Damage and Loss Liability Sample Clauses

Damage and Loss Liability. (a) Keystone shall be liable for damage or loss in value to Petroleum only when such damage or loss results from the gross negligence or wilful misconduct of Keystone, its Representatives or both. Notwithstanding the foregoing or anything in this Lease to the contrary, Keystone shall not be liable for physical loss of Petroleum, or any expense arising therefrom, resulting from loss due to any event or occurrence not involving the fault of Keystone meeting the standards set forth above, including Force Majeure events or losses from or due to theft, loss of market, or loss arising from delay. The rates and fees payable under this Lease do not include any insurance on Lessee’s Petroleum for physical losses or expenses arising therefrom, that are sustained due to the foregoing occurrences while in custody of Keystone, which insurance shall be the sole responsibility of Lessee. (b) It is understood and agreed that Keystone’s liability for loss of or damage to Xxxxxx’s Petroleum, even if caused by actions not conforming to Xxxxxx’s orders, shall be the lesser of the following: (i) the Petroleum’s replacement cost at the time of loss based on prevailing market rates for the specific Petroleum lost, as agreed upon by the Parties; (ii) the actual cost paid by Xxxxxx (copies of Xxxxxx’s invoices of cost paid must be provided) for the Petroleum; or (iii) at Keystone’s election, and in its sole discretion, prompt replacement at the Tank Facilities by Keystone with in-kind Petroleum.