Common use of Environmental Testing Prior to Expiration/Termination of Contract Clause in Contracts

Environmental Testing Prior to Expiration/Termination of Contract. A. Within thirty (30) Days after the removal of underground storage tanks or otherwise prior to the expiration of the Contract, the Contractor shall test the physical condition of the Premises. If the test results reveal that the Contractor has discharged or released petroleum products on the Premises in excess of governmental limits, the Contractor shall perform corrective action of the Contractor’s Hazardous Materials to the satisfaction of the federal, state, or county exercising jurisdiction over the matter. B. In order to facilitate corrective action on the Premises, the Airports Authority shall provide the Contractor and/or its contractors reasonable access to the Premises after the expiration or termination of this Contract. The Airports Authority will provide such access until the Contractor obtains the requisite clearance (i.e., “no further action”) from the governmental authority exercising jurisdiction over the matter. C. Within thirty (30) Days after the removal of underground storage tanks or otherwise prior to the end of the Contract Term or earlier termination of the Contract, the Contractor shall investigate the condition of the Premises and begin to remove or remediate as required under Section 10.05 herein, the Contractor Hazardous Materials from the Premises and surrounding lands and waters. The Contractor shall also, within 30 Days after vacating the Premises, remove all tanks, piping and other equipment which stored Hazardous Materials. The Contractor shall give the Airports Authority at least ten (10) Days’ written notice prior to removing such tanks, piping or other equipment, and, instead of removal, the Contractor may elect, if the Airports Authority agrees, to transfer such equipment in place to the Airports Authority or to the Airports Authority’s designee. Should the Contractor fail to comply with this Section, in addition or all other damages and remedies which may which may be available to the Airports Authority, the Contractor shall be liable to the Airports Authority for the fair rental value of the Premises as if uncontaminated by the Contractor’s Hazardous Materials (which shall not be less than the monthly payments set forth in the Contract), or to the extent the Premises can be partially occupied by others, the reduction in the fair rental value, until the required removal or remediation has occurred. The Contractor’s obligation for the fair rental value will arise if the Airports Authority has diligently pursued all reasonable alternatives to lease the Premises for continued aviation use. Nothing in this Section shall operate to extend the Contract Term or give the Contractor a right of occupancy beyond the Contract Term, or earlier termination of this Contract, except as set out in Section 10.15B. D. In the event that the Airports Authority or any other third party plans any construction on the Premises during Contractor’s corrective action, the Airports Authority shall review such plans with the Contractor in order to accommodate and facilitate the Contractor’s corrective action to the maximum extent practicable. The provisions set forth in this Section 10.15 shall survive expiration or termination of this Contract. E. If the Contractor is continuing to perform corrective action under this Section 10.15 at the same time as the Airports Authority or any successive contractor is required to perform Corrective Action, the Parties will cooperate and each perform (or, in the case of the Airports Authority, require its successive contractor to perform) corrective action of the contamination for which each is responsible. If the Contractor and Airports Authority agree that corrective action should only be performed by a single party, the corrective action will be undertaken by the party whose fractional cost is greater. If either the Contractor or the Airports Authority is performing corrective action to address contamination for which both it and the other party are responsible under this Contract, the Parties shall discuss appropriate proportionate sharing of the cost of corrective action, and shall share such costs of corrective action, with the party that is not performing the corrective action paying its share of costs to the other party performing the corrective action within 30 Days after the date invoices for such work and supporting documentation are presented by the party performing the corrective action to the other party. If the Parties are unable to agree on the appropriate proportionate sharing of the cost of corrective action, the Contractor and the Airports Authority shall hire, sharing the cost, a consultant mutually acceptable to the Airports Authority and the Contractor to assess the impact of the contamination for which the Airports Authority is responsible for under the terms of this Contract on the environmental condition of the Premises. If the Parties do not agree on a single consultant, each party, at its own cost, shall hire its own consultant, and the two consultants shall jointly select a third consultant. The consultant’s assessment must include a review of the corrective action that has been done as of the date of the new contamination for which the Airports Authority or its successor contractor is responsible under this Contract and the remaining cost to complete the Contractor’s corrective action absent this new contamination. In addition, the consultant must estimate the cost of the additional work that will be required due to this new contamination. In such case, the Contractor’s fractional cost equals the estimated cost to complete corrective action before this new contamination divided by the estimated cost to complete this corrective action after the new contamination. The Airports Authority’s fractional cost equals one (1) minus (the estimated cost to complete corrective action before this new contamination divided by the estimated cost to complete the corrective action after the new contamination). Example: The Contractor is performing corrective action, then estimated (by the consultant, if needed) to cost $100,000 to complete. A spill occurs for which the Airports Authority or its successor contractor is responsible under the contract. The estimated cost to complete corrective action after the new contamination is $150,000 ($100,000 original estimated cost plus $50,000 estimated costs related to the new contamination). A = Estimated cost to complete corrective action before this new contamination. B = Estimated cost to complete corrective action after this new contamination. The Contractor’s fractional cost equals: A divided by B, or .667. The Contractor will pay two-thirds (.667) of corrective action costs incurred after the new contamination occurs. The Airports Authority’s fractional cost equals: 1 minus (A divided by B), or 1 minus .667. The Airports Authority will pay one-third (.333) of corrective action costs incurred after the new contamination occurs. F. The Contractor may participate, from time to time, as a result of its corrective action activities, in a state-administered reimbursement program related to underground storage tanks. At the Contractor’s request and at no expense to the Airports Authority, the Airports Authority shall reasonably cooperate with the Contractor in satisfying the requirements of the applicable governmental agency to participate in or comply with this state program. The Contractor is entitled to retain all reimbursement received for corrective action performed by it. If the Airports Authority or any successor contractor fails to comply with the underground storage tank or other environmental regulations relating to the Premises and this failure results in a reduction in the reimbursement the Contractor received from the fund or results in the Contractor losing its fund eligibility, the Airports Authority and any successor contractor shall reimburse the Contractor for any reductions resulting from such noncompliance promptly upon receipt from the Contractor of supporting documentation that demonstrates both the noncompliance and its effect upon Contractor’s reimbursement. G. The terms and provisions of this Section 10.15 shall survive the expiration or termination of this Contract.

Appears in 2 contracts

Sources: Lease Agreement, Lease Agreement

Environmental Testing Prior to Expiration/Termination of Contract. A. Within thirty (30) Days after the removal of underground storage tanks or otherwise prior to the expiration of the Contract, the Contractor shall test the physical condition of the Premises. If the test results reveal that the Contractor has discharged or released petroleum products on the Premises in excess of governmental limits, the Contractor shall perform corrective action of the Contractor’s Hazardous Materials to the satisfaction of the federal, state, or county exercising jurisdiction over the matter. B. In order to facilitate corrective action Corrective Action on the Premises, the Airports Authority shall provide the Contractor and/or its contractors reasonable access to the Premises after the expiration or termination of this Contract. The Airports Authority will shall provide such access until the Contractor obtains the requisite clearance (i.e., “no further action”) from the governmental authority exercising jurisdiction over the this matter. C. B. Within thirty one hundred eighty days (30180) Days after the removal of underground storage tanks or otherwise days prior to the end of the Contract Term term or earlier termination of the Contract, the Contractor shall investigate the condition of the Premises and begin to remove or remediate remedied as required under Section 10.05 10.03 herein, the Contractor Hazardous Materials Contractor’s hazardous materials from the Premises and surrounding lands and waters. The Contractor shall also, within 30 Days thirty (30) days after vacating the Premises, remove all tanks, piping and other equipment which stored Hazardous Materialshazardous materials. The Contractor shall give the Airports Authority at least ten sixty (1060) Days’ days written notice prior to removing such any above ground storage tanks, or underground and above ground piping or other equipment, and, instead of removal, the Contractor may elect, if the Airports Authority agrees, to transfer such equipment in place to the Airports Authority or to the Airports Authority’s designee. Should the Contractor fail to comply with this Section, in addition or to all other damages and remedies which may which may be available to the Airports Authority, the Contractor shall be liable to the Airports Authority for the fair rental value of the Premises as if uncontaminated by the Contractor’s Hazardous Materials hazardous materials (which shall not be less than the monthly payments set forth in the Contract), or to the extent the Premises can be partially occupied by others, the reduction in the fair rental value, until the required removal or remediation has occurred. The Contractor’s obligation for the fair rental value will arise if the Airports Authority has diligently pursued all reasonable alternatives to lease the Premises for continued aviation FBO use. Nothing in this Section shall operate to extend the term of this Contract Term or give the Contractor a right of occupancy beyond the Contract Termterm of this Contract, or earlier termination of this Contract, except as set out in Section 10.15B.10.08(b). D. C. In the event that the Airports Authority or any other third party plans any construction on the Premises during the Contractor’s corrective action's Corrective Action, the Airports Authority shall review such plans with the Contractor in order to accommodate and facilitate the Contractor’s corrective action 's Corrective Action to the maximum extent practicable. The provisions set forth in this Section 10.15 10.08 shall survive expiration or termination of this Contract. E. D. If the Contractor is continuing to perform corrective action Corrective Action under this Section 10.15 10.08 at the same time as the Airports Authority or any successive contractor concessionaire is required to perform Corrective Action, the Parties parties will cooperate and each perform (or, in the case of the Airports Authority, require its successive contractor concessionaire to perform) corrective action Corrective Action of the contamination for which each is responsible. If the Contractor and Airports Authority agree has determined that corrective action the Corrective Action should only be performed by a single one party, the corrective action it will be undertaken by the party whose fractional cost is greater. If either the Contractor or the Airports Authority is performing corrective action Corrective Action to address contamination for which both it and the other party are responsible under this Contract, the Parties parties shall discuss appropriate proportionate sharing of the cost of corrective actionCorrective Action, and shall share such costs of corrective actionas Corrective Action is performed, with the party that is not performing the corrective action Corrective Action paying its share of costs to the other party performing the corrective action as Corrective Action is performed, within 30 Days days after the date invoices for such work and supporting documentation are presented by the party performing the corrective action Corrective Action to the other party. If the Parties parties are unable to agree on the appropriate proportionate sharing of the cost of corrective actionCorrective Action, the Contractor and the Airports Authority shall hire, sharing the cost, a consultant mutually acceptable to the Airports Authority and the Contractor to assess the impact of the contamination for which the Airports Authority is responsible for under the terms of this Contract on the environmental condition of the Premises. If the Parties parties do not agree on a single consultant, each party, at its own cost, party shall hire its own consultant, and the two consultants shall jointly select a third consultant. The consultant’s 's assessment must include a review of the corrective action Corrective Action that has been done as of the date of the new contamination for which the Airports Authority or its successor contractor concessionaire is responsible under this Contract and the remaining cost to complete the Contractor’s corrective action 's Corrective Action absent this new contamination. In addition, the consultant must estimate the cost of the additional work that will be required due to this new contamination. In such case, the Contractor’s 's fractional cost equals the estimated cost to complete corrective action Corrective Action before this new contamination divided by the estimated cost to complete this corrective action Corrective Action after the new contamination. The Airports Authority’s 's fractional cost equals one (1) 1 minus (the estimated cost to complete corrective action Corrective Action before this new contamination divided by the estimated cost to complete the corrective action Corrective Action after the new contamination). Example: The Contractor is performing corrective actionCorrective Action, then estimated (by the consultant, if needed) to cost One Hundred Thousand Dollars ($100,000 100,000) to complete. A spill occurs for which the Airports Authority or its successor contractor concessionaire is responsible under the contractthis Contract. The estimated cost to complete corrective action Corrective Action after the new contamination is $150,000 One Hundred Fifty Thousand Dollars ($100,000 150,000) One Hundred Thousand Dollars ($100,000) original estimated cost plus Fifty Thousand Dollars ($50,000 50,000) estimated costs related to the new contamination). A = Estimated cost to complete corrective action Corrective Action before this new contamination. B = Estimated cost to complete corrective action Corrective Action after this new contamination. The Contractor’s 's fractional cost equals: A divided by B, or .667. The Contractor will pay two-thirds (.667) of corrective action Corrective Action costs incurred after the new contamination occurs. The Airports Authority’s 's fractional cost equals: 1 minus (A divided by B), or 1 minus .667. The Airports Authority will pay one-third (.333) of corrective action Corrective Action costs incurred after the new contamination occurs. F. The Contractor may participate, from time to time, as a result of its corrective action activities, in a state-administered reimbursement program related to underground storage tanks. At the Contractor’s request and at no expense to the Airports Authority, the Airports Authority shall reasonably cooperate with the Contractor in satisfying the requirements of the applicable governmental agency to participate in or comply with this state program. The Contractor is entitled to retain all reimbursement received for corrective action performed by it. If the Airports Authority or any successor contractor fails to comply with the underground storage tank or other environmental regulations relating to the Premises and this failure results in a reduction in the reimbursement the Contractor received from the fund or results in the Contractor losing its fund eligibility, the Airports Authority and any successor contractor shall reimburse the Contractor for any reductions resulting from such noncompliance promptly upon receipt from the Contractor of supporting documentation that demonstrates both the noncompliance and its effect upon Contractor’s reimbursement. G. The terms and provisions of this Section 10.15 shall survive the expiration or termination of this Contract.

Appears in 1 contract

Sources: Concession Contract

Environmental Testing Prior to Expiration/Termination of Contract. A. Within thirty (30) Days days after the removal of underground storage tanks or otherwise prior to the expiration of the Contract, the Contractor shall test the physical condition of the Premises. If the test results reveal that the Contractor has discharged or released petroleum products on the Premises in excess of governmental limits, the Contractor shall perform corrective action Corrective Action of the Contractor’s Hazardous Materials 's hazardous materials to the satisfaction of the federal, stateState, or county County exercising jurisdiction over the matter. B. In order to facilitate corrective action Corrective Action on the Premises, the Airports Authority shall provide the Contractor and/or its contractors reasonable access to the Premises after the expiration or termination of this Contract. The Airports Authority will shall provide such access until the Contractor obtains the requisite clearance (i.e., “no further action”) from the governmental authority exercising jurisdiction over the this matter. C. Within thirty (30) Days days after the removal of underground storage tanks or otherwise prior to the end of the Contract Term or earlier termination of the Contract, the Contractor shall investigate the condition of the Premises and begin to remove or remediate as required under Section 10.05 10.03 herein, the The Contractor Hazardous Materials hazardous materials from the Premises and surrounding lands and waters. The Contractor shall also, within 30 Days days after vacating the Premises, remove all tanks, piping and other equipment which stored Hazardous Materialshazardous materials. The Contractor shall give the Airports Authority at least ten (10) Days’ days written notice prior to removing such tanks, piping or other equipment, and, instead of removal, the Contractor may elect, if the Airports Authority agrees, to transfer such equipment in place to the Airports Authority or to the Airports Authority’s designee. Should the Contractor fail to comply with this Section, in addition or all other damages and remedies which may which may be available to the Airports Authority, the Contractor shall be liable to the Airports Authority for the fair rental value of the Premises as if uncontaminated by the Contractor’s Hazardous Materials Contractor hazardous materials (which shall not be less than the monthly payments set forth in the Contract), or to the extent the Premises can be partially occupied by others, the reduction in the fair rental value, until the required removal or remediation has occurred. The Contractor’s obligation for the fair rental value will arise if the Airports Authority has diligently pursued all reasonable alternatives to lease the Premises for continued aviation use. Nothing in this Section shall operate to extend the term of this Contract Term or give the Contractor a right of occupancy beyond the Contract Termterm of this Contract, or earlier termination of this Contract, except as set out in Section 10.15B. D. In the event that the Airports Authority or any other third party plans any construction on the Premises during Contractor’s corrective action's Corrective Action, the Airports Authority shall review such plans with the Contractor in order to accommodate and facilitate the Contractor’s corrective action 's Corrective Action to the maximum extent practicable. The provisions set forth in this Section 10.15 shall survive expiration or termination of this Contract. E. If the Contractor is continuing to perform corrective action Corrective Action under this Section 10.15 at the same time as the Airports Authority or any successive contractor concessionaire is required to perform Corrective Action, the Parties parties will cooperate and each perform (or, in the case of the Airports Authority, require its successive contractor concessionaire to perform) corrective action Corrective Action of the contamination for which each is responsible. If Contractor has determined that the Contractor and Airports Authority agree that corrective action Corrective Action should only be performed by a single one party, the corrective action it will be undertaken by the party whose fractional cost is greater. If either the Contractor or the Airports Authority is performing corrective action Corrective Action to address contamination for which both it and the other party are responsible under this Contract, the Parties parties shall discuss appropriate proportionate sharing of the cost of corrective actionCorrective Action, and shall share such costs of corrective actionas Corrective Action is performed, with the party that is not performing the corrective action Corrective Action paying its share of costs to the other party performing the corrective action as Corrective Action is performed, within 30 Days days after the date invoices for such work and supporting documentation are presented by the party performing the corrective action Corrective Action to the other party. If the Parties parties are unable to agree on the appropriate proportionate sharing of the cost of corrective actionCorrective Action, the The Contractor and the Airports Authority shall hire, sharing the cost, a consultant mutually acceptable to the Airports Authority and the The Contractor to assess the impact of the contamination for which the Airports Authority is responsible for under the terms of this Contract on the environmental condition of the Premises. If the Parties parties do not agree on a single consultant, each party, at its own cost, party shall hire its own consultant, and the two consultants shall jointly select a third consultant. The consultant’s 's assessment must include a review of the corrective action Corrective Action that has been done as of the date of the new contamination for which the Airports Authority or its successor contractor concessionaire is responsible under this Contract and the remaining cost to complete the Contractor’s corrective action 's Corrective Action absent this new contamination. In addition, the consultant must estimate the cost of the additional work that will be required due to this new contamination. In such case, the Contractor’s 's fractional cost equals the estimated cost to complete corrective action Corrective Action before this new contamination divided by the estimated cost to complete this corrective action Corrective Action after the new contamination. The Airports Authority’s 's fractional cost equals one (1) 1 minus (the estimated cost to complete corrective action Corrective Action before this new contamination divided by the estimated cost to complete the corrective action Corrective Action after the new contamination). Example: The Contractor is performing corrective actionCorrective Action, then estimated (by the consultant, if needed) to cost $100,000 to complete. A spill occurs for which the Airports Authority or its successor contractor concessionaire is responsible under the contractthis Contract. The estimated cost to complete corrective action Corrective Action after the new contamination is $150,000 ($100,000 original estimated cost plus $50,000 estimated costs related to the new contamination). A = Estimated cost to complete corrective action Corrective Action before this new contamination. B = Estimated cost to complete corrective action Corrective Action after this new contamination. The Contractor’s 's fractional cost equals: A divided by B, or .667. The Contractor will pay two-thirds (.667) of corrective action Corrective Action costs incurred after the new contamination occurs. The Airports Authority’s 's fractional cost equals: 1 minus (A divided by B), or 1 minus .667. The Airports Authority will pay one-third (.333) of corrective action Corrective Action costs incurred after the new contamination occurs. F. The Contractor may participate, from time to time, as a result of its corrective action Corrective Action activities, in a state-administered reimbursement program related to underground storage tanks. At the Contractor’s request and 's request, the Authority shall, at no expense to the Airports Authority, the Airports Authority shall reasonably cooperate with the Contractor in satisfying the requirements of the applicable governmental agency to participate in or comply with this state program. The Contractor is entitled to retain all reimbursement received for corrective action Corrective Action performed by it. If the Airports Authority or any successor contractor concessionaire fails to comply with the underground storage tank or other environmental regulations relating to the Premises and this failure results in a reduction in the reimbursement the Contractor received from the fund or results in the Contractor losing its fund eligibility, the Airports Authority and any successor contractor Contractor shall reimburse the Contractor for any reductions resulting from such noncompliance promptly upon receipt from the Contractor of supporting documentation that demonstrates both the noncompliance and its effect upon Contractorcontractor’s reimbursement. G. The terms and provisions of this Section 10.15 shall survive the expiration or termination of this Contract.

Appears in 1 contract

Sources: Concession Contract