UNDERGROUND STORAGE TANK LIABILITY Clause Samples
The Underground Storage Tank Liability clause defines the responsibilities and liabilities related to the presence, use, or removal of underground storage tanks on a property. Typically, this clause specifies which party—such as the buyer or seller—will be responsible for any environmental contamination, regulatory compliance, or remediation costs associated with these tanks. For example, it may require the seller to disclose the existence of tanks or to remediate any leaks prior to closing. The core function of this clause is to allocate risk and clarify obligations regarding potential environmental hazards, thereby protecting parties from unexpected liabilities.
UNDERGROUND STORAGE TANK LIABILITY. In the event any underground storage tanks are located on or at any of the Hotel/Casino Facilities, Borrowers shall maintain an underground storage tank liability policy providing first party (property damage) and third party (bodily/property damage) coverages for environmental claims resulting from underground storage tanks at the Hotel/Casino Facilities. If required to be maintained hereunder, the policy will include coverage for all governmental and regulatory agency mandated clean ups. If required to be maintained hereunder, the policy shall provide limits of no less than Five Million Dollars ($5,000,000.00) each incident, Five Million Dollars ($5,000,000.00) in the aggregate, with a sublimit of One Million Two Hundred Fifty Thousand Dollars ($1,250,000.00) for covering defense expenses for first and third party coverages. If required to be maintained hereunder, the policy may contain a deductible of no greater than Five Hundred Thousand Dollars ($500,000.00) for first and third party coverages.
UNDERGROUND STORAGE TANK LIABILITY. Borrowers shall maintain an underground storage tank liability policy providing first party (property damage) and third party (bodily/property damage) coverages for environmental claims resulting from underground storage tanks at the Casino Facilities. The policy will include coverage for all governmental and regulatory agency mandated clean ups. The policy shall provide limits of no less than Five Million Dollars ($5,000,000.00) each incident, Five Million Dollars ($5,000,000.00) in the aggregate, with a sublimit of One Million Two Hundred Fifty Thousand Dollars ($1,250,000.00) for covering defense expenses for first and third party claims. The policy may contain a deductible of no greater than Five Hundred Thousand Dollars ($500,000.00) for first and third party claims. This provision may be satisfied in part by CPI's and ACLVI's participation in and compliance with NRS 590.700 through 590.920, inclusive, and the regulations promulgated thereunder. Borrowers shall provide Agent Bank proof of registration of all regulated underground storage tanks.