Common use of Agreement to Use Services Relating to Pipelines and Tankage Clause in Contracts

Agreement to Use Services Relating to Pipelines and Tankage. This Agreement sets forth a commercial arrangement consistent with historical operational practices between the HollyFrontier Entities and the Partnership Entities as well as the objectives of the Parties. The Parties intend to be strictly bound by the terms set forth in this Agreement, which sets forth revenues to the Partnership Entities to be paid by the HollyFrontier Entities and requires the Partnership Entities to provide certain transportation and storage services to the HollyFrontier Entities. The principal objective of the Partnership Entities is for the HollyFrontier Entities to meet or exceed their obligations with respect to the Minimum Pipeline Revenue Commitment, and to meet their obligations with respect to the Tankage Revenue Commitment and the Roswell Terminal Payment. The principal objective of the HollyFrontier Entities is for the Partnership Entities to provide services to the HollyFrontier Entities in a manner that enables the HollyFrontier Entities to operate their assets in a manner as favorably as their historical practice when the HollyFrontier Entities were the owners of the Drop-Down Assets.

Appears in 3 contracts

Sources: Crude Pipelines and Tankage Agreement (Holly Energy Partners Lp), Crude Pipelines and Tankage Agreement (HollyFrontier Corp), Crude Pipelines and Tankage Agreement (Holly Energy Partners Lp)