Storage Commitment Clause Samples
The STORAGE COMMITMENT clause establishes the obligation of one party to reserve or provide a specified amount of storage capacity for the other party over a defined period. Typically, this clause outlines the minimum storage volume, the duration of the commitment, and any associated fees or penalties for underutilization or failure to meet the agreed terms. Its core practical function is to ensure that the party requiring storage has guaranteed access to the necessary space, thereby supporting operational planning and mitigating the risk of storage shortages or unexpected costs.
Storage Commitment. Subject to the terms and conditions of this Agreement, during the Term, MPL shall store, up to the Commitment, all Crude Petroleum tendered by MPC in one or more Storage Tanks at the Tank Farm. At any time after any such Crude Petroleum has been received at the Tank Farm, MPL may, for operational, environmental or safety reasons, move such Crude Petroleum to one or more other Storage Tanks.
Storage Commitment. Subject to the terms and conditions of this Agreement, during the Term, MTS shall store, up to the Commitment, all Product tendered by MPC in the Cavern.
Storage Commitment