Common use of Operations, Receipts and Deliveries Clause in Contracts

Operations, Receipts and Deliveries. 4.1 Customer’s Product will be delivered to the Terminal via marine transport by Customer or on its behalf free of any charge to Operator. Customer must provide the Terminal with and maintain updated forecasts of scheduled arrivals of Customer’s Product at the Terminal. 4.2 Receipts of Product will be handled within the normal business hours of the Terminal, as may be established from time to time. Operator will not be responsible for the payment of any demurrage or costs incurred by Customer or its chartered vessel for any delay in receiving or delivering the Product, unless caused by the gross negligence or willful misconduct of Operator. 4.3 Operator shall provide all delivery services necessary to cause the transfer of Customer’s Product from the Handling Infrastructure to Customer or Customer’s customer. 4.4 Operator will notify Customer of changes to the normal business hours of the Terminal, in advance or as soon after implementation as is practicable. Operator will provide Customer advance notice of the exact date of each holiday and any other day(s) during which the Terminal will be closed because of an extraordinary event or maintenance. 4.5 Operator shall provide and perform the services 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. 4.6 Customer must arrange for and pay all third party costs of the transportation of all Product including all third party costs related to the receipt or delivery of Customer’s Product to and from the Terminal. Operator is responsible only to receive or deliver, as the case may be, the Product at its Terminal. Customer must notify Operator of tentative Product arrival dates reasonably in advance and of any revision of those dates as soon as known. Tentative arrival dates for all transport trucks used by the Customer to the Terminal must be communicated approximately 24 hours in advance. At the time of said notice, Customer must furnish Operator with necessary shipping instructions. Upon receipt of such confirmation, Operator will immediately advise Customer of Terminal availability. If the Terminal will not be available to receive or deliver Customer’s Product on the communicated arrival date, Operator will advise as to the earliest time when Customer’s Product may be received or delivered. With respect to marine receipts or deliveries of Product, Operator will advise Customer concerning 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. Operator may change vessel size, dock designation, and pumping rates from time to time. 4.7 Operator will deliver to Customer, or to such third parties as Customer may direct the Product held by Operator at the Terminal for the account of Customer. Customer will be responsible for providing to Operator documentation required to authorize deliveries for or on its behalf from the Terminal. Where Product is to be delivered from the Terminal, such deliveries will be made only upon the authorization of Customer. 4.8 Within ten (10) days following termination of this Agreement, Operator, at Customer’s sole cost and expense, will remove and properly dispose of, or cause to be removed and properly disposed of all Product, residue, scale, non-merchantable bottoms, and any other accumulation from the Handling Infrastructure and clean the Handling Infrastructure interior/exterior to a condition suitable for the storage of refined petroleum products or other such Products, as Operator may deem necessary. In connection with the foregoing, Customer will reimburse Operator for all cost and expense reasonably incurred in taking such action, plus a 15% handling fee. Operator is authorized to charge Customer for the cost of storage and handling of said Product at a rate of $0.01 per gallon per day storage in addition to any other fees and rates payable to Operator by Customer under this Agreement. 4.9 Operator will not be required to make any improvements, alterations or additions to the Terminal. If any federal, state or local governmental body requires installation of any improvement, alteration or addition to the Handling Infrastructure at the Terminal for purposes of compliance with applicable law or regulation, Operator will notify Customer of (i) the cost of making any such improvement, alteration or addition, and (ii) when such improvement, alteration or addition must be completed. In the event such costs are $50,000 or less, Operator shall proceed to make such required improvements, alterations or additions. In the event such costs exceed $50,000, Operator and Customer agree to renegotiate the terms of this Agreement in good faith to effect appropriate compensation to Operator in connection with the incurrence of such additional costs. Should the Parties fail to reach mutual agreement with respect to the sharing of such costs, then either Party may terminate this Agreement by giving the other Party notice of its intention no later than 30 days after Customer’s receipt of notice of such costs, such termination to be effective as of the date upon which such improvements, alterations or additions are required to be completed.

Appears in 3 contracts

Samples: Terminalling Services Agreement (Martin Midstream Partners Lp), Terminalling Services Agreement (Martin Midstream Partners Lp), Terminal Services Agreement (Martin Midstream Partners Lp)

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Operations, Receipts and Deliveries. 4.1 Customer’s Product will be delivered to the Terminal via marine transport truck by Customer or on its behalf free of any charge to Operator. Customer must provide the Terminal with and maintain updated forecasts of scheduled arrivals of Customer’s Product at the Terminal. 4.2 Receipts of Product will be handled within the normal business hours of the Terminal, as may be established from time to time. Operator will not be responsible for the payment of any demurrage or costs incurred by Customer or its chartered vessel transportation carrier for any delay in receiving or delivering the Product, unless caused by the gross negligence or willful misconduct of Operator. 4.3 Operator shall provide all delivery services necessary to cause the transfer of Customer’s Product from the Handling Infrastructure to Customer or Customer’s customer. 4.4 Operator will notify Customer of changes to the normal business hours of the Terminal, in advance or as soon after implementation as is practicable. Operator will provide Customer advance notice of the exact date of each holiday and any other day(s) during which the Terminal will be closed because of an extraordinary event or maintenance. 4.5 Operator shall provide and perform the services Services 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. 4.6 Customer must arrange for and pay all third party costs of the transportation of all Product including all third party costs related to the receipt or delivery of Customer’s Product to and from the Terminal. Operator is responsible only to receive or deliver, as the case may be, the Product at its Terminal. Customer must notify Operator of tentative Product arrival dates reasonably in advance and of any revision of those dates as soon as known. Tentative arrival dates for all transport trucks used by the Customer to the Terminal must be communicated approximately 24 hours in advance. At the time of said notice, Customer must furnish Operator with necessary shipping instructions. Upon receipt of such confirmation, Operator will immediately advise Customer of Terminal availability. If the Terminal will not be available to receive or deliver Customer’s Product on the communicated arrival date, Operator will advise as to the earliest time when Customer’s Product may be received or delivered. With respect to marine receipts or deliveries of Product, Operator will advise Customer concerning 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. Operator may change vessel size, dock designation, and pumping rates from time to time. 4.7 Operator will deliver to Customer, or to such third parties as Customer may direct the Product held by Operator at the Terminal for the account of Customer. Customer will be responsible for providing to Operator documentation required to authorize deliveries for or on its behalf from the Terminal. Where Product is to be delivered from the Terminal, such deliveries will be made only upon the authorization of Customer. 4.8 Within ten (10) days following termination of this Agreement, Operator, at Customer’s sole cost and expense, will remove and properly dispose of, or cause to be removed and properly disposed of all Product, residue, scale, non-merchantable bottoms, and any other accumulation from the Handling Infrastructure and clean the Handling Infrastructure Infrastructure’ interior/exterior to a condition suitable for the storage of refined petroleum products or other such Products, as Operator may deem necessary. In connection with the foregoing, Customer will reimburse Operator for all cost and expense reasonably incurred in taking such action, plus a 15% handling fee. Operator is authorized to charge Customer for the cost of storage and handling of said Product at a rate of $0.01 0.03 per gallon per day storage in addition to any other fees and rates payable to Operator by Customer under this Agreement. 4.9 Operator will not be required to make any improvements, alterations or additions to the Terminal. If any federal, state or local governmental body requires installation of any improvement, alteration or addition to the Handling Infrastructure at the Terminal for purposes of compliance with applicable law or regulation, Operator will notify Customer of (i) the cost of making any such improvement, alteration or addition, and (ii) when such improvement, alteration or addition must be completed. In the event such costs are $50,000 or less, Operator shall proceed to make such required improvements, alterations or additions. In the event such costs exceed $50,000, Operator and Customer agree to renegotiate the terms of this Agreement in good faith to effect appropriate compensation to Operator in connection with the incurrence of such additional costs. Should the Parties fail to reach mutual agreement with respect to the sharing of such costs, then either Party may terminate this Agreement by giving the other Party notice of its intention no later than 30 days after Customer’s receipt of notice of such costs, such termination to be effective as of the date upon which such improvements, alterations or additions are required to be completed.

Appears in 1 contract

Samples: Terminalling Services Agreement (Martin Midstream Partners Lp)

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