Common use of Available Space Clause in Contracts

Available Space. The Concessionaire shall inform the Authority within 24 (twenty four) hours from the end of each quarter, the Available Space in the Commercial Cum Strategic Petroleum Reserve and inform the Authority if the Available Space has been booked to be filled under any existing contracts or orders with a third party and when the Available Space will be filled up under such existing third party contracts (“Availability Report”). If the Availability Report does not specify any existing orders to fill up the Available Space, then the Authority may issue a notice to the Concessionaire within 4 (four) days of the receipt of the Availability Report, requiring the Concessionaire to provide such Available Space to the Authority starting from 60 (sixty) days from the date of such notice, at the lowest rental being charged by it from a third party for similar duration for allowing the Authority to store petroleum for such period as may be prescribed in the notice. The Authority will be treated as the Most Preferable Customer by the concessionaire. If the Authority exercises such right, then the Concessionaire shall be bound to provide the Available Space as required in the notice to the Authority. The Concessionaire shall not enter into any contracts or arrangements with a third party for the use of such Available Space as taken over by the Authority till such time as provided in the notice. If the Authority does not issue the notice as required under this clause within the time period as specified, then the Concessionaire shall be free to enter into contracts with a third party for the Available Space. In the event there is no Available Space and the Authority requires the stored crude oil for storage, then Authority may issue a notice to the Concessionaire stating the quantity of crude oil it requires within 4 (four) days of the Availability Report. If the Concessionaire agrees to sell such quantity of crude oil stored at the Commercial Cum Strategic Petroleum Reserve to the Authority or if the Parties mutually agree on any other quantity of crude oil to be sold, then the Authority may procure such quantity of crude oil at the prevailing market rate and store it at the Commercial Cum Strategic Petroleum Reserve and pay the lease rental at the lowest rental being charged by it from a third party for similar duration for the use of the space for storing such quantity of crude oil for such duration as may be notified by the Authority in the abovementioned notice. The Authority will be treated as the Most Preferable Customer by the Concessionaire.