Common use of Capacity and Revenue Commitment Clause in Contracts

Capacity and Revenue Commitment. Subject to Section 5, HFRM shall pay HEP Operating transportation service tariffs for use of the Pipeline System that result in the payment of an amount that will satisfy the Minimum Pipeline Revenue Commitment in exchange for HEP Operating providing HFRM a minimum aggregate capacity in the Pipeline System equal to the Minimum Capacity Commitment. The “Minimum Pipeline Revenue Commitment” shall be an amount of revenue to HEP Operating for each Contract Quarter determined by multiplying the Minimum Pipeline Throughput for such Contract Quarter, as such Minimum Pipeline Throughput may be revised pursuant to Section 3(a)(iv)(D), by the Pipeline Base Tariff in effect for such Contract Quarter, as such Pipeline Base Tariff may be revised pursuant to Section 3(a)(iii). The “Minimum Capacity Commitment” means an amount equal to 40,000 bpd, as such amount may be adjusted pursuant to Section 3(a)(iv)(D).