Deficiency Agreement

Deficiency Agreement

An agreement that calls on the sponsor or another party to provide the shortfall when cash flow, working capital, or revenues are below agreed levels or are insufficient to meet debt service.
References in periodicals archive ?
In support of this expansion, Delek US (DK) increased its long-term throughput and deficiency agreement on the Red River system from an existing 35,000 barrels per day to 100,000 barrels per day.
The project includes a long-term throughput and deficiency agreement, including the lease of approximately 1.5m barrels of new and existing storage capacity.
Also, Delek US will increase its direct access to crude oil originating in Cushing, Oklahoma from 35,000 barrels per day to 100,000 barrels per day utilizing a portion of the new capacity through a throughput and deficiency agreement with the Red River joint venture.
Under the second open season, new shippers may sign a throughput and deficiency agreement (T&D) for firm committed transportation rights on NuStar's South Texas Crude Oil Pipeline system at any of the four origin points, including the new Highway 99 origin point.
In conjunction with the proposal, bidders can sign long-term throughput and deficiency agreement for pipeline capacity.
Alon and Sunoco Logistics will enter into a 10-year pipeline throughput and deficiency agreement which will allow Alon to maintain its physically integrated system by retaining crude oil transportation rights on the pipelines from the Gulf Coast for an initial term of 10 years.
LOOP has stronger credit quality than nearly all other peers in Fitch's midstream universe, since its owners have throughput and deficiency agreements (T&D) with LOOP, ensuring future cash flows that support the high credit rating.