Operational and Legal Issues with Fuel Farms
The objective of this research is to produce a practical compendium that describes and explains the various models and legal issues that airport counsel will likely encounter during the consideration, negotiation, and administration of fuel related issues. The digest should also identify the breadth of issues associated with airport fuel farms and the risks and liabilities associated with fuel related activities on an airport, including answering the following:
1. What are the various models for supplying fuel on airports and what legal issues arise from each model? Provide a discussion of the advantages and disadvantages of each model.
2. Who should or must be allowed to store and/or access fuel at an airport and fuel farm and why?
3. What are the federal and state regulations, including the applicable grant assurances, the right to self-fuel, and NEPA, that may apply to fuel operations on airports and how should those issues be addressed?
4. Are there potential federal or state regulatory, antitrust or anti- competitive issues that may apply to fuel operations on airports, including a consortium's ability to frustrate non-signatory and new entrant airlines?
5. What minimum standards typically apply to fuel operations on airports and what are the justifications for these standards?
6. What are the risk management issues that arise from fuel operations on airports and how and in what amounts are Insurance Requirements used to address these risks? Can airports use any other risk shifting methods to address these issues?
7. What are the environmental issues and concerns that arise as a result of fuel operations at airports and how are these issues addressed by the various entities that use fuel on airports? What potential insurance or and other methods are available for allocating environmental risks?
The contractor should also develop a checklist of issues and suggested language which an airport attorney can reference that covers the subject matter that should be addressed in the negotiation and development of a contract with a fuel consortium or fuel vendor.
