Tank Storage Agreement Sample

Storage space is a necessity for the owner of a physical commodity. Storage in warehouses allows greater flexibility and continuity of supply in the event of a supply disruption, an increase in consumption or simply to allow the storage user to strategically position himself against expected price changes. Therefore, storage space is always needed, especially for oil and petroleum products. Preferred approach – The prospect of storing goods should be stored in proprietary tanks/units, unless mixing is unavoidable. Can the warehouse be inspected before the goods are stored? Is it accepted that the suitability of tanks/storage units is accepted if the warehouse user has not been inspected before the goods are stored? Verify that the installation operating hours are appropriate. Are there any rules for overtime outside of “normal” operating hours? If storage is to be carried out exclusively in a specific tank/unit, make sure that the storage agreement indicates the indicated tanks/units. Ensure that the storage company is required to find suitable alternative tanks/storage units if the designated tanks/storage units are not suitable for this purpose due to force majeure or otherwise. Services What services does the storage user need – only storage or handling service z.B. envelope, blending? Is there a reference to a standard of care according to which the storage company should provide the services, including pre-cleaning of tanks and pipes? Consider negotiating the storage company`s level of diligence as a reasonable and prudent operator. However, take into account the effect of such wording under the applicable law of the storage contract and local law. It is important to make it clear that the storage company takes responsibility for contamination of the user`s product. Price & Payment Is it necessary for the storage user to prove money in accounts and/or guarantees and/or advances? How long are the rates shown valid for? Can the storage company simply vary the rates by notice? All tariff changes must be made by mutual agreement. Is there an explicit reference to risk? If not, does the storage company “take” control of the goods during storage? Note the interaction with environmental commitments – see below.

What guarantees does the user give as to the nature, safety and characteristics of his product to be stored? Generally make sure that the risk is transferred to the storage company while the product is stored. In any case, avoid liability for losses resulting from the nature, nature, quality or characteristics of the stored goods – these are risks related to the goods themselves and the storage user has no control over these risks. . . .

Comments are closed, but trackbacks and pingbacks are open.