Examples of Short Haul Pipelines in a sentence
At the meeting, the Parties will negotiate in good faith with the objective of reaching a joint resolution for the Restoration of capacity on the affected portion of the Short Haul Pipelines which will, among other things, specify steps to be taken by TLO to fully accomplish Restoration and the deadlines by which the Restoration must be completed (the “Capacity Resolution”).
In the event that TRMC’s economic considerations justify incurring additional costs to restore the Short Haul Pipelines in a more expedited manner than the time schedule determined in accordance with the preceding sentence, TRMC may require TLO to expedite the Restoration to the extent reasonably possible, subject to TRMC’s payment, in advance, of the estimated incremental costs to be incurred as a result of the expedited time schedule.
TRMC agrees to pay to TLO a fee of $0.25 per Barrel (the “Transportation Fee”) for all Barrels of crude petroleum and refined petroleum products shipped by TRMC on the Short Haul Pipelines.
Each Month during the Term, TRMC shall ship the Minimum Throughput Commitment on the Short Haul Pipelines, or, in the event it fails to do so, shall remit to TLO the Shortfall Payment pursuant to Section 6 below.
The dollar amount of any Shortfall Payment included in the monthly invoice described in Section 6(c) below and paid by TRMC shall be posted as a credit to TRMC’s account (the “Credit”), and such Credit shall be applied in subsequent monthly invoices against amounts owed by TRMC for Transportation Fees on Excess Barrels shipped on the Short Haul Pipelines during any of the succeeding three (3) Months.
TLO will agree to operate and maintain the Short Haul Pipelines in good working order and ship crude petroleum on the Crude Pipelines and refined petroleum products for TRMC on the Products Pipelines that collectively comprise the Short Haul Pipelines, subject to the terms and conditions of this Agreement.
In the event of the failure of TLO to maintain any Segment of the Short Haul Pipelines at its Minimum Throughput Capacity, then either Party shall have the right to call a meeting between executives of both Parties by providing at least two (2) Business Days’ advance written notice.
Further, TLO shall maintain and repair all portions of the Short Haul Pipelines in accordance with pipeline industry standards and in a manner which allows the Short Haul Pipelines to be capable, subject to Force Majeure, of shipping, storing and delivering volumes of crude petroleum and refined petroleum products which are no less than the Minimum Throughput Capacity.
Upon the receiving such a request, TLO shall promptly evaluate the relevant factors related to such request, including, without limitation: engineering and design criteria, limitations affecting such Capacity Expansion and any related tankage, cost and financing factors and the effect of such Capacity Expansion on the overall operation of the Short Haul Pipelines.
TLO shall identify in such Force Majeure Notice the particular Segment or Segments of the Short Haul Pipelines that are affected by the Force Majeure and the approximate length of time that TLO reasonably believes in good faith such Force Majeure shall continue (the “Force Majeure Period”).