Tank Storage Agreement Clarification

Summary

The Tank Storage Sublease Agreement outlines terms for subleasing tank storage capacity, including a minimum rental period of 5 days and a maximum of 15 days, unless extended by mutual consent. Rent is calculated daily at $52,000, with demurrage charges for late vacating. Fees include storage and handling, with additional expenses reimbursed as specified. Payment terms require advance monthly payments, with adjustments possible after the initial period. The agreement should specify tank locations within Jurong port and include provisions for uncertain rental periods due to ship arrivals. Default clauses should define defaults and associated costs, and any amendments must be in writing.

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Please clarification regarding any part of this agreement?
To better assist you with your Tank Storage Sublease Agreement, could you specify which part or clause of the agreement you need clarification on? This will help me provide more precise information.
NOW, THEREFORE, in consideration of the mutual promises contained herein, as well as other valuable consideration, the Parties hereto agree as follows: TANK STORAGE SUBLEASE Tank Capacity Sublessor hereby grants Sublessee, and Sublessee hereby accepts from Sublessor, a sublease interest in tank storage capacity totaling *,* Metric Tons ("mt") at the Tank Farm Location. Minimum Rental Period The minimum rental period for the Tank(s) shall commence upon the availability of the Tank(s) for Sublessee's use and shall extend for a minimum duration of 5 days. Maximum Rental Period The maximum rental period for the Tank(s) shall not exceed 15 days, unless both Parties mutually consent to an extension in writing.
It seems like you need clarification on the rental periods in the Tank Storage Sublease Agreement. Here are the key points:
- Minimum Rental Period: Starts when the tank(s) are available for use and lasts at least 5 days.
- Maximum Rental Period: Cannot exceed 15 days unless both parties agree in writing.
Is there a specific aspect of these periods that you need more details on?
What about of i Would like to rent for 30 days
Since the maximum rental period stated in your agreement is 15 days, you would need to negotiate an amendment to the agreement. Here are some steps to consider:
- Discuss with the Sublessor the possibility of extending the rental period to 30 days.
- Ensure any extension is documented in writing and signed by both parties.
Would you like more information on how to draft an extension agreement?
What if the period of the tank that I will rent is uncertain due to the arrival time of the ship
If the rental period is uncertain due to the ship's arrival time, you should consider including a clause in the agreement to address this uncertainty. Here are some suggestions:
- Add a provision allowing for flexibility in the rental period based on the ship's arrival.
- Specify that the rental period will start upon the tank's availability and the ship's arrival.
- Include a maximum limit to ensure both parties are protected.
Would you like more details on drafting such a clause?
Rent Calculation The rent for the Tank(s) shall be computed on a daily basis at the following rate: Daily Rent: $*,* Demurrage Should Sublessee fail to vacate the Tank(s) upon the expiration of the rental period, Sublessee shall be liable to pay demurrage to Sublessor at a rate of $*,* per day. Demurrage charges shall accrue daily from the date of rental period expiration until the Tank(s) are vacated. Port Authority Registration REGIONAL SHIPPING B.V shall prepare Tank Storage Agreements (TSAs), which require the signatures of both Parties, and submit them for registration with the Port Authority. Upon registration, the Regional Shipping B.V will issue an official payment invoice for the agreed duration. Subsequently, a confirmation letter shall be dispatched. The Regional Shipping B.V shall also furnish Authorization to Inject (ATI) and Tank Storage Receipt (TSR) documents, along with a comprehensive report detailing tank characteristics for injection and inspection purposes. All deliveries shall adhere to the terms set forth in the TSA.
It looks like you need clarification on the rent calculation, demurrage, and Port Authority registration in your Tank Storage Sublease Agreement. Here's a summary:
- Daily Rent: $*,* per day.
- Demurrage: $*,* per day if the tank(s) are not vacated on time.
- Port Authority Registration: REGIONAL SHIPPING B.V handles the registration, invoicing, and necessary documentation.
Do you need specific details on any of these points?
FEES AND PAYMENT Storage Fee Sublessee shall remunerate Sublessor with a storage fee ("Storage Fee") for the utilization of the storage capacity. Handling Fee If Sublessor undertakes additional services, such as the handling of stored products (e.g., loading, unloading, etc.), Sublessee shall compensate Sublessor with a handling fee ("Handling Fee") as agreed upon by both Parties. Additional Expenses If the event that Sublessor incurs additional expenses in connection with the fulfilment of its obligations under this Agreement, Sublessee shall promptly reimburse Sublessor for such expenditures in accordance with the terms specified herein. Invoices and Payment Sublessor shall deliver invoices to Sublessee for the Storage Fee, Handling Fee, and any Additional Expenses, as applicable. Sublessee shall remit payments to Sublessor's designated bank account within three (*) days of receiving the invoice.
It looks like you need guidance on the fees and payment section of your agreement. Here are the key points:
- Storage Fee: Payment for using storage capacity.
- Handling Fee: Payment for additional services like loading/unloading.
- Additional Expenses: Reimbursement for any extra costs incurred by Sublessor.
- Invoices and Payment: Payments due within 3 days of receiving the invoice.
Is there a specific part of this section you need more details on?
The type of extra expenses that are reimbursed is not stated. Is itu safe for us
The reimbursement clause for additional expenses can be vague and potentially risky. Ideally, you should clarify and specify what type of extra expenses are covered to avoid future disputes. Here are some points to consider adding:
- Clearly define what constitutes "additional expenses" (e.g., maintenance, repairs, administrative costs).
- Set a cap or limit on reimbursable expenses.
- Require prior approval for expenses above a certain amount.
Would you like more information on how to draft such specifications?
Handling Fee: Payment for additional services like loading/unloading. ... The price not mentioned
The handling fee should be clearly defined in the agreement to prevent any misunderstandings or disputes. Here are some steps to consider:
- Specify the exact services covered under the handling fee (e.g., loading, unloading).
- Agree on a fixed rate or a method to calculate the fee.
- Document these terms in writing.
Would you like guidance on how to draft this provision?
Faktur dan Pembayaran: Pembayaran jatuh tempo dalam waktu * hari setelah menerima faktur. Apakah ada bagian tertentu dari bagian ini yang perlu Anda ketahui lebih lanjut? Bagian ini tidak menentukan waktu penyewa menerima faktur.
It seems like you need clarification on when the tenant is considered to have received the invoice. To address this, you can specify the method and timing of invoice delivery in your agreement. For example:
- Invoice deemed received when sent by email.
- Specify a time frame (e.g., *-* business days) for email delivery confirmation.
Would you like more details on drafting this provision?
PRODUCT AND STORAGE LOCATION The product to be stored under this Sublease shall be EN590 * PPM Storage shall take place at the Tank Farm Location, specifically at the Port of Jurong, Singapore.
To better assist you, could you please specify the particular legal concern or question you have regarding the product and storage location clause in your Tank Storage Sublease Agreement? This will help me provide more targeted information.
There is no the exact Location of tanks in the Jurong port due to many tank farm in jurong
You should include a more precise description or identifier for the tank location to avoid any confusion. Here are some steps to consider:
- Specify a unique identifier for the tank(s) within the Jurong port.
- Include a map or detailed description of the exact location.
- Obtain confirmation from the Port Authority if needed.
Would you like more details on incorporating these specifications?
DELIVERY PERIOD Delivery via Pipeline The Commodity shall be delivered by the Supplier/Exporter via Pipeline into the Ex-Shore Tanks, and the Supplier/ the Pipeline Injection / Transportation Company shall send a preliminary NOR (Notice of Readiness) to commence the Injection of the Product into Ex-Shore Tank not later than One (*) day before the injection of the product is made into the Ex-Shore Tank. Delivery after Payment and NOR Delivery of the product shall be made into the Tanks immediately after receipt of Payment for the Number of Days the Sublessee intends to Store the Product in the Tanks and a NOR (Notice of Readiness) from the Supplier and the Pipeline Injection Company is sent. This is to ensure the Tank is cleared and the issuance of the Tank Clearance prior to Tank Injection of Fuel. Vessel Tanker Ready The Sublessee shall provide a Vessel(s) Tanker ready for loading during the storage period. Preliminary Notice of Vessel Tanker The Sublessee shall send a preliminary notice including the name of the Vessel Tanker, estimated tonnage, the possible date of arrival, and the readiness of the Vessel Tanker for loading no later than One (*) business day before the arrival of the Vessel Tanker at the port. Initial Quantity Delivery The first quantity to be delivered by the Supplier/Exporter of the petroleum products into the Storage Tanks shall adhere to the delivery schedule provided by Sublessee (Supplier/Exporter) as outlined in the Quality and Quantity stipulated on the delivery schedule of the sales and purchase Agreement signed between both parties (i.e., the Sublessee and the Supplier/Exporter).
It seems like you need guidance on the delivery period provisions in your Tank Storage Sublease Agreement. Here are the key points:
- Delivery via Pipeline: Preliminary NOR one day before injection.
- Delivery after Payment and NOR: Immediate delivery after payment and NOR.
- Vessel Tanker Ready: Sublessee to provide ready Vessel(s) during storage.
- Preliminary Notice of Vessel Tanker: Notice one business day before vessel arrival.
- Initial Quantity Delivery: Adhere to delivery schedule in the sales and purchase agreement.
Is there a specific part or clause you need more details or clarification on?
The Sublessee or its representative shall submit an official electronic copy of the Letter of Intent (LOI) along with the identification of the signee. Processing of Tank Storage Agreement Upon receipt of the aforementioned documents, the lessor company shall prepare a Tank Storage Agreement for execution by the Sublessee. The Sublessee shall sign the Tank Storage Agreement and return the signed copy to Sublessor for validation. Invoice for Storage Payment
It seems you have a comprehensive Tank Storage Sublease Agreement but need more details on certain clauses. Here are some key points:
- Add a clause for uncertain rental periods due to ship arrival.
- Clarify what constitutes "additional expenses."
- Define the exact location of tanks within Jurong port.
Would you like more guidance on any specific clause or drafting these provisions?
Upon confirmation and validation of the Tank Storage Agreement, an invoice for the payment corresponding to the number of days that the Sublessee company intends to store the product in the tanks shall be issued.
To address the uncertain rental period due to the ship's arrival, consider including a flexible rental period clause. Here are the key points to include:
- Rental period starts upon the tank's availability and ship's arrival.
- Specify a maximum limit to ensure protection for both parties.
- Include a provision for extending the rental period if needed.
Would you like more detailed guidance on drafting this clause?
Confirmation with Supplier/Refinery The Sublessee company shall forward a copy of the finalized Tank Storage Agreement to the supplier or refinery company supplying the product for confirmation. The supplier or refinery company shall subsequently dispatch a Notice of Readiness (NOR) to the Sublessor, signaling the commencement of product injection from the pipeline transportation company.
It seems like you have a detailed Tank Storage Sublease Agreement. To ensure there's no ambiguity regarding the rental period due to the ship's arrival, you can include a flexible rental period clause. Here are the key points to add:
- Rental period starts upon tank availability and ship's arrival.
- Specify a maximum rental period to ensure both parties are protected.
- Include a provision for extending the rental period if needed.
Would you like more specific language or guidance on how to draft this clause?
RENTAL PAYMENT PROVISION Monthly Rentals All rentals are payable monthly in advance on or before the 3rd day of each month, in the manner prescribed by Sublessor. Rental Adjustment After the expiry of the initial period, the lessor shall have the right to adjust the rental amount payable. Sublessee shall be provided with no less than one calendar months’ notice of any such adjustment. Payment Without Deduction All rentals shall be paid without deduction or set-off.
It looks like you need clarification on the rental payment provisions. Here are the key points:
- Monthly Rentals: Payable in advance on or before the 3rd day of each month.
- Rental Adjustment: Lessor can adjust rent after the initial period with one month’s notice.
- Payment Without Deduction: Rent must be paid without any deductions or set-offs.
Do you need help with drafting or clarifying any other specific clauses?
PAYMENT TERMS AND CONDITIONS / METHOD OF PAYMENT Payment for Petroleum Products The Sublessee shall remit payment for the petroleum products intended for temporary storage not later than One (*) Business Day before the day of the petroleum's reception from the pipeline system. This payment shall coincide with Sublessor's receipt of the copy of NOR (Notice of Readiness) from the Pipeline Transportation Company, which signifies the readiness to commence the injection of the petroleum products into the Ex-Shore Tanks. Sublessor shall subsequently clear the Ex-Shore Tanks and issue the Tank Receipt and Tank Clearance, NOR (Notice of Readiness) for the receipt of the petroleum products from the pipeline system, prior to Tank Injection of the Petroleum products. Payment The Sublessee shall affect payment for the petroleum products intended for temporary storage in United States Dollars (USD) currency through the means of SWIFT MT103-T/T directly into the beneficiary account specified in the Invoice issued to the Sublessee Company by Sublessor, duly signed and sealed by the General Director. Payment Calculation The payment amount due from the Sublessee shall be calculated based on the Total Amount payable per day, for the Temporary Storage of the Fuel in the Ex-Shore Tank for the agreed-upon period. Demurrage Demurrage shall be charged at a rate of $*,* per day. Start of Storage Period Upon remittance of the payment for the Number of Days the Sublessee intends to Store the Fuel in the Ex-Shore Tank, the Storage Period shall start counting from the day the fuel is injected into the Ex-Shore Tank. Refund Policy If, for any reason, the Ex-Shore Tanks are not used for the Temporary Storage of the petroleum products by the Sublessee during the Five (*) days period within the validated date of this Tank Storage Agreement, the Sum Total of the Amount paid by the Sublessee shall be refunded.
To ensure clarity and avoid potential disputes, consider adding these details:
- Payment Terms: Clearly specify the timing and method of payment, including any necessary references to the SWIFT MT103-T/T method.
- Demurrage: Ensure the rate and conditions are clearly stated.
- Start of Storage Period: Define the exact start time, based on the injection of fuel.
- Refund Policy: Precisely outline the conditions under which a refund is applicable.
Would you like more detailed guidance on drafting these clauses?
Start of Storage Period Upon remittance of the payment for the Number of Days the Sublessee intends to Store the Fuel in the Ex-Shore Tank, the Storage Period shall start counting from the day the fuel is injected into the Ex-Shore Tank.
Case Rating: *
To ensure clarity in your Tank Storage Sublease Agreement, consider adding these important details:
- Start of Storage Period: Clearly define that the storage period begins the day the fuel is injected into the Ex-Shore Tank.
- Payment Terms: Specify the timing and method of payment, including reference to SWIFT MT103-T/T.
- Refund Policy: Outline specific conditions for refunds if the tanks are not used as intended.
Would you like further assistance on how to draft these clauses more precisely?
In case of a default by either Party, the defaulter shall bear all associated costs.
It seems like you have a comprehensive agreement, but there are areas that need more precise language to avoid future disputes. Here are some key points to consider:
- Default Clause: Clearly define what constitutes a default and the associated costs.
- Payment Terms: Specify timing and methods of payment, including SWIFT MT103-T/T.
- Rental Period: Include flexibility for uncertain arrival times, start upon tank availability and ship’s arrival, and specify a maximum limit.
Would you like more guidance on any specific clause or drafting these provisions?
In the event of a default, price differences and losses shall be calculated.
For your Tank Storage Sublease Agreement, to address the default clause, you should clearly define what constitutes a default and the procedure for calculating price differences and losses. Here are some suggestions:
- Default Definition: Specify what actions or inactions will be considered a default.
- Calculation Method: Outline the method for calculating price differences and losses due to default.
- Associated Costs: Clearly state that the defaulting party will bear all associated costs.
Would you like more detailed guidance on drafting this default clause?
No variation, amendment, modification, or alteration shall be of any force or effect unless reduced to writing and signed by the parties. No waiver of any term or condition or of any breach shall be effective unless in writing and signed by a duly authorized representative.
It seems you've got a detailed Tank Storage Sublease Agreement, but you want to ensure all clauses are clear and comprehensive. Here are some points to consider:
- Default Clause: Define defaults, calculation methods for losses, and associated costs.
- Flexibility Clause: For uncertain rental periods due to ship arrival, specify start upon tank availability and ship’s arrival, and include a maximum limit.
Would you like more detailed guidance on drafting these provisions?
Sublessor hereby grants Sublessee, and Sublessee hereby accepts from Sublessor, a sublease interest in tank storage capacity totaling *,* Metric Tons ("mt") at the Tank Farm Location.
It looks like you have a detailed Tank Storage Sublease Agreement but need to ensure all clauses are clear and comprehensive. Here are some suggestions:
- Default Clause: Define what constitutes a default, the calculation method for losses, and state that the defaulting party will bear all associated costs.
- Flexibility in Rental Period: For uncertain periods due to ship arrival, specify that the rental period starts upon tank availability and ship’s arrival, and include a maximum rental limit.
Would you like more detailed guidance on drafting any specific clause?