PIPELINE SERVICE ORDER
(GATHERING LINES)
This Pipeline Service Order is entered as of August 31, 2016, by and between Torrance Valley Pipeline Company LLC, a Delaware limited liability company, and PBF Holding Company LLC, a Delaware limited liability company, pursuant to and in accordance with the terms of the Transportation Services Agreement (SJV System) dated as of August 31, 2016, by and among such parties (the “Agreement”). The Segments are set forth on Attachment 1 to this Pipeline Service Order (collectively, the “Gathering Lines”).
Capitalized terms not otherwise defined herein shall have the meaning set forth in the Agreement.
(i) Crude Reserved Capacity: 50,000 bpd (Monthly Average Basis)
(ii) Crude Oil Transportation Fees: $0.5625 per Barrel fixed rate subject to adjustment as set forth below;
(iii) Charges: PBF Holding shall be allocated PBF Holding’s Share of the actual costs incurred by TVPC for electricity, natural gas and other utilities required for the ownership, maintenance and operation of the Gathering Lines. “PBF Holding’s Share” means a number, expressed as a percentage, equal to the quotient of (a) the greater of (i) the total Barrels throughput by PBF Holding on the Gathering Lines, in the aggregate, during the sixth-month period preceding the date of determination or (ii) the Minimum Throughput Commitment during such period, and (b) the total Barrels throughput by all Persons on the Gathering Lines during such period;
(iii) Crude Shortfall Payment Calculation: If, for any Month, Actual Shipments for such Month on the Gathering Lines are less than the applicable Crude MTC, then PBF Holding shall pay TVPC an amount (a “Shortfall Payment”) with respect to the Gathering Lines equal to the difference between (i) the Crude MTC multiplied by the Transportation Fee and (ii) the aggregate Transportation Fees for such Month payable with respect to the Gathering Lines. The aggregate dollar amount of any Crude Shortfall Payments under this Pipeline Service Order included in the monthly invoices described in Section 8(c) of the Agreement and paid by PBF Holding shall be posted as a Credit to PBF Holding’s account, and such Credit shall be applied in subsequent monthly invoices against Excess Throughput Fees applicable to throughput of Barrels of Crude Oil during any of the succeeding three (3) Months under any PBF Holding Pipeline Service Order. “Actual Shipment” means the volume of Crude Oil that is delivered on the Gathering Lines under this Pipeline Service Order and any volumes of Crude Oil that is delivered on the Gathering Lines by a PBF Holding Crude Oil Supplier or a PBF Holding Designee;
(iv) PBF Holding shall also be responsible for:
(a) reimbursement related to newly imposed taxes pursuant to Section 6 of the Agreement;
(b) Surcharges related to expenditures as a result of newly imposed laws and regulations pursuant to Section 7 of the Agreement; and
(c) any other services as may be agreed.
Except as set forth in this Pipeline Service Order, the other terms of the Agreement shall continue in full force and effect and shall apply to the terms of this Pipeline Service Order.
[Signature Page Follows]
IN WITNESS WHEREOF, the parties hereto have duly executed this Pipeline Service Order as of the date first written above.
| TORRANCE VALLEY PIPELINE COMPANY LLC | PBF HOLDING COMPANY LLC |
By: /s/ Matthew Lucey Name: Matthew Lucey Title: Executive Vice President | By: /s/ Trecia Canty Name: Trecia Canty Title: Secretary |
ATTACHMENT 1
Gathering Lines:
M-55 Lost Hills to Belridge - 14.2 miles 8” leased to Plains
M-55 Belridge to Midway - 17 miles 12”
M-1 Midway to Continental - 12.6 miles 16”
M-1 Continental to Pentland - 6 miles 12”, 8 miles 16”
M-1 Pentland to Emidio - 15 miles 16”