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147 <br />Unocal and Dealer agree that leaks in, or <br />contaminations of, underground storage tanks, submerged <br />pumps, and/or piping, at the Station may result in major <br />environmental and property damage, and/or water <br />contamination of the stored motor fuels, and that one of <br />the recommended methods used to warn of a potential leak <br />is by implementing and adhering to a motor fuel inventory <br />program that includes (i) a daily stick measurement to <br />check for water contamination, and determine the volume of <br />motor fuel in storage; (ii) recording of the volume of <br />motor fuel received; and (iii) recording of the volume <br />sold. Dealer agrees to implement and adhere to a daily <br />inventory plan incorporating all of the above described <br />elements. Dealer shall immediately notify Unocal when a <br />loss of motor fuel or variation of 100 or more gallons on <br />a daily or cumulative basis of up to thirty days, is <br />reflected in its daily inventory system, or presence of <br />one (1) inch or more of water is found in any gasoline <br />storage tank, or one-half (1/2) inch or more of water is <br />found in any diesel fuel storage tank, but not later than <br />the next day, by the fastest means available. If Dealer's <br />first notification to Unocal of a loss is verbal, Dealer <br />shall confirm such notice in writing immediately after <br />giving the verbal notice. Unocal shall have the sole <br />right to determine what tests are required to confirm any <br />leaks and what corrective measures are to be taken. <br />If the Station or tanks are leased from Unocal and if <br />Dealer keeps a daily inventory system and notifies Unocal <br />immediately upon detecting a motor fuel loss or variation <br />of 100 or more gallons on a daily or cumulative basis of <br />up to thirty days, or water contamination, Unocal shall <br />assume responsibility for such loss and claims arising <br />therefrom, including reimbursing Dealer for lost Unocal <br />motor fuel, and Dealer shall be released from its <br />obligation to indemnify and hold Unocal harmless as to any <br />claims arising from a leak, or water contamination, in the <br />underground tanks, submerged pumps or piping at the <br />Station, except for any leak, or water contamination, <br />arising from the negligent or willful acts, or omissions, <br />of Dealer, its contractors, agents or employees. if, <br />however, Dealer does not maintain a daily inventory system <br />*and fails to immediately advise Unocal of an indicated <br />loss, or water contamination, Dealer shall,l <br />be fesponsibe <br />for such loss, and shall indemnify, <br />Unocal and/or property owner harmless from any and all <br />claims of every nature resulting from any leak, or water <br />contamination, not detected and/or reported. <br />*Denotes correction <br />-13- <br />Form 3-4H02W (Rev. 2/87) Printed in U.S.A. <br />