Common use of Eligibility & Compliance Clause in Contracts

Eligibility & Compliance. At all times during this Charter; (a) the Vessel shall be in all respects eligible under applicable conventions, laws and regulations for, and shall not be prevented for any reason whatsoever from, trading to and from the ports and places permitted in Clause 4 of the Charter; (b) Without prejudice to Clause 65, the Vessel shall comply with all applicable conventions, laws, rules and regulations of any international, national, state or local government entity having jurisdiction and shall have on board for inspection by the authorities all necessary certificates, records, letters and other documents evidencing such compliance, including but not limited to certificates evidencing compliance with international and US oil pollution regulations, SOLAS 1974, as amended and MARPOL 1973/1978; and (c) the Vessel shall comply fully with all applicable U.S. Federal, U.S. Coastguard and State laws, rules, orders, regulations, guidelines and circulars now in effect and which may be promulgated (and subsequent amendments and successors thereto) including, but not limited to, the following provisions relating to maritime safety and oil pollution response: i) the U.S. Federal Water Pollution Control Act (as amended by the Clean Water Act of 1977 (Water Pollution)); ii) the U.S. Oil Pollution Act of 1990 and the governmental regulations issued thereunder (“OPA-90”); iii) the U.S. Comprehensive Environmental Response, Compensation and Liability Act of 1980; and iv) the U.S. Port and Tanker Safety Act; v) the U.S. Coastguard Navigational and Vessel Inspection Circular No. 8-92; vi) the Code of Federal Regulations;

Eligibility & Compliance. At all times during this Charter;charter: (a) the Vessel shall be in all respects eligible under applicable conventions, laws and regulations for, and shall not be prevented for any reason whatsoever from, trading to and from the ports and places permitted in Clause 4 of the Charterthis charter; (b) Without prejudice to Clause 65, the Vessel shall comply with all applicable conventions, laws, rules and regulations of any international, national, state or local government entity having jurisdiction and shall have on board for inspection by the authorities all necessary certificates, records, letters and other documents evidencing such compliance, including but not limited to certificates evidencing compliance with international and US oil pollution regulations, SOLAS 1974, as amended and amended, MARPOL 1973/1978; and (c) the Vessel shall comply fully with all applicable U.S. Federal, U.S. Coastguard and State laws, rules, orders, regulations, guidelines and circulars now in effect and which may be promulgated (and subsequent amendments and successors thereto) including, but not limited to, the following provisions relating to maritime safety and oil pollution responseresponse or air emissions regulations : (i) the U.S. Federal Water Pollution Control Act (as amended by the Clean Water Act of 1977 (Water Pollution)); (ii) the U.S. Oil Pollution Act of 1990 and the governmental regulations issued thereunder (“"OPA-90”"); (iii) the U.S. Comprehensive Environmental Response, Compensation and Liability Act of 1980; and (iv) the U.S. Port and Tanker Safety Act; (v) the U.S. Coastguard Navigational and Vessel Inspection Circular No. 8-92;. (vi) the Code of Federal Regulations;; and (vii) implementation of an ECA zone within U.S. waters; and (viii) the compliance with practices and limits for the regulated effluents as per the US Environmental Protection Agency's Vessel General Permit (VGP) requirements under the authority of the Clean Water Act (CWA) requirements for National Pollutant Discharge Elimination System (NPDES) program. (d) the Vessel shall have on board throughout the charter any certificates or other OPA documentation required under the laws, rules, orders, regulations, guidelines and circulars required in sub Clauses (a)-(c) hereof and evidencing such compliance, which shall include but not be limited to a U.S. Coastguard Certificate of Financial Responsibility for Oil Pollution ("COFR") together with a similar certificate for hazardous substances and a Tanker Vessel Examination Letter ("TVEL"). Owner shall arrange, at Owners' expense, to have in place all such OPA documentation and COFRs required to allow the Vessel to trade in the USA. (e) and prior to delivery, Owners or the Vessel's operator shall have a U.S. Coastguard approved response plan for the Vessel ("VRP") which meets the full requirements of OPA-90 and of the US Coastguard. The Vessel shall at all time be operated in accordance with the VRP. Charterers shall reimburse Owners for all port specific OPA charges (including but not limited to additional premium to maintain P&I cover) incurred by the Vessel calling at ports in the USA in accordance with Charterers' orders. Requirements of a similar nature imposed by other countries after the date of this Charter shall be treated in the same way. (f) all necessary waivers are or will be held if the Vessel does not at any time comply with any U.S. Coastguard regulations now in effect or to be promulgated. Owners shall advise Charterers of all such waivers, including period of validation and reason(s) for waiver. (g) Owners shall ensure that the Vessel is free to trade to the USA and if Certificate of Compliance (CoC) is not available at the commencement of the Charter, then an inspection shall be carried prior to arrival at the first USA port or on arrival at the first USA port. Any delay incurred carrying out this initial inspection that exceeds nine (9) hours shall be classified as off-hire. Charterers shall provide sufficient notice to Owners to allow Owners to comply with the rules and regulations in USA and LNG Terminals not listed in Appendix A. (h) if the Vessel is required to discharge at a US port during this Charter, the Owners are required to install an AIS Pilot Plug as defined by SOLAS regulations. Specific regulations can be found in Chapter V, Regulation 19 and in Title 33 Code of Federal Regulations §164.46 Automatic Identification System (AIS), Paragraph (d) "The AIS Pilot Plug, on each vessel over 1600 gross tons on an international voyage, must be available for pilot use, easily assessable from the primary conning position of the vessel, and near a 120 Volt, AC power, 3-prong receptacle." Additional information regarding proper installation of the AIS Pilot Plug can be found in IMO SN/Circ. 227. (i) if the Vessel is required to discharge at a Japanese port during this charter, the Owner is required to start the Japanese customs approval process for the CTMS and cargo tank tables immediately upon notification by Charterer. Furthermore, Owner shall ensure Vessel has appropriate Social Responsibility insurance. Any costs incurred as a result of ensuring the Vessel has appropriate Social Responsibility insurance shall be for Charterer's account. The Vessel shall comply with Japanese customs approvals requirements throughout the Charter Period. (j) when calling at LNG terminals located in ports in the European Union, Vessel must be able to meet the requirements of EU Council Directives 1999/32/EC dated 26 April1999 and 2005/33/EC dated 6 July 2005 either directly or through the Vessels availability to bum natural gas in port and whilst alongside the berth (k) the Vessel shall be in compliance with OCIMF recommendations for the Safe Working Load (SWL) of bitts and chocks used for attaching tugs lines to the LNG carrier. In addition the Vessel shall have an escort/pullback bitt and chock located on the stem, as close as possible to the centreline of the carrier with a SWL of 200 tonnes. Modifications for compliance shall be at Owners' time and cost for which Charterers shall work with Owners to accommodate time in the Vessels schedule. Any delays, losses, expenses or damages arising from failure to comply with this Clause shall be for Owners' account and Owners shall fully indemnify Charterers therefor. Charterers shall not be liable for any delay caused by the Vessel's failure to comply with the foregoing warranty. For any time lost due to a breach of this Clause the Vessel shall be off-hire, and any expenses incurred due to such breach (including bunkers consumed) shall be for Owners' account.