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Fuel Storage Agreement

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FUEL STORAGE AGREEMENT

Parties

Recitals

WHEREAS, Storage Provider operates a fuel storage facility and has available storage capacity at the facility located at ; and

WHEREAS, Fuel Owner desires to store fuel at such facility and Storage Provider is willing to provide storage services under the terms set forth in this Agreement; and

WHEREAS, the parties intend for this Agreement to allocate responsibility for custody, risk of loss, insurance, environmental compliance and payment for storage services.

Scope of Work

Storage Provider shall receive, store, preserve and deliver Fuel Owner's fuel subject to the terms of this Agreement. Storage Provider agrees to maintain the storage tanks, containment, and associated equipment in a manner consistent with good industry practice and applicable law.

Storage Specifications

Fuel Type(s):

Payment Terms

Fuel Owner shall pay Storage Provider for storage services in accordance with the rates and schedule set forth below. All payments are due in U.S. dollars and are non-refundable except as expressly provided herein.

Invoices not paid within the payment period shall accrue a late fee at the rate specified above, compounded monthly. Fuel Owner shall also reimburse Storage Provider for reasonable costs of collection, including attorneys' fees.

Term and Termination

This Agreement commences on and, unless earlier terminated in accordance with this Agreement, continues until .

Either party may terminate this Agreement for convenience upon written notice to the other party delivered at least days prior to the effective termination date. Either party may terminate immediately for material breach by the other party if such breach remains uncured for a period of thirty (30) days following written notice specifying the breach.

Confidentiality

Each party shall treat as confidential all non-public information disclosed by the other party in connection with this Agreement, including commercial terms, quantities, pricing and technical data ("Confidential Information"). Confidential Information shall not be disclosed to third parties and shall be used only for performance under this Agreement. The confidentiality obligations shall not apply to information that is or becomes publicly available other than as a result of breach of this Agreement, is rightfully received from a third party without restriction, or is required to be disclosed by applicable law or order of a court or regulatory authority, provided the disclosing party is given prompt notice and a reasonable opportunity to seek a protective order.

Insurance and Indemnity

Storage Provider shall maintain liability and pollution insurance covering the facility and operations in amounts customary for facilities of similar size and risk. Fuel Owner shall maintain insurance covering its fuel against loss, theft and contamination while in storage. Each party shall indemnify, defend and hold harmless the other party from and against any claims, damages, losses or liabilities arising from its negligence, willful misconduct, or breach of this Agreement.

Liability Limitation

Except for liability resulting from gross negligence or willful misconduct, neither party shall be liable to the other for consequential, incidental, punitive or special damages, including loss of profit or business interruption.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to its conflict of laws rules.

Entire Agreement

This Agreement, together with any attachments and accepted schedules, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, representations and agreements, whether written or oral. No amendment or modification shall be effective unless executed in writing by authorized representatives of both parties.

Notices

All notices required or permitted hereunder shall be in writing and delivered to the parties at their addresses set forth above or to such other address as either party may designate by written notice to the other.

Signatures

Storage Provider Name:

By:

Date:

Fuel Owner Name:

By:

Date:

Enter text✕

Overview of the Fuel Storage Agreement

A Fuel Storage Agreement is a written contract that sets out the terms under which one party stores fuel (diesel, gasoline, aviation fuel, or other petroleum products) at a facility owned or operated by another party. It defines responsibilities for delivery, storage capacity, inventory measurement, handling, payment, insurance, environmental compliance, and liability allocation. The agreement also addresses emergency response, access rights, term and renewal, termination conditions, and regulatory compliance for hazardous materials and fuel storage tanks.

Why a Clear Fuel Storage Agreement Matters

A well-drafted Fuel Storage Agreement reduces operational disputes, clarifies risk allocation, and documents regulatory and insurance obligations to protect both owner and user.

Why a Clear Fuel Storage Agreement Matters

Who Typically Uses a Fuel Storage Agreement

Use this agreement when a party needs contractual certainty on access, measurement, liability, and compliance for stored fuel.

  • Fuel distributors and wholesalers storing inventory for resale or redistribution
  • Commercial fleet operators and municipalities securing dedicated on-site storage
  • Aviation operators and FBOs storing jet fuel or Avgas for operations

Core Elements to Include in Your Agreement

Include clauses that allocate risk, set operational parameters, and document compliance obligations so both parties understand performance, safety, and financial responsibilities.

Parties and Definitions

Full legal names, business type, and clear definitions for terms like 'product', 'tank', 'deliveries', and 'inventory' to avoid ambiguity.

Storage Terms

Specify capacity reserved, accepted fuel types, maximum and minimum inventory levels, and duration of storage with renewal mechanics.

Measurement & Inventory

Define inventory measurement method (gauge, meter, or custody transfer), reconciliation process, and dispute resolution for quantity discrepancies.

Payment & Charges

State storage fees, billing frequency, late payment penalties, demurrage, and responsibility for taxes or levies related to stored fuel.

Insurance & Liability

Specify required insurance limits, who carries coverage, indemnities for spills or contamination, and limits on consequential damages.

Environmental & Regulatory

Allocate responsibilities for compliance with EPA/state tank rules, SPCC plans, remediation costs, and notification duties for releases.

Essential Data Fields to Capture

Effective Date: MM/DD/YYYY
Parties: Legal entity names
Facility Address: Street, city, state, ZIP
Fuel Type: Diesel, gasoline, jet fuel
Reserved Capacity: Barrels or gallons
Insurance Limits: Per-occurrence and aggregate

Step-by-step: How to Complete a Fuel Storage Agreement

Follow these sequential steps to prepare, review, and finalize the agreement efficiently and compliantly.

  • 01
    Prepare Draft: Gather party details, tank specs, and proposed fees.
  • 02
    Review Compliance: Check local tank and environmental rules and insurance limits.
  • 03
    Negotiate Terms: Confirm measurement, liability, and termination clauses.
  • 04
    Execute Document: Sign, date, and notarize if required.

How to Customize and Finalize the Agreement Online

Set up a digital workflow that covers templates, fields, signer order, and storage to streamline execution and recordkeeping.

Field Configuration
Template Create reusable fuel storage template with locked clauses
Signer Order Specify sequence or parallel signing as required
Authentication Use email, SMS OTP, or KBA for signer verification
Audit Trail Enable detailed logging of IP, timestamps, and actions

Digital Signing and eSubmission Considerations

Verify platform capabilities for any industry-specific controls (HIPAA BAA, 21 CFR Part 11) and long-term exportability before finalizing workflows.

  • File Formats: PDF and Word DOCX support for signed copies
  • Integrations: Connectors for ERP/CRM and cloud storage
  • Security: TLS and AES encryption, plus audit logs

Where to Send or File the Executed Agreement

After execution, route the signed agreement to relevant internal and external recipients and retain a secure copy for compliance.

  • Owner Copy: Send executed PDF to facility owner or operator
  • User Copy: Deliver signed copy to the storage customer
  • Insurance Carrier: Provide certificate and agreement excerpt if required
  • Regulatory Files: File or retain copies for inspections and audits

Key Timeframes to Track

Monitor execution, insurance effective dates, delivery windows, and remediation deadlines to avoid contractual or regulatory exposure.

Execution Date:

Date parties sign; starts obligations and insurance

Insurance Effective:

Matches policy declarations; ensure overlap with storage term

Delivery Windows:

Agreed notice periods for deliveries and removals

Notice Periods:

Termination or cure periods specified in contract

Remediation Timelines:

Regulatory deadlines for spill reporting and cleanup

Milestones from Negotiation to Post-termination

A sequential view of contract lifecycle stages clarifies responsibilities and handoffs for both parties.

01

Draft and Internal Review

Legal and operations review for risk and compliance.

02

Counterparty Negotiation

Resolve pricing, capacity, and liability allocation.

03

Execution and Insurance

Signatures obtained and insurance certificates exchanged.

04

Ongoing Compliance

Monitoring, periodic inspections, and reporting.

Common Preparation Mistakes to Avoid

  • Unclear product specifications leading to rejected deliveries or contamination claims
  • Missing or inadequate insurance requirements that shift cleanup costs
  • Vague measurement methods causing recurring inventory disputes
  • Failure to align contract term with insurance policy effective dates

Practical Risks and Consequences of Errors

Regulatory Fines: EPA or state penalties for spill or tank violations
Cleanup Costs: Potentially large remediation expenses
Contract Claims: Breach damages for improper storage or loss
Insurance Gaps: Denied claims if coverage requirements are unmet
Operational Downtime: Interrupted deliveries and loss of revenue
Reputational Harm: Customer and regulator trust erosion after incidents

Select eSignature pricing and capability comparison for executing Fuel Storage Agreements

Compare common plan starting prices, trial availability, bulk-send capability, audit trails, HIPAA compliance, and envelope caps to choose an appropriate eSignature solution.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes No or limited
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Illustrative use cases of Fuel Storage Agreements

These real-world scenarios show how different parties use fuel storage agreements to manage operations and risk.

Fleet Operator Example

A municipal fleet enters a one-year storage agreement for diesel deliveries

  • reserved capacity and metering terms prevent shortages
  • the agreement included insurance and immediate-notice spill procedures to limit downtime and cost exposure.

Aviation Operator Example

An FBO stores jet fuel under a custody-transfer clause

  • ASTM-grade specification and sampling protocols were required
  • the contract specified enhanced testing, tighter indemnities, and 24-hour access for urgent refueling.

Frequently asked questions about Fuel Storage Agreements

Answers to common questions on enforceability, signatures, notarization, and practical steps when problems arise.


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