Common use of Monthly Shortfall Payment Clause in Contracts

Monthly Shortfall Payment. If, during any Month, TRMC fails to request in good faith that TLO cause to be gathered an amount of crude petroleum equal to the Minimum Volume Commitment for such Month, then TRMC shall pay to TLO an amount equal to (i) the Monthly Volume Shortfall multiplied by (ii) the Trucking Rate for such Month (the “Monthly Shortfall Payment”). “Monthly Volume Shortfall” for any Month shall mean the volume of Barrels by which the product of the Minimum Volume Commitment multiplied by the number of days in any given Month, exceeds the Actual Barrels Gathered by TLO during such Month. The dollar amount of any Monthly Shortfall Payment included in the Monthly invoice described below and paid by TRMC shall be posted as a credit to TRMC’s account (the “Credit”), and such Credit shall be applied in subsequent Monthly invoices against amounts owed by TRMC for Excess Volumes shipped by TRMC during any of the succeeding three (3) Months. Credits will be applied in the order in which such Credits accrue and any portion of the Credit that is not used by TRMC during the succeeding three (3) Months will expire (e.g., a Credit which accrues in January will be available in February, March and April, will expire at the end of April and must be applied prior to applying any Credit which accrues in February).

Monthly Shortfall Payment. If, during any Month, actual shipments by TRMC fails to request in good faith that TLO cause to be gathered an amount of crude petroleum equal to on the Short Haul Pipelines (excluding the UNEV Connection during the Capital Recovery Period) are less than the Minimum Volume Commitment for such MonthThroughput Commitment, then TRMC shall pay to TLO TLO, in addition to the Transportation Fee owed for actual Barrels shipped and delivered during such Month, an amount equal to (i) the Monthly Volume Shortfall amount of such shortfall (in Barrels) multiplied by (ii) the Trucking Rate for such Month Transportation Fee (the “"Monthly Shortfall Payment”"). “Monthly Volume Shortfall” for If, during any Month shall mean the volume of Barrels by which the product of the Minimum Volume Commitment multiplied by the number of days in any given Month, exceeds TRMC ships Excess Barrels, then TRMC shall pay to TLO, in addition to the Actual Transportation Fee owed for actual Barrels Gathered by TLO shipped and delivered during such Month, an amount equal to (i) all Excess Barrels multiplied by (ii) the Transportation Fee (the "Excess Barrels Payment"). The dollar amount of any Monthly Shortfall Payment included in the Monthly invoice described in Section 6(f) below and paid by TRMC shall be posted as a credit to TRMC’s 's account (the “"Credit”"), and such Credit shall be applied in subsequent Monthly invoices against amounts the Excess Barrels Payment owed by TRMC for Excess Volumes shipped by TRMC during any of the succeeding three (3) Months. Credits will be applied in the order in which such Credits accrue and any portion of the Credit that is not used by TRMC during the succeeding three (3) Months will expire (e.g., a Credit which accrues in January will be available in February, March and April, will expire at the end of April April, and must be applied prior to applying any Credit which accrues in February).