Customer Reviews

Indespensable to any practitioner engaged in this field. Review by International Energy Law and Taxation Review

First published in 2004, this book analyses the legal and commercial issues associated with the structuring arrangements for the storage, transportation and supply of processed fuels (such as fuel oils, distillates, liquid gases or lubricants) from the perspective of the relationship between an oil or fuels sale company and the independent contractors who provide services to the company. This is something of a niche area, although the volume and value of the business which is conducted within it are doubt-less staggering. Hitherto there has been little or no attempt at a consideration and so this book is to be welcomed for attempting to fill this lacuna.

At the heart of the book are five main chapters which analyse the essential agreements for the storage, transportation and supply of fuel: (i) fuel storage agreements (i.e. the agreement between a fuel supply company and a fuel terminal owner for the provision of storage and throughputting services to the fuel terminal); (ii) terminal operating agreements (i.e. the agreement between a fuel supply company and a contractor for the provision of operating services by the contractor at the fuel supply company’s own fuel terminal); (iii) marine transportation agreements (i.e the agreement between a fuel supply company and a contractor for the marine transportation agreements (i.e the agreement between a fuel supply company and a contractor for the transportation by road or rail of fuel on the fuel supply company’s behalf); and (v) fuel supply service agreements (i.e the agreements between a fuel supply company and a contractor for the sale and supply by the contractor of fuel to the fuel supply company, for delivery to nominated customers).

Preceding these five chapters is the opening chapter, which sets the scene for the more detailed analysis to follow by the discussion of several key relevant legal and commercial issues (such as the manner of structuring relationships between fuel supply companies and contractors, relevant contract law and other legal principles and the mechanics of negotiating and contracting).

The book closes with three chapters which address issues which typically arise for consideration in all of the arrangements which the book addresses: terms for the provision of agency or consultancy services, issues to be considered when the fuel supply company provides services to third parties, and a short reminder of the essential characteristics of arrangements founded on joint ventures and acquisitions.

The book is pragmatic, lucid and well written. Each of the five main chapters follow a particular format which guides the reader through an examination of the relevant issues for the topic to be addressed: the chapter opens with a discussion which frames the purpose of the relevant agreement, and then goes into a more detailed review of that agreement n a clause-by-clause basis. The lessons learned in one particular chapter are applied to the following chapters.

The book does not contain precedent examples of the agreements which it discusses, but this is not a failing because the author presents a logical argument for this purposeful omission – most commercial entities engaged in this area have developed their own preferred forms of contract, to suit often complex and unique trading conditions, thus rendering the provision of a preferred pro forma contract as somewhat pointless. Rather, the effort of the book is focused on highlighting the key areas which will be relevant to all such agreements (and in any event the wording of typical clauses is quoted as a part of this book’s analysis).

This book will be of relevance to lawyers, commercial and operational managers and lenders who are engaged in the acquisition, development or management of fuel storage, transportation and supply projects. This might be a relatively small universe of readers but they are a fortunate few for they are well-served by this excellent volume, which should be regarded as indispensable by any practitioner engaged in this end of the energy business.
(Posted on 22/08/2011)