Common use of Shortfall Payments Clause in Contracts

Shortfall Payments. If, for any Contract Quarter, Actual Shipments for such Contract Quarter on any Pipeline, the Rail Racks, the Product Racks, or at the ▇▇▇▇▇▇ Terminal are less than the applicable Minimum Throughput Commitment, then Customer shall pay Owner an amount (a “Shortfall Payment”) equal to the difference between (a) the applicable Minimum Throughput Commitment multiplied by the applicable Throughput Fee and (b) the aggregate Throughput Fees for such Contract Quarter payable for Actual Shipments with respect to the Pipelines, the Rail Racks, the Product Racks, or the ▇▇▇▇▇▇ Terminal, as applicable. For purposes of calculating the Shortfall Payment with respect to any Pipeline, all Actual Shipments on any other Pipeline (or on the Rail Racks, the Product Racks, or the ▇▇▇▇▇▇ Terminal, as applicable) for such Contract Quarter shall be disregarded. The Parties acknowledge and agree that there shall be no carry-over of deficiency volumes with respect to the applicable Minimum Throughput Commitments and the payment of the Shortfall Payment shall relieve Customer of any obligation to meet such Minimum Throughput Commitments for the relevant Contract Quarter. The Parties further acknowledge and agree that there shall not be any carry-over of volumes in excess of the Minimum Throughput Commitments to any subsequent Contract Quarter.