Tank Lease Agreement

THIS ROCKINGHAM PETROLEUM TANK LEASE AGREEMENT, entered into this day between COOPERATIVE shown above, and (“Customer”) who resides at the address shown above (the "Agreement"). In consideration of the mutual covenants and promises contained herein, COOPERATIVE hereby leases to Customer the Petroleum tank and other items (collectively the "Equipment") shown in Section B above and located on property owned or occupied by Customer shown in Section A above. Customer agrees to pay a rental fee based on minimum usage annually. Cooperative may adjust rental fee at any time, at its sole discretion, based upon market demands or usage. This Agreement is subject to the Terms and Conditions attached hereto and made a part hereof. IN WITNESS WHEREOF, This Agreement is executed by the parties hereto the day and year first above written.
TERMS AND CONDITIONS OF LIQUID PROPANE TANK LEASE AGREEMENT 1. Leased Equipment. The leased equipment is the complete liquid propane tank, regulator and accompanying equipment-listed in Section B. and all additions and modifications made over the course of this Agreement (collectively the "Equipment"). 2. Term and Termination. a. This Agreement shall be for one (1) year, commencing on the date herein, and shall renew automatically for successive one year terms after the initial term, unless terminated by either party with thirty (30) days' written notice to the other party. b. This Agreement may be terminated by either Customer or COOPERATIVE with at least thirty (30) days written notice by the terminating party. If COOPERATIVE terminates this Agreement due to Customer's breach of any term herein, including but not limited to paragraphs 4, 6, 7 and 8, Customer shall also be responsible for any costs associated with removing the Equipment, collecting any payments due and any other additional costs incurred in the enforcement of COOPERATIVE's rights hereunder. If Customer terminates this Agreement, Customer shall pay Cooperative the value of the "Other Items" listed in Section B, reduced by depreciation. Depreciation shall be calculated using the straight line depreciated based on the 7 or 10-year period shown in Section B. Further, if Customer terminates this Agreement, Customer may purchase the tank at a purchase price mutually agreed to by the parties on the termination date. If the parties fail to reach an agreement on the purchase price, Cooperative shall remove the tank and Customer shall be responsible for any costs associated with the removal. c. Upon termination for any reason, Customer shall have seven (7) calendar days after effective termination in which to contact COOPERATIVE to remove the liquid propane in the Equipment. Beginning on the eighth (8th) calendar day after effective termination, COOPERATIVE shall have the right for a reasonable length of time, to enter Customer's premises at any time to remove the Equipment. The value of any remaining liquid propane in the Equipment shall be credited to Customer's account less any fees or balances owed to COOPERATIVE. Under no circumstances is Customer to remove product or Equipment or contact another supplier to do so. All removals shall be performed by COOPERATIVE or its authorized agent. d. Upon removal of the Equipment, COOPERATIVE's sole responsibility is restoration of Customer's property and to refill or repair the removal site and reuse the original dirt or sod from the area. No other landscaping shall be performed. e. Unless otherwise specified, the expense of the removal shall be paid by the party who terminates the Agreement. 3. Customer's Obligations. Customer leases the Equipment for the sole purpose of storing and or dispensing liquid propane. In consideration of the lease of Equipment to the Customer, Customer agrees to purchase all liquid propane for the Equipment from COOPERATIVE at COOPERATIVE's announced price schedule and credit terms. UNDER NO CIRCUMSTANCES WILL ANOTHER SUPPLIER OF LIQUID PROPANE BE AUTHORIZED TO DELIVER ANY QUANTITY OF LIQUID PROPANE TO THE EQUIPMENT OR TO USE THE EQUIPMENT. This action will immediately void this lease agreement and could result in legal action by COOPERATIVE against Customer and the unauthorized supplier. 4. Return of Equipment. Upon termination of this Agreement, Customer agrees to return the Equipment in as good condition as when received hereunder, ordinary wear and tear alone accepted. Any necessary repairs or replacements Equipment caused by natural wear and tear or the elements shall be paid for by COOPERATIVE; if said repairs or replacements are made necessary because of the negligence of any other party other than COOPERATIVE, the Customer agrees to pay a reasonable charge therefore. Customer shall also pay COOPERATIVE any expenses or costs relating to any pick up, pump out, underground tank removal and/or disconnection fees then being charged by COOPERATIVE. Unless otherwise specified in this Agreement, in the event that the Equipment is underground, Customer shall be responsible for filling, grading and seeding the excavation site and shall comply with all applicable laws and regulations therewith. 5. Title. The Equipment shall at all times be the personal property of COOPERATIVE. Title to the Equipment is and shall remain with COOPERATIVE even though it may be fastened to or attached to real estate. 6. Pricing and Credit Terms. Price for liquid propane, services and other costs as well as COOPERATIVE's credit terms are subject to change without notice. At Customer's request, COOPERATIVE shall provide the cost being charged for liquid propane on the date of request. Customer further understands and agrees that COOPERATIVE may, from time to time, offer promotional or other special pricing programs or price discounts for which Customer may not be eligible and that such price programs and/or discounts shall not be applicable in determining the prices applicable under this Agreement. COOPERATIVE reserves the right to charge for inspections and other costs and assess fees or charges with respect to the Equipment. Statements for use of Equipment and or services shall be due when rendered. Customer shall pay all costs incurred by Cooperative in collecting delinquent amounts, including but not limited to reasonable attorney's fees. 7. Minimum Use Requirement. If Customer fails to meet the minimum use requirements as defined above, COOPERATIVE shall, in its sole discretion, replace the Equipment with more compatible equipment or remove the Equipment from Customer's property and immediately terminate this Agreement. 8. Compliance. To the extent possible, it shall be Customer's responsibility to comply with all Laws, regulations and rules pertaining to the presence and/or storage of liquid propane at the Customer's property, including any reporting obligations or notice requirements. Customer acknowledges that there are certain hazards inherent in the use and storage of liquid propane and agrees that it shall be Customer's responsibility to provide any warning or other protection deemed necessary or desired with respect to any family members, household residents, guests, agents and/or employees or any other persons exposed to the liquid propane. Any loss of liquid propane as a result of a leak from the Equipment shall be borne by Customer unless such loss, in the opinion of COOPERATIVE, was due to the deterioration of the Equipment. Furthermore, COOPERATIVE may refuse to render services to the Customer at any time if the Equipment is connected to service lines which do not comply with COOPERATIVE's standards, rules, regulations or State and local authority or are considered hazardous by COOPERATIVE or Customer refuses adequate inspection. 9. Assignment. Customer shall not assign or transfer services under this Agreement to tenants or other persons other than the Customer without notice to and approval from COOPERATIVE. ANY TRANSFER TO TENANTS OR OTHER PARTIES SHALL NOT RELIEVE CUSTOMER OF ITS OBLIGATIONS HEREIN. 10. Sale of Property. Customer agrees to notify COOPERATIVE in writing of its intent to sell or move from the property on which the Equipment is located. Customer further agrees to notify all listing agents, realtors, buyers, auctioneers, mortgagors or trustees of the property that the Equipment is the property of COOPERATIVE and may remain at the property only so long as the subsequent owner or occupant of the property agrees to and executes a Liquid Propane Tank Lease Agreement. 11. Indemnification. Customer shall indemnify and hold COOPERATIVE harmless from and against all loss, expense (including attorneys' fees), damages or claims whether from negligence, breach of warranty, strict tort liability, injury or death to persons, or damage to property arising out of or resulting from the use of the Equipment, unless the foregoing can be attributed solely to COOPERATIVE's gross negligence. 12. License. Customer hereby grants COOPERATIVE, its employees, contractors and assigns, the right of ingress and egress to, from and over its property or any surrounding properties for the purpose of installing, maintaining, inspecting, filling or removing the Equipment, and otherwise performing its rights hereunder. COOPERATIVE or its assigns shall at all times have free access to the Equipment and free right of ingress and egress for these purposes without demand or legal process. Customer hereby fully exonerates and holds COOPERATIVE, its assigns or legal representatives harmless from any claim for trespass, or any other claim for damages on account of entering upon said premises and taking or causing to be taken the Equipment To the extent COOPERATIVE determines it is necessary or appropriate, Customer agrees to execute and deliver an easement or other instrument satisfactory to COOPERATIVE in order to evidence and secure the rights of COOPERATIVE and its employees agents and contractors into ingress and egress hereunder and the right to install and remove the Equipment. At all times, Customer shall maintain access to and the area surrounding the Equipment in safe condition. 13. Miscellaneous. a. This writing embodies the entire understanding of the parties, and there are no further Agreements, oral or written, between the parties pertaining to the subject matter hereof. No waiver or modifications are valid or binding unless in writing signed by COOPERATIVE. b. COOPERATIVE reserves the right to make any changes to this Agreement without prior notice to Customer. c. By executing this Agreement, Customer agrees that COOPERATIVE has the right but not the obligation to file this Agreement as well as any accompanying UCC forms.