Common use of Capacity Reservation Clause in Contracts

Capacity Reservation. (a) In contemplation of future requirements, Company reserves 12,200 Barrels per Day of capacity (the “Wood River Reserved Capacity”) from the Origin Point at the Wood River Refinery to the Terminal, in addition to the 43,000 Barrels per Day of capacity included within the Minimum Wood River Quarterly Transportation Commitment (such 43,000 Barrels per Day of capacity, the “Wood River Base Capacity”), in consideration for which Company shall pay to Carrier a Monthly fee (the “Wood River Reservation Fee”) equal to (i) 12,200 Barrels per Day multiplied by the then-applicable Tariff Rate multiplied by (ii) the number of Days in the relevant Month. Carrier may offer transportation services to third parties on this pipeline segment in any capacity in excess of the Wood River Base Capacity (such excess, including the Wood River Reserved Capacity, the “Wood River Surplus Capacity”) on an interruptible basis. In the event of apportionment, all capacity, including the Wood River Base Capacity and the Wood River Surplus Capacity, will be allocated in accordance with the Carrier’s prorationing policy. (b) In contemplation of future requirements, Company reserves 39,200 Barrels per Day of capacity (the “Hartford Reserved Capacity”) from the Origin Point at the Terminal to Explorer, in addition to the 16,000 Barrels per Day of capacity included within the Minimum Hartford Quarterly Transportation Commitment (such 16,000 Barrels per Day of capacity, the “Hartford Base Capacity”), in consideration for which Company shall pay to Carrier a Monthly fee (the “Hartford Reservation Fee”) equal to (i) 39,200 Barrels per Day multiplied by the then-applicable Tariff Rate multiplied by (ii) the number of Days in the relevant Month. Carrier may offer transportation services to third parties on this pipeline segment in any capacity in excess of the Hartford Base Capacity (such excess, including the Hartford Reserved Capacity, the “Hartford Surplus Capacity”) on an interruptible basis. In the event of apportionment, all capacity, including the Hartford Base Capacity and the Hartford Surplus Capacity, will be allocated in accordance with the Carrier’s prorationing policy. (c) Company may convert all or part of the Wood River Reserved Capacity to incremental Wood River Base Capacity, or may convert all or part of the Hartford Reserved Capacity to incremental Hartford Base Capacity, at the commencement of any Calendar Quarter upon 30 Days’ Notice. Whenever the Wood River Base Capacity or Hartford Base Capacity is increased according to this Section 3.05, the Minimum Quarterly Wood River Transportation Commitment or Minimum Quarterly Hartford Transportation Commitment, as the case may be, shall be increased by the same amount(s). (d) With respect to any Month in which volumes transported from the Origin Point at the Wood River Refinery to the Terminal or from the Origin Point at the Terminal to Explorer exceed the Wood River Base Capacity or Hartford Base Capacity, then the Wood River Reservation Fee or Hartford Reservation Fee shall be credited against the aggregate tariff due for such actual excess shipments by Company.