Common use of Lessor’s Facilities Clause in Contracts

Lessor’s Facilities. The Well is connected to Lessee’s Product header system (the “Delivery Point”). All Product delivered by Lessee into storage or by Lessor out of storage must be delivered by pipeline to the Delivery Point, and all such deliveries shall be deemed a delivery into or out of storage for the purposes of computing all applicable charges under this Lease. In the event of damage to the Well by fire or other casualty, which damages render the Well incapable of storing Product, Lessor shall be under no obligation to rebuild the damaged Well or any facilities appurtenant to it to the extent it is not commercially reasonable to do so. Lessee shall be immediately notified of any such damage and Lessor shall keep Lessee informed of Lessor’s plans with respect to rebuilding or repair or with respect to providing the alternatives provided for below. In the event of damages making it commercially unreasonable to rebuild, Lessor may (subject to the remainder of this paragraph) terminate this Lease; provided, that Lessor shall take commercially reasonable steps as soon as commercially practicable at Lessor’s cost and expense to make an alternate well available to Lessee (which shall thereafter become the “Well” hereunder) to provide Lessee with substantially the same receipt and redelivery capabilities as Lessee had prior to such damage. As between Lessor and Lessee, control of Lessor’s facilities will rest exclusively with Lessor.