Tier 1 Rate definition
Examples of Tier 1 Rate in a sentence
For the avoidance of doubt, to the extent any Quarterly Deficiency Payment is applied to any Quarterly Surplus Volumes (such volumes being referred to as “Pre-Paid Volumes”), the Throughput Charge for such Pre-Paid Volumes shall be the Tier 1 Rate for the Calendar Quarter in which such Quarterly Deficiency Payment was made.
The Tier 1 Rate and Tier 2 Rate may be referred to collectively or individually as the “Throughput Charge”.
The Parties estimate that beginning on the Commencement Date of the first of the two Additional Pipelines, the Tier 1 Rate shall be increased by $0.032 per Barrel of Product which is based upon a “Final Capital Outlay” of between $6,300,000 and $6,540,000 for the Additional Pipelines.
Other than the adjustment to the Tier 1 Rate as set forth in this Section 8, there shall be no additional or separate throughput charges for transportation services on the Additional Pipelines.
Carrier agrees as part of its notice of the intended Commencement Date as set forth in Section 3 hereof, to provide Shipper with the actual amount of the total capital cost for the design, construction and installation of the Additional Pipelines for which will form the basis for the increase to the Tier 1 Rate.
Beginning on the Commencement Date of the first of the two Additional Pipelines, the Tier 1 Rate, as may be adjusted pursuant to Section 10, shall be increased by the amount set forth on Exhibit B that corresponds to the “Final Capital Outlay” (as set forth on Exhibit B) for the construction and installation of the Additional Pipelines as of the Commencement Date of the first of the two Additional Pipelines with the “Final Capital Outlay” not to exceed $8,000,000.
The Tier 1 Rate and the Tier 2 Rate may be referred to collectively or individually as the “Transportation Rate”.
The following incremental volumetric daily reservation rates will apply to firm service provided to the secondary delivery points set forth below under the corresponding Point Tier: Tier 1 Rate: $.03/Dth; Tier 2 Rate: $.05/Dth.
For the avoidance of doubt, to the extent any Quarterly Deficiency Payment is applied to any Quarterly Surplus Volumes (such volumes being referred to as “Pre-Paid Volumes”), the Transportation Rate for such Pre-Paid Volumes shall be the Tier 1 Rate for the Calendar Quarter in which such Quarterly Deficiency Payment was made.
The Tier 1 Rate and Tier 2 Rate may be referred to collectively or individually as the “Throughput Charge.” For the avoidance of doubt, to the extent any Quarterly Deficiency Payment is applied to any Quarterly Surplus Volumes (such volumes being referred to as “Pre-Paid Volumes”), the Throughput Charge for such Pre-Paid Volumes shall be the Tier 1 Rate for the Calendar Quarter in which such Quarterly Deficiency Payment was made.