Additional Tanks Clause Samples
The "Additional Tanks" clause defines the terms under which extra storage tanks may be provided or used beyond those originally specified in an agreement. Typically, this clause outlines the conditions for requesting additional tanks, any associated costs, and the responsibilities for maintenance or operation. For example, it may specify that the party requiring extra capacity must notify the other party in advance and cover installation or rental fees. The core function of this clause is to provide a clear process for expanding storage capacity as needed, thereby ensuring operational flexibility and preventing disputes over unexpected requirements.
Additional Tanks. If Buyer or Seller determines that additional off-site storage space is needed for use in connection with the operation of the Refinery, Buyer may locate and propose to Seller proposed storage space to be used for additional Oil and/or Feedstock storage (a “Proposed Storage Site”), together with proposed terms for acquiring such Proposed Storage Site. If such Proposed Storage Site is acceptable to Seller, including, with respect to (i) Seller’s HSE standards, (ii) other site conditions, and (iii) commercial terms, then Seller may acquire such Proposed Storage Site (by lease or otherwise) for Buyer’s use on such terms as are mutually acceptable to the Parties. Seller shall complete its review in a timely manner based on then-existing circumstances. Buyer shall be responsible for all costs and expenses incurred by Seller with respect to the use of such Proposed Storage Site, including lease payments or the equivalent, and expenses and Seller’s costs incurred in negotiating the acquisition of such Proposed Storage Site for Buyer’s use, all on a pass-through basis and with prior approval of Buyer. Any Proposed Storage Site acquired by Seller pursuant to the terms of this Clause 8(b) shall become a “Statoil Storage Facility”. It is Buyer’s sole responsibility to provide adequate storage space for the storage of Oil and Feedstock purchased at the mandate of Buyer hereunder, and Seller shall not be responsible for providing additional storage space or for performing any inventory management services, except as provided in this Clause 8(b) and Clause 9(e).