FERC Required Reports. Owner is required to provide regular reports and other information to the FERC during design, construction, and operation of the Liquefaction Facility and modifications to Existing Facility. The Liquefaction Facility and modifications to Existing Facility will also be subject to regular inspections by FERC staff, and continuous monitoring by inspectors providing reports to FERC. Contractor shall assist Owner with all interfaces with FERC as follows: a. Operation and maintenance procedures and manuals, as well as emergency plans and safety procedure manuals, shall be filed with the FERC prior to commissioning operations. Contractor is responsible for developing these documents, including changes recommended by the FERC, and resubmitting these documents as required; b. The FERC staff shall be notified of any proposed revisions to the security plan and physical security of the Liquefaction Facility or Existing Facility prior to commissioning. Contractor shall assist Owner in the development of these plans, and shall advise Owner if changes to the design or construction of the Liquefaction Facility or modifications to Existing Facility may impact these plans; c. Progress on the Project shall be reported in monthly reports submitted to the FERC. Details should include a summary of activities, problems encountered and remedial actions taken. The Monthly Progress Report described in Section 8.7 shall be formatted so that the required information can be easily extracted by Owner and sent to the FERC; d. Problems of significant magnitude shall be reported to the FERC on a timely basis. Additional Site inspections and technical reviews will be held by FERC staff prior to commencement of operation. Contractor shall cooperate with Owner at all times in this regard and report any such problems to Owner immediately, and in all cases within twenty-four (24) hours; e. The Liquefaction Facility and modifications to Existing Facility shall be subject to regular FERC staff technical reviews and Site inspections on at least a biennial basis or more frequently as circumstances indicate. Prior to each FERC staff technical review and Site inspection, the Owner will respond to a specific data request including information relating to possible design and operating conditions that may have been imposed by other agencies or organizations. Provision of up-to-date detailed piping and instrumentation diagrams reflecting modifications and provision of other pertinent information not included in the semi-annual reports described below, including events that have taken place since the previously submitted annual report. Contractor shall assist Owner with these FERC reviews, requests, inspections, and reports as required; f. Semi-annual operational reports shall be filed with the FERC to identify changes in Existing Facility design and operating conditions, abnormal operating experiences, activities (including ship arrivals, quantity and composition of imported LNG, vaporization quantities, boil-off/flash gas, etc.), Existing Facility modifications including future plans and progress thereof. Abnormalities should include, but not be limited to: unloading/shipping problems, potential hazardous conditions from offsite vessels, Tank stratification or rollover, geysering, Tank pressure excursions, cold spots on the Tanks, Tank vibrations and/or vibrations in associated cryogenic piping, Tank settlement, significant equipment or instrumentation malfunctions or failures, non-scheduled maintenance or repair (and reasons therefore), relative movement of Tank inner vessels, vapor or liquid releases, fires involving Natural Gas and/or from other sources, negative pressure (vacuum) within a Tank and higher than predicted Boil-Off rates. Adverse weather conditions and the effect on the Project also should be reported. Reports should be submitted within forty-five (45) Days after each period ending June 30 and December 31. In addition, a section entitled “Significant plant modifications proposed for the next 12 months (dates)” also shall be included in the semi-annual operational reports. Such information would provide the FERC staff with early notice of anticipated future construction/maintenance projects at the Liquefaction Facility and Existing Facility. Contractor shall assist Owner with any semi-annual operational reports that may be due during the period before Substantial Completion of such Subproject or modification to the Existing Facility; g. Significant non-scheduled events, including safety-related incidents (i.e., LNG or Natural Gas releases, fires, explosions, mechanical failures, unusual over pressurization, and major injuries) shall be reported to FERC staff within forty-eight (48) hours. In the event an abnormality is of significant magnitude to threaten public or employee safety, cause significant property damage, or interrupt service, notification shall be made immediately, without unduly interfering with any necessary or appropriate emergency repair, alarm, or other emergency procedure. This notification practice shall be incorporated into the Liquefaction Facility’s emergency plan. Contractor shall report all such incidents to Owner immediately, and in all cases within twenty-four (24) hours, and develop for Owner any such reports that may be required during the period before Substantial Completion of such Subproject. Examples of reportable LNG-related incidents include: i. Fire; ii. Explosion; iii. Property damage exceeding $10,000; iv. Death or injury requiring hospitalization; v. Free flow of LNG for five minutes or more that results in pooling; vi. Unintended movement or abnormal loading by environmental causes, such as an earthquake, landslide, or flood, that impairs the serviceability, structural integrity, or reliability of the Liquefaction Facility; vii. Any crack or other material defect that impairs the structural integrity or reliability of Equipment that contains, controls, or processes Natural Gas or LNG; viii. Any malfunction or operating error that causes the pressure of a pipeline or Equipment that contains or processes Natural Gas or LNG to rise above its maximum allowable operating pressure (or working pressure for LNG facilities) plus the build-up allowed for operation of pressure limiting or control devices; ix. A leak in Equipment that contains or processes Natural Gas or LNG that constitutes an emergency; x. Inner tank leakage, ineffective insulation, or frost heave that impairs the structural integrity of a any tank; xi. Any safety-related condition that could lead to an imminent hazard and cause (either directly or indirectly by remedial action of the operator), for purposes other than abandonment, a twenty (20) percent reduction in operating pressure or shutdown of operation of a pipeline or an Equipment that contains or processes Natural Gas or LNG; xii. Safety-related incidents to LNG trucks or LNG vessels occurring at or in route to and from the Liquefaction Facility; and xiii. The judgment of the LNG personnel and/or management even though it did not meet the above criteria or the guidelines set forth in the Liquefaction Facility’s incident management plan. In the event of an incident, the FERC has authority to take whatever steps are necessary to ensure operational reliability and to protect human life, health, property or the environment, including authority to direct the Liquefaction Facility to cease operations. Following the initial notification to Owner, FERC staff will determine the need for Owner to file a separate follow-up report or follow-up in the upcoming semi-annual operational report. All follow-up reports should include investigation results and recommendations to minimize a reoccurrence of the incident. Contractor shall develop for Owner any such reports that may be required if the incident happened before Substantial Completion of Subproject 2. Owner has overall responsibility for the FERC permit application, coordination with FERC, and compliance issues. Contractor will support Owner in providing required clarifications to FERC. Any (i) FERC related support provided by Contractor exceeding one thousand (1,000) man hours or (ii) additional Work required by FERC that is not contemplated in this Scope of Work shall be subject to a Change Order to the extent such excess support or additional Work adversely impacts (i) Contractor cost of performance of the Work; (ii) Contractor’s ability to perform the Work in accordance with the Project Schedule or (iii) Contractor’s ability to perform any obligation under the Agreement. Notwithstanding the foregoing, Contractor shall not contact or otherwise engage in communications with FERC and other Governmental Instrumentalities regarding the Project without Owner’s involvement.
Appears in 4 contracts
Samples: Lump Sum Turnkey Agreement (Sabine Pass Liquefaction, LLC), Lump Sum Turnkey Agreement (Cheniere Energy Partners LP Holdings, LLC), Lump Sum Turnkey Agreement (Cheniere Energy Partners LP Holdings, LLC)
FERC Required Reports. Owner is required to provide regular reports and other information to the FERC during design, construction, and operation of the Stage 2 Liquefaction Facility and associated modifications to Existing the Stage 1 Liquefaction Facility. The Stage 2 Liquefaction Facility and associated modifications to Existing the Stage 1 Liquefaction Facility will also be subject to regular inspections by FERC staff, staff and continuous routine monitoring by inspectors providing reports to FERCinspectors. Contractor shall assist Owner with all interfaces with FERC as follows:
a. Operation and maintenance procedures and manuals, as well as emergency plans and safety procedure manuals, shall be filed with the FERC prior to commissioning operations. Contractor is responsible for developing these documents, including changes recommended by the FERC, and resubmitting these documents to Owner as required;
b. The FERC staff shall be notified of any proposed revisions to the security plan and physical security of the Stage 2 Liquefaction Facility or Existing Facility prior to commissioning. Contractor shall assist Owner in the development of these plans, and shall advise Owner if changes to the design or construction of the Stage 2 Liquefaction Facility or modifications to Existing Facility may impact these plans;
c. Progress on the Project shall be reported in monthly reports submitted to the FERC. Details should include a summary of activities, problems encountered and remedial actions taken, and HSE incidents. The Monthly Progress Report described in Section 8.7 shall be formatted so that the required information can be easily extracted by Owner and sent to the FERC;
d. Problems of significant magnitude shall be reported to the FERC on a timely basis. Additional Stage 2 Site inspections and technical reviews will be held by FERC staff prior to commencement of operation. Contractor shall cooperate with Owner at all times in this regard and report any such problems to Owner immediately, and in all cases within twenty-four (24) hours;
e. The Stage 2 Liquefaction Facility and associated modifications to Existing the Stage 1 Liquefaction Facility shall be subject to regular FERC staff technical reviews and Stage 2 Site inspections on at least a biennial basis or more frequently as circumstances indicateFERC dictates. Prior to each FERC staff technical review and Stage 2 Site inspection, the Owner will respond to a specific data request including information relating to possible design and operating conditions that may have been imposed by other agencies or organizations. Provision This shall include provision of up-to-date detailed piping and instrumentation diagrams reflecting modifications and provision of other pertinent information not included in the semi-annual reports described below, including events that have taken place since the previously submitted annual report. Contractor shall assist Owner with these FERC reviews, requests, inspections, and reports as required;
f. Semi-annual operational reports shall be filed with the FERC to identify changes in Existing modifications to Stage 2 Liquefaction Facility design and operating conditions, abnormal operating experiences, activities (including ship arrivals, quantity and composition of imported LNG, vaporization quantities, boil-off/flash gas, etc.), Existing Facility modifications including future plans and progress thereof. Abnormalities should include, but not be limited to: unloading/shipping problems, potential hazardous conditions from offsite vessels, Tank stratification or rollover, geysering, Tank pressure excursions, cold spots on the Tanks, Tank vibrations and/or vibrations in associated cryogenic piping, Tank settlement, significant equipment or instrumentation malfunctions or failures, non-scheduled maintenance or repair (and reasons therefore), relative movement of Tank inner vessels, vapor or liquid releases, fires involving Natural Gas and/or from other sources, negative pressure (vacuum) within a Tank and higher than predicted Boil-Off rates. Adverse weather conditions and the effect on the Project also should be reported. Reports should be submitted within forty-five (45) Days after each period ending June 30 and December 31. In addition, a section entitled “Significant plant modifications proposed for the next 12 months (dates)” also shall be included in the semi-annual operational reports. Such information would provide the FERC staff with early notice of anticipated future construction/maintenance projects at the Stage 2 Liquefaction Facility and Existing Stage 1 Liquefaction Facility. Contractor shall assist Owner with any semi-annual operational reports that may be due during the period before Substantial Completion of such Subproject or modification to the Existing Stage 1 Liquefaction Facility;
g. Significant non-scheduled events, including safety-related incidents (i.e., LNG or Natural Gas releases, fires, explosions, mechanical failures, unusual over pressurization, and major injuries) shall be reported to FERC staff within forty-eight (48) hours. In the event an abnormality is of significant magnitude to threaten public or employee safety, cause significant property damage, or interrupt service, notification shall be made immediately, without unduly interfering with any necessary or appropriate emergency repair, alarm, or other emergency procedure. This notification practice shall be incorporated into the Stage 2 Liquefaction Facility’s emergency plan. Contractor shall report all such incidents to Owner immediately, and in all cases within twenty-four (24) hours, and develop for Owner any such reports that may be required during the period before Substantial Completion of such Subproject. Examples of reportable LNG-related incidents include:
i. Fire;
ii. Explosion;
iii. Property damage exceeding $10,000;
iv. Death or injury requiring hospitalization;
v. Free flow of LNG for five minutes or more that results in pooling;
vi. Unintended movement or abnormal loading by environmental causes, such as an earthquake, landslide, or flood, that impairs the serviceability, structural integrity, or reliability of the Stage 2 Liquefaction Facility;
vii. Any crack or other material defect that impairs the structural integrity or reliability of Equipment that contains, controls, or processes Natural Gas or LNG;
viii. Any malfunction or operating error that causes the pressure of a pipeline or Equipment that contains or processes Natural Gas or LNG to rise above its maximum allowable operating pressure (or working pressure for LNG facilities) plus the build-up allowed for operation of pressure limiting or control devices;
ix. A leak in Equipment that contains or processes Natural Gas or LNG that constitutes an emergency;
x. Inner tank leakage, ineffective insulation, or frost heave that impairs the structural integrity of a any tank;
xi. Any safety-related condition that could lead to an imminent hazard and cause (either directly or indirectly by remedial action of the operator), for purposes other than abandonment, a twenty (20) percent reduction in operating pressure or shutdown of operation of a pipeline or an Equipment that contains or processes Natural Gas or LNG;
xii. Safety-related incidents to LNG trucks or LNG vessels occurring at or in route to and from the Stage 2 Liquefaction Facility; and
xiii. The judgment of the LNG personnel and/or management even though it did not meet the above criteria or the guidelines set forth in the Stage 2 Liquefaction Facility’s incident management plan. In the event of an incident, the FERC has authority to take whatever steps are necessary to ensure operational reliability and to protect human life, health, property or the environment, including authority to direct the Stage 2 Liquefaction Facility to cease operations. Following the initial notification to Owner, FERC staff will determine the need for Owner to file a separate follow-up report or follow-up in the upcoming semi-annual operational report. All follow-up reports should include investigation results and recommendations to minimize a reoccurrence of the incident. Contractor shall develop for Owner any such reports that may be required if the incident happened before Substantial Completion of Subproject 23. Owner has overall responsibility for the FERC permit application, coordination with FERC, and coordination and management of compliance issues. Contractor is responsible for executing the Scope of Work in a manner that is in full compliance with the FERC Order and associated conditions. Contractor will support Owner in providing required clarifications to FERC. Any (i) FERC related support provided by Contractor exceeding one thousand five hundred (1,000500) man hours or (ii) additional Work required by FERC that is not contemplated in this Scope of Work Work, shall be subject to a Change Order to the extent such excess support or additional Work adversely impacts (ia) Contractor cost of performance of the Work; (iib) Contractor’s ability to perform the Work in accordance with the Project Schedule Schedule; or (iiic) Contractor’s ability to perform any obligation under the Agreement. Notwithstanding the foregoing, Contractor shall not contact or otherwise engage in communications with FERC and other Governmental Instrumentalities regarding the Project without Owner’s involvement.
Appears in 3 contracts
Samples: Fixed Price Separated Turnkey Agreement (Cheniere Corpus Christi Holdings, LLC), Fixed Price Separated Turnkey Agreement (Corpus Christi Pipeline GP, LLC), Fixed Price Separated Turnkey Agreement (Cheniere Energy Inc)
FERC Required Reports. Owner is required to provide regular reports and other information to the FERC during design, construction, and operation of the Stage 2 Liquefaction Facility and modifications to the Stage 1 Liquefaction Facility and Existing Facility. The Stage 2 Liquefaction Facility and modifications to the Stage 1 Liquefaction Facility and Existing Facility will also be subject to regular inspections by FERC staff, and continuous monitoring by inspectors providing reports to FERC. Contractor shall assist Owner with all interfaces with FERC as follows:
a. Operation and maintenance procedures and manuals, as well as emergency plans and safety procedure manuals, shall be filed with the FERC prior to commissioning operations. Contractor is responsible for developing these documents, including changes recommended by the FERC, and resubmitting these documents as required;
b. The FERC staff shall be notified of any proposed revisions to the security plan and physical security of the Stage 2 Liquefaction Facility Facility, Existing Facility, or Existing Stage 1 Liquefaction Facility prior to commissioning. Contractor shall assist Owner in the development of these plans, and shall advise Owner if changes to the design or construction of the Stage 2 Liquefaction Facility or modifications to Existing Facility and Stage 1 Liquefaction Facility may impact these plans;
c. Progress on the Project shall be reported in monthly reports submitted to the FERC. Details should include a summary of activities, problems encountered and remedial actions taken. The Monthly Progress Report described in Section 8.7 shall be formatted so that the required information can be easily extracted by Owner and sent to the FERC;
d. Problems of significant magnitude shall be reported to the FERC on a timely basis. Additional Stage 2 Site inspections and technical reviews will be held by FERC staff prior to commencement of operation. Contractor shall cooperate with Owner at all times in this regard and report any such problems to Owner immediately, and in all cases within twenty-four (24) hours;
e. The Stage 2 Liquefaction Facility and modifications to the Existing Facility and Stage 1 Liquefaction Facility shall be subject to regular FERC staff technical reviews and Stage 2 Site inspections on at least a biennial basis or more frequently as circumstances indicate. Prior to each FERC staff technical review and Stage 2 Site inspection, the Owner will respond to a specific data request including information relating to possible design and operating conditions that may have been imposed by other agencies or organizations. Provision of up-to-date detailed piping and instrumentation diagrams reflecting modifications and provision of other pertinent information not included in the semi-annual reports described below, including events that have taken place since the previously submitted annual report. Contractor shall assist Owner with these FERC reviews, requests, inspections, and reports as required;
f. Semi-annual operational reports shall be filed with the FERC to identify changes in Existing Facility and Stage 1 Liquefaction Facility design and operating conditions, abnormal operating experiences, activities (including ship arrivals, quantity and composition of imported LNG, vaporization quantities, boil-off/flash gas, etc.), Existing Facility and Stage 1 Liquefaction Facility modifications including future plans and progress thereof. Abnormalities should include, but not be limited to: unloading/shipping problems, potential hazardous conditions from offsite vessels, Tank stratification or rollover, geysering, Tank pressure excursions, cold spots on the Tanks, Tank vibrations and/or vibrations in associated cryogenic piping, Tank settlement, significant equipment or instrumentation malfunctions or failures, non-scheduled maintenance or repair (and reasons therefore), relative movement of Tank inner vessels, vapor or liquid releases, fires involving Natural Gas and/or from other sources, negative pressure (vacuum) within a Tank and higher than predicted Boil-Off rates. Adverse weather conditions and the effect on the Project also should be reported. Reports should be submitted within forty-five (45) Days after each period ending June 30 and December 31. In addition, a section entitled “Significant plant modifications proposed for the next 12 months (dates)” also shall be included in the semi-annual operational reports. Such information would provide the FERC staff with early notice of anticipated future construction/maintenance projects at the Stage 2 Liquefaction Facility Facility, Existing Facility, and Existing Stage 1 Liquefaction Facility. Contractor shall assist Owner with any semi-annual operational reports that may be due during the period before Substantial Completion of such Subproject or modification to the Existing Facility and Stage 1 Liquefaction Facility;
g. Significant non-scheduled events, including safety-related incidents (i.e., LNG or Natural Gas releases, fires, explosions, mechanical failures, unusual over pressurization, and major injuries) shall be reported to FERC staff within forty-eight (48) hours. In the event an abnormality is of significant magnitude to threaten public or employee safety, cause significant property damage, or interrupt service, notification shall be made immediately, without unduly interfering with any necessary or appropriate emergency repair, alarm, or other emergency procedure. This notification practice shall be incorporated into the Stage 2 Liquefaction Facility’s emergency plan. Contractor shall report all such incidents to Owner immediately, and in all cases within twenty-four (24) hours, and develop for Owner any such reports that may be required during the period before Substantial Completion of such Subproject. Examples of reportable LNG-related incidents include:
i. Fire;
ii. Explosion;
iii. Property damage exceeding $10,000;
iv. Death or injury requiring hospitalization;
v. Free flow of LNG for five minutes or more that results in pooling;
vi. Unintended movement or abnormal loading by environmental causes, such as an earthquake, landslide, or flood, that impairs the serviceability, structural integrity, or reliability of the Stage 2 Liquefaction Facility;
vii. Any crack or other material defect that impairs the structural integrity or reliability of Equipment that contains, controls, or processes Natural Gas or LNG;
viii. Any malfunction or operating error that causes the pressure of a pipeline or Equipment that contains or processes Natural Gas or LNG to rise above its maximum allowable operating pressure (or working pressure for LNG facilities) plus the build-up allowed for operation of pressure limiting or control devices;
ix. A leak in Equipment that contains or processes Natural Gas or LNG that constitutes an emergency;
x. Inner tank leakage, ineffective insulation, or frost heave that impairs the structural integrity of a any tank;
xi. Any safety-related condition that could lead to an imminent hazard and cause (either directly or indirectly by remedial action of the operator), for purposes other than abandonment, a twenty (20) percent reduction in operating pressure or shutdown of operation of a pipeline or an Equipment that contains or processes Natural Gas or LNG;
xii. Safety-related incidents to LNG trucks or LNG vessels occurring at or in route to and from the Stage 2 Liquefaction Facility; and
xiii. The judgment of the LNG personnel and/or management even though it did not meet the above criteria or the guidelines set forth in the Stage 2 Liquefaction Facility’s incident management plan. In the event of an incident, the FERC has authority to take whatever steps are necessary to ensure operational reliability and to protect human life, health, property or the environment, including authority to direct the Stage 2 Liquefaction Facility to cease operations. Following the initial notification to Owner, FERC staff will determine the need for Owner to file a separate follow-up report or follow-up in the upcoming semi-annual operational report. All follow-up reports should include investigation results and recommendations to minimize a reoccurrence of the incident. Contractor shall develop for Owner any such reports that may be required if the incident happened before Substantial Completion of Subproject 24. Owner has overall responsibility for the FERC permit application, coordination with FERC, and compliance issues. Contractor will support Owner in providing required clarifications to FERC. Any (i) FERC related support provided by Contractor exceeding one thousand (1,000) man hours or (ii) additional Work required by FERC that is not contemplated in this Scope of Work shall be subject to a Change Order to the extent such excess support or additional Work adversely impacts (i) Contractor cost of performance of the Work; (ii) Contractor’s ability to perform the Work in accordance with the Project Schedule or (iii) Contractor’s ability to perform any obligation under the Agreement. Notwithstanding the foregoing, Contractor shall not contact or otherwise engage in communications with FERC and other Governmental Instrumentalities regarding the Project without Owner’s involvement.
Appears in 3 contracts
Samples: Lump Sum Turnkey Agreement (Sabine Pass Liquefaction, LLC), Lump Sum Turnkey Agreement (Cheniere Energy Partners LP Holdings, LLC), Lump Sum Turnkey Agreement (Cheniere Energy Partners, L.P.)
FERC Required Reports. Owner is required to provide regular reports and other information to the FERC during design, construction, and operation of the Stage 3 Liquefaction Facility and modifications to the Stage 1 Liquefaction Facility, the Stage 2 Liquefaction Facility, and Existing Facility. The Stage 3 Liquefaction Facility and modifications to the Stage 1 Liquefaction Facility, the Stage 2 Liquefaction Facility, and Existing Facility will also be subject to regular inspections by FERC staff, and continuous monitoring by inspectors providing reports to FERC. Contractor shall assist Owner with all interfaces with FERC as follows:
a. Operation and maintenance procedures and manuals, as well as emergency plans and safety procedure manuals, shall be filed with the FERC prior to commissioning operations. Contractor is responsible for developing these documents, including changes recommended by the FERC, and resubmitting these documents as required;
b. The FERC staff shall be notified of any proposed revisions to the security plan and physical security of the Stage 3 Liquefaction Facility Facility, Existing Facility, Stage 1 Liquefaction Facility, or Existing Stage 2 Liquefaction Facility prior to commissioning. Contractor shall assist Owner in the development of these plans, and shall advise Owner if changes to the design or construction of the Stage 3 Liquefaction Facility or modifications to Existing Facility, the Stage 1 Liquefaction Facility, and the Stage 2 Liquefaction Facility may impact these plans;
c. Progress on the Project shall be reported in monthly reports submitted to the FERC. Details should include a summary of activities, problems encountered and remedial actions taken. The Monthly Progress Report described in Section 8.7 shall be formatted so that the required information can be easily extracted by Owner and sent to the FERC;
d. Problems of significant magnitude shall be reported to the FERC on a timely basis. Additional Stage 3 Site inspections and technical reviews will be held by FERC staff prior to commencement of operation. Contractor shall cooperate with Owner at all times in this regard and report any such problems to Owner immediately, and in all cases within twenty-four (24) hours;
e. The Stage 3 Liquefaction Facility and modifications to the Existing Facility, the Stage 1 Liquefaction Facility and Stage 2 Liquefaction Facility shall be subject to regular FERC staff technical reviews and Stage 3 Site inspections on at least a biennial basis or more frequently as circumstances indicate. Prior to each FERC staff technical review and Stage 3 Site inspection, the Owner will respond to a specific data request including information relating to possible design and operating conditions that may have been imposed by other agencies or organizations. Provision of up-to-date detailed piping and instrumentation diagrams reflecting modifications and provision of other pertinent information not included in the semi-annual reports described below, including events that have taken place since the previously submitted annual report. Contractor shall assist Owner with these FERC reviews, requests, inspections, and reports as required;
f. Semi-annual operational reports shall be filed with the FERC to identify changes in Existing Facility, the Stage 1 Liquefaction Facility, and Stage 2 Liquefaction Facility design and operating conditions, abnormal operating experiences, activities (including ship arrivals, quantity and composition of imported LNG, vaporization quantities, boil-off/flash gas, etc.), Existing Facility, the Stage 1 Liquefaction Facility, and Stage 2 Liquefaction Facility modifications including future plans and progress thereof. Abnormalities should include, but not be limited to: unloading/shipping problems, potential hazardous conditions from offsite vessels, Tank stratification or rollover, geysering, Tank pressure excursions, cold spots on the Tanks, Tank vibrations and/or vibrations in associated cryogenic piping, Tank settlement, significant equipment Equipment or instrumentation malfunctions or failures, non-scheduled maintenance or repair (and reasons therefore), relative movement of Tank inner vessels, vapor or liquid releases, fires involving Natural Gas and/or from other sources, negative pressure (vacuum) within a Tank and higher than predicted Boilboil-Off off rates. Adverse weather conditions and the effect on the Project also should be reported. Reports should be submitted within forty-five (45) Days after each period ending June 30 and December 31. In addition, a section entitled “Significant plant modifications proposed for the next 12 months (dates)” also shall be included in the semi-annual operational reports. Such information would provide the FERC staff with early notice of anticipated future construction/maintenance projects at the Stage 3 Liquefaction Facility, Existing Facility, Stage 1 Liquefaction Facility and Existing Stage 2 Liquefaction Facility. Contractor shall assist Owner with any semi-annual operational reports that may be due during the period before Substantial Completion of such Subproject 5 or modification to the Existing Facility, Stage 1 Liquefaction Facility and Stage 2 Liquefaction Facility;
g. Significant non-scheduled events, including safety-related incidents (i.e., LNG or Natural Gas releases, fires, explosions, mechanical failures, unusual over pressurization, and major injuries) shall be reported to FERC staff within forty-eight (48) hours. In the event an abnormality is of significant magnitude to threaten public or employee safety, cause significant property damage, or interrupt service, notification shall be made immediately, without unduly interfering with any necessary or appropriate emergency repair, alarm, or other emergency procedure. This notification practice shall be incorporated into the Stage 3 Liquefaction Facility’s emergency plan. Contractor shall report all such incidents to Owner immediately, and in all cases within twenty-four (24) hours, and develop for Owner any such reports that may be required during the period before Substantial Completion of such SubprojectSubproject 5. Examples of reportable LNG-related incidents include:
i. Fire;
ii. Explosion;
iii. Property damage exceeding $10,000;
iv. Death or injury requiring hospitalization;
v. Free flow of LNG for five minutes or more that results in pooling;
vi. Unintended movement or abnormal loading by environmental causes, such as an earthquake, landslide, or flood, that impairs the serviceability, structural integrity, or reliability of the Stage 3 Liquefaction Facility;
vii. Any crack or other material defect that impairs the structural integrity or reliability of Equipment that contains, controls, or processes Natural Gas or LNG;
viii. Any malfunction or operating error that causes the pressure of a pipeline or Equipment that contains or processes Natural Gas or LNG to rise above its maximum allowable operating pressure (or working pressure for LNG facilities) plus the build-up allowed for operation of pressure limiting or control devices;
ix. A leak in Equipment that contains or processes Natural Gas or LNG that constitutes an emergency;
x. Inner tank leakage, ineffective insulation, or frost heave that impairs the structural integrity of a any tank;
xi. Any safety-related condition that could lead to an imminent hazard and cause (either directly or indirectly by remedial action of the operator), for purposes other than abandonment, a twenty (20) percent reduction in operating pressure or shutdown of operation of a pipeline or an Equipment that contains or processes Natural Gas or LNG;
xii. Safety-related incidents to LNG trucks or LNG vessels occurring at or in route to and from the Stage 3 Liquefaction Facility; and
xiii. The judgment of the LNG personnel and/or management even though it did not meet the above criteria or the guidelines set forth in the Stage 3 Liquefaction Facility’s incident management plan. In the event of an incident, the FERC has authority to take whatever steps are necessary to ensure operational reliability and to protect human life, health, property or the environment, including authority to direct the Stage 3 Liquefaction Facility to cease operations. Following the initial notification to Owner, FERC staff will determine the need for Owner to file a separate follow-up report or follow-up in the upcoming semi-annual operational report. All follow-up reports should include investigation results and recommendations to minimize a reoccurrence of the incident. Contractor shall develop for Owner any such reports that may be required if the incident happened before Substantial Completion of Subproject 25. Owner has overall responsibility for the FERC permit application, coordination with FERC, and compliance issues. Contractor will support Owner in providing required clarifications to FERC. Any (i) FERC related support provided by Contractor exceeding one two thousand five hundred (1,0002,500) man hours or (ii) additional Work required by FERC that is not contemplated in this Scope of Work shall be subject to a Change Order to the extent such excess support or additional Work adversely impacts (i) Contractor cost of performance of the Work; (ii) Contractor’s ability to perform the Work in accordance with the Project Schedule or (iii) Contractor’s ability to perform any obligation under the Agreement. Notwithstanding the foregoing, Contractor shall not contact or otherwise engage in communications with FERC and other Governmental Instrumentalities regarding the Project without Owner’s involvement.
Appears in 2 contracts
Samples: Lump Sum Turnkey Agreement (Cheniere Energy Partners, L.P.), Lump Sum Turnkey Agreement (Cheniere Energy Partners, L.P.)
FERC Required Reports. Owner is required to provide regular reports and other information to the FERC during design, construction, and operation of the Stage 2 Liquefaction Facility and modifications to Existing the Stage 1 Liquefaction Facility. The Stage 2 Liquefaction Facility and modifications to Existing the Stage 1 Liquefaction Facility will also be subject to regular inspections by FERC staff, and continuous monitoring by inspectors providing reports to FERC. Contractor shall assist Owner with all interfaces with FERC as follows:
a. Operation and maintenance procedures and manuals, as well as emergency plans and safety procedure manuals, shall be filed with the FERC prior to commissioning operations. Contractor is responsible for developing these documents, including changes recommended by the FERC, and resubmitting these documents as required;
b. The FERC staff shall be notified of any proposed revisions to the security plan and physical security of the Stage 2 Liquefaction Facility or Existing Stage 1 Liquefaction Facility prior to commissioning. Contractor shall assist Owner in the development of these plans, and shall advise Owner if changes to the design or construction of the Stage 2 Liquefaction Facility or modifications to Existing Stage 1 Liquefaction Facility may impact these plans;
c. Progress on the Project shall be reported in monthly reports submitted to the FERC. Details should include a summary of activities, problems encountered and remedial actions taken. The Monthly Progress Report described in Section 8.7 shall be formatted so that the required information can be easily extracted by Owner and sent to the FERC;
d. Problems of significant magnitude shall be reported to the FERC on a timely basis. Additional Stage 2 Site inspections and technical reviews will be held by FERC staff prior to commencement of operation. Contractor shall cooperate with Owner at all times in this regard and report any such problems to Owner immediately, and in all cases within twenty-four (24) hours;
e. The Stage 2 Liquefaction Facility and modifications to Existing the Stage 1 Liquefaction Facility shall be subject to regular FERC staff technical reviews and Stage 2 Site inspections on at least a biennial basis or more frequently as circumstances indicate. Prior to each FERC staff technical review and Stage 2 Site inspection, the Owner will respond to a specific data request including information relating to possible design and operating conditions that may have been imposed by other agencies or organizations. Provision of up-to-date detailed piping and instrumentation diagrams reflecting modifications and provision of other pertinent information not included in the semi-annual reports described below, including events that have taken place since the previously submitted annual report. Contractor shall assist Owner with these FERC reviews, requests, inspections, and reports as required;
f. Semi-annual operational reports shall be filed with the FERC to identify changes in Existing Stage 1 Liquefaction Facility design and operating conditions, abnormal operating experiences, activities (including ship arrivals, quantity and composition of imported LNG, vaporization quantities, boil-off/flash gas, etc.), Existing and Stage 1 Liquefaction Facility modifications including future plans and progress thereof. Abnormalities should include, but not be limited to: unloading/shipping problems, potential hazardous conditions from offsite vessels, Tank stratification or rollover, geysering, Tank pressure excursions, cold spots on the Tanks, Tank vibrations and/or vibrations in associated cryogenic piping, Tank settlement, significant equipment or instrumentation malfunctions or failures, non-scheduled maintenance or repair (and reasons therefore), relative movement of Tank inner vessels, vapor or liquid releases, fires involving Natural Gas and/or from other sources, negative pressure (vacuum) within a Tank and higher than predicted Boil-Off rates. Adverse weather conditions and the effect on the Project also should be reported. Reports should be submitted within forty-five (45) Days after each period ending June 30 and December 31. In addition, a section entitled “Significant plant modifications proposed for the next 12 months (dates)” also shall be included in the semi-annual operational reports. Such information would provide the FERC staff with early notice of anticipated future construction/maintenance projects at the Stage 2 Liquefaction Facility and Existing Stage 1 Liquefaction Facility. Contractor shall assist Owner with any semi-annual operational reports that may be due during the period before Substantial Completion of such Subproject or modification to the Existing Stage 1 Liquefaction Facility;
g. Significant non-scheduled events, including safety-related incidents (i.e., LNG or Natural Gas releases, fires, explosions, mechanical failures, unusual over pressurization, and major injuries) shall be reported to FERC staff within forty-eight (48) hours. In the event an abnormality is of significant magnitude to threaten public or employee safety, cause significant property damage, or interrupt service, notification shall be made immediately, without unduly interfering with any necessary or appropriate emergency repair, alarm, or other emergency procedure. This notification practice shall be incorporated into the Stage 2 Liquefaction Facility’s emergency plan. Contractor shall report all such incidents to Owner immediately, and in all cases within twenty-four (24) hours, and develop for Owner any such reports that may be required during the period before Substantial Completion of such Subproject. Examples of reportable LNG-related incidents include:
i. Fire;
ii. Explosion;
iii. Property damage exceeding $10,000;
iv. Death or injury requiring hospitalization;
v. Free flow of LNG for five minutes or more that results in pooling;
vi. Unintended movement or abnormal loading by environmental causes, such as an earthquake, landslide, or flood, that impairs the serviceability, structural integrity, or reliability of the Stage 2 Liquefaction Facility;
vii. Any crack or other material defect that impairs the structural integrity or reliability of Equipment that contains, controls, or processes Natural Gas or LNG;
viii. Any malfunction or operating error that causes the pressure of a pipeline or Equipment that contains or processes Natural Gas or LNG to rise above its maximum allowable operating pressure (or working pressure for LNG facilities) plus the build-up allowed for operation of pressure limiting or control devices;
ix. A leak in Equipment that contains or processes Natural Gas or LNG that constitutes an emergency;
x. Inner tank leakage, ineffective insulation, or frost heave that impairs the structural integrity of a any tank;
xi. Any safety-related condition that could lead to an imminent hazard and cause (either directly or indirectly by remedial action of the operator), for purposes other than abandonment, a twenty (20) percent reduction in operating pressure or shutdown of operation of a pipeline or an Equipment that contains or processes Natural Gas or LNG;
xii. Safety-related incidents to LNG trucks or LNG vessels occurring at or in route to and from the Stage 2 Liquefaction Facility; and
xiii. The judgment of the LNG personnel and/or management even though it did not meet the above criteria or the guidelines set forth in the Stage 2 Liquefaction Facility’s incident management plan. In the event of an incident, the FERC has authority to take whatever steps are necessary to ensure operational reliability and to protect human life, health, property or the environment, including authority to direct the Stage 2 Liquefaction Facility to cease operations. Following the initial notification to Owner, FERC staff will determine the need for Owner to file a separate follow-up report or follow-up in the upcoming semi-annual operational report. All follow-up reports should include investigation results and recommendations to minimize a reoccurrence of the incident. Contractor shall develop for Owner any such reports that may be required if the incident happened before Substantial Completion of Subproject 23. Owner has overall responsibility for the FERC permit application, coordination with FERC, and compliance issues. Contractor will support Owner in providing required clarifications to FERC. Any (i) FERC related support provided by Contractor exceeding one thousand five hundred (1,000500) man hours or (ii) additional Work required by FERC that is not contemplated in this Scope of Work shall be subject to a Change Order to the extent such excess support or additional Work adversely impacts (i) Contractor cost of performance of the Work; (ii) Contractor’s ability to perform the Work in accordance with the Project Schedule or (iii) Contractor’s ability to perform any obligation under the Agreement. Notwithstanding the foregoing, Contractor shall not contact or otherwise engage in communications with FERC and other Governmental Instrumentalities regarding the Project without Owner’s involvement.
Appears in 1 contract
Samples: Fixed Price Separated Turnkey Agreement (Cheniere Energy Inc)
FERC Required Reports. Owner is required to provide regular reports and other information to the FERC during design, construction, and operation of the Liquefaction Facility and modifications to Existing Facility. The Liquefaction Facility and modifications to Existing Facility will also be subject to regular inspections by FERC staff, and continuous monitoring by inspectors providing reports to FERC. Contractor shall assist Owner with all interfaces with FERC as follows:
a. 1. Operation and maintenance procedures and manuals, as well as emergency plans and safety procedure manuals, shall be filed with the FERC prior to commissioning operations. Contractor is responsible for developing these documents, including changes recommended by the FERC, and resubmitting these documents as required;.
b. 2. The FERC staff shall be notified of any proposed revisions to the security plan and physical security of the Liquefaction Facility or Existing Facility prior to commissioning. Contractor shall assist Owner in the development of these plans, and shall advise Owner if changes to the design or construction of the Liquefaction Facility or modifications to Existing Facility may impact these plans;.
c. 3. Progress on the Project shall be reported in monthly reports submitted to the FERC. Details should include a summary of activities, problems encountered and remedial actions taken. The Monthly Progress Report described in Section 8.7 9.7 shall be formatted so that the required information can be easily extracted by Owner and sent to the FERC;.
d. 4. Problems of significant magnitude shall be reported to the FERC on a timely basis. Additional Site inspections and technical reviews will be held by FERC staff prior to commencement of operation. Contractor shall cooperate with Owner at all times in this regard and report any such problems to Owner immediately, and in all cases within twenty-four (24) hours;regard.
e. 5. The Liquefaction Facility and modifications to Existing Facility shall be subject to regular FERC staff technical reviews and Site inspections on at least a biennial basis or more frequently as circumstances indicate. Prior to each FERC staff technical review and Site inspection, the Owner will respond to a specific data request including information relating to possible design and operating conditions that may have been imposed by other agencies or organizations. Provision of up-to-date detailed piping and instrumentation diagrams reflecting Facility modifications and provision of other pertinent information not included in the semi-annual reports described below, including Facility events that have taken place since the previously submitted annual report. Contractor shall assist Owner with these FERC reviews, requests, inspections, and reports as required;.
f. 6. Semi-annual operational reports shall be filed with the FERC to identify changes in Existing Facility design and operating conditions, abnormal operating experiences, activities (including ship arrivals, quantity and composition of imported LNG, vaporization quantities, boil-off/flash gas, etc.), Existing Facility modifications including future plans and progress thereof. Abnormalities should include, but not be limited to: unloading/shipping problems, potential hazardous conditions from offsite vessels, Tank stratification or rollover, geysering, Tank pressure excursions, cold spots on the Tanks, Tank vibrations and/or vibrations in associated cryogenic piping, Tank settlement, significant equipment or instrumentation malfunctions or failures, non-scheduled maintenance or repair (and reasons therefore), relative movement of Tank inner vessels, vapor or liquid releases, fires involving Natural Gas and/or from other sources, negative pressure (vacuum) within a Tank and higher than predicted Boil-Off rates. Adverse weather conditions and the effect on the Project Facility also should be reported. Reports should be submitted within forty-five (45) Days after each period ending June 30 and December 31. In addition, a section entitled “Significant plant modifications proposed for the next 12 months (dates)” also shall be included in the semi-annual operational reports. Such information would provide the FERC staff with early notice of anticipated future construction/maintenance projects at the Liquefaction Facility and Existing Facility. Contractor shall assist develop for Owner with any semi-annual operational reports that may be due during the period before Substantial Completion of such Subproject or modification to the Existing Facility;Completion.
g. 7. Significant non-scheduled events, including safety-related incidents (i.e., LNG or Natural Gas releases, fires, explosions, mechanical failures, unusual over pressurization, and major injuries) shall be reported to FERC staff within forty-eight (48) hours. In the event an abnormality is of significant magnitude to threaten public or employee safety, cause significant property damage, or interrupt service, notification shall be made immediately, without unduly interfering with any necessary or appropriate emergency repair, alarm, or other emergency procedure. This notification practice shall be incorporated into the Liquefaction Facility’s emergency plan. Contractor shall report all such incidents to Owner immediately, and in all cases within twenty-four (24) hours, and develop for Owner any such reports that may be required during the period before Substantial Completion of such SubprojectCompletion. Examples of reportable LNG-related incidents include:
i. : • Fire;
ii. ; • Explosion;
iii. ; • Property damage exceeding $10,000;
iv. ; • Death or injury requiring hospitalization;
v. ; • Free flow of LNG for five minutes or more that results in pooling;
vi. ; • Unintended movement or abnormal loading by environmental causes, such as an earthquake, landslide, or flood, that impairs the serviceability, structural integrity, or reliability of the Liquefaction Facility;
vii. ; • Any crack or other material defect that impairs the structural integrity or reliability of Equipment that contains, controls, or processes Natural Gas gas or LNG;
viii. ; • Any malfunction or operating error that causes the pressure of a pipeline or Equipment that contains or processes Natural Gas gas or LNG to rise above its maximum allowable operating pressure (or working pressure for LNG facilities) plus the build-up allowed for operation of pressure limiting or control devices;
ix. ; • A leak in Equipment that contains or processes Natural Gas gas or LNG that constitutes an emergency;
x. ; • Inner tank leakage, ineffective insulation, or frost heave that impairs the structural integrity of a any tank;
xi. Tank; • Any safety-related condition that could lead to an imminent hazard and cause (either directly or indirectly by remedial action of the operator), for purposes other than abandonment, a twenty (20) 20 percent reduction in operating pressure or shutdown of operation of a pipeline or an Equipment that contains or processes Natural Gas gas or LNG;
xii. ; • Safety-related incidents to LNG trucks or LNG vessels occurring at or in route to and from the Liquefaction Facility; and
xiii. or • The judgment of the LNG personnel and/or management even though it did not meet the above criteria or the guidelines set forth in the Liquefaction Facility’s incident management plan. In the event of an incident, the FERC has authority to take whatever steps are necessary to ensure operational reliability and to protect human life, health, property or the environment, including authority to direct the Liquefaction Facility to cease operations. Following the initial notification to Owner, FERC staff will determine the need for Owner to file a separate follow-up report or follow-up in the upcoming semi-annual operational report. All follow-up reports should include investigation results and recommendations to minimize a reoccurrence of the incident. Contractor shall develop for Owner any such reports that may be required if the incident happened before Substantial Completion of Subproject 2Completion. Owner has overall responsibility for the FERC permit application, coordination with FERC, and compliance issues. Contractor will support Owner in providing required clarifications to FERC. Any (i) FERC related support provided by Contractor exceeding one thousand (1,000) man hours or (ii) additional Work required by FERC that is not contemplated in this Scope of Work shall be subject to a Change Order to the extent such excess support or additional Work adversely impacts (i) Contractor cost of performance of the Work; (ii) Contractor’s ability to perform the Work in accordance with the Project Schedule or (iii) Contractor’s ability to perform any obligation under the Agreement. Notwithstanding the foregoing, Contractor shall not contact or otherwise engage in communications with FERC and other Governmental Instrumentalities regarding the Project without Owner’s involvement.
Appears in 1 contract
FERC Required Reports. A. Owner is required to provide regular reports and other information to the FERC during design, construction, and operation of the Liquefaction Facility and modifications to Existing Facility. The Liquefaction Facility and modifications to Existing Facility will also be subject to regular inspections by FERC staff, and continuous monitoring by inspectors providing reports to FERCProject. Contractor shall assist Owner with all interfaces with FERC as follows:
a. 1. Operation and maintenance procedures and manuals, as well as emergency plans and safety procedure manuals, shall be filed by Owner with the FERC prior to commissioning operations. Contractor is responsible for developing these documents, including changes recommended by the FERC, and resubmitting assisting with the resubmission of these documents as required;
b. 2. Emergency plans and safety procedure manuals shall be filed with FERC prior to Site construction. Contractor is responsible for developing these construction-related documents and supporting Owner in the development of the Stage 3 Facility’s initial plans and procedures, including incorporating changes recommended by FERC and assisting with the resubmission as required;
3. The FERC staff shall be notified by Owner of any proposed revisions to the security plan and physical security of the Liquefaction Facility or Existing Facility Project prior to commissioning. Contractor shall assist Owner in the development of these plans, and shall advise Owner if changes to the design or construction of the Liquefaction Facility or modifications to Existing Facility Project may impact these plans;
c. 4. Progress on the Project shall be reported in monthly reports submitted to the FERC. Details should include a summary of activities, problems encountered and remedial actions taken. The Monthly Progress Report described in Section 8.7 Attachment X of the Agreement shall be formatted so that the required information can be easily extracted by Owner and sent to the FERC;
d. 5. Problems of significant magnitude shall be reported by Owner to the FERC on a timely basis. Additional Site inspections and technical reviews will be held by FERC staff prior to commencement of operation. Contractor shall cooperate with Owner at all times in this regard and report any such problems to Owner immediately, and in all cases within twenty-four (24) hours;
e. 6. The Liquefaction Facility and modifications to Existing Facility Project shall be subject to regular FERC staff technical reviews and Site inspections on at least a biennial basis or more frequently as circumstances indicate. Prior to each FERC staff technical review and Site inspection, the Owner will respond to a specific data request including information relating to possible design and operating conditions that may have been imposed by other agencies or organizations. Provision of up-to-date latest detailed piping and instrumentation diagrams reflecting modifications and provision of other pertinent information not included in the semi-annual reports described below, including events that have taken place since the previously submitted annual report. Contractor shall assist Owner with these FERC reviews, requests, inspections, and reports as requiredrequired by Owner. Owner to manager the IP requirements for information sharing with FERC;
f. 7. Semi-annual operational reports shall be filed with the FERC by Owner to identify changes in Existing Facility design and operating conditions, abnormal operating experiences, and activities (including ship arrivals, quantity and composition of imported LNG, vaporization quantities, boil-off/flash gas, etc.), Existing Facility modifications including future plans and progress thereof. Abnormalities should include, but not be limited to: unloading/shipping problems, potential hazardous conditions from offsite vessels, Tank stratification or rollover, geysering, Tank pressure excursions, cold spots on the Tanks, Tank vibrations and/or vibrations in associated cryogenic piping, Tank settlement, significant equipment or instrumentation malfunctions or failures, non-scheduled maintenance or repair (and reasons therefore), relative movement of Tank inner vessels, vapor or liquid releases, fires involving Natural Gas and/or from other sources, negative pressure (vacuum) within a Tank and higher than predicted Boil-Off rates. Adverse weather conditions and the effect on the Project also should be reported. Reports should be submitted within forty-five (45) Days after each period ending June 30 and December 31. In addition, a section entitled “Significant plant modifications proposed for the next 12 months (dates)” also shall be included in the semi-annual operational reports. Such information would provide the FERC staff with early notice of anticipated future construction/maintenance projects at the Liquefaction Facility and Existing FacilityProject. Contractor shall assist Owner with any semi-annual operational reports that may be due during the period before Substantial Completion of such Subproject or modification to the Existing FacilityTrain;
g. 8. Significant non-scheduled events, including safety-related incidents (i.e.e.g., LNG LNG, condensate, refrigerant, or Natural Gas releases, fires, explosions, mechanical failures, unusual over pressurization, and major injuries) and security-related incidents (e.g., attempts to enter site, suspicious activities) shall be reported by Owner to FERC staff within forty-eight (48) hours. In the event that an abnormality is of significant magnitude to threaten public or employee safety, cause significant property damage, or interrupt service, notification shall be made by Contractor to Owner immediately, without unduly interfering with any necessary or appropriate emergency repair, alarm, or other emergency procedure. This notification practice shall be incorporated into the Liquefaction Facility’s Project emergency plan. Contractor shall report all such incidents to Owner immediately, and in all cases within twenty-four (24) hours, immediately and develop for Owner any such reports that may be required during the period before Substantial Completion of such SubprojectTrain. Examples of reportable LNG-related LNG-, condensate-, refrigerant- or Natural Gas- incidents include:
i. (i) Fire;
(ii. ) Explosion;
(iii. Property ) Estimated property damage exceeding of $10,00050,000 or more from an event that involves the release of LNG, condensate, refrigerant or Natural Gas;
(iv. ) Death or injury requiring hospitalization;
v. (v) Free flow of LNG LNG, condensate, refrigerant or Natural Gas for five (5) minutes or more that results in poolingmore;
(vi. ) Unintended movement or abnormal loading by environmental causes, such as an earthquake, landslide, or flood, that impairs the serviceability, structural integrity, or reliability of the Liquefaction FacilityProject;
(vii. ) Any crack or other material defect that impairs the structural integrity or reliability of Equipment that contains, controls, or processes LNG, condensate, refrigerant or Natural Gas or LNGGas;
(viii. ) Any malfunction or operating error that causes the pressure of a pipeline or Equipment that contains or processes LNG, condensate, refrigerant or Natural Gas or LNG to rise above its maximum allowable operating pressure (or working pressure for LNG facilities) plus the build-up allowed for operation of pressure limiting or control devices;
(ix. ) A leak in Equipment that contains or processes LNG, condensate, refrigerant or Natural Gas or LNG that constitutes an emergency;
x. Inner tank leakage, ineffective insulation, or frost heave that impairs the structural integrity of a any tank;
xi. (x) Any safety-related condition that could lead to an imminent hazard and cause (either directly or indirectly by remedial action of the operator), for purposes other than abandonment, a twenty (20) percent reduction in operating pressure or shutdown of operation of a pipeline or an Equipment that contains or processes LNG, condensate, refrigerant or Natural Gas or LNG;
xii. SafetyGas; (xi) safety-related incidents to LNG trucks from LNG, condensate, refrigerant or LNG vessels Natural Gas transportation occurring at or in route to and from the Liquefaction FacilityStage 3 facility; and
xiii. The judgment of the LNG personnel and/or management even though it did not meet the above criteria or the guidelines set forth in the Liquefaction Facility’s incident management plan. In the event of an incident, the FERC has authority to take whatever steps are necessary to ensure operational reliability and to protect human life, health, property or the environment, including authority to direct the Liquefaction Facility to cease operations. Following the initial notification to Owner, FERC staff will determine the need for Owner to file a separate follow-up report or follow-up in the upcoming semi-annual operational report. All follow-up reports should include investigation results and recommendations to minimize a reoccurrence of the incident. Contractor shall develop for Owner any such reports that may be required if the incident happened before Substantial Completion of Subproject 2. Owner has overall responsibility for the FERC permit application, coordination with FERC, and compliance issues. Contractor will support Owner in providing required clarifications to FERC. Any (i) FERC related support provided by Contractor exceeding one thousand (1,000) man hours or (ii) additional Work required by FERC that is not contemplated in this Scope of Work shall be subject to a Change Order to the extent such excess support or additional Work adversely impacts (i) Contractor cost of performance of the Work; (ii) Contractor’s ability to perform the Work in accordance with the Project Schedule or (iii) Contractor’s ability to perform any obligation under the Agreement. Notwithstanding the foregoing, Contractor shall not contact or otherwise engage in communications with FERC and other Governmental Instrumentalities regarding the Project without Owner’s involvement.or
Appears in 1 contract
Samples: Fixed Price Separated Turnkey Agreement (Cheniere Energy, Inc.)
FERC Required Reports. Owner is required to provide regular reports and other information to the FERC during design, construction, and operation of the Stage 2 Liquefaction Facility and modifications to the Stage 1 Liquefaction Facility and Existing Facility. The Stage 2 Liquefaction Facility and modifications to the Stage 1 Liquefaction Facility and Existing Facility will also be subject to regular inspections by FERC staff, and continuous monitoring by inspectors providing reports to FERC. Contractor shall assist Owner with all interfaces with FERC as follows:
a. Operation and maintenance procedures and manuals, as well as emergency plans and safety procedure manuals, shall be filed with the FERC prior to commissioning operations. Contractor is responsible for developing these documents, including changes recommended by the FERC, and resubmitting these documents as required;
b. The FERC staff shall be notified of any proposed revisions to the security plan and physical security of the Stage 2 Liquefaction Facility Facility, Existing Facility, or Existing Stage 1 Liquefaction Facility prior to commissioning. Contractor shall assist Owner in the development of these plans, and shall advise Owner if changes to the design or construction of the Stage 2 Liquefaction Facility or modifications to Existing Facility and Stage 1 Liquefaction Facility may impact these plans;
c. Progress on the Project shall be reported in monthly reports submitted to the FERC. Details should include a summary of activities, problems encountered and remedial actions taken. The Monthly Progress Report described in Section 8.7 shall be formatted so that the required information can be easily extracted by Owner and sent to the FERC;
d. Problems of significant magnitude shall be reported to the FERC on a timely basis. Additional Stage 2 Site inspections and technical reviews will be held by FERC staff prior to commencement of operation. Contractor shall cooperate with Owner at all times in this regard and report any such problems to Owner immediately, and in all cases within twenty-four (24) hours;
e. The Stage 2 Liquefaction Facility and modifications to the Existing Facility and Stage 1 Liquefaction Facility shall be subject to regular FERC staff technical reviews and Stage 2 Site inspections on at least a biennial basis or more frequently as circumstances indicate. Prior to each FERC staff technical review and Stage 2 Site inspection, the Owner will respond to a specific data request including information relating to possible design and operating conditions that may have been imposed by other agencies or organizations. Provision of up-to-date detailed piping and instrumentation diagrams reflecting modifications and provision of other pertinent information not included in the semi-annual reports described below, including events that have taken place since the previously submitted annual report. Contractor shall assist Owner with these FERC reviews, requests, inspections, and reports as required;
f. Semi-annual operational reports shall be filed with the FERC to identify changes in Existing Facility and Stage 1 Liquefaction Facility design and operating conditions, abnormal operating experiences, activities (including ship arrivals, quantity and composition of imported LNG, vaporization quantities, boil-off/flash gas, etc.), Existing Facility and Stage 1 Liquefaction Facility modifications including future plans and progress thereof. Abnormalities should include, but not be limited to: unloading/shipping problems, potential hazardous conditions from offsite vessels, Tank stratification or rollover, geysering, Tank pressure excursions, cold spots on the Tanks, Tank vibrations and/or vibrations in associated cryogenic piping, Tank settlement, significant equipment or instrumentation malfunctions or failures, non-scheduled maintenance or repair (and reasons therefore), relative movement of Tank inner vessels, vapor or liquid releases, fires involving Natural Gas and/or from other sources, negative pressure (vacuum) within a Tank and higher than predicted Boil-Off rates. Adverse weather conditions and the effect on the Project also should be reported. Reports should be submitted within forty-five (45) Days after each period ending June 30 and December 31. In addition, a section entitled “Significant plant modifications proposed for the next 12 months (dates)” also shall be included in the semi-annual operational reports. Such information would provide the FERC staff with early notice of anticipated future construction/maintenance projects at the Stage 2 Liquefaction Facility Facility, Existing Facility, and Existing Stage 1 Liquefaction Facility. Contractor shall assist Owner with any semi-annual operational reports that may be due during the period before Substantial Completion of such Subproject or modification to the Existing Facility and Stage 1 Liquefaction Facility;
g. Significant non-scheduled events, including safety-related incidents (i.e., LNG or Natural Gas releases, fires, explosions, mechanical failures, unusual over pressurization, and major injuries) shall be reported to FERC staff within forty-eight (48) hours. In the event an abnormality is of significant magnitude to threaten public or employee safety, cause significant property damage, or interrupt service, notification shall be made immediately, without unduly interfering with any necessary or appropriate emergency repair, alarm, or other emergency procedure. This notification practice shall be incorporated into the Stage 2 Liquefaction Facility’s emergency plan. Contractor shall report all such incidents to Owner immediately, and in all cases within twenty-four (24) hours, and develop for Owner any such reports that may be required during the period before Substantial Completion of such Subproject. Examples of reportable LNG-related incidents include:
i. Fire;
ii. Explosion;
iii. Property damage exceeding $10,000;
iv. Death or injury requiring hospitalization;
v. Free flow of LNG for five minutes or more that results in pooling;
vi. Unintended movement or abnormal loading by environmental causes, such as an earthquake, landslide, or flood, that impairs the serviceability, structural integrity, or reliability of the Stage 2 Liquefaction Facility;
vii. Any crack or other material defect that impairs the structural integrity or reliability of Equipment that contains, controls, or processes Natural Gas or LNG;
viii. Any malfunction or operating error that causes the pressure of a pipeline or Equipment that contains or processes Natural Gas or LNG to rise above its maximum allowable operating pressure (or working pressure for LNG facilities) plus the build-up allowed for operation of pressure limiting or control devices;
ix. A leak in Equipment that contains or processes Natural Gas or LNG that constitutes an emergency;
x. Inner tank leakage, ineffective insulation, or frost heave that impairs the structural integrity of a any tank;
xi. Any safety-related condition that could lead to an imminent hazard and cause (either directly or indirectly by remedial action of the operator), for purposes other than abandonment, a twenty (20) percent reduction in operating pressure or shutdown of operation of a pipeline or an Equipment that contains or processes Natural Gas or LNG;
xii. Safety-related incidents to LNG trucks or LNG vessels occurring at or in route to and from the Stage 2 Liquefaction Facility; and
xiii. The judgment of the LNG personnel and/or management even though it did not meet the above criteria or the guidelines set forth in the Stage 2 Liquefaction Facility’s incident management plan. In the event of an incident, the FERC has authority to take whatever steps are necessary to ensure operational reliability and to protect human life, health, property or the environment, including authority to direct the Stage 2 Liquefaction Facility to cease operations. Following the initial notification to Owner, FERC staff will determine the need for Owner to file a separate follow-up report or follow-up in the upcoming semi-annual operational report. All follow-up reports should include investigation results and recommendations to minimize a reoccurrence of the incident. Contractor shall develop for Owner any such reports that may be required if the incident happened before Substantial Completion of Subproject 24. Owner has overall responsibility for the FERC permit application, coordination with FERC, and compliance issues. Contractor will support Owner in providing required clarifications to FERC. Any (i) FERC related support provided by Contractor exceeding one thousand (1,000) man hours A-38 or (ii) additional Work required by FERC that is not contemplated in this Scope of Work shall be subject to a Change Order to the extent such excess support or additional Work adversely impacts (i) Contractor cost of performance of the Work; (ii) Contractor’s ability to perform the Work in accordance with the Project Schedule or (iii) Contractor’s ability to perform any obligation under the Agreement. Notwithstanding the foregoing, Contractor shall not contact or otherwise engage in communications with FERC and other Governmental Instrumentalities regarding the Project without Owner’s involvement.
Appears in 1 contract
Samples: Lump Sum Turnkey Agreement
FERC Required Reports. Owner is required to provide regular reports and other information to the FERC during design, construction, and operation of the Stage 4 Liquefaction Facility and modifications to the Stage 1 Liquefaction Facility, the Stage 2 Liquefaction Facility, the Stage 3 Liquefaction Facility, and Existing Facility. The Stage 4 Liquefaction Facility and modifications to the Stage 1 Liquefaction Facility, the Stage 2 Liquefaction Facility, the Stage 3 Liquefaction Facility, and Existing Facility will also be subject to regular inspections by FERC staff, and continuous monitoring by inspectors providing reports to FERC. Contractor shall assist Owner with all interfaces with FERC as follows:
a. Operation and maintenance procedures and manuals, as well as emergency plans and safety procedure manuals, shall be filed with the FERC prior to commissioning operations. Contractor is responsible for developing these documents, including changes recommended by the FERC, and resubmitting these documents as required;
b. The FERC staff shall be notified of any proposed revisions to the security plan and physical security of the Stage 4 Liquefaction Facility or Facility, Existing Facility, Stage 1 Liquefaction Facility, Stage 2 Liquefaction Facility, the Stage 3 Liquefaction Facility prior to commissioning. Contractor shall assist Owner in the development of these plans, and shall advise Owner if changes to the design or construction of the Stage 4 Liquefaction Facility or modifications to Existing Facility, the Stage 1 Liquefaction Facility, the Stage 2 Liquefaction Facility, and the Stage 3 Liquefaction Facility may impact these plans;
c. Progress on the Project shall be reported in monthly reports submitted to the FERC. Details should include a summary of activities, problems encountered and remedial actions taken. The Monthly Progress Report described in Section 8.7 shall be formatted so that the required information can be easily extracted by Owner and sent to the FERC;
d. Problems of significant magnitude shall be reported to the FERC on a timely basis. Additional Stage 4 Site inspections and technical reviews will be held by FERC staff prior to commencement of operation. Contractor shall cooperate with Owner at all times in this regard and report any such problems to Owner immediately, and in all cases within twenty-four (24) hours;
e. The Stage 4 Liquefaction Facility and modifications to the Existing Facility, the Stage 1 Liquefaction Facility, the Stage 2 Liquefaction Facility, and Stage 3 Liquefaction Facility shall be subject to regular FERC staff technical reviews and Stage 4 Site inspections on at least a biennial basis or more frequently as circumstances indicate. Prior to each FERC staff technical review and Stage 4 Site inspection, the Owner will respond to a specific data request including information relating to possible design and operating conditions that may have been imposed by other agencies or organizations. Provision of up-to-date detailed piping and instrumentation diagrams reflecting modifications and provision of other pertinent information not included in the semi-annual reports described below, including events that have taken place since the previously submitted annual report. Contractor shall assist Owner with these FERC reviews, requests, inspections, and reports as required;
f. Semi-annual operational reports shall be filed with the FERC to identify changes in Existing Facility, the Stage 1 Liquefaction Facility, Stage 2 Liquefaction Facility, and Stage 3 Liquefaction Facility design and operating conditions, abnormal operating experiences, activities (including ship arrivals, quantity and composition of imported LNG, vaporization quantities, boil-off/flash gas, etc.), Existing Facility, the Stage 1 Liquefaction Facility, Stage 2 Liquefaction Facility, and Stage 3 Liquefaction Facility modifications including future plans and progress thereof. Abnormalities should include, but not be limited to: unloading/shipping problems, potential hazardous conditions from offsite vessels, Tank stratification or rollover, geysering, Tank pressure excursions, cold spots on the Tanks, Tank vibrations and/or vibrations in associated cryogenic piping, Tank settlement, significant equipment Equipment or instrumentation malfunctions or failures, non-scheduled maintenance or repair (and reasons therefore), relative movement of Tank inner vessels, vapor or liquid releases, fires involving Natural Gas and/or from other sources, negative pressure (vacuum) within a Tank and higher than predicted Boilboil-Off off rates. Adverse weather conditions and the effect on the Project also should be reported. Reports should be submitted within forty-five (45) Days after each period ending June 30 and December 31. In addition, a section entitled “Significant plant modifications proposed for the next 12 months (dates)” also shall be included in the semi-annual operational reports. Such information would provide the FERC staff with early notice of anticipated future construction/maintenance projects at the Stage 4 Liquefaction Facility Facility, Existing Facility, Stage 1 Liquefaction Facility, Stage 2 Liquefaction Facility, and Existing Stage 3 Liquefaction Facility. Contractor shall assist Owner with any semi-annual operational reports that may be due during the period before Substantial Completion of such Subproject 6 or modification to the Existing Facility, Stage 1 Liquefaction Facility, Stage 2 Liquefaction Facility, and Stage 3 Liquefaction Facility;
g. Significant non-scheduled events, including safety-related incidents (i.e., LNG or Natural Gas releases, fires, explosions, mechanical failures, unusual over pressurization, and major injuries) shall be reported to FERC staff within forty-eight (48) hours. In the event an abnormality is of significant magnitude to threaten public or employee safety, cause significant property damage, or interrupt service, notification shall be made immediately, without unduly interfering with any necessary or appropriate emergency repair, alarm, or other emergency procedure. This notification practice shall be incorporated into the Stage 4 Liquefaction Facility’s emergency plan. Contractor shall report all such incidents to Owner immediately, and in all cases within twenty-four (24) hours, and develop for Owner any such reports that may be required during the period before Substantial Completion of such each Subproject. Examples of reportable LNG-related incidents include:
i. Fire;
ii. Explosion;
iii. Property damage exceeding $10,000;
iv. Death or injury requiring hospitalization;
v. Free flow of LNG for five minutes or more that results in pooling;
vi. Unintended movement or abnormal loading by environmental causes, such as an earthquake, landslide, or flood, that impairs the serviceability, structural integrity, or reliability of the Stage 4 Liquefaction Facility;
vii. Any crack or other material defect that impairs the structural integrity or reliability of Equipment that contains, controls, or processes Natural Gas or LNG;
viii. Any malfunction or operating error that causes the pressure of a pipeline or Equipment that contains or processes Natural Gas or LNG to rise above its maximum allowable operating pressure (or working pressure for LNG facilities) plus the build-up allowed for operation of pressure limiting or control devices;
ix. A leak in Equipment that contains or processes Natural Gas or LNG that constitutes an emergency;
x. Inner tank leakage, ineffective insulation, or frost heave that impairs the structural integrity of a any tank;
xi. Any safety-related condition that could lead to an imminent hazard and cause (either directly or indirectly by remedial action of the operator), for purposes other than abandonment, a twenty (20) percent reduction in operating pressure or shutdown of operation of a pipeline or an Equipment that contains or processes Natural Gas or LNG;
xii. Safety-related incidents to LNG trucks or LNG vessels occurring at or in route to and from the Stage 4 Liquefaction Facility; and
xiii. The judgment of the LNG personnel and/or management even though it did not meet the above criteria or the guidelines set forth in the Stage 4 Liquefaction Facility’s incident management plan. In the event of an incident, the FERC has authority to take whatever steps are necessary to ensure operational reliability and to protect human life, health, property or the environment, including authority to direct the Stage 4 Liquefaction Facility to cease operations. Following the initial notification to Owner, FERC staff will determine the need for Owner to file a separate follow-up report or follow-up in the upcoming semi-annual operational report. All follow-up reports should include investigation results and recommendations to minimize a reoccurrence of the incident. Contractor shall develop for Owner any such reports that may be required if the incident happened before Substantial Completion of Subproject 2each Subproject. Owner has overall responsibility for the FERC permit application, coordination with FERC, and compliance issues. Contractor will support Owner in providing required clarifications to FERC. Any (i) FERC related support provided by Contractor exceeding one two thousand five hundred (1,0002,500) man hours or (ii) additional Work required by FERC that is not contemplated in this Scope of Work shall be subject to a Change Order to the extent such excess support or additional Work adversely impacts (i) Contractor cost of performance of the Work; (ii) Contractor’s ability to perform the Work in accordance with the Project Schedule or (iii) Contractor’s ability to perform any obligation under the Agreement. Notwithstanding the foregoing, Contractor shall not contact or otherwise engage in communications with FERC and other Governmental Instrumentalities regarding the Project without Owner’s involvement.
Appears in 1 contract
Samples: Lump Sum Turnkey Agreement (Sabine Pass Liquefaction, LLC)
FERC Required Reports. Owner is required to provide regular reports and other information to the FERC during design, construction, and operation of the Phase 3 Liquefaction Facility and modifications to Existing Facility. The Phase 3 Liquefaction Facility and modifications to Existing Facility will also be subject to regular inspections by FERC staff, and continuous monitoring by inspectors providing reports to FERC. Unless noted otherwise, Contractor shall assist Owner with all interfaces with FERC as follows:
a. Operation and maintenance procedures and manuals, as well as emergency plans and safety procedure manuals, shall be prepared and filed by Owner with the FERC prior to start of commissioning operations. Contractor Owner is responsible for developing these documentsdevelopment of the Facility Operations Emergency Response Plan, including changes recommended by the FERC, and resubmitting these documents as required. Owner is responsible for coordination with the local authorities, including the Carlyss fire department and Southwest Louisiana Mutual Aid organization in the development of the FERC Plans;
b. The FERC staff shall be notified of any proposed revisions to the security plan and physical security of the Phase 3 Liquefaction Facility or Existing Facility prior to commissioning. Contractor shall assist Owner in the development of these plans, and shall advise Owner if changes to the design or construction of the Phase 3 Liquefaction Facility or modifications to Existing Facility may impact these plans;
c. Progress on the Project shall be reported in monthly reports submitted to the FERC. Details should include a summary of activities, problems encountered and remedial actions taken. The Monthly Progress Report described in Section 8.7 shall be formatted so that the required information can be easily extracted by Owner and sent to the FERC;
d. Problems of significant magnitude shall be reported to the FERC on a timely basis. Additional Phase 3 Site inspections and technical reviews will be held by FERC staff prior to commencement of operation. Contractor shall cooperate with Owner at all times in this regard and report notify any such problems to Owner immediately, and in all cases within twenty-twenty four (24) hours;
e. The Phase 3 Liquefaction Facility and modifications to Existing Facility shall be subject to regular FERC staff technical reviews and Phase 3 Site inspections on at least a biennial basis or more frequently as circumstances indicate. Prior to each FERC staff technical review and Phase 3 Site inspection, the Owner will respond to a specific data request including information relating to possible design and operating conditions that may have been imposed by other agencies or organizations. Provision of Contractor will provide Owner up-to-date detailed piping and instrumentation diagrams reflecting modifications and provision of other pertinent information not included in the semi-annual reports described below, including events that have taken place since the previously submitted annual reportreport as required. Contractor shall assist Owner with these FERC reviews, requests, inspections, and reports as required;
f. Semi-annual operational reports shall be filed with the FERC to identify changes in Existing Facility design and operating conditions, abnormal operating experiences, activities (including ship arrivals, quantity and composition of imported LNG, vaporization quantities, boil-off/flash gas, etc.), Existing Facility modifications including future plans and progress thereof. Abnormalities should include, but not be limited to: unloadingloading/shipping problems, potential hazardous conditions from offsite vessels, Tank stratification or rollover, geysering, Tank pressure excursions, cold spots on the Tanks, Tank vibrations and/or vibrations in associated cryogenic piping, Tank settlement, significant equipment Equipment or instrumentation malfunctions or failures, non-scheduled maintenance or repair (and reasons therefore), relative movement of Tank inner vessels, vapor or liquid releases, fires involving Natural Gas and/or from other sources, negative pressure (vacuum) within a Tank and higher than predicted Boilboil-Off off rates. Adverse weather conditions and the effect on the Project also should be reported. Reports should be submitted within forty-five (45) Days after each period ending June 30 and December 31. In addition, a section entitled “Significant plant modifications proposed for the next 12 months (dates)” also shall be included in the semi-annual operational reports. Such information would provide the FERC staff with early notice of anticipated future construction/maintenance projects at the Phase 3 Liquefaction Facility and Existing Facility. Contractor shall assist Owner with any semi-annual operational reports that may be due during the period before Substantial Completion of such Subproject or modification to the Existing Facilityeach Project.;
g. Significant non-scheduled events, including safety-related incidents (i.e., LNG or Natural Gas releases, fires, explosions, mechanical failures, unusual over pressurization, and major injuries) shall be reported to FERC staff within forty-eight (48) hours. In the event an abnormality is of significant magnitude to threaten public or employee safety, cause significant property damage, or interrupt service, notification shall be made immediately, without unduly interfering with any necessary or appropriate emergency repair, alarm, or other emergency procedure. This notification practice shall be incorporated into the Phase 3 Liquefaction Facility’s emergency plan. Contractor shall report notify all such incidents to Owner immediately, and in all cases within twenty-twenty four (24) hours, and develop for Owner any such reports that may be required during the period before Substantial Completion of such Subprojecteach Project. Examples of reportable LNG-related incidents include:
i. Fire;
ii. Explosion;
iii. Property damage exceeding $10,000;
iv. Death or injury requiring hospitalization;
v. Free flow of LNG for five minutes or more that results in pooling;
vi. Unintended movement or abnormal loading by environmental causes, such as an earthquake, landslide, or flood, that impairs the serviceability, structural integrity, or reliability of the Phase 3 Liquefaction Facility;
vii. Any crack or other material defect that impairs the structural integrity or reliability of Equipment that contains, controls, or processes Natural Gas or LNG;
viii. Any malfunction or operating error that causes the pressure of a pipeline or Equipment that contains or processes Natural Gas or LNG to rise above its maximum allowable operating pressure (or working pressure for LNG facilities) plus the build-up allowed for operation of pressure limiting or control devices;
ix. A leak in Equipment that contains or processes Natural Gas or LNG that constitutes an emergency;
x. Inner tank leakage, ineffective insulation, or frost heave that impairs the structural integrity of a any tank;
xi. Any safety-related condition that could lead to an imminent hazard and cause (either directly or indirectly by remedial action of the operator), for purposes other than abandonment, a twenty (20) percent reduction in operating pressure or shutdown of operation of a pipeline or an Equipment that contains or processes Natural Gas or LNG;
xii. Safety-related incidents to LNG trucks or LNG vessels occurring at or in route to and from the Phase 3 Liquefaction Facility; and
xiii. The judgment of the LNG personnel and/or management even though it did not meet the above criteria or the guidelines set forth in the Phase 3 Liquefaction Facility’s incident management plan. In the event of an incident, the FERC has authority to take whatever steps are necessary to ensure provide operational reliability and to protect human life, health, property or the environment, including authority to direct the Phase 3 Liquefaction Facility to cease operations. Following the initial notification to Owner, FERC staff will determine the need for Owner to file a separate follow-up report or follow-up in the upcoming semi-annual operational report. All follow-up reports should include investigation results and recommendations to minimize a reoccurrence of the incident. Contractor shall develop for Owner any such reports that may be required if the incident happened before Substantial Completion of Subproject 2Project 4. Owner has overall responsibility for the FERC permit application, FERC Public Participation Plan, government relations, public relations, community relations, community enhancement programs, community investment, coordination with FERC, and any FERC compliance issues. Contractor will provide reasonable support to Owner in providing required clarifications to FERCFERC or PHMSA. Any FERC or PHMSA related support conducted by Contractor (i) FERC related support provided by Contractor exceeding one thousand two thousand, five hundred (1,0002,500) man hours or (ii) additional Work required by FERC or PHMSA that is not contemplated in this Scope of Work shall be subject to a Change Order to the extent such excess support or additional Work work adversely impacts (i) Contractor cost of performance of the Work; Work or (ii) Contractor’s ability to perform the Work in accordance with the Project Schedule or (iii) Contractor’s ability to perform any obligation under the Agreement. However, a Change Order shall not be allowed in the case where the extra work is needed following a request by FERC that is a result of an error or mistake by Contractor. Notwithstanding the foregoing, Contractor shall not contact or otherwise engage in communications with FERC and other Governmental Instrumentalities regarding the Project without Owner’s involvement.
Appears in 1 contract
FERC Required Reports. Owner is required to provide regular reports and other information to the FERC during design, construction, and operation of the Stage 1 Liquefaction Facility and modifications to Existing Facility. The Stage 1 Liquefaction Facility and modifications to Existing Facility will also be subject to regular inspections by FERC staff, and continuous monitoring by inspectors providing reports to FERC. Contractor shall assist Owner with all interfaces with FERC as follows:
a. Operation and maintenance procedures and manuals, as well as emergency plans and safety procedure manuals, shall be filed with the FERC prior to commissioning operations. Contractor is responsible for developing these documents, including changes recommended by the FERC, and resubmitting these documents as required;
b. The FERC staff shall be notified of any proposed revisions to the security plan and physical security of the Stage 1 Liquefaction Facility or Existing Facility prior to commissioning. Contractor shall assist Owner in the development of these plans, and shall advise Owner if changes to the design or construction of the Stage 1 Liquefaction Facility or modifications to Existing Facility may impact these plans;
c. Progress on the Project shall be reported in monthly reports submitted to the FERC. Details should include a summary of activities, problems encountered and remedial actions taken. The Monthly Progress Report described in Section 8.7 shall be formatted so that the required information can be easily extracted by Owner and sent to the FERC;
d. Problems of significant magnitude shall be reported to the FERC on a timely basis. Additional Stage 1 Site inspections and technical reviews will be held by FERC staff prior to commencement of operation. Contractor shall cooperate with Owner at all times in this regard and report any such problems to Owner immediately, and in all cases within twenty-four (24) hours;
e. The Stage 1 Liquefaction Facility and modifications to Existing Facility shall be subject to regular FERC staff technical reviews and Stage 1 Site inspections on at least a biennial basis or more frequently as circumstances indicate. Prior to each FERC staff technical review and Stage 1 Site inspection, the Owner will respond to a specific data request including information relating to possible design and operating conditions that may have been imposed by other agencies or organizations. Provision of up-to-date detailed piping and instrumentation diagrams reflecting modifications and provision of other pertinent information not included in the semi-annual reports described below, including events that have taken place since the previously submitted annual report. Contractor shall assist Owner with these FERC reviews, requests, inspections, and reports as required;
f. Semi-annual operational reports shall be filed with the FERC to identify changes in Existing Stage 1 Liquefaction Facility design and operating conditions, abnormal operating experiences, activities (including ship arrivals, quantity and composition of imported LNG, vaporization quantities, boil-off/flash gas, etc.), Existing and Stage 1 Liquefaction Facility modifications including future plans and progress thereof. Abnormalities should include, but not be limited to: unloading/shipping problems, potential hazardous conditions from offsite vessels, Tank stratification or rollover, geysering, Tank pressure excursions, cold spots on the Tanks, Tank vibrations and/or vibrations in associated cryogenic piping, Tank settlement, significant equipment or instrumentation malfunctions or failures, non-scheduled maintenance or repair (and reasons therefore), relative movement of Tank inner vessels, vapor or liquid releases, fires involving Natural Gas and/or from other sources, negative pressure (vacuum) within a Tank and higher than predicted Boil-Off rates. Adverse weather conditions and the effect on the Project also should be reported. Reports should be submitted within forty-five (45) Days after each period ending June 30 and December 31. In addition, a section entitled “Significant plant modifications proposed for the next 12 months (dates)” also shall be included in the semi-annual operational reports. Such information would provide the FERC staff with early notice of anticipated future construction/maintenance projects at the Stage 1 Liquefaction Facility and Existing Facility. Contractor shall assist Owner with any semi-annual operational reports that may be due during the period before Substantial Completion of such Subproject or modification to the Existing Stage 1 Liquefaction Facility;
g. Significant non-scheduled events, including safety-related incidents (i.e., LNG or Natural Gas releases, fires, explosions, mechanical failures, unusual over pressurization, and major injuries) shall be reported to FERC staff within forty-eight (48) hours. In the event an abnormality is of significant magnitude to threaten public or employee safety, cause significant property damage, or interrupt service, notification shall be made immediately, without unduly interfering with any necessary or appropriate emergency repair, alarm, or other emergency procedure. This notification practice shall be incorporated into the Stage 1 Liquefaction Facility’s emergency plan. Contractor shall report all such incidents to Owner immediately, and in all cases within twenty-four (24) hours, and develop for Owner any such reports that may be required during the period before Substantial Completion of such Subproject. Examples of reportable LNG-related incidents include:
i. Fire;
ii. Explosion;
iii. Property damage exceeding $10,000;
iv. Death or injury requiring hospitalization;
v. Free flow of LNG for five minutes or more that results in pooling;
vi. Unintended movement or abnormal loading by environmental causes, such as an earthquake, landslide, or flood, that impairs the serviceability, structural integrity, or reliability of the Stage 1 Liquefaction Facility;
vii. Any crack or other material defect that impairs the structural integrity or reliability of Equipment that contains, controls, or processes Natural Gas or LNG;
viii. Any malfunction or operating error that causes the pressure of a pipeline or Equipment that contains or processes Natural Gas or LNG to rise above its maximum allowable operating pressure (or working pressure for LNG facilities) plus the build-up allowed for operation of pressure limiting or control devices;
ix. A leak in Equipment that contains or processes Natural Gas or LNG that constitutes an emergency;
x. Inner tank leakage, ineffective insulation, or frost heave that impairs the structural integrity of a any tank;
xi. Any safety-related condition that could lead to an imminent hazard and cause (either directly or indirectly by remedial action of the operator), for purposes other than abandonment, a twenty (20) percent reduction in operating pressure or shutdown of operation of a pipeline or an Equipment that contains or processes Natural Gas or LNG;
xii. Safety-related incidents to LNG trucks or LNG vessels occurring at or in route to and from the Stage 1 Liquefaction Facility; and
xiii. The judgment of the LNG personnel and/or management even though it did not meet the above criteria or the guidelines set forth in the Stage 1 Liquefaction Facility’s incident management plan. In the event of an incident, the FERC has authority to take whatever steps are necessary to ensure operational reliability and to protect human life, health, property or the environment, including authority to direct the Stage 1 Liquefaction Facility to cease operations. Following the initial notification to Owner, FERC staff will determine the need for Owner to file a separate follow-up report or follow-up in the upcoming semi-annual operational report. All follow-up reports should include investigation results and recommendations to minimize a reoccurrence of the incident. Contractor shall develop for Owner any such reports that may be required if the incident happened before Substantial Completion of Subproject 2. Owner has overall responsibility for the FERC permit application, coordination with FERC, and compliance issues. Contractor will support Owner in providing required clarifications to FERC. Any (i) FERC related support provided by Contractor exceeding one thousand (1,000) man hours or (ii) additional Work required by FERC that is not contemplated in this Scope of Work shall be subject to a Change Order to the extent such excess support or additional Work adversely impacts (i) Contractor cost of performance of the Work; (ii) Contractor’s ability to perform the Work in accordance with the Project Schedule or (iii) Contractor’s ability to perform any obligation under the Agreement. Notwithstanding the foregoing, Contractor shall not contact or otherwise engage in communications with FERC and other Governmental Instrumentalities regarding the Project without Owner’s involvement.
Appears in 1 contract
Samples: Fixed Price Separated Turnkey Agreement (Cheniere Energy Inc)
FERC Required Reports. Owner is required to provide regular reports and other information to the FERC during design, construction, and operation of the Phase 4 Liquefaction Facility and modifications to Existing Facility. The Phase 4 Liquefaction Facility and modifications to Existing Facility will also be subject to regular inspections by FERC staff, and continuous monitoring by inspectors providing reports to FERC. Unless noted otherwise, Contractor shall assist Owner with all interfaces with FERC as follows:
a. Operation and maintenance procedures and manuals, as well as emergency plans and safety procedure manuals, shall be prepared and filed by Owner with the FERC prior to start of commissioning operations. Contractor Owner is responsible for developing these documentsdevelopment of the Facility Operations Emergency Response Plan, including changes recommended by the FERC, and resubmitting these documents as required. Owner is responsible for coordination with the local authorities, including the Carlyss fire department and Southwest Louisiana Mutual Aid organization in the development of the FERC Plans;
b. The FERC staff shall be notified of any proposed revisions to the security plan and physical security of the Phase 4 Liquefaction Facility or Existing Facility prior to commissioning. Contractor shall assist Owner in the development of these plans, and shall advise Owner if changes to the design or construction of the Phase 4 Liquefaction Facility or modifications to Existing Facility may impact these plans;
c. Progress on the Project shall be reported in monthly reports submitted to the FERC. Details should include a summary of activities, problems encountered and remedial actions taken. The Monthly Progress Report described in Section 8.7 shall be formatted so that the required information can be easily extracted by Owner and sent to the FERC;
d. Problems of significant magnitude shall be reported to the FERC on a timely basis. Additional Phase 4 Site inspections and technical reviews will be held by FERC staff prior to commencement of operation. Contractor shall cooperate with Owner at all times in this regard and report notify any such problems to Owner immediately, and in all cases within twenty-twenty four (24) hours;
e. The Phase 4 Liquefaction Facility and modifications to Existing Facility shall be subject to regular FERC staff technical reviews and Phase 4 Site inspections on at least a biennial basis or more frequently as circumstances indicate. Prior to each FERC staff technical review and Phase 4 Site inspection, the Owner will respond to a specific data request including information relating to possible design and operating conditions that may have been imposed by other agencies or organizations. Provision of Contractor will provide Owner up-to-date detailed piping and instrumentation diagrams reflecting modifications and provision of other pertinent information not included in the semi-annual reports described below, including events that have taken place since the previously submitted annual reportreport as required. Contractor shall assist Owner with these FERC reviews, requests, inspections, and reports as required;
f. Semi-annual operational reports shall be filed with the FERC to identify changes in Existing Facility design and operating conditions, abnormal operating experiences, activities (including ship arrivals, quantity and composition of imported LNG, vaporization quantities, boil-off/flash gas, etc.), Existing Facility modifications including future plans and progress thereof. Abnormalities should include, but not be limited to: unloadingloading/shipping problems, potential hazardous conditions from offsite vessels, Tank stratification or rollover, geysering, Tank pressure excursions, cold spots on the Tanks, Tank vibrations and/or vibrations in associated cryogenic piping, Tank settlement, significant equipment Equipment or instrumentation malfunctions or failures, non-scheduled maintenance or repair (and reasons therefore), relative movement of Tank inner vessels, vapor or liquid releases, fires involving Natural Gas and/or from other sources, negative pressure (vacuum) within a Tank and higher than predicted Boilboil-Off off rates. Adverse weather conditions and the effect on the Project also should be reported. Reports should be submitted within forty-five (45) Days after each period ending June 30 and December 31. In addition, a section entitled “Significant plant modifications proposed for the next 12 months (dates)” also shall be included in the semi-annual operational reports. Such information would provide the FERC staff with early notice of anticipated future construction/maintenance projects at the Phase 4 Liquefaction Facility and Existing Facility. Contractor shall assist Owner with any semi-annual operational reports that may be due during the period before Substantial Completion of such Subproject or modification to the Existing Facilityeach Project;
g. Significant non-scheduled events, including safety-related incidents (i.e., LNG or Natural Gas releases, fires, explosions, mechanical failures, unusual over pressurization, and major injuries) shall be reported to FERC staff within forty-eight (48) hours. In the event an abnormality is of significant magnitude to threaten public or employee safety, cause significant property damage, or interrupt service, notification shall be made immediately, without unduly interfering with any necessary or appropriate emergency repair, alarm, or other emergency procedure. This notification practice shall be incorporated into the Phase 4 Liquefaction Facility’s emergency plan. Contractor shall report notify all such incidents to Owner immediately, and in all cases within twenty-twenty four (24) hours, and develop for Owner any such reports that may be required during the period before Substantial Completion of such Subprojecteach Project. Examples of reportable LNG-related incidents include:
i. Fire;
ii. Explosion;
iii. Property damage exceeding $10,000;
iv. Death or injury requiring hospitalization;
v. Free flow of LNG for five minutes or more that results in pooling;
vi. Unintended movement or abnormal loading by environmental causes, such as an earthquake, landslide, or flood, that impairs the serviceability, structural integrity, or reliability of the Phase 4 Liquefaction Facility;
vii. Any crack or other material defect that impairs the structural integrity or reliability of Equipment that contains, controls, or processes Natural Gas or LNG;
viii. Any malfunction or operating error that causes the pressure of a pipeline or Equipment that contains or processes Natural Gas or LNG to rise above its maximum allowable operating pressure (or working pressure for LNG facilities) plus the build-up allowed for operation of pressure limiting or control devices;
ix. A leak in Equipment that contains or processes Natural Gas or LNG that constitutes an emergency;
x. Inner tank leakage, ineffective insulation, or frost heave that impairs the structural integrity of a any tank;
xi. Any safety-related condition that could lead to an imminent hazard and cause (either directly or indirectly by remedial action of the operator), for purposes other than abandonment, a twenty (20) percent reduction in operating pressure or shutdown of operation of a pipeline or an Equipment that contains or processes Natural Gas or LNG;
xii. Safety-related incidents to LNG trucks or LNG vessels occurring at or in route to and from the Phase 4 Liquefaction Facility; and
xiii. The judgment of the LNG personnel and/or management even though it did not meet the above criteria or the guidelines set forth in the Phase 4 Liquefaction Facility’s incident management plan. In the event of an incident, the FERC has authority to take whatever steps are necessary to ensure provide operational reliability and to protect human life, health, property or the environment, including authority to direct the Phase 4 Liquefaction Facility to cease operations. Following the initial notification to Owner, FERC staff will determine the need for Owner to file a separate follow-up report or follow-up in the upcoming semi-annual operational report. All follow-up reports should include investigation results and recommendations to minimize a reoccurrence of the incident. Contractor shall develop for Owner any such reports that may be required if the incident happened before Substantial Completion of Subproject 2Project 5. Owner has overall responsibility for the FERC permit application, FERC Public Participation Plan, government relations, public relations, community relations, community enhancement programs, community investment, coordination with FERC, and any FERC compliance issues. Contractor will provide reasonable support to Owner in providing required clarifications to FERCFERC or PHMSA. Any FERC or PHMSA related support conducted by Contractor (i) FERC related support provided by Contractor exceeding one thousand two thousand, five hundred (1,0002,500) man hours or (ii) additional Work required by FERC or PHMSA that is not contemplated in this Scope of Work shall be subject to a Change Order to the extent such excess support or additional Work work adversely impacts (i) Contractor cost of performance of the Work; Work or (ii) Contractor’s ability to perform the Work in accordance with the Project Schedule or (iii) Contractor’s ability to perform any obligation under the Agreement. However, a Change Order shall not be allowed in the case where the extra work is needed following a request by FERC that is a result of an error or mistake by Contractor. Notwithstanding the foregoing, Contractor shall not contact or otherwise engage in communications with FERC and other Governmental Instrumentalities regarding the Project without Owner’s involvement.
Appears in 1 contract