Common use of Capacity Reduction Clause in Contracts

Capacity Reduction. In case of reduction of the transportation capacity on the Transportation System, due to any reasons including, but not limited to, Force Majeure events and Maintenance on the Transportation System, such reduction shall be allocated between all Users proportionally to their Committed Flow Rate. TRANSMED, acting as a Reasonable and Prudent Operator, shall make every reasonable effort to minimize the impact of the transportation capacity reduction on the Users, also compensating the reduction with the unallocated transportation capacity, if available. The remainder of the reduction, if any, shall be allocated between all Users proportionally to their Committed Flow Rate. In case of an unforeseen event causing transportation capacity reduction, TRANSMED shall promptly inform ▇▇▇▇▇▇▇ of the reasons, the impact on transportation capacity and the estimated duration of the event. In the event that - due to a Capacity Reduction - the actual number of reduction days in a Contractual Year exceeds the maximum value of 15 (fifteen) days equivalent at full capacity, the Shipper shall be entitled to tariff reduction. Such reduction shall be calculated on the basis of 1/30th (one thirtieth) of the Monthly Fee for each day of actual reduction - equivalent at full capacity - in excess of 15 (fifteen) days and applied on the first available invoice. Transportation capacity reductions due to Force Majeure events shall result, for the entire reduction period, in a proportional reduction pro quota and pro rata temporis of the obligation to pay the Transportation Charge in accordance with the GTA. Transportation capacity reductions concerning the upstream and/or downstream transportation systems, due to whatever reason including Force Majeure, do not constitute transportation capacity reduction of the Transportation System and consequently the obligation to pay in full the Transportation Charge in accordance to the GTA.