Operations, Receipts and Deliveries. 4.1 Customer’s Product will be gathered, transported, terminalled and stored using the modes of transportation and storage facilities, and Customer will pay for such services based on the charges, including the Minimum Use Commitment charges, specified in Attachment “A” . Receipts and deliveries of Product will be handled within the normal business hours of the System as set forth on Attachment “A”. Owner may, without Customer’s approval, make temporary changes in business hours or temporarily close any System asset because of an extraordinary event. Owner will notify Customer of such temporary changes or closure in advance, or as soon after implementation as is practicable. Owner will not be responsible for the payment of any costs incurred by Customer or its transportation carrier for any delay in receiving or delivering Product or any other costs or fees. 4.2 Customer must arrange for and pay all Third Party costs related to the receipt or delivery of Customer’s Product to and from the System. Owner is not responsible for such Third Party costs. Unless otherwise provided by Owner in writing, Customer must provide notice reasonably acceptable to Owner (in accordance with Section 13) containing all necessary shipping instructions, including without limitation, the identity and quantity and any other specifications of the Product and the tentative date of delivery to the System (the “Scheduling Notice”). Notwithstanding Section 13, such communication may be effected, with Owner’s consent, by telephone or facsimile. 4.3 Subject to the restrictions of Attachment “A”, Owner will deliver to Customer, or to such Third Parties as Customer may direct, the Product held by Owner on the System for the account of Customer. Customer is responsible for providing to Owner documentation required to authorize deliveries for or on its behalf from the System. 4.4 Owner will provide System gathering, transportation, storage and terminalling services to Customer only with respect to Product. Customer will have access to the System for other products only with prior written notice to and consent by Owner. Any other product approved by Owner will then become part of “Product” as defined in this Agreement. If a special method of providing terminal, storage, gathering, or transportation services is required for Product, then Customer must notify Owner in sufficient time to enable Owner to consider whether, in Owner’s sole discretion, it will accept the proposed changes in the method of delivering the services and to take the necessary preparatory measures if it agrees with such changes. Absent such notice and absent Owner’s written approval with respect to changes in the Product or the method of delivering the services, Owner will not be liable for losses or damage incurred during the gathering, transportation, storage and terminalling of Product, nor will Owner be obligated to provide such special terminal, storage, transportation or gathering service. It is understood that the cost of any additional or special equipment required by Customer or of alterations made necessary by the nature of Product, will be for the account of Customer, and Customer will be responsible for the expense of any necessary cleaning and restoration to their previous condition of the Terminal or storage, transportation, and gathering equipment, including, without limitation, tanks, pipelines, trucks, pumps, hoses, meters, and loading facilities, unless otherwise explicitly stated in this Agreement. All fixtures, equipment and appurtenances attached to the tanks, pipelines, trucks and other facilities of the System will be installed by the Owner and will remain the property of Owner. 4.5 Within 10 days following termination of this Agreement (subject to any lien that Owner may have on Product), all Product, residue, scale, and any other accumulation will be removed from Owner’s tanks, pipelines and trucks and other System assets. Tank, truck and pipeline interiors then in use will be cleaned to a condition suitable for the storage of similar Product. Customer shall reimburse Owner for all costs and expenses reasonably incurred by Owner for such removal and cleaning plus a 15% handling fee, as well as the cost of storage and handling of the Product removed, if any, at a rate of $0.01 per Barrel per day in addition to any other fees due hereunder, which fees and rates will continue to be charged if Customer shall not have removed the Product from the tanks within 10 days from the date of termination hereof. 4.6 If any Governmental Authority requires installation of any improvement, alteration or addition to any Terminal, tank, truck, pipeline or other equipment on the System for purposes of compliance with Applicable Law, and if the installation would require Owner to make substantial and unanticipated capital expenditures, other than continued maintenance and capital expenditures not affected by such requirement, Owner will be entitled to impose a reasonable service surcharge in addition to the fees set out in Attachment “A”. Owner will notify Customer of (i) the cost of making any such improvement, alteration or addition, after Owner’s efforts to mitigate such costs, (ii) when such improvement, alteration or addition must be completed, and (iii) the Owner’s reasonable estimate of the service surcharge related to the capital expenditure to be paid by Customer over the remaining Term. Owner will not be required to make any improvements, alterations or additions to the System in such circumstance, unless Customer agrees to pay the surcharge. If Customer elects, after negotiation with Owner in good faith, not to pay the surcharge and the Owner chooses not to pay for such improvement, alteration or addition, Owner may direct the affected Product to a mutually acceptable Terminal or storage, gathering or transportation facilities owned by Owner or its Affiliates. If Customer elects not to pay the surcharge, and if Owner does not direct the Product to mutually acceptable alternate facilities, either Party may terminate or release the affected System facilities from this Agreement, with an equivalent reduction of the fees set out on Attachment “A”, including the Minimum Use Commitment, by giving the other Party notice of its intention no later than thirty (30) days after Owner’s receipt of notice of Customer’s election not to pay the service surcharge. If Customer elects to pay the service surcharge, Owner shall proceed with the installation of the required improvement, alteration or addition. Owner will calculate the surcharge required to recover the portion of Owner’s costs for the improvement, alteration or addition attributable to Customer’s use of the impacted segment of the System. The portion of Owner’s costs to be recovered through the surcharge shall equal the percentage of total revenues from the impacted segment of the System attributable to Customer’s use of such System segment for the six (6) full Months preceding the date of Owner’s notice to Customer of the cost of the improvement, alteration or addition. Customer may pay the surcharge in equal monthly installments over the remaining Term. Within thirty (30) days after completion of the required improvement, addition or alteration, Customer may elect to pay the surcharge for the remaining Term in one lump sum. Owner shall calculate the cost of the improvement, alteration or addition and the surcharge using reasonable assumptions and estimates. In addition to actual capital and installation costs, the costs to be recovered through the surcharge will include engineering and interest expense (at a rate of 1% over the prime lending rate as reported in the Wall Street Journal on the date of completion of such installation) and subsequent reasonable expenses, if any, of operating or maintaining such installation as reasonably determined by Owner. 4.7 When the Product is specifically identified and kept separate from the product of other customers (“Segregated Service”), Customer will be responsible for providing all tank bottoms and line fill, and in all other cases, Customer will be responsible for providing its proportional share of tank bottoms and line fill. Customer will retain ownership of any portion or all of the tank bottoms and line fill it provides.
Appears in 2 contracts
Samples: Throughput Agreement (SemGroup Energy Partners, L.P.), Throughput Agreement (SemGroup Energy Partners, L.P.)
Operations, Receipts and Deliveries. 4.1 Customer’s Product will be gathered, transported, terminalled and stored using the modes of transportation and storage facilities, and Customer will pay for such services based on the charges, including the Minimum Use Commitment charges, specified in Attachment “A” . Receipts and deliveries of Product will be handled within the normal business hours of the System as set forth on Attachment “A”Terminals. Owner may, without with Customer’s prior approval, make temporary changes in the business hours of a Terminal or temporarily close any System asset Terminal or Storage Tank because of an extraordinary event. Owner will notify Customer of such temporary changes or closure in advance, or as soon after implementation as is practicable. Owner will not be responsible for the payment of any costs incurred by Customer or its transportation carrier for any delay in receiving or delivering Product or any other costs or fees, except to the extent such delays are attributable to Owner’s inability to provide the Services other than an event of Force Majeure covered by Section 10 hereof.
4.2 Customer must arrange for and pay all Third Party costs related to the receipt or delivery of Customer’s Product to the Terminals and from the SystemStorage Tanks. Owner is not responsible for such Third Party costs. Unless otherwise provided by Owner in writing, Customer must provide notice reasonably acceptable to Owner (in accordance with Section 13) containing all necessary shipping instructions, including without limitation, the identity and quantity and any other specifications of the Product and the tentative date of delivery to the System Terminals (the “Scheduling Notice”). Notwithstanding Section 13, Each Scheduling Notice delivered hereunder by Customer for deliveries of Product to a Terminal shall be sent to those individuals that Owner has specified to Owner to receive such communication may be effected, Scheduling Notice for the applicable Terminal with Owner’s consent, by telephone or facsimilerespect to such Product delivery.
4.3 Subject to the restrictions of Attachment “A”, Owner will deliver to Customer, or to such Third Parties as Customer may direct, the Product held by Owner on in the System Storage Tanks for the account of Customer. Customer is responsible for providing to Owner documentation required to authorize deliveries for or on its behalf from the SystemStorage Tanks.
4.4 Owner will provide System gathering, transportation, storage and terminalling services the Services to Customer only with respect to Product. Customer will have access to the System Terminals and Storage Tanks for other products only with prior written notice to and consent by Owner. Any other product approved by Owner will then become part of “Product” as defined in this Agreement. If a special method of providing terminal, storage, gathering, or transportation services the Services is required for Product, then Customer must notify Owner in sufficient time to enable Owner to consider whether, in Owner’s sole discretion, it will accept the proposed changes in the method of delivering the services Services and to take the necessary preparatory measures if it agrees with such changes. Absent such notice and absent Owner’s written approval with respect to changes in the Product or the method of delivering the servicesServices, Owner will not be liable for losses or damage incurred during the gathering, transportation, terminalling and storage of Product (except for losses and terminalling of Productdamages resulting from Product Loss), nor will Owner be obligated to provide such special terminal, storage, transportation or gathering serviceService. It is understood that the cost of any additional or special equipment required by Customer or of alterations made necessary by the nature of Product, Product will be for the account of Customer, and Customer will be responsible for the expense of any necessary cleaning and restoration to their previous condition of the Terminal or storage, transportation, Terminals and gathering equipmentStorage Tanks, including, without limitation, tanks, pipelines, trucks, pumps, hoses, meters, and loading facilities, unless otherwise explicitly stated in this Agreement. All fixtures, equipment and appurtenances attached to the tanks, pipelines, trucks and other facilities of the System Storage Tanks will be installed by the Owner and will remain the property of Owner.
4.5 Within 10 days following termination of this Agreement (subject to any lien that Owner may have on Product), all Product, residue, scale, and any other accumulation will be removed from Owner’s tanks, pipelines and trucks and other System assets. Tank, truck and pipeline interiors then in use will be cleaned to a condition suitable for the storage of similar Product. Customer shall reimburse Owner for all costs and expenses reasonably incurred by Owner for such removal and cleaning plus a 15% handling fee, as well as the cost of storage and handling of the Product removed, if any, at a rate of $0.01 per Barrel per day in addition to any other fees due hereunder, which fees and rates will continue to be charged if Customer shall not have removed the Product from the tanks within 10 days from the date of termination hereof.
4.6 If any Governmental Authority requires installation of any improvement, alteration or addition to any Terminal, tank, truck, pipeline or other equipment on the System for purposes of compliance with Applicable Law, and if the installation would require Owner to make substantial and unanticipated capital expenditures, other than continued maintenance and capital expenditures not affected by such requirement, Owner will be entitled to impose a reasonable service surcharge in addition to the fees set out in Attachment “A”. Owner will notify Customer of (i) the cost of making any such improvement, alteration or addition, after Owner’s efforts to mitigate such costs, (ii) when such improvement, alteration or addition must be completed, and (iii) the Owner’s reasonable estimate of the service surcharge related to the capital expenditure to be paid by Customer over the remaining Term. Owner will not be required to make any improvements, alterations or additions to the System in such circumstance, unless Customer agrees to pay the surcharge. If Customer elects, after negotiation with Owner in good faith, not to pay the surcharge and the Owner chooses not to pay for such improvement, alteration or addition, Owner may direct the affected Product to a mutually acceptable Terminal or storage, gathering or transportation facilities owned by Owner or its Affiliates. If Customer elects not to pay the surcharge, and if Owner does not direct the Product to mutually acceptable alternate facilities, either Party may terminate or release the affected System facilities from this Agreement, with an equivalent reduction of the fees set out on Attachment “A”, including the Minimum Use Commitment, by giving the other Party notice of its intention no later than thirty (30) days after Owner’s receipt of notice of Customer’s election not to pay the service surcharge. If Customer elects to pay the service surcharge, Owner shall proceed with the installation of the required improvement, alteration or addition. Owner will calculate the surcharge required to recover the portion of Owner’s costs for the improvement, alteration or addition attributable to Customer’s use of the impacted segment of the System. The portion of Owner’s costs to be recovered through the surcharge shall equal the percentage of total revenues from the impacted segment of the System attributable to Customer’s use of such System segment for the six (6) full Months preceding the date of Owner’s notice to Customer of the cost of the improvement, alteration or addition. Customer may pay the surcharge in equal monthly installments over the remaining Term. Within thirty (30) days after completion of the required improvement, addition or alteration, Customer may elect to pay the surcharge for the remaining Term in one lump sum. Owner shall calculate the cost of the improvement, alteration or addition and the surcharge using reasonable assumptions and estimates. In addition to actual capital and installation costs, the costs to be recovered through the surcharge will include engineering and interest expense (at a rate of 1% over the prime lending rate as reported in the Wall Street Journal on the date of completion of such installation) and subsequent reasonable expenses, if any, of operating or maintaining such installation as reasonably determined by Owner.
4.7 When the Product is specifically identified and kept separate from the product of other customers (“Segregated Service”), Customer will be responsible for providing all tank bottoms and line fill, and in all other cases, Customer will be responsible for providing its proportional share of tank bottoms and line fill. Customer will retain ownership of any portion or all of the tank bottoms and line fill it provides.
Appears in 2 contracts
Samples: Terminaling and Storage Agreement (SemGroup Energy Partners, L.P.), Terminaling and Storage Agreement (SemGroup Energy Partners, L.P.)
Operations, Receipts and Deliveries. 4.1 Customer’s Product will be gathered, transported, terminalled and stored using the modes of transportation and storage facilities, and Customer will pay for such services based on the charges, including the Minimum Use Commitment charges, specified in Attachment “A” . Receipts and deliveries of Product will be handled within the normal business hours of the System applicable Terminal (subject to Section 12). Except as set forth on Attachment “A”. Owner mayrequired pursuant to Section 4.2, without Customer’s approvalSection 8.1 or Section 20 of this Agreement, make temporary changes in business hours or temporarily close any System asset because of an extraordinary event. Owner will notify Customer of such temporary changes or closure in advance, or as soon after implementation as is practicable. Owner will not be responsible for the payment of any costs incurred by Customer or its transportation carrier for any delay in receiving or delivering Product or any other costs or fees.
4.2 Owner shall make available to Customer existing loading docks and wharves serving the applicable Terminal. Access to the dock/loading facilities sometimes depends on the level of the adjacent waterway and the draft of the barges. Customer assumes the risks of access to the dock/loading facilities due to the foregoing, and is responsible for arranging for and bearing any costs associated with accessing the dock/loading facilities. Any demurrage for vessels utilized by Customer shall be at Customer’s sole expense, unless such demurrage is caused by Owner’s negligence or willful misconduct. Owner and Customer agree to use commercially reasonable efforts to attempt to minimize any demurrage that may be incurred by Customer in accordance with the foregoing.
4.3 Except as set forth in Section 2.4(a) and (b), Customer must arrange for and pay all Third Party costs related to the receipt or delivery of Customer’s Product to the applicable Terminal and from the SystemStorage Tanks. Owner is not responsible for such Third Party costscosts except as otherwise specifically provided herein. Unless otherwise provided by Owner in writing, Customer must provide written notice reasonably acceptable to Owner (in accordance with Section 13) containing all necessary shipping instructions, including without limitation, the identity and quantity and any other specifications Specifications of the Product and the tentative date of delivery to the System applicable Terminal (the “Scheduling Notice”). Notwithstanding Section 13The Parties shall reasonably coordinate with each other in advance with regard to scheduling of all Product movements and the in-bound quality, such communication may be effected, with Owner’s consent, by telephone or facsimile.
4.3 Subject to the restrictions of Attachment “A”, Owner will deliver to Customer, or to such Third Parties as Customer may directvolume and grade, the times of delivery by each Terminal, and all material movement prior to shipment of all Product held delivered to Owner hereunder. Each Scheduling Notice delivered hereunder by Customer for deliveries of Product to a Terminal shall be sent to those individuals that Owner on the System has specified to Customer to receive such Scheduling Notice for the account of Customer. Customer is responsible for providing to Owner documentation required to authorize deliveries for or on its behalf from the System.
4.4 Owner will provide System gathering, transportation, storage and terminalling services to Customer only applicable Terminal with respect to Product. Customer will have access to the System for other products only with prior written notice to and consent by Owner. Any other product approved by Owner will then become part of “Product” as defined in this Agreement. If a special method of providing terminal, storage, gathering, or transportation services is required for Product, then Customer must notify Owner in sufficient time to enable Owner to consider whether, in Owner’s sole discretion, it will accept the proposed changes in the method of delivering the services and to take the necessary preparatory measures if it agrees with such changes. Absent such notice and absent Owner’s written approval with respect to changes in the Product or the method of delivering the services, Owner will not be liable for losses or damage incurred during the gathering, transportation, storage and terminalling of Product, nor will Owner be obligated to provide such special terminal, storage, transportation or gathering service. It is understood that the cost of any additional or special equipment required by Customer or of alterations made necessary by the nature of Product, will be for the account of Customer, and Customer will be responsible for the expense of any necessary cleaning and restoration to their previous condition of the Terminal or storage, transportation, and gathering equipment, including, without limitation, tanks, pipelines, trucks, pumps, hoses, meters, and loading facilities, unless otherwise explicitly stated in this Agreement. All fixtures, equipment and appurtenances attached to the tanks, pipelines, trucks and other facilities of the System will be installed by the Owner and will remain the property of Ownerdelivery.
4.5 Within 10 days following termination of this Agreement (subject to any lien that Owner may have on Product), all Product, residue, scale, and any other accumulation will be removed from Owner’s tanks, pipelines and trucks and other System assets. Tank, truck and pipeline interiors then in use will be cleaned to a condition suitable for the storage of similar Product. Customer shall reimburse Owner for all costs and expenses reasonably incurred by Owner for such removal and cleaning plus a 15% handling fee, as well as the cost of storage and handling of the Product removed, if any, at a rate of $0.01 per Barrel per day in addition to any other fees due hereunder, which fees and rates will continue to be charged if Customer shall not have removed the Product from the tanks within 10 days from the date of termination hereof.
4.6 If any Governmental Authority requires installation of any improvement, alteration or addition to any Terminal, tank, truck, pipeline or other equipment on the System for purposes of compliance with Applicable Law, and if the installation would require Owner to make substantial and unanticipated capital expenditures, other than continued maintenance and capital expenditures not affected by such requirement, Owner will be entitled to impose a reasonable service surcharge in addition to the fees set out in Attachment “A”. Owner will notify Customer of (i) the cost of making any such improvement, alteration or addition, after Owner’s efforts to mitigate such costs, (ii) when such improvement, alteration or addition must be completed, and (iii) the Owner’s reasonable estimate of the service surcharge related to the capital expenditure to be paid by Customer over the remaining Term. Owner will not be required to make any improvements, alterations or additions to the System in such circumstance, unless Customer agrees to pay the surcharge. If Customer elects, after negotiation with Owner in good faith, not to pay the surcharge and the Owner chooses not to pay for such improvement, alteration or addition, Owner may direct the affected Product to a mutually acceptable Terminal or storage, gathering or transportation facilities owned by Owner or its Affiliates. If Customer elects not to pay the surcharge, and if Owner does not direct the Product to mutually acceptable alternate facilities, either Party may terminate or release the affected System facilities from this Agreement, with an equivalent reduction of the fees set out on Attachment “A”, including the Minimum Use Commitment, by giving the other Party notice of its intention no later than thirty (30) days after Owner’s receipt of notice of Customer’s election not to pay the service surcharge. If Customer elects to pay the service surcharge, Owner shall proceed with the installation of the required improvement, alteration or addition. Owner will calculate the surcharge required to recover the portion of Owner’s costs for the improvement, alteration or addition attributable to Customer’s use of the impacted segment of the System. The portion of Owner’s costs to be recovered through the surcharge shall equal the percentage of total revenues from the impacted segment of the System attributable to Customer’s use of such System segment for the six (6) full Months preceding the date of Owner’s notice to Customer of the cost of the improvement, alteration or addition. Customer may pay the surcharge in equal monthly installments over the remaining Term. Within thirty (30) days after completion of the required improvement, addition or alteration, Customer may elect to pay the surcharge for the remaining Term in one lump sum. Owner shall calculate the cost of the improvement, alteration or addition and the surcharge using reasonable assumptions and estimates. In addition to actual capital and installation costs, the costs to be recovered through the surcharge will include engineering and interest expense (at a rate of 1% over the prime lending rate as reported in the Wall Street Journal on the date of completion of such installation) and subsequent reasonable expenses, if any, of operating or maintaining such installation as reasonably determined by Owner.
4.7 When the Product is specifically identified and kept separate from the product of other customers (“Segregated Service”), Customer will be responsible for providing all tank bottoms and line fill, and in all other cases, Customer will be responsible for providing its proportional share of tank bottoms and line fill. Customer will retain ownership of any portion or all of the tank bottoms and line fill it provides.
Appears in 2 contracts
Samples: Storage, Throughput and Handling Agreement (Blueknight Energy Partners, L.P.), Contribution Agreement (Blueknight Energy Partners, L.P.)
Operations, Receipts and Deliveries. 4.1 Customer’s 's Product will be gathereddelivered to the Terminals by pipeline, transportedtruck, terminalled and stored using the modes railcar or Vessel, as applicable by Terminal, free of transportation and storage facilities, and Customer will pay for such services based on the charges, including the Minimum Use Commitment charges, specified in Attachment “A” any charge to Owner. Receipts and deliveries of Product will be handled within the normal business operating hours of the System Terminal as set forth on Attachment “"A”". Owner may, without Customer’s approval, may make temporary changes in business operating hours or temporarily close any System asset Terminal without Customer's approval because of an extraordinary event. Owner will notify Customer of such temporary changes or closure in advance, or as soon after implementation as is practicable. Any charges to Customer related to Owner's decision to change operating hours or to close the Terminal, including but not limited to demurrage, shall be for Owner's account, excluding such changes in operating hours or closures which are due to an event of Force Majeure.
4.2 Vessels will be loaded and unloaded on first come, first serve basis as directed by the applicable port authority or Owner, as applicable, and, other than as provided in Section 4.1 or Section 4.6, Owner will not be responsible for the payment of any demurrage or other costs incurred by Customer or its transportation carrier with respect thereto, or for any delay in receiving receipt or delivering Throughput of Customer's Product to or from the Terminals; provided, however, that once Customer's Vessel is all fast at the berth, any other delay in the receipt or Throughput of Customer's Product caused by the negligence or willful misconduct of Owner (e.g. failure of equipment at the Terminal or inadequate staffing) and costs or feesattendant thereto, will be for the account of Owner.
4.2 4.3 Any delay and demurrage caused by the failure of Customer's Product to meet required specifications hereunder, as determined pursuant to Section 5, shall not be deemed to have been caused by Owner and any costs attendant thereto shall be for Customer's account. For the avoidance of doubt, any demurrage incurred by Customer during the testing of Customer's Product shall be solely for Customer's account. In the event Customer's Vessel shall discharge at multiple discharge ports, the foregoing shall apply to each such discharge port.
4.4 Customer must arrange for and pay all Third Party costs related to the receipt or delivery of Customer’s 's Product to and from the SystemTerminals. Owner is not responsible for such Third Party costsonly to receive or Throughput, as the case may be, the Product at its Terminals. Unless otherwise provided by Owner in writing, Customer must provide reasonably prompt notice to Owner and the Terminal in a form reasonably acceptable to Owner (in accordance with Section 13) containing all necessary shipping instructions, including without limitation, the identity identity, quality and quantity and any other specifications of the Product and the tentative date arrival date(s) (the "Arrival Notice").
4.5 As this Agreement involves marine receipts or Throughput of delivery Product, Owner will advise Customer of the limitations of the Vessel that may be berthed, including its maximum size, draw, draft and length, the docks and associated positions to be used for each Product movement, as well as the minimum pumping rates or pressure, as applicable, or both. Owner and/or the applicable port authority may change Vessel limitation, dock designation, and pumping rates or pressure criteria from time to time upon prior reasonable notice to Customer. If Owner determines that a Vessel is unsuitable for the receipt or Throughput of Products, as Owner in its reasonable discretion deems appropriate, Owner may refuse to load or unload such Vessel and will advise the carrier and Customer of the situation promptly, and request further instructions from the Customer. It is the responsibility of Customer to notify the appropriate Governmental Authorities regarding Vessel arrivals.
4.6 If any of Customer's Vessels (i) fails to vacate a berth upon completion of loading or discharge, (ii) fails to discharge or load a barge within twenty-four (24) hours or within thirty-six (36) hours for a Vessel, or (iii) fails to vacate in order to conduct repairs, unless such failures are caused by an event of Force Majeure, then, after having been notified by Owner to vacate, Customer shall be responsible for all costs applicable to the System berths, together with any costs incurred by any Vessel which would otherwise be occupying such berth but for the failure of Customer's Vessel to vacate, except for such costs arising due to delay caused by Owner.
4.7 If Customer requires any change in the shipping instructions, including, without limitation, the identity and timing of the Product, Customer must provide notice of any change in the Arrival Notice (in accordance with Section 13) to the “Scheduling Notice”)Owner and the Terminal before the arrival of the Product at the Terminals. Upon receipt of Customer's shipping instructions, Owner will immediately advise Customer of the Terminal's availability. If the Terminal will not be available to receive or deliver Customer's Product on the communicated arrival date, Owner will advise as to the earliest time when Customer's Product may be received or delivered at the Terminal. Customer will ensure that confirmation of the arrival date(s) and time of the Product will be communicated to Owner and the Terminal by Customer's carrier periodically, at intervals of at least 48, 24 and 12 hours in advance of the anticipated date and time of arrival of the Product. Notwithstanding the notice provisions of Section 13, such communication may be effectedeffected by telephone, with facsimile or electronic mail directed to Owner’s consent's representatives and the Terminal manager. If Customer fails to provide Owner and the Terminal the notice containing shipping instructions in a form mutually agreed to by the Parties and in the manner required by this Section 4.7, by telephone Owner will not be obligated to receive or facsimileThroughput Customer's Product and Owner will not be responsible for any Product loss directly attributable to Owner's receipt or Throughput of Product based upon erroneous shipping instructions.
4.3 Subject to the restrictions of Attachment “A”, 4.8 Owner will deliver to Customer, or to its Affiliates, or to such Third Parties as Customer may direct, the Product held by Owner on at the System Terminals for the account of Customer. Customer is responsible for providing to Owner documentation required to authorize deliveries of Product for or on its behalf from the SystemTerminals.
4.4 Owner will provide System gathering, transportation, storage and terminalling 4.9 The services to Customer be provided by Owner pursuant to this Agreement are to be provided only with respect to Product. Customer Customer's Product and will have access be provided with respect to the System for other products only with the prior written notice to and consent by of Owner. Any other product approved by Owner will then become part of “Product” as defined in this Agreement. If a special method of providing terminal, storage, gatheringstoring or handling Product is required, or transportation services is required for Productif Customer requests a swing of Tank capacity, then Customer must notify Owner in sufficient time to enable Owner to consider whether, in Owner’s sole discretion, whether it will accept or reject the proposed changes in the Product to be stored or the method of delivering storing or handling the services Product and to take the necessary preparatory measures if it agrees with Owner accepts such changes. Absent such notice and absent Owner’s written approval with respect to changes ; provided, however, that if Owner determines in good faith that a change in the Product or Tank lineup would have a negative impact upon the method normal operation of delivering the servicesTerminal, Owner may, as noted above, reject Customer's request. Failing such notice, Owner will not be liable for losses or damage incurred during the gathering, transportation, storage and terminalling handling of the Products (except to the extent attributable to Owner's negligence or willful misconduct), including losses or damages which may be related to Owner's inability to employ the required method of storing or handling the Product, nor will Owner be obligated to provide such special terminal, storage, transportation or gathering storage and handling service. It is understood that in the cost event Owner agrees to swing Tanks (change service) at Customer's request, Customer shall reimburse Owner for all costs associated therewith. Typical costs associated with such changes may include, but are not limited to, those costs incurred when draining and cleaning Tanks and associated piping, performing piping and system modifications necessary to maintain and provide normal facility and load rack operations as well as modifications to Terminal automation systems necessitated by such changes. Owner will provide, if requested by Customer, a reasonable estimate of any additional or special equipment required by Customer or costs prior to a requested change of alterations made necessary by service. In no case shall the nature of Product, will estimate be for the account of Customerbinding, and Customer will be responsible reimburse Owner for the expense of any necessary cleaning and restoration to their previous condition of the Terminal or storage, transportation, and gathering equipment, including, without limitation, tanks, pipelines, trucks, pumps, hoses, meters, and loading facilities, unless otherwise explicitly stated in this Agreementactual expenses incurred. All fixtures, equipment and appurtenances attached to the tanksTanks, pipelines, trucks pipelines and other facilities of the System will be installed Terminals by the Owner either Party are and will remain the property of Owner. No such items may be installed by Customer without the prior written consent of Owner.
4.5 Within 10 days following 4.10 Following cancellation or termination of this Agreement (subject to any lien that Agreement, Customer shall reimburse Owner may have on Product), for all Product, residue, scale, costs commercially reasonable under the circumstances incurred by Owner in cleaning such Tanks and any other accumulation will be removed from Owner’s tanks, pipelines and trucks and other System assets. Tank, truck and pipeline interiors then in use will be cleaned to a condition suitable for the storage of similar Productthe grade of Product most recently stored in such Tanks as of such termination date. If Customer shall not have removed Customer's Product from the Tanks and/or pipelines within ten (10) Business Days from the date of cancellation or termination of this Agreement, Customer agrees to reimburse Owner for all costs and expenses reasonably incurred by Owner for in taking such removal and cleaning action, plus a 15% [**] handling fee, as well as the cost of storage and handling of the Product removed, if any, at a the rate of $0.01 [**] per Barrel per day in addition to any other fees due hereunder. Nothing herein, which fees and rates will continue to be charged if Customer however, shall not detract from any lien that Owner may have removed the Product from the tanks within 10 days from the date of termination hereof.
4.6 If at any Governmental Authority requires installation of any improvement, alteration or addition to any Terminal, tank, truck, pipeline or other equipment time on the System for purposes of compliance with Applicable Law, and if the installation would require Owner to make substantial and unanticipated capital expenditures, other than continued maintenance and capital expenditures not affected by such requirement, Owner will be entitled to impose a reasonable service surcharge in addition to the fees set out in Attachment “A”Product. Owner will notify Customer of (i) the cost of making any such improvement, alteration or addition, after Owner’s efforts to mitigate such costs, (ii) when such improvement, alteration or addition must be completed, and (iii) the Owner’s reasonable estimate of the service surcharge related to the capital expenditure to be paid by Customer over the remaining Term. Owner will not be required to make any improvements, alterations or additions to the System in such circumstance, unless Customer agrees to pay the surcharge. If Customer elects, after negotiation with Owner in good faith, not to pay the surcharge and the Owner chooses not to pay for such improvement, alteration or addition, Owner may direct the affected Product to a mutually acceptable Terminal or storage, gathering or transportation facilities owned by Owner or its Affiliates. If Customer elects not to pay the surcharge, and if Owner does not direct the Product to mutually acceptable alternate facilities, either Party may terminate or release the affected System facilities from this Agreement, with an equivalent reduction of the fees set out on Attachment “A”, including the Minimum Use Commitment, by giving the other Party notice of its intention no later than thirty (30) days after Owner’s receipt of notice of Customer’s election not to pay the service surcharge. If Customer elects to pay the service surcharge, Owner shall proceed with the installation of the required improvement, alteration or addition. Owner will calculate the surcharge required to recover the portion of Owner’s costs for the improvement, alteration or addition attributable to Customer’s use of the impacted segment of the System. The portion of Owner’s costs to be recovered through the surcharge shall equal the percentage of total revenues from the impacted segment of the System attributable to Customer’s use of such System segment for the six (6) full Months preceding the date of Owner’s notice to Customer of the cost of the improvement, alteration or addition. Customer may pay the surcharge in equal monthly installments over the remaining Term. Within thirty (30) days after completion of the required improvement, addition or alteration, Customer may elect to pay the surcharge for the remaining Term in one lump sum. Owner shall calculate the cost of the improvement, alteration or addition and the surcharge using reasonable assumptions and estimates. In addition to actual capital and installation costs, the costs to be recovered through the surcharge will include engineering and interest expense (at a rate of 1% over the prime lending rate as reported in the Wall Street Journal on the date of completion of such installation) and subsequent reasonable expenses, if any, of operating or maintaining such installation as reasonably determined by Owner.
4.7 When the Product is specifically identified and kept separate from the product of other customers (“Segregated Service”), Customer will be responsible for providing all tank bottoms and line fill, and in all other cases, Customer will be responsible for providing its proportional share of tank bottoms and line fill. Customer will retain ownership of any portion or all of the tank bottoms and line fill it provides.**
Appears in 2 contracts
Samples: Terminaling Services Agreement, Terminaling Services Agreement (TransMontaigne Partners L.P.)
Operations, Receipts and Deliveries. 4.1 Customer’s Stock may be delivered and its Product will be gatheredreceived by Owner at the Refinery via pipeline, transported, terminalled and stored using the modes rail or truck or on behalf of transportation and storage facilities, and Customer will pay for such services based on the charges, including the Minimum Use Commitment charges, specified in Attachment “A” . free of any charge to Owner.
4.2 Receipts and deliveries of Product by the Owner will be handled within the normal business hours of the System Refinery, as set forth on Attachment “A”. Owner may, without Customer’s approval, make temporary changes in business hours or temporarily close any System asset because of an extraordinary event. Owner will notify Customer of such temporary changes or closure in advance, or as soon after implementation as is practicablemay be established from time to time. Owner will not be responsible for the payment of any demurrage or costs incurred by Customer or its transportation carrier for any delay in receiving Stock or delivering Product or any other costs or feesthe Product, and all such charges shall be the responsibility of the Customer.
4.2 4.3 Owner will notify Customer of changes to the normal business hours of the Refinery, in advance or as soon after implementation as is practicable.
4.4 Owner and Customer shall perform all activities specified herein in accordance with all applicable federal, state and local laws, rules, regulations, ordinances, decrees, orders, permits, licenses or other requirements having the force of law.
4.5 Customer must arrange for and pay all Third Party third party costs related relating to the receipt or transportation, receipt, delivery and packaging of Customer’s Product all Stock and Products of Customer which are delivered to and from the System. Owner is not responsible for such Third Party costs. Unless otherwise provided by Owner in writing, Customer must provide notice reasonably acceptable to Owner (in accordance with Section 13) containing all necessary shipping instructions, including without limitation, the identity and quantity and any other specifications of the Product and the tentative date of delivery to the System (the “Scheduling Notice”). Notwithstanding Section 13, such communication may be effected, with Owner’s consent, by telephone or facsimileRefinery.
4.3 Subject to the restrictions of Attachment “A”, Owner will deliver to Customer, or to such Third Parties as Customer may direct, the Product held by Owner on the System for the account of Customer. Customer is responsible for providing to Owner documentation required to authorize deliveries for or on its behalf from the System.
4.4 Owner will provide System gathering, transportation, storage and terminalling services to Customer only with respect to Product. Customer will have access to the System for other products only with prior written notice to and consent by Owner. Any other product approved by Owner will then become part of “Product” as defined in this Agreement. If a special method of providing terminal, storage, gathering, or transportation services is required for Product, then Customer must notify Owner in sufficient time to enable Owner to consider whether, in Owner’s sole discretion, it will accept the proposed changes in the method of delivering the services and to take the necessary preparatory measures if it agrees with such changes. Absent such notice and absent Owner’s written approval with respect to changes in the Product or the method of delivering the services, Owner will not be liable for losses or damage incurred during the gathering, transportation, storage and terminalling of Product, nor will Owner be obligated to provide such special terminal, storage, transportation or gathering service. It is understood that the cost of any additional or special equipment required by Customer or of alterations made necessary by the nature of Product, will be for the account of Customer, and Customer will be responsible for the expense of any necessary cleaning and restoration to their previous condition of the Terminal or storage, transportation, and gathering equipment, including, without limitation, tanks, pipelines, trucks, pumps, hoses, meters, and loading facilities, unless otherwise explicitly stated in this Agreement. All fixtures, equipment and appurtenances attached to the tanks, pipelines, trucks and other facilities of the System will be installed by the Owner and will remain the property of Owner.
4.5 4.6 Within 10 45 days following termination of this Agreement (subject Agreement, Customer, at its sole cost and expense, will remove and properly dispose of, or cause to any lien that Owner may have on Product)be removed and properly disposed of all Stock, all Product, residue, scale, non-merchantable bottoms, and any other accumulation will be removed from Owner’s the Refinery which constitute property of Customer, including the storage tanks and clean the storage tanks, pipelines and trucks and other System assets. Tank, truck and pipeline interiors then in use will be cleaned ’ interior to a condition suitable for the storage of similar ProductStock and Product as is typical for the Refinery. If Customer shall fails to comply with this requirement within the time period referenced, Customer authorizes Owner to either (i) take such action on Customer’s behalf, and Customer will reimburse Owner for all costs cost and expenses expense reasonably incurred by Owner for in taking such removal and cleaning action, plus a 15% handling fee, as well as and (ii) charge Customer for the cost of storage and handling of the said Product removed, if any, at a rate of $0.01 0.02 per Barrel barrel per day storage in addition to any other fees due hereunderand rates payable to Owner by Customer under this Agreement, which fees and rates will continue to be charged apply if Customer shall not have removed the Product from has not been removed by Customer within the tanks within 10 days from the date of termination hereofaforesaid 45-day period. Owner's remedies under this Section 4.6 are in addition to any other remedies that Owner may have at law, in equity or otherwise.
4.6 4.7 Owner will not be required to make any improvements, alterations or additions to the Refinery in connection with the provision of the Refining Services. If any Governmental Authority federal, state or local governmental body requires installation of any improvement, alteration or addition to any Terminal, tank, truck, pipeline or other equipment on the System Refinery for purposes of compliance with Applicable Lawapplicable law or regulation that would materially interfere with or change the nature or cost of providing the Refining Services under this Agreement, and if the installation would require Owner to make substantial and unanticipated capital expenditures, other than continued maintenance and capital expenditures not affected by such requirement, Owner will be entitled to impose a reasonable service surcharge in addition to the fees set out in Attachment “A”. Owner will notify Customer of (i) the cost of making any such improvement, alteration or addition, after Owner’s efforts to mitigate such costs, and (ii) when such improvement, alteration or addition must be completed. In the event such costs are $100,000 or less, and (iii) the Owner’s reasonable estimate of the service surcharge related to the capital expenditure to be paid by Customer over the remaining Term. Owner will not be required shall proceed to make any such required improvements, alterations or additions. In the event such costs exceed $100,000, Owner and Customer agree to renegotiate the terms of this Agreement in good faith to effect a sharing of such costs. In addition, Owner may, in its discretion, make such improvements, alterations or additions to the System in Refinery as it may from time to time deem necessary, provided that such circumstance, unless Customer agrees to pay the surcharge. If Customer elects, after negotiation with Owner in good faith, discretionary alterations due not to pay the surcharge and the Owner chooses not to pay for such improvement, alteration or addition, Owner may direct the affected Product to a mutually acceptable Terminal or storage, gathering or transportation facilities owned by Owner or its Affiliates. If Customer elects not to pay the surcharge, and if Owner does not direct the Product to mutually acceptable alternate facilities, either Party may terminate or release the affected System facilities from this Agreement, with an equivalent reduction of the fees set out on Attachment “A”, including the Minimum Use Commitment, by giving the other Party notice of its intention no later than thirty (30) days after Owner’s receipt of notice of Customer’s election not to pay the service surcharge. If Customer elects to pay the service surcharge, Owner shall proceed interfere with the installation provision of the required improvement, alteration or addition. Owner will calculate the surcharge required to recover the portion of Owner’s costs for the improvement, alteration or addition attributable to Customer’s use of the impacted segment of the System. The portion of Owner’s costs to be recovered through the surcharge shall equal the percentage of total revenues from the impacted segment of the System attributable to Customer’s use of such System segment for the six (6) full Months preceding the date of Owner’s notice to Customer of the cost of the improvement, alteration or addition. Customer may pay the surcharge in equal monthly installments over the remaining Term. Within thirty (30) days after completion of the required improvement, addition or alteration, Customer may elect to pay the surcharge for the remaining Term in one lump sum. Owner shall calculate the cost of the improvement, alteration or addition and the surcharge using reasonable assumptions and estimates. In addition to actual capital and installation costs, the costs to be recovered through the surcharge will include engineering and interest expense (at a rate of 1% over the prime lending rate as reported in the Wall Street Journal on the date of completion of such installation) and subsequent reasonable expenses, if any, of operating or maintaining such installation as reasonably determined by OwnerRefining Services hereunder.
4.7 When the Product is specifically identified and kept separate from the product of other customers (“Segregated Service”), Customer will be responsible for providing all tank bottoms and line fill, and in all other cases, Customer will be responsible for providing its proportional share of tank bottoms and line fill. Customer will retain ownership of any portion or all of the tank bottoms and line fill it provides.
Appears in 2 contracts
Samples: Tolling Agreement (Martin Midstream Partners L.P.), Tolling Agreement (Martin Midstream Partners Lp)
Operations, Receipts and Deliveries. 4.1 Customer’s Stock may be delivered and its Product will be gatheredreceived by Owner at the Refinery via pipeline, transported, terminalled and stored using the modes rail or truck or on behalf of transportation and storage facilities, and Customer will pay for such services based on the charges, including the Minimum Use Commitment charges, specified in Attachment “A” . free of any charge to Owner.
4.2 Receipts and deliveries of Product by the Owner will be handled within the normal business hours of the System Refinery, as set forth on Attachment “A”. Owner may, without Customer’s approval, make temporary changes in business hours or temporarily close any System asset because of an extraordinary event. Owner will notify Customer of such temporary changes or closure in advance, or as soon after implementation as is practicablemay be established from time to time. Owner will not be responsible for the payment of any demurrage or costs incurred by Customer or its transportation carrier for any delay in receiving Stock or delivering Product or any other costs or feesthe Product, and all such charges shall be the responsibility of the Customer.
4.2 4.3 Owner will notify Customer of changes to the normal business hours of the Refinery, in advance or as soon after implementation as is practicable.
4.4 Owner and Customer shall perform all activities specified herein in accordance with all applicable federal, state and local laws, rules, regulations, ordinances, decrees, orders, permits, licenses or other requirements having the force of law.
4.5 Customer must arrange for and pay all Third Party third party costs related relating to the receipt or transportation, receipt, delivery and packaging of Customer’s Product all Stock and Products of Customer which are delivered to and from the System. Owner is not responsible for such Third Party costs. Unless otherwise provided by Owner in writing, Customer must provide notice reasonably acceptable to Owner (in accordance with Section 13) containing all necessary shipping instructions, including without limitation, the identity and quantity and any other specifications of the Product and the tentative date of delivery to the System (the “Scheduling Notice”). Notwithstanding Section 13, such communication may be effected, with Owner’s consent, by telephone or facsimileRefinery.
4.3 Subject to the restrictions of Attachment “A”, Owner will deliver to Customer, or to such Third Parties as Customer may direct, the Product held by Owner on the System for the account of Customer. Customer is responsible for providing to Owner documentation required to authorize deliveries for or on its behalf from the System.
4.4 Owner will provide System gathering, transportation, storage and terminalling services to Customer only with respect to Product. Customer will have access to the System for other products only with prior written notice to and consent by Owner. Any other product approved by Owner will then become part of “Product” as defined in this Agreement. If a special method of providing terminal, storage, gathering, or transportation services is required for Product, then Customer must notify Owner in sufficient time to enable Owner to consider whether, in Owner’s sole discretion, it will accept the proposed changes in the method of delivering the services and to take the necessary preparatory measures if it agrees with such changes. Absent such notice and absent Owner’s written approval with respect to changes in the Product or the method of delivering the services, Owner will not be liable for losses or damage incurred during the gathering, transportation, storage and terminalling of Product, nor will Owner be obligated to provide such special terminal, storage, transportation or gathering service. It is understood that the cost of any additional or special equipment required by Customer or of alterations made necessary by the nature of Product, will be for the account of Customer, and Customer will be responsible for the expense of any necessary cleaning and restoration to their previous condition of the Terminal or storage, transportation, and gathering equipment, including, without limitation, tanks, pipelines, trucks, pumps, hoses, meters, and loading facilities, unless otherwise explicitly stated in this Agreement. All fixtures, equipment and appurtenances attached to the tanks, pipelines, trucks and other facilities of the System will be installed by the Owner and will remain the property of Owner.
4.5 4.6 Within 10 45 days following termination of this Agreement (subject Agreement, Customer, at its sole cost and expense, will remove and properly dispose of, or cause to any lien that Owner may have on Product)be removed and properly disposed of all Stock, all Product, residue, scale, non-merchantable bottoms, and any other accumulation will be removed from Owner’s the Refinery which constitute property of Customer, including the storage tanks and clean the storage tanks, pipelines and trucks and other System assets. Tank, truck and pipeline interiors then in use will be cleaned ’ interior to a condition suitable for the storage of similar ProductStock and Product as is typical for the Refinery. If Customer shall fails to comply with this requirement within the time period referenced, Customer authorizes Owner to either (i) take such action on Customer’s behalf, and Customer will reimburse Owner for all costs cost and expenses expense reasonably incurred by Owner for in taking such removal and cleaning action, plus a 15% handling fee, as well as and (ii) charge Customer for the cost of storage and handling of the said Product removed, if any, at a rate of $0.01 0.02 per Barrel barrel per day storage in addition to any other fees due hereunderand rates payable to Owner by Customer under this Agreement, which fees and rates will continue to be charged apply if Customer shall not have removed the Product from has not been removed by Customer within the tanks within 10 days from the date of termination hereofaforesaid 45-day period. Owner’s remedies under this Section 4.6 are in addition to any other remedies that Owner may have at law, in equity or otherwise.
4.6 4.7 Owner will not be required to make any improvements, alterations or additions to the Refinery in connection with the provision of the Refining Services. If any Governmental Authority federal, state or local governmental body requires installation of any improvement, alteration or addition to any Terminal, tank, truck, pipeline or other equipment on the System Refinery for purposes of compliance with Applicable Lawapplicable law or regulation that would materially interfere with or change the nature or cost of providing the Refining Services under this Agreement, and if the installation would require Owner to make substantial and unanticipated capital expenditures, other than continued maintenance and capital expenditures not affected by such requirement, Owner will be entitled to impose a reasonable service surcharge in addition to the fees set out in Attachment “A”. Owner will notify Customer of (i) the cost of making any such improvement, alteration or addition, after Owner’s efforts to mitigate such costs, and (ii) when such improvement, alteration or addition must be completed. In the event such costs are $100,000 or less, and (iii) the Owner’s reasonable estimate of the service surcharge related to the capital expenditure to be paid by Customer over the remaining Term. Owner will not be required shall proceed to make any such required improvements, alterations or additions. In the event such costs exceed $100,000, Owner and Customer agree to renegotiate the terms of this Agreement in good faith to effect a sharing of such costs. In addition, Owner may, in its discretion, make such improvements, alterations or additions to the System in Refinery as it may from time to time deem necessary, provided that such circumstance, unless Customer agrees to pay the surcharge. If Customer elects, after negotiation with Owner in good faith, discretionary alterations due not to pay the surcharge and the Owner chooses not to pay for such improvement, alteration or addition, Owner may direct the affected Product to a mutually acceptable Terminal or storage, gathering or transportation facilities owned by Owner or its Affiliates. If Customer elects not to pay the surcharge, and if Owner does not direct the Product to mutually acceptable alternate facilities, either Party may terminate or release the affected System facilities from this Agreement, with an equivalent reduction of the fees set out on Attachment “A”, including the Minimum Use Commitment, by giving the other Party notice of its intention no later than thirty (30) days after Owner’s receipt of notice of Customer’s election not to pay the service surcharge. If Customer elects to pay the service surcharge, Owner shall proceed interfere with the installation provision of the required improvement, alteration or addition. Owner will calculate the surcharge required to recover the portion of Owner’s costs for the improvement, alteration or addition attributable to Customer’s use of the impacted segment of the System. The portion of Owner’s costs to be recovered through the surcharge shall equal the percentage of total revenues from the impacted segment of the System attributable to Customer’s use of such System segment for the six (6) full Months preceding the date of Owner’s notice to Customer of the cost of the improvement, alteration or addition. Customer may pay the surcharge in equal monthly installments over the remaining Term. Within thirty (30) days after completion of the required improvement, addition or alteration, Customer may elect to pay the surcharge for the remaining Term in one lump sum. Owner shall calculate the cost of the improvement, alteration or addition and the surcharge using reasonable assumptions and estimates. In addition to actual capital and installation costs, the costs to be recovered through the surcharge will include engineering and interest expense (at a rate of 1% over the prime lending rate as reported in the Wall Street Journal on the date of completion of such installation) and subsequent reasonable expenses, if any, of operating or maintaining such installation as reasonably determined by OwnerRefining Services hereunder.
4.7 When the Product is specifically identified and kept separate from the product of other customers (“Segregated Service”), Customer will be responsible for providing all tank bottoms and line fill, and in all other cases, Customer will be responsible for providing its proportional share of tank bottoms and line fill. Customer will retain ownership of any portion or all of the tank bottoms and line fill it provides.
Appears in 2 contracts
Samples: Tolling Agreement (Martin Midstream Partners Lp), Tolling Agreement (Martin Midstream Partners Lp)
Operations, Receipts and Deliveries. 4.1 Customer’s Product will be gathered, transported, terminalled and stored using delivered to the modes Terminal free of transportation and storage facilities, and Customer will pay for such services based on the charges, including the Minimum Use Commitment charges, specified in Attachment “A” any charge to Owner. Receipts and deliveries of Product will be handled within the normal business operating hours of the System Terminal as set forth on Attachment “A”. Owner maymay make temporary changes in operating hours or temporarily close the Terminal because of an extraordinary event or maintenance, without Customer’s approval, make temporary changes in business hours or temporarily close any System asset because of an extraordinary event. Owner will notify Customer of such temporary changes or closure in advance, or as soon after implementation as is practicable. Owner will notify Customer of any planned maintenance at least seven (7) days prior to altering business hours or restricting deliveries or sales. Vessels, railroad tank cars, and tank trucks will be loaded and unloaded on first come, first serve basis and Owner will not be responsible for the payment of any demurrage or costs incurred by Customer or its transportation carrier for any delay delays in receiving receipt or delivering throughput of the Product or any other costs or feesfees in connection with receipt or throughput of the Product that are not the fault of the Owner. Owner shall be responsible for demurrage costs incurred and paid by Customer or its transportation carrier for delays in receipt or throughput of the Product, or other costs or fees incurred and paid by Customer in connection with receipt or throughput of the Product if the Owner is responsible for the delay or cost as a result of mechanical malfunction, lack of manpower, Product spill or release, or other cause determined to be within the reasonable control of the Owner.
4.2 Customer must arrange for and pay all Third Party costs related to the receipt or delivery of Customer’s Product to and from the SystemTerminal. Owner is not responsible for such Third Party costsonly to receive or throughput, as the case may be, the Product at its Terminal. Owner shall also provide personnel required to load trucks at the Port Everglades Terminals at rates specified in Attachment “A”, Section 5.K., except on designated holidays as described in Attachment “A”. On those designated holidays, vessels will be handled at the rates described in Attachment “A”. Unless otherwise provided by to Owner in writing, Customer must provide notice reasonably acceptable to Owner (in accordance with Section 13) containing all necessary shipping instructions, including without limitation, the identity and quantity and any other specifications of the Product and the tentative date of delivery to the System arrival date(s) (the “Scheduling Arrival Notice”). Notwithstanding Section 13If this Agreement involves marine receipts or throughput of Product, such communication Owner will advise Customer concerning the Vessel that may be effectedberthed, with Owner’s consentincluding its maximum size, by telephone draw, draft and length, the docks and associated positions to be used for each Product movement, as well as the minimum and maximum pumping rates or facsimilepressure, as applicable, or both. Owner and/or the applicable port authority may change Vessel limitation, dock designation, and pumping rates and pressure criteria from time to time upon prior reasonable notice to Customer. If Owner determines that a Vessel, truck or railroad car is unsuitable for shipment of Products, as Owner deems appropriate, Owner may refuse to load or unload such equipment and will advise the carrier and Customer of the situation immediately, and request further instructions from the Customer. It is the responsibility of Customer to notify the appropriate Governmental Authorities regarding Vessel arrivals.
4.3 If Customer requires any change in the shipping instructions, including, without limitation, the identity and timing of the Product, Customer must provide notice of any change in the Arrival Notice (in accordance with Section 13) to the Owner and the Terminal before the arrival of the Product at the Terminal. Upon receipt of Customer’s shipping instructions, Owner will immediately advise Customer of the Terminal’s availability. If the Terminal will not be available to receive or deliver Customer’s Product on the communicated arrival date, Owner will advise as to the earliest time when Customer’s Product may be received or delivered at the Terminal. Customer will ensure that confirmation of the arrival date(s) and time of the Product will be communicated to Owner and the Terminal by Customer’s carrier periodically, at intervals of at least 48, 24 and 12 hours in advance of the anticipated date and time of arrival of the Product. If Customer fails to provide Owner and the Terminal the notice containing shipping instructions in the form and manner required by this Section 4.3, Owner will not be obligated to receive or deliver Customer’s Product. Owner will not be responsible for any Product Loss directly attributable to Owner’s receipt or delivery of Product based upon erroneous shipping instructions, the notice of which is timely received by Owner in accordance with this Section 4.3.
4.4 If any of Customer’s Vessels (a) fails to vacate a dock upon completion of loading or discharge, (b) fails to discharge or load a barge within twenty-four (24) hours or within thirty-six (36) hours for an ocean going barge or vessel, or (c) fails to vacate in order to conduct repairs, then, after having been notified by Owner to vacate, Customer shall be responsible for the cost applicable to the berths together with any costs incurred by any Vessel which would otherwise be occupying such dock but for the failure of Customer’s Vessel to vacate, save and except any such costs arising due to delay caused by Owner.
4.5 Subject to the restrictions of Attachment “A”Product Loss, Owner will deliver to Customer, or to such Third Parties as Customer may direct, the Product held by Owner on at the System Terminal for the account of Customer. Customer is responsible for providing to Owner documentation required to authorize deliveries for or on its behalf from the SystemTerminal and only to properly qualified individuals who have complied with the terms of Section 11.
4.4 Owner will provide System gathering, transportation, 4.6 Customer may use the Tanks only for storage of Customer’s Product and terminalling services to Customer only with respect to Product. Customer will have access to may use the System Tanks for storage of other products only with the prior written notice to and consent by of Owner. Any other product approved by Owner will then become part of “Product” as defined in this Agreement. If a special method of providing terminal, storage, gathering, storing or transportation services handling Product is required for Productrequired, then Customer must notify Owner in sufficient time to enable Owner to consider whether, in Owner’s sole discretion, whether it will accept the proposed changes in the Product stored or the method of delivering storing or handling the services Product and to take the necessary preparatory measures if it agrees with such changes. Absent Failing such notice and absent Owner’s written approval with respect to changes in the Product or the method of delivering the servicesnotice, Owner will not be liable for losses or damage incurred during the gathering, transportation, storage and terminalling handling of Productthe Products, nor will Owner be obligated to provide such special terminal, storage, transportation or gathering storage and handling service. It is understood that the cost of any additional or special equipment required by Customer or of alterations made necessary by the nature of Customer’s Product, will be for the account of Customer, Customer and Customer will be responsible for the expense of any necessary cleaning and restoration to their previous condition of the Terminal or storage, transportation, storage and gathering handling equipment, including, without limitation, tanksTanks, pipelines, trucks, pumps, hoses, meters, and loading facilitiesarms, unless otherwise explicitly stated in this Agreement. All fixtures, equipment and appurtenances attached to the tanksTanks, pipelines, trucks pipelines and other facilities of the System will be installed Terminal by the Owner either Party are and will remain the property of Owner. No such items may be installed by Customer without the prior written consent of Owner.
4.5 (a) Upon execution of this Agreement, Customer agrees to purchase from Owner any existing, on specification Product inventory at the Port Manatee and Jacksonville Terminals at a price of $150/ton up to a maximum of $1,500,000. On May 1, 2006, Customer agrees to purchase from Owner any existing tank inventory at the Cape Canaveral and Port Everglades Terminals at a price of $130/ton up to a maximum $1,300,000. In the case of Port Everglades and Cape Canaveral, if the Product is off specification, Customer and Owner will negotiate a different price in good faith.
(b) Within 10 days ten (10) Business Days following termination or cancellation of this Agreement (subject to any lien that Owner may have on the Product), Customer will remove and properly dispose of all Product, including Product tank bottoms and line fill, residue, scale, and any other accumulation will be removed from Owner’s tanks, the Tank and pipelines and trucks clean both Tank interior and other System assets. Tank, truck and pipeline interiors pipelines then in use will be cleaned for Customer’s Product to a condition suitable for the storage of similar ProductNo. 6 Oil. Customer shall reimburse Owner for all costs and expenses reasonably incurred by Owner for in taking such removal and cleaning action, plus a 15% handling fee, as well as the cost of storage and handling of the Product removed, if any, at a rate of $0.01 0.03 per Barrel per day in addition to any other fees due hereunder, which fees and Business rates will continue to be charged if Customer shall not have removed the Customer’s Product from the tanks Tanks within 10 days ten (10) Business Days from the date of cancellation or termination hereofof this Agreement.
4.6 (c) Subject to the provision of Section 4.7(b) above, upon termination or cancellation of this Agreement, Owner shall have the option of purchasing any of Customer’s Product remaining at the Port Manatee Terminal or the Jacksonville Terminal for $165/ton and the Cape Canaveral Terminal or the Port Everglades Terminal at a price of $135/ton. If Owner elects to purchase remaining Product at any Terminal, Section 4.7(b) will not apply.
4.8 If any Governmental Authority requires installation of any improvement, alteration or addition to any Terminal, tank, truck, pipeline Tank or other equipment on at the System Terminal for purposes of compliance with Applicable Law, and if the installation Law that would require Owner to make substantial and unanticipated capital expenditures, other than continued maintenance and capital expenditures not affected by such requirement, Owner will be entitled to impose a reasonable service surcharge in addition to the fees set out in Attachment “A”. Owner will notify Customer of (ia) the cost of making any such improvement, alteration or addition, after Owner’s efforts to mitigate such costs, (iib) when such improvement, alteration or addition must be completed, and (iiic) the OwnerCustomer’s reasonable estimate share of the service surcharge related to the capital expenditure to be paid by Customer over the remaining Termsuch costs. Owner will not be required to make any improvements, alterations or additions to the System Terminal in such circumstance, circumstance unless Customer either agrees to pay its share of such costs in the surchargemanner provided below or agrees in good faith with Owner for a ratable surcharge to serve as a monthly fee increase. If Customer elects, after negotiation with Owner in good faith, not to pay the surcharge share in such costs and the Owner chooses not to pay for such improvement, alteration or addition, Owner may direct the affected Product to a mutually acceptable Terminal or storage, gathering or transportation facilities owned by Owner or its Affiliates. If Customer elects not to pay the surchargeaddition in lieu thereof, and if Owner does not direct the affected Product to mutually acceptable alternate facilitiesterminal assets owned by Owner or its Affiliates, either Party may terminate or release the affected System facilities or Tanks from this Agreement, with an equivalent reduction of the fees set out on Attachment “A”, including the Minimum Use Commitmentherein, by giving the other Party notice of its intention no later than thirty (30) calendar days after Owner’s receipt of notice of Customer’s election not to pay the service surchargeshare in such costs. If Customer elects to pay the service surchargeits share of such costs, Owner shall likewise pay its share of such costs and proceed with the installation of the required improvement, alteration or addition. Owner will calculate the surcharge required to recover the portion of Owner’s costs for the improvement, alteration or addition attributable to Customer’s use of the impacted segment of the System. The portion of Owner’s costs to be recovered through the surcharge shall equal the percentage of total revenues from the impacted segment of the System attributable to Customer’s use of such System segment for the six (6) full Months preceding the date of Owner’s notice to Customer of the cost of the improvement, alteration or addition. Customer may pay the surcharge in equal monthly installments over the remaining Term. Within thirty (30) days after completion of the required improvement, addition or alteration, Customer may elect to either pay its proportionate share of such costs in one lump sum or pay its proportionate share of the surcharge for costs on a prorated Monthly basis over the remaining Term in one lump sum. Owner shall calculate the cost of the improvement, alteration or addition and the surcharge using reasonable assumptions and estimatesthis Agreement. In addition to actual capital and installation costs, the these costs to be recovered through the surcharge will include engineering and interest expense (at a rate of 13% over the prime lending rate as reported in the Wall Street Journal Interest Rate on the date of completion of such installation) installation and subsequent reasonable expenses, if any, of operating or maintaining such installation as reasonably determined by Ownerinstallation.
4.7 When the Product is specifically identified and kept separate from the product of other customers (“Segregated Service”), Customer will be responsible for providing all tank bottoms and line fill, and in all other cases, Customer will be responsible for providing its proportional share of tank bottoms and line fill. Customer will retain ownership of any portion or all of the tank bottoms and line fill it provides.
Appears in 1 contract
Samples: Terminaling Services Agreement (TransMontaigne Partners L.P.)
Operations, Receipts and Deliveries. 4.1 Customer’s Product will be gathered, transported, terminalled and stored using the modes of transportation and storage facilities, and Customer will pay for such services based on the charges, including the Minimum Use Commitment charges, specified in Attachment “A” . Receipts and deliveries of Product will be handled within the normal business hours of the System Asphalt Facilities (subject to Article XII). Except as set forth on Attachment “A”. Owner mayrequired pursuant to Section 4.2, without Customer’s approvalSection 8.2 or Article XXIII of this Agreement, make temporary changes in business hours or temporarily close any System asset because of an extraordinary event. Owner will notify Customer of such temporary changes or closure in advance, or as soon after implementation as is practicable. Owner will not be responsible for the payment of any costs Losses incurred by Customer or its transportation carrier for any delay in receiving or delivering Product or any other costs or feesProduct.
4.2 Customer assumes the risks of access to the loading facilities and is responsible for arranging for and bearing any costs associated with accessing the loading facilities.
4.3 Except as set forth in Section 2.2, Customer must arrange for and pay all Third Party costs related to the receipt or delivery of Customer’s Product to the Asphalt Facilities and from the SystemAsphalt Facilities back to Customer. Owner is not responsible for such Third Party costscosts except as otherwise specifically provided herein. Unless otherwise provided by Owner in writing, Customer must provide written notice reasonably acceptable to Owner (in accordance with Section 13) containing all necessary shipping instructionsinstructions related to the delivery, including without limitationhandling, and redelivery of Product, including, the identity and quantity and any other specifications of the Product Materials and the tentative date of delivery to the System Asphalt Facilities (the “Scheduling Notice”). Notwithstanding Section 13The Parties shall reasonably coordinate with each other in advance with regard to scheduling of all Material movements and the in-bound quality, volume and grade, the times of delivery, and all material movement prior to shipment of all Materials delivered to Owner hereunder. Each Scheduling Notice delivered hereunder by Customer for deliveries of Material to the Asphalt Facilities shall be sent to those individuals that Owner has specified to Customer to receive such communication may be effected, Scheduling Notice with Owner’s consent, by telephone or facsimilerespect to such Material delivery.
4.3 Subject to the restrictions of Attachment “A”, 4.4 Owner will deliver to Customer, Customer or to such Third Parties as Customer may direct, the Product held by Owner on the System for the account of Customer. Customer is responsible for all documentation required for receipt of Material into the Asphalt Facilities. Customer is responsible for providing to Owner documentation required to authorize deliveries for or on its behalf from the SystemAsphalt Facilities. Customer is responsible for maintaining any certificate of analysis or other documentation of product quality. Owner will not deliver any Product for the account of Customer that does not meet the product quality set forth in the Specifications.
4.4 4.5 Owner will provide System gathering, transportation, storage and terminalling services the Services to Customer only with respect to Productthe Products. Customer will have access to the System Asphalt Facilities for other materials and products only with prior written notice to and consent by Owner. Any other material or product approved by Owner will then become part of “Product” Product as defined in this Agreement. If a special method of providing terminal, storage, gathering, or transportation services the Services is required for a Product, then Customer must notify Owner in sufficient time to enable Owner to consider whether, in Owner’s sole discretion, it will accept the proposed changes in the method of delivering the services Services and to take the necessary preparatory measures if it agrees with such changes. Absent such notice and absent Owner’s written approval with respect to changes a change in the Product to another material or product or the method of delivering the servicesServices, Owner will not be liable for losses or damage Losses incurred during the gathering, transportation, terminalling and storage and terminalling of such Product, nor will Owner be obligated to provide Services or Additional Services with respect to such special terminal, storage, transportation or gathering serviceProduct. It is understood that the cost of any additional or special equipment required by Customer or of alterations made necessary by the nature of Product, a new or changed Product will be for the account of Customer, and . Customer will be responsible for the expense of any necessary cleaning and restoration to their previous condition of the Terminal or storage, transportation, and gathering equipmentAsphalt Facilities, including, without limitationif necessary, tanksremoval of all Products, pipelinesincluding raw materials, trucksintermediates, pumpsbyproducts, hosessludge and waste in the Storage Tanks, meters, as well as the pumps and loading facilities, unless otherwise explicitly stated in this Agreement. All fixtures, equipment and appurtenances attached to the tanks, pipelines, trucks and other facilities of the System will be Storage Tanks installed by the Owner and will remain the property of Owner.
4.5 Within 10 days following termination 4.6 For each calendar year during the Term, Owner shall prepare a plan (the “Proposed Tank Plan”) specifying, for each Quarter, (x) any schedule of this Agreement maintenance or restoration plans with respect to the Storage Tanks and (subject y) the aggregate available storage capacity (not to any lien that Owner may have on Product), all Product, residue, scale, and any other accumulation will be removed from Owner’s tanks, pipelines and trucks and other System assets. Tank, truck and pipeline interiors then in use will be cleaned to a condition suitable exceed the Maximum Storage Capacity Commitment) of the Storage Tanks for the storage of similar Productsuch Quarter. Customer shall reimburse Owner for all costs and expenses reasonably incurred by Owner for such removal and cleaning plus have a 15% handling fee, as well as the cost period of storage and handling 30 days from receipt of the Product removedProposed Tank Plan to approve the Proposed Tank Plan or propose modifications, if anysubject to Owner’s agreement, at a rate of $0.01 per Barrel per day in addition to any other fees due hereunderthe Proposed Tank Plan, which fees and rates will continue to be charged if Customer Owner shall not have removed the Product from the tanks within 10 days from the date of termination hereof.
4.6 If any Governmental Authority requires installation of any improvement, alteration or addition to any Terminal, tank, truck, pipeline or other equipment on the System for purposes of compliance with Applicable Law, and if the installation would require Owner to make substantial and unanticipated capital expenditures, other than continued maintenance and capital expenditures not affected by such requirement, Owner will be entitled to impose a reasonable service surcharge in addition to the fees set out in Attachment “A”. Owner will notify Customer of (i) the cost of making any such improvement, alteration or addition, after Owner’s efforts to mitigate such costs, (ii) when such improvement, alteration or addition must be completed, and (iii) the Owner’s reasonable estimate of the service surcharge related to the capital expenditure to be paid by Customer over the remaining Term. Owner will not be required to make any improvements, alterations or additions to the System in such circumstance, unless Customer agrees to pay the surcharge. If Customer elects, after negotiation with Owner consider in good faith, not to pay taking into account the surcharge and the Owner chooses not to pay for such improvement, alteration or addition, Owner may direct the affected Product to a mutually acceptable Terminal or storage, gathering or transportation facilities owned by Owner or its Affiliatesparties’ respective commercial requirements. If no modifications are proposed by Customer elects not during such 30 day period, the Proposed Tank Plan shall be deemed approved. The Proposed Tank Plan, as approved or deemed approved, together with any modifications thereto as Customer and Owner shall agree, is referred to pay herein as the surcharge, and if Owner does not direct the Product to mutually acceptable alternate facilities, either Party may terminate or release the affected System facilities from this Agreement, with an equivalent reduction “Tank Plan.” The aggregate available storage capacity of the fees Storage Tanks for any Quarter as set out on Attachment “A”, including the Minimum Use Commitment, by giving the other Party notice of its intention no later than thirty (30) days after Owner’s receipt of notice of Customer’s election not to pay the service surcharge. If Customer elects to pay the service surcharge, Owner shall proceed with the installation of the required improvement, alteration or addition. Owner will calculate the surcharge required to recover the portion of Owner’s costs for the improvement, alteration or addition attributable to Customer’s use of the impacted segment of the System. The portion of Owner’s costs to be recovered through the surcharge shall equal the percentage of total revenues from the impacted segment of the System attributable to Customer’s use of such System segment for the six (6) full Months preceding the date of Owner’s notice to Customer of the cost of the improvement, alteration or addition. Customer may pay the surcharge in equal monthly installments over the remaining Term. Within thirty (30) days after completion of the required improvement, addition or alteration, Customer may elect to pay the surcharge for the remaining Term in one lump sum. Owner shall calculate the cost of the improvement, alteration or addition and the surcharge using reasonable assumptions and estimates. In addition to actual capital and installation costs, the costs to be recovered through the surcharge will include engineering and interest expense (at a rate of 1% over the prime lending rate as reported forth in the Wall Street Journal on Tank Plan is referred to herein as the date of completion of such installation) and subsequent reasonable expenses, if any, of operating or maintaining such installation as reasonably determined by Owner“Minimum Storage Capacity Commitment.
4.7 When the Product is specifically identified and kept separate from the product of other customers (“Segregated Service”), Customer will be responsible for providing all tank bottoms and line fill, and in all other cases, Customer will be responsible for providing its proportional share of tank bottoms and line fill. Customer will retain ownership of any portion or all of the tank bottoms and line fill it provides.
Appears in 1 contract
Samples: Asphalt Services Agreement (Delek Logistics Partners, LP)
Operations, Receipts and Deliveries. 4.1 Customer’s Product will be gathered, transported, terminalled and stored using the modes of transportation and storage facilities, and Customer will pay for such services based on the charges, including the Minimum Use Commitment charges, charges specified in Attachment “A” ”. Receipts and deliveries of Product will be handled within the normal business hours of the System as set forth on Attachment “A”. Owner may, without Customer’s approval, make temporary changes in business hours or temporarily close any System asset because of an extraordinary eventevent (a “Temporary Event”). Owner will notify Customer of such temporary changes or closure Temporary Event in advance, or as soon after implementation as is practicable. Except as required pursuant to Section 15 or 18 of this Agreement, Owner will not be responsible for the payment of any costs incurred by Customer or its transportation carrier for any delay in receiving or delivering Product or any other costs or fees.
4.2 Customer must arrange for and pay all Third Party costs related to the receipt or delivery of Customer’s Product to and from the System. Owner is not responsible for such Third Party costscosts or any losses of Customer therefrom, except as required under Section 15 or 18 of this Agreement. Unless otherwise provided by Owner in writing, Customer must provide notice reasonably acceptable to Owner (in accordance with Section 13) containing all necessary shipping instructions, including without limitation, the identity and quantity and any other specifications of the Product and the tentative date of delivery to the System (the “Scheduling Notice”). Notwithstanding Section 13, such communication may be effected, with Owner’s consent, by telephone electronic mail or facsimile.
4.3 Subject to the restrictions of Attachment “A”, Owner will deliver to Customer, or to such Third Parties as Customer may direct, the Product held by Owner on the System for the account of Customer at the delivery point requested by Customer. Customer is responsible for providing to Owner documentation required to authorize deliveries for or on its behalf from the System.
4.4 Owner will provide System gathering, transportation, storage and terminalling services to Customer only with respect to Product. Customer will have access to the System for other products only with prior written notice to and consent by Owner. Any other product approved by Owner will then become part of “Product” as defined in this Agreement. If a special method of providing terminal, storage, gathering, or transportation services is required for Product, then Customer must notify Owner in sufficient time to enable Owner to consider whether, in Owner’s sole discretion, it will accept the proposed changes in the method of delivering the services and to take the necessary preparatory measures if it agrees with such changes. Absent such notice and absent Owner’s written approval with respect to changes in the Product or the method of delivering the services, Owner will not be liable for losses or damage incurred during the gathering, transportation, storage and terminalling of Product, nor will Owner be obligated to provide such special terminal, storage, transportation or gathering service. It is understood that the cost of any additional or special equipment required by Customer or of alterations made necessary by the nature of Product, will be for the account of Customer, and Customer will be responsible for the expense of any necessary cleaning and restoration to their previous condition of the Terminal or storage, transportation, and gathering equipment, including, without limitation, tanks, pipelines, trucks, pumps, hoses, meters, and loading facilities, unless otherwise explicitly stated in this Agreement. All fixtures, equipment and appurtenances attached to the tanks, pipelines, trucks and other facilities of the System will be installed by the Owner and will remain the property of Owner.
4.5 Within 10 days following termination of this Agreement (subject to any lien that Owner may have on Product), all Product, residue, scale, and any other accumulation will be removed from Owner’s tanks, pipelines and trucks and other System assets. Tank, truck and pipeline interiors then in use will be cleaned to a condition suitable for the storage of similar Product. Customer shall reimburse Owner for all costs and expenses reasonably incurred by Owner for such removal and cleaning plus a 15% handling fee, as well as the cost of storage and handling of the Product removed, if any, at a rate of $0.01 per Barrel per day in addition to any other fees due hereunder, which fees and rates will continue to be charged if Customer shall not have removed the Product from the tanks within 10 days from the date of termination hereof.
4.6 If any Governmental Authority requires installation of any improvement, alteration or addition to any Terminal, tank, truck, pipeline or other equipment on the System for purposes of compliance with Applicable Law, and if the installation would require Owner to make substantial and unanticipated capital expenditures, other than continued maintenance and capital expenditures not affected by such requirementrequirement (“Required Compliance Capital Expenditures”), and Owner elects not to make such Required Compliance Capital Expenditure(s) and thus can no longer operate the affected Terminal, tank, truck, pipeline or other equipment on the System needed to provide service on that potion of the System to Customer, Owner will be entitled to impose a reasonable terminate service surcharge in addition to on the fees set out in Attachment “A”. Owner will notify Customer of (i) the cost of making any such improvement, alteration or addition, after Owner’s efforts to mitigate such costs, (ii) when such improvement, alteration or addition must be completed, and (iii) the Owner’s reasonable estimate affected portion of the service surcharge related to the capital expenditure to be paid System under this Agreement by Customer over the remaining Term. Owner will not be required to make any improvements, alterations or additions to the System in such circumstance, unless Customer agrees to pay the surcharge. If Customer elects, after negotiation with Owner in good faith, not to pay the surcharge and the Owner chooses not to pay for such improvement, alteration or addition, Owner may direct the affected Product to a mutually acceptable Terminal or storage, gathering or transportation facilities owned by Owner or its Affiliates. If Customer elects not to pay the surcharge, and if Owner does not direct the Product to mutually acceptable alternate facilities, either Party may terminate or release the affected System facilities from this Agreement, with an equivalent reduction of the fees set out on Attachment “A”, including the Minimum Use Commitment, by giving the other Party notice of its intention no later than providing at least thirty (30) days after Owner’s receipt of prior written notice of to Customer’s election not to pay . Such notice will specify the service surcharge. If Customer elects to pay the service surcharge, Owner shall proceed with the installation of the required improvement, alteration or addition. services that Owner will calculate the surcharge required to recover the portion of Owner’s costs for the improvement, alteration or addition attributable to Customer’s use of the impacted segment of the System. The portion of Owner’s costs to be recovered through the surcharge shall equal the percentage of total revenues from the impacted segment of the System attributable to Customer’s use of such System segment for the six (6) full Months preceding no longer provide under this Agreement and the date of Owner’s notice to Customer of the cost of the improvement, alteration or addition. Customer may pay the surcharge in equal monthly installments over the remaining Term. Within thirty (30) days after completion of the required improvement, addition or alteration, Customer may elect to pay the surcharge for the remaining Term in one lump sum. Owner shall calculate the cost of the improvement, alteration or addition and the surcharge using reasonable assumptions and estimates. In addition to actual capital and installation costs, the costs to that such affected services will be recovered through the surcharge will include engineering and interest expense (at a rate of 1% over the prime lending rate as reported in the Wall Street Journal on the date of completion of such installation) and subsequent reasonable expenses, if any, of operating or maintaining such installation as reasonably determined by Ownerterminated.
4.7 When the Product is specifically identified and kept separate from the product of other customers (“Segregated Service”), Customer 4.6 Owner will be responsible for providing all tank bottoms and line fill, fill to ensure efficient operation of the System at Owner’s sole cost and expense.
4.7 Owner shall have no liability for not having available capacity in all other cases, Customer will be responsible for providing its proportional share of tank bottoms and line fill. Customer will retain ownership of any portion or the System to accommodate all of Customer’s Product as a result of System oversubscription, so long as to the tank bottoms and line fill it providesextent the System is oversubscribed, Owner will accept a pro rata portion of Customer’s Product on terms which are neither unduly discriminatory nor preferential to terms offered to other shippers.
Appears in 1 contract
Samples: Throughput Agreement (SemGroup Energy Partners, L.P.)
Operations, Receipts and Deliveries. 4.1 Customer’s Product will be gathered, transported, terminalled and stored using delivered to the modes Terminal via the mode of transportation and storage facilities, and Customer will pay for such services based on the charges, including the Minimum Use Commitment charges, specified identified in Attachment “A” free of any charge to Owner. Receipts and deliveries of Product will be handled within the normal business hours of the System Terminal as set forth on Attachment “A”. Owner may, without Customer’s approval, may make temporary changes in business hours or temporarily close any System asset Terminal because of an extraordinary eventevent without Customer’s approval. Owner will notify Customer of such temporary changes or closure in advance, or as soon after implementation as is practicable. Vessels will be loaded and unloaded on first come, first served basis and Owner will not be responsible for the payment of any demurrage or costs incurred by Customer or its transportation carrier for any delay in receiving or delivering the Product or any other costs or feesfees in connection with marine receipts and deliveries.
4.2 Customer must arrange for and pay all Third Party third party costs related to the receipt or delivery of Customer’s Product to and from the SystemTerminal. Owner is not responsible for such Third Party costsonly to receive or deliver, as the case may be, the Product at its Terminal. Unless otherwise provided by Owner in writing, Customer must provide notice reasonably acceptable to Owner (in accordance with Section 13) and to the Terminal containing all necessary shipping instructions, including without limitation, the identity and quantity and any other specifications of the Product and the tentative date of delivery to the System arrival date(s) (the “Scheduling Arrival Notice”). If this Agreement involves marine receipts or deliveries of Product, Owner will advise Customer concerning the limitations of the Vessel that may be berthed, including its maximum size, draw, draft and length, the docks and associated positions to be used for each Product movement, as well as the minimum pumping rates or pressure, as applicable, or both. Owner may change Vessel limitation, dock designation, and pumping rates and pressure criteria from time to time upon prior reasonable notice to Customer. If Owner determines that a Vessel is unsuitable for shipment of Products, as Owner deems appropriate, Owner may refuse to load or unload such equipment and will advise the carrier and Customer of the situation immediately, and request further instructions from the Customer. It is the responsibility of Customer to notify the appropriate authorities and agencies regarding Vessel arrivals. If Customer requires any change in the shipping instructions, including, without limitation, the identity of the Product, Customer must provide notice (in accordance with Section 13) to the Owner and the Terminal (See Section 2, Terminal and Owner Address of Attachment “A”) before the arrival of the Product at the Terminal. Upon receipt of Customer’s shipping instructions, Owner and the Terminal will immediately advise Customer of the Terminal’s availability. If the Terminal will not be available to receive or deliver Customer’s Product on the communicated arrival date, Owner will advise as to the earliest time when Customer’s Product may be received or delivered at the Terminal. Customer will ensure that confirmation of the arrival date(s) and time of the Product will be communicated to Owner and the Terminal by Customer’s carrier periodically, at intervals of at least 48, 24 and 12 hours in advance of the anticipated date and time of arrival of the Product. Notwithstanding Section 13, such communication may be effected, with Owner’s consent, effected by telephone or facsimile.
4.3 If any of Customer’s Vessels (i) fails to vacate a dock upon completion of loading or discharge, (ii) fails to discharge or load a barge within twenty-four (24) hours or within thirty-six (36) hours for an ocean going barge or vessel, or (iii) fails to vacate in order to conduct repairs, then, after having been notified by Owner to vacate, Customer shall be responsible for the cost applicable to the berths along with any costs incurred by any Vessels which would otherwise be occupying such dock but for the failure of Customer’s Vessel to vacate, save and except any such costs arising due to delay caused by Owner.
4.4 Subject to the restrictions of Attachment “A”” and the Product Loss Tolerance and Product Loss, Owner will deliver to Customer, or to such Third Parties as Customer may direct, the Product held by Owner on at the System Terminal for the account of Customer. Customer is responsible for providing to Owner documentation required to authorize deliveries for or on its behalf from the SystemTerminal.
4.4 Owner will provide System gathering, transportation, 4.5 Customer may use the Tanks only for storage of the Product and terminalling services to Customer only with respect to Product. Customer will have access to may use the System Tanks for storage of other products only with prior written notice to and consent by of Owner. Any other product approved by Owner will then become part of “Product” as defined in this Agreement. If a special method of providing terminal, storage, gathering, storing or transportation services handling Product is required for Productrequired, then Customer must notify Owner in sufficient time to enable Owner to consider whether, in Owner’s sole discretion, whether it will accept the proposed changes in the Product stored or the method of delivering storing or handling the services Product and to take the necessary preparatory measures if it agrees with such changes. Absent Failing such notice and absent Owner’s written approval with respect to changes in the Product or the method of delivering the servicesnotice, Owner will not be liable for losses or damage incurred during the gathering, transportation, storage and terminalling handling of Productthe Products, nor will Owner be obligated to provide such special terminal, storage, transportation or gathering storage and handling service. It is understood that the cost of any additional or special equipment required by Customer or of alterations made necessary by the nature of Customer’s Product, will be for the account of Customer, Customer and Customer will be responsible for the expense of any necessary cleaning and restoration to their previous condition of the Terminal or storage, transportation, storage and gathering handling equipment, including, without limitation, tanksTanks, pipelines, trucks, pumps, hoses, meters, and loading facilitiesarms, unless otherwise explicitly stated in this Agreement. All fixtures, equipment and appurtenances attached to the tanksTanks, pipelines, trucks pipelines and other facilities of the System will be installed Terminal by the Owner either Party are and will remain the property of Owner. No such items may be installed by Customer without the prior written consent of Owner.
4.5 4.6 Within 10 days following termination of this Agreement (subject to any lien that Owner may have on Product), Customer will remove and properly dispose of all Product, residue, scale, and any other accumulation will be removed from Owner’s tanks, the Tank and pipelines and trucks clean both Tank interior and other System assets. Tank, truck and pipeline interiors pipelines then in use will be cleaned for light Products to a condition suitable for the storage of similar Productultra low sulfur diesel fuel. If the Tank and pipelines are then in heavy oil use, they shall be cleaned to a condition suitable for No. 6 fuel oil storage. Customer shall reimburse Owner for all costs and expenses reasonably incurred by Owner for in taking such removal and cleaning action, plus a 15% handling fee, as well as the cost of storage and handling of the Product removed, if any, at a rate of $0.01 per Barrel per day in addition to any other fees due hereunder, which fees and rates will continue to be charged if Customer shall not have removed the Customer’s Product from the tanks Tanks within 10 days from the date of termination hereof.
4.6 4.7 If any Governmental Authority requires installation of any improvement, alteration or addition to any Terminal, tank, truck, pipeline Tank or other equipment on at the System Terminal for purposes of compliance with Applicable Law, and if the installation Law that would require Owner to make substantial and unanticipated capital expenditures, other than continued maintenance and capital expenditures not affected by such requirement, Owner will be entitled to impose a reasonable service surcharge in addition to the fees set out in Attachment “A”. Owner will notify Customer of (i) the cost of making any such improvement, alteration or addition, after Owner’s efforts to mitigate such costs, (ii) when such improvement, alteration or addition must be completed, and (iii) the OwnerCustomer’s reasonable estimate share of the service surcharge related to the capital expenditure to be paid by Customer over the remaining Termsuch costs. Owner will not be required to make any improvements, alterations or additions to the System Terminal in such circumstance, unless Customer either agrees to pay its share of such costs in the surchargemanner provided below or agrees in good faith with Owner for a ratable surcharge to serve as a monthly fee increase. If Customer elects, after negotiation with Owner in good faith, not to pay the surcharge share in such costs and the Owner chooses not to pay for such improvement, alteration or addition, Owner may direct the affected Product to a mutually acceptable Terminal or storage, gathering or transportation facilities owned by Owner or its Affiliates. If Customer elects not to pay the surchargeaddition in lieu thereof, and if Owner does not direct the affected Product to mutually acceptable alternate facilitiesterminaling assets owned by Owner or its Affiliates, either Party may terminate or release the affected System facilities or Tanks from this Agreement, with an equivalent reduction of the fees set out on Attachment “A”herein, including the Minimum Use Revenue Commitment, by giving the other Party notice of its intention no later than thirty (30) 30 days after Owner’s receipt of notice of Customer’s election not to pay the service surchargeshare in such costs. If Customer elects to pay the service surchargeits share of such costs, Owner shall likewise pay its share of such costs and proceed with the installation of the required improvement, alteration or addition. Owner will calculate the surcharge required to recover the portion of Owner’s costs for the improvement, alteration or addition attributable to Customer’s use of the impacted segment of the System. The portion of Owner’s costs to be recovered through the surcharge shall equal the percentage of total revenues from the impacted segment of the System attributable to Customer’s use of such System segment for the six (6) full Months preceding the date of Owner’s notice to Customer of the cost of the improvement, alteration or addition. Customer may pay the surcharge in equal monthly installments over the remaining Term. Within thirty (30) days after completion of the required improvement, addition or alteration, Customer may elect to either pay such proportionate share of costs in one lump sum or pay its proportionate share of the surcharge for costs on a prorated Monthly basis over the remaining Term in one lump sum. Owner shall calculate the cost of the improvement, alteration or addition and the surcharge using reasonable assumptions and estimatesthis Agreement. In addition to actual capital and installation costs, the these costs to be recovered through the surcharge will include engineering and interest expense (at a rate of 1% over the prime lending rate as reported in the Wall Street Journal on the date of completion of such installation) and subsequent reasonable expenses, if any, of operating or maintaining such installation as reasonably determined installation.
4.8 In the case of segregated service provided by Owner.
4.7 When the Product is specifically identified and kept separate from the product of other customers (“Segregated Service”), Customer will be responsible for providing all tank Tank bottoms and line fill, and in all other casesthe case of commingled service, Customer will be responsible for providing its proportional share of tank Tank bottoms and line fill. Customer will retain ownership of any portion or all of the tank bottoms and line fill it provides.
Appears in 1 contract
Samples: Terminaling and Transportation Services Agreement (Transmontaigne Inc)
Operations, Receipts and Deliveries. 4.1 Customer’s 's Product will be gathered, transported, terminalled and stored using delivered to the modes Terminal via the mode of transportation and storage facilities, and Customer will pay for such services based on the charges, including the Minimum Use Commitment charges, specified identified in Attachment “"A” " free of any charge to Owner. Receipts and deliveries of Product will be handled within the normal business hours of the System Terminal as set forth on Attachment “"A”". Owner may, without Customer’s approval, may make temporary changes in business hours or temporarily close any System asset Terminal because of an extraordinary eventevent without Customer's approval. Owner will notify Customer of such temporary changes or closure in advance, or as soon after implementation as is practicable. Vessels will be loaded and unloaded on first come, first served basis and Owner will not be responsible for the payment of any demurrage or costs incurred by Customer or its transportation carrier for any delay in receiving or delivering the Product or any other costs or feesfees in connection with marine receipts and deliveries.
4.2 Customer must arrange for and pay all Third Party third party costs related to the receipt or delivery of Customer’s 's Product to and from the SystemTerminal. Owner is not responsible for such Third Party costsonly to receive or deliver, as the case may be, the Product at its Terminal. Unless otherwise provided by Owner in writing, Customer must provide notice reasonably acceptable to Owner (in accordance with Section 13) and to the Terminal containing all necessary shipping instructions, including without limitation, the identity and quantity and any other specifications of the Product and the tentative date arrival date(s) (the "Arrival Notice"). If this Agreement involves marine receipts or deliveries of delivery Product, Owner will advise Customer concerning the limitations of the Vessel that may be berthed, including its maximum size, draw, draft and length, the docks and associated positions to be used for each Product movement, as well as the minimum pumping rates or pressure, as applicable, or both. Owner may change Vessel limitation, dock designation, and pumping rates and pressure criteria from time to time upon prior reasonable notice to Customer. If Owner determines that a Vessel is unsuitable for shipment of Products, as Owner deems appropriate, Owner may refuse to load or unload such equipment and will advise the carrier and Customer of the situation immediately, and request further instructions from the Customer. It is the responsibility of Customer to notify the appropriate authorities and agencies regarding Vessel arrivals. If Customer requires any change in the shipping instructions, including, without limitation, the identity of the Product, Customer must provide notice (in accordance with Section 13) to the System Owner and the Terminal (See Section 2, Terminal and Owner Address of Attachment "A") before the “Scheduling Notice”)arrival of the Product at the Terminal. Upon receipt of Customer's shipping instructions, Owner and the Terminal will immediately advise Customer of the Terminal's availability. If the Terminal will not be available to receive or deliver Customer's Product on the communicated arrival date, Owner will advise as to the earliest time when Customer's Product may be received or delivered at the Terminal. Customer will ensure that confirmation of the arrival date(s) and time of the Product will be communicated to Owner and the Terminal by Customer's carrier periodically, at intervals of at least 48, 24 and 12 hours in advance of the anticipated date and time of arrival of the Product. Notwithstanding Section 13, such communication may be effected, with Owner’s consent, effected by telephone or facsimile.
4.3 If any of Customer's Vessels (i) fails to vacate a dock upon completion of loading or discharge, (ii) fails to discharge or load a barge within twenty-four (24) hours or within thirty-six (36) hours for an ocean going barge or vessel, or (iii) fails to vacate in order to conduct repairs, then, after having been notified by Owner to vacate, Customer shall be responsible for the cost applicable to the berths along with any costs incurred by any Vessels which would otherwise be occupying such dock but for the failure of Customer's Vessel to vacate, save and except any such costs arising due to delay caused by Owner.
4.4 Subject to the restrictions of Attachment “"A”" and the Product Loss Tolerance, Owner will deliver to Customer, or to such Third Parties as Customer may direct, the Product held by Owner on at the System Terminal for the account of Customer. Customer is responsible for providing to Owner documentation required to authorize deliveries for or on its behalf from the SystemTerminal.
4.4 Owner will provide System gathering, transportation, 4.5 Customer may use the Tanks only for storage of the Product and terminalling services to Customer only with respect to Product. Customer will have access to may use the System Tanks for storage of other products only with prior written notice to and consent by of Owner. Any other product approved by Owner will then become part of “Product” as defined in this Agreement. If a special method of providing terminal, storage, gathering, storing or transportation services handling Product is required for Productrequired, then Customer must notify Owner in sufficient time to enable Owner to consider whether, in Owner’s sole discretion, whether it will accept the proposed changes in the Product stored or the method of delivering storing or handling the services Product and to take the necessary preparatory measures if it agrees with such changes. Absent Failing such notice and absent Owner’s written approval with respect to changes in the Product or the method of delivering the servicesnotice, Owner will not be liable for losses or damage incurred during the gathering, transportation, storage and terminalling handling of Productthe Products, nor will Owner be obligated to provide such special terminal, storage, transportation or gathering storage and handling service. It is understood that the cost of any additional or special equipment required by Customer or of alterations made necessary by the nature of Customer's Product, will be for the account of Customer, Customer and Customer will be responsible for the expense of any necessary cleaning and restoration to their previous condition of the Terminal or storage, transportation, storage and gathering handling equipment, including, without limitation, tanksTanks, pipelines, trucks, pumps, hoses, meters, and loading facilitiesarms, unless otherwise explicitly stated in this Agreement. All fixtures, equipment and appurtenances attached to the tanksTanks, pipelines, trucks pipelines and other facilities of the System will be installed Terminal by the Owner either Party are and will remain the property of Owner. No such items may be installed by Customer without the prior written consent of Owner.
4.5 4.6 Within 10 days following termination of this Agreement (subject to any lien that Owner may have on Product), Customer will remove and properly dispose of all Product, residue, scale, and any other accumulation will be removed from Owner’s tanks, the Tank and pipelines and trucks clean both Tank interior and other System assets. Tank, truck and pipeline interiors pipelines then in use will be cleaned for light Products to a condition suitable for the storage of similar Productultra low sulfur diesel fuel. If the Tank and pipelines are then in heavy oil use, they shall be cleaned to a condition suitable for No. 6 fuel oil storage. Customer shall reimburse Owner for all costs and expenses reasonably incurred by Owner for in taking such removal and cleaning action, plus a 15% handling fee, as well as the cost of storage and handling of the Product removed, if any, at a rate of $0.01 per Barrel per day in addition to any other fees due hereunder, which fees and rates will continue to be charged if Customer shall not have removed the Customer's Product from the tanks Tanks within 10 days from the date of termination hereof.
4.6 4.7 If any Governmental Authority requires installation of any improvement, alteration or addition to any Terminal, tank, truck, pipeline Tank or other equipment on at the System Terminal for purposes of compliance with Applicable Law, and if the installation Law that would require Owner to make substantial and unanticipated capital expenditures, other than continued maintenance and capital expenditures not affected by such requirement, Owner will be entitled to impose a reasonable service surcharge in addition to the fees set out in Attachment “A”. Owner will notify Customer of (i) the cost of making any such improvement, alteration or addition, after Owner’s 's efforts to mitigate such costs, (ii) when such improvement, alteration or addition must be completed, and (iii) the Owner’s reasonable estimate Customer's share of the service surcharge related to the capital expenditure to be paid by Customer over the remaining Termsuch costs. Owner will not be required to make any improvements, alterations or additions to the System Terminal in such circumstance, unless Customer either agrees to pay its share of such costs in the surchargemanner provided below or agrees in good faith with Owner for a ratable surcharge to serve as a monthly fee increase. If Customer elects, after negotiation with Owner in good faith, not to pay the surcharge share in such costs and the Owner chooses not to pay for such improvement, alteration or addition, Owner may direct the affected Product to a mutually acceptable Terminal or storage, gathering or transportation facilities owned by Owner or its Affiliates. If Customer elects not to pay the surchargeaddition in lieu thereof, and if Owner does not direct the affected Product to mutually acceptable alternate facilitiesterminaling assets owned by Owner or its Affiliates, either Party may terminate or release the affected System facilities or Tanks from this Agreement, with an equivalent reduction of the fees set out on Attachment “A”herein, including the Minimum Use Revenue Commitment, by giving the other Party notice of its intention no later than thirty (30) 30 days after Owner’s 's receipt of notice of Customer’s 's election not to pay the service surchargeshare in such costs. If Customer elects to pay the service surchargeits share of such costs, Owner shall likewise pay its share of such costs and proceed with the installation of the required improvement, alteration or addition. Owner will calculate the surcharge required to recover the portion of Owner’s costs for the improvement, alteration or addition attributable to Customer’s use of the impacted segment of the System. The portion of Owner’s costs to be recovered through the surcharge shall equal the percentage of total revenues from the impacted segment of the System attributable to Customer’s use of such System segment for the six (6) full Months preceding the date of Owner’s notice to Customer of the cost of the improvement, alteration or addition. Customer may pay the surcharge in equal monthly installments over the remaining Term. Within thirty (30) days after completion of the required improvement, addition or alteration, Customer may elect to either pay such costs in one lump sum or pay its proportionate share of the surcharge for costs on a prorated Monthly basis over the remaining Term in one lump sum. Owner shall calculate the cost of the improvement, alteration or addition and the surcharge using reasonable assumptions and estimatesthis Agreement. In addition to actual capital and installation costs, the these costs to be recovered through the surcharge will include engineering and interest expense (at a rate of 1% over the prime lending rate as reported in the Wall Street Journal on the date of completion of such installation) and subsequent reasonable expenses, if any, of operating or maintaining such installation as reasonably determined installation.
4.8 In the case of segregated service provided by Owner.
4.7 When the Product is specifically identified and kept separate from the product of other customers (“Segregated Service”), Customer will be responsible for providing all tank Tank bottoms and line fill, fill and in all other casesthe case of commingled service, Customer will be responsible for providing its proportional share of tank Tank bottoms and line fill. Customer will retain ownership of any portion or all of the tank bottoms and line fill it provides.
Appears in 1 contract
Samples: Terminaling and Transportation Services Agreement (TransMontaigne Partners L.P.)
Operations, Receipts and Deliveries. 4.1 Customer’s Stock may be delivered and its Product will be gatheredreceived by Owner at the Refinery via pipeline, transported, terminalled and stored using the modes rail or truck or on behalf of transportation and storage facilities, and Customer will pay for such services based on the charges, including the Minimum Use Commitment charges, specified in Attachment “A” . free of any charge to Owner.
4.2 Receipts and deliveries of Product by the Owner will be handled within the normal business hours of the System Refinery, as set forth on Attachment “A”. Owner may, without Customer’s approval, make temporary changes in business hours or temporarily close any System asset because of an extraordinary event. Owner will notify Customer of such temporary changes or closure in advance, or as soon after implementation as is practicablemay be established from time to time. Owner will not be responsible for the payment of any demurrage or costs incurred by Customer or its transportation carrier for any delay in receiving Stock or delivering Product or any other costs or feesthe Product, and all such charges shall be the responsibility of the Customer.
4.2 4.3 Owner will notify Customer of changes to the normal business hours of the Refinery, in advance or as soon after implementation as is practicable.
4.4 Owner and Customer shall perform all activities specified herein in accordance with all applicable federal, state and local laws, rules, regulations, ordinances, decrees, orders, permits, licenses or other requirements having the force of law.
4.5 Customer must arrange for and pay all Third Party third party costs related relating to the receipt or transportation, receipt, delivery and packaging of Customer’s Product all Stock and Products of Customer which are delivered to and from the SystemRefinery. Owner is not responsible for such Third Party costs. Unless otherwise provided by Owner in writing, Customer must provide notice reasonably acceptable to Owner (in accordance with Section 13) containing all necessary shipping instructions, including without limitation, the identity and quantity and any other specifications of the Product and the tentative date of delivery to the System (the “Scheduling Notice”). Notwithstanding Section 13, such communication may be effected, with Owner’s consent, by telephone or facsimile.
4.3 Subject to the restrictions of Attachment “A”, Owner will deliver to Customer, or to such Third Parties as Customer may direct, the Product held by Owner on the System for the account of Customer. Customer is responsible for providing to Owner documentation required to authorize deliveries for or on its behalf from the System.
4.4 Owner will provide System gathering, transportation, storage and terminalling services to Customer only with respect to Product. Customer will have access to the System for other products only with prior written notice to and consent by Owner. Any other product approved by Owner will then become part of “Product” as defined in this Agreement. If a special method of providing terminal, storage, gathering, or transportation services is required for Product, then Customer must notify Owner in sufficient time to enable Owner to consider whether, in Owner’s sole discretion, it will accept the proposed changes in the method of delivering the services and to take the necessary preparatory measures if it agrees with such changes. Absent such notice and absent Owner’s written approval with respect to changes in the Product or the method of delivering the services, Owner will not be liable for losses or damage incurred during the gathering, transportation, storage and terminalling of Product, nor will Owner be obligated to provide such special terminal, storage, transportation or gathering service. It is understood that the cost of any additional or special equipment required by Customer or of alterations made necessary by the nature of Product, will be for the account of Customer, and Customer will be responsible for the expense of any necessary cleaning and restoration to their previous condition of the Terminal or storage, transportation, and gathering equipment, including, without limitation, tanks, pipelines, trucks, pumps, hoses, meters, and loading facilities, unless otherwise explicitly stated in this Agreement. All fixtures, equipment and appurtenances attached to the tanks, pipelines, trucks and other facilities of the System will be installed by the Owner and will remain the property of Owner.
4.5 4.6 Within 10 45 days following termination of this Agreement (subject Agreement, Customer, at its sole cost and expense, will remove and properly dispose of, or cause to any lien that Owner may have on Product)be removed and properly disposed of all Stock, all Product, residue, scale, non-merchantable bottoms, and any other accumulation will be removed from Owner’s the Refinery which constitute property of Customer, including the storage tanks and clean the storage tanks, pipelines and trucks and other System assets. Tank, truck and pipeline interiors then in use will be cleaned ’ interior to a condition suitable for the storage of similar ProductStock and Product as is typical for the Refinery. If Customer shall fails to comply with this requirement within the time period referenced, Customer authorizes Owner to either (i) take such action on Customer’s behalf, and Customer will reimburse Owner for all costs cost and expenses expense reasonably incurred by Owner for in taking such removal and cleaning action, plus a 15% handling fee, as well as and (ii) charge Customer for the cost of storage and handling of the said Product removed, if any, at a rate of $0.01 0.02 per Barrel barrel per day storage in addition to any other fees due hereunderand rates payable to Owner by Customer under this Agreement, which fees and rates will continue to be charged apply if Customer shall not have removed the Product from has not been removed by Customer within the tanks within 10 days from aforesaid 45-day period. Owner's remedies under this Section 4.6 are in addition to any other remedies that Owner may have at law, in equity or otherwise. 4.7 Owner will not be required to make any improvements, alterations or additions to the date Refinery in connection with the provision of termination hereof.
4.6 the Refining Services. If any Governmental Authority federal, state or local governmental body requires installation of any improvement, alteration or addition to any Terminal, tank, truck, pipeline or other equipment on the System Refinery for purposes of compliance with Applicable Lawapplicable law or regulation that would materially interfere with or change the nature or cost of providing the Refining Services under this Agreement, and if the installation would require Owner to make substantial and unanticipated capital expenditures, other than continued maintenance and capital expenditures not affected by such requirement, Owner will be entitled to impose a reasonable service surcharge in addition to the fees set out in Attachment “A”. Owner will notify Customer of (i) the cost of making any such improvement, alteration or addition, after Owner’s efforts to mitigate such costs, and (ii) when such improvement, alteration or addition must be completed. In the event such costs are $100,000 or less, and (iii) the Owner’s reasonable estimate of the service surcharge related to the capital expenditure to be paid by Customer over the remaining Term. Owner will not be required shall proceed to make any such required improvements, alterations or additions. In the event such costs exceed $100,000, Owner and Customer agree to renegotiate the terms of this Agreement in good faith to effect a sharing of such costs. In addition, Owner may, in its discretion, make such improvements, alterations or additions to the System in Refinery as it may from time to time deem necessary, provided that such circumstance, unless Customer agrees to pay the surcharge. If Customer elects, after negotiation with Owner in good faith, discretionary alterations due not to pay the surcharge and the Owner chooses not to pay for such improvement, alteration or addition, Owner may direct the affected Product to a mutually acceptable Terminal or storage, gathering or transportation facilities owned by Owner or its Affiliates. If Customer elects not to pay the surcharge, and if Owner does not direct the Product to mutually acceptable alternate facilities, either Party may terminate or release the affected System facilities from this Agreement, with an equivalent reduction of the fees set out on Attachment “A”, including the Minimum Use Commitment, by giving the other Party notice of its intention no later than thirty (30) days after Owner’s receipt of notice of Customer’s election not to pay the service surcharge. If Customer elects to pay the service surcharge, Owner shall proceed interfere with the installation provision of the required improvement, alteration or additionRefining Services hereunder. Owner will calculate the surcharge required to recover the portion of Owner’s costs for the improvement, alteration or addition attributable to Customer’s use of the impacted segment of the System. The portion of Owner’s costs to be recovered through the surcharge shall equal the percentage of total revenues from the impacted segment of the System attributable to Customer’s use of such System segment for the six (6) full Months preceding the date of Owner’s notice to Customer of the cost of the improvement, alteration or addition. Customer may pay the surcharge in equal monthly installments over the remaining Term. Within thirty (30) days after completion of the required improvement, addition or alteration, Customer may elect to pay the surcharge for the remaining Term in one lump sum. Owner shall calculate the cost of the improvement, alteration or addition and the surcharge using reasonable assumptions and estimates. In addition to actual capital and installation costs, the costs to be recovered through the surcharge will include engineering and interest expense (at a rate of 1% over the prime lending rate as reported in the Wall Street Journal on the date of completion of such installation) and subsequent reasonable expenses, if any, of operating or maintaining such installation as reasonably determined by OwnerSection 5.
4.7 When the Product is specifically identified and kept separate from the product of other customers (“Segregated Service”), Customer will be responsible for providing all tank bottoms and line fill, and in all other cases, Customer will be responsible for providing its proportional share of tank bottoms and line fill. Customer will retain ownership of any portion or all of the tank bottoms and line fill it provides.
Appears in 1 contract
Samples: Tolling Agreement