilon Pipeline Company's Facilities, Xxxx Xxxx Xxxxx 00, Xxxxxxxxxxx Xxxxxx, Xxxxxxxxx (the "Qualifying Movement"). Carrier shall charge Shipper Forty-two Cents ($0.42) for each barrel of Crude transported hereunder during the period from the Effective Date through and including December 31, 1999. Carrier shall charge Shipper Thirty-four Cents ($0.34) for each barrel of Crude transported hereunder during the period commencing January 1, 2000 and continuing thereafter for the remainder of the Term. The Parties acknowledge and agree that the third party Crude potentially controlled by the Shipper, comprised of Apache and Ocean Energy production in the South Pass area, is an important component of this Agreement as is Shipper's SP 60 area production. Shipper covenants and agrees to use its reasonable efforts to maintain and preserve its relationship and business arrangements with Apache and Ocean Energy and companies marketing their production in order that Apache/Ocean's Crude production from the South Pass area remain on Carrier's pipeline destined to Main Pass Block 69.
