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Warehousing and Storage Agreement for Pipeline Transportation

Pipeline Transportation · NAICS 486 · Warehousing and Storage Agreement

This warehousing and storage agreement is tailored for the pipeline transportation industry, where bulk liquids are often stored in tank farms connected to major pipelines. Unlike standard warehouse agreements, this document addresses critical issues such as product contamination, commingling, demurrage, and compliance with pipeline safety regulations. Whether you are a terminal operator providing storage for crude oil, refined products, or NGLs, or a shipper needing guaranteed capacity, this agreement helps you clearly define the terms of storage, throughput, and liability. It is designed to reduce disputes and protect your interests in a complex operational environment.

When you need this document

When a pipeline shipper needs to reserve storage capacity at a terminal or tank farm for product awaiting pipeline transport or delivery.
When a storage facility operator provides storage services to multiple customers and needs a robust agreement to manage scheduling, quality, and liability.
When a refiner or marketer requires long-term storage for strategic reserves or seasonal inventory management.
When a pipeline operator offers incidental storage services as part of a broader transportation agreement.
When parties need to define demurrage and throughput obligations to avoid operational bottlenecks.

What the generated draft includes

Detailed storage services and facility description
Term and capacity commitments
Receipt, storage, and redelivery procedures
Demurrage and scheduling provisions
Risk of loss and title transfer clauses
Fees, invoicing, and payment terms
Compliance with PHMSA, EPA, and OSHA regulations
Force majeure and termination rights

Frequently asked questions

Why can't I use a generic warehouse agreement for pipeline storage?

Pipeline storage involves unique risks like product contamination, commingling, and interface losses that don't apply to palletized goods. A generic agreement lacks essential terms for tank management, pumping rates, and demurrage, leaving you exposed to costly disputes.

What is demurrage and why is it important in this agreement?

Demurrage is a charge incurred when a tanker, truck, or pipeline schedule is delayed due to the customer's failure to load or unload product within the agreed free time. Including a demurrage clause incentivizes timely operations and compensates the storage provider for lost efficiency.

Does this agreement ensure compliance with pipeline regulations?

The draft includes a clause requiring the storage provider to comply with all applicable regulations, including PHMSA pipeline safety standards and EPA environmental rules. However, you should customize it to your specific product and jurisdiction and seek legal review.

Self-help document generator: you get a structured draft based on the facts you provide. It is not legal, tax, or financial advice; verify jurisdiction-specific rules before sending.