Common use of Setting WTI Differentials Clause in Contracts

Setting WTI Differentials. The WTI Differential component of the Price (component D of the Price formula in Schedule 5) applicable to the Nominated Volumes related to a particular Consumption Month will be established ratably (by WTI Hedge Volume) based on the applicable ***** effective on each ***** from (and including) the ***** day of the second month preceding the Consmption Month (or the next Business Day if applicable) to the ***** prior to the day on which the ***** contract expires during the month preceding the Consumption Month (the “Pricing Period”) ***** (applied only to the prices for ***** purchases) (such pricing mechanism, the “Ratable Method”). In lieu of the foregoing method for the determination of the WTI Differential, TRC may notify MSCG on or prior to the date of MSCG’s delivery of the WTI Differential Report that it would like MSCG to establish fixed values for the WTI Differentials by mutual agreement. In such case, TRC shall notify MSCG on each ***** during the Pricing Period of the volume it wishes to establish WTI Differential values for on such day (such notification a “Fixed Value Request”), provided that if MSCG does not receive a Fixed Value Request on any *****, MSCG will not seek to establish WTI Differential values on such day. MSCG shall make commercially reasonable efforts to fulfill each Fixed Value Request based on the then-current forward ***** for the applicable WTI Hedge Volume. The WTI Differential may be established in volumes of 100,000 Barrels up to the full volumes listed in the Initial Nomination (as amended from time to time) relating to the Nominated Volumes that would be processed or sold for the Consumption Month. Upon establishing a WTI Differential for a particular volume to be processed or sold in a Consumption Month pursuant to a Fixed Value Request, MSCG shall send a confirmation to TRC confirming the value of such WTI Differential, and TRC shall execute such confirmation and deliver a copy of the executed confirmation back to MSCG. If, using commercially reasonable efforts, MSCG is unable to fulfill any Fixed Value Request with respect to a volume as of any ***** during the Pricing Period, then no WTI Differential will be set as to such volume on such day. MSCG shall price any portion of the ***** and otherwise in accordance with the Ratable Method; provided that if greater than *****% of the total WTI Hedge Volume remains unpriced as of the end of the ***** prior to the ***** contract expiration, then MSCG will establish a WTI Differential as of the sixth ***** prior to the ***** contract expiration with respect to any excess over *****% of the total WTI Hedge Volume that remains unpriced.

Setting WTI Differentials. The WTI Differential component of the Price (component D of the Price formula in Schedule 5) applicable to the Nominated Volumes related to a particular Consumption Month will be established ratably (by WTI Hedge Volume) based on the applicable ***** NYMEX settlement prices effective on each ***** NYMEX Trading Day from (and including) the ***** 26th day of the second month preceding the Consmption Month (or the next Business Day if applicable) to the ***** NYMEX Trading Day prior to the day on which the ***** NYMEX WTI contract expires during the month preceding the Consumption Month (the “Pricing Period”) ***** (applied only to the prices for ***** NYMEX WTI purchases) (such pricing mechanism, the “Ratable Method”). In lieu of the foregoing method for the determination of the WTI Differential, TRC may notify MSCG on or prior to the date of MSCG’s delivery of the WTI Differential Report that it would like MSCG to establish fixed values for the WTI Differentials by mutual agreement. In such case, TRC shall notify MSCG on each ***** NYMEX Trading Day during the Pricing Period of the volume it wishes to establish WTI Differential values for on such day (such notification a “Fixed Value Request”), provided that if MSCG does not receive a Fixed Value Request on any *****NYMEX Trading Day, MSCG will not seek to establish WTI Differential values on such day. MSCG shall make commercially reasonable efforts to fulfill each Fixed Value Request based on the then-current forward ***** NYMEX prices for the applicable WTI Hedge Volume. The WTI Differential may be established in volumes of 100,000 Barrels up to the full volumes listed in the Initial Nomination (as amended from time to time) relating to the Nominated Volumes that would be processed or sold for the Consumption Month. Upon establishing a WTI Differential for a particular volume to be processed or sold in a Consumption Month pursuant to a Fixed Value Request, MSCG shall send a confirmation to TRC confirming the value of such WTI Differential, and TRC shall execute such confirmation and deliver a copy of the executed confirmation back to MSCG. If, using commercially reasonable efforts, MSCG is unable to fulfill any Fixed Value Request with respect to a volume as of any ***** NYMEX Trading Day during the Pricing Period, then no WTI Differential will be set as to such volume on such day. MSCG shall price any portion of the ***** WTI Hedge Volume that remains unpriced as of 12:00 p.m. EST on the sixth NYMEX Trading Day prior to expiration of the applicable NYMEX contract ratably over the remaining five NYMEX Trading Days in the Pricing Period and otherwise in accordance with the Ratable Method; provided that if greater than *****% of the total WTI Hedge Volume remains unpriced as of the end of the ***** seventh NYMEX Trading Day prior to the ***** NYMEX contract expiration, then MSCG will establish a WTI Differential as of the sixth ***** NYMEX Trading Day prior to the ***** NYMEX contract expiration with respect to any excess over *****% of the total WTI Hedge Volume that remains unpriced.