Central Basin Dredging Sample Clauses

Central Basin Dredging. Port expects to enter into a Project Partnership Agreement with the Corps for dredging of the Central Basin (“PPA”) based on a Corps determination that the Central Basin is a federal channel. Tenant acknowledges that, under the PPA, the Corps will periodically dredge the Central Basin (approximate location shown on Exhibit A) for commercial navigation as and when it determines appropriate. Port and Tenant shall use good faith efforts to cooperate and coordinate to ensure ongoing commitments from the Corps regarding the Central Basin. Specifically, in order to preserve and maintain this federal benefit, Tenant must periodically dredge underneath Drydock #2 to maintain a depth necessary to service all vessels contemplated in the Corps’ determination that the optimal depth of the Central Basin is 35 feet. In addition, Tenant must market to federal vessels and maintain federal business as necessary to support the PPA. Should Tenant’s failure to maintain sufficient federal business result in the Corps discontinuing maintenance dredging activities, Tenant shall assume liability for the lost federal benefit.
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