Mandatory Capital Projects Sample Clauses

Mandatory Capital Projects. Lyondell will record its annual spending on Maintenance Capital Projects and EHS Capital Projects at the Non- Partnership Plants. The Capital Costs of such Capital Projects will be included in the Capital Costs Comparative Pool. Lyondell will provide Bayer with information concerning such Capital Projects consistent with the information provided with respect to Maintenance Capital Projects and EHS Capital Projects and the cost thereof under Section 8.3 of the PO Partnership Agreement. Additionally, Discretionary Capital Projects to Infrastructure Assets at the Non-Partnership Plant Complexes that fall below the dollar threshold specified in Section 7.3(c)(iv) of the PO Operating Agreement (with such threshold to be mutually adjusted every five years taking into account inflation and other relevant factors) will be included in the Capital Costs Comparative Pool without a right of approval by Bayer PO LP, in the same manner as Maintenance Capital Projects and EHS Capital Projects.

Mandatory Capital Projects. As provided in Section 7.4 of the -------------------------- ----------- Operating Agreement, the Annual Forecast shall include for each Plant Facility all proposed Maintenance Capital Projects and EHS Capital Projects for the next succeeding year known at the time of the Operator's preparation of the Annual Forecast, including such Capital Projects as are commenced or approved in prior years that have not been completed, and shall separately itemize all Above Threshold Non-Discretionary Capital Projects. A copy of the Capital Project forecast for each Plant Facility for the following four years that is prepared by the Operator and included in the Annual Forecast shall be provided to each Partner. The Annual Forecast shall describe for each proposed Above Threshold Non-Discretionary Capital Project the scope, nature, expected costs and benefits and justifications for each Capital Project and the short-term and long-term impact on production that the Capital Project is anticipated to have. For each such itemized Maintenance Capital Project and EHS Capital Project, the capital budget shall identify the PO Share of the budgeted Capital Costs for such Capital Project and the methodology used to determine the PO Share in accordance with Exhibit D of the Operating --------- Agreement. The capital budget shall describe in reasonable detail the anticipated expenditure profile for the Capital Project over the life of the project. At any time during the year, as provided in Section 7.4 of the ----------- Operating Agreement, the Operator may initiate Maintenance Capital Projects and EHS Capital Projects that are recommended by the Operator, even if not included in the Annual Plan. The General Partner shall procure from the Operator and deliver to the Limited Partners the information provided for above with respect to Above Threshold Non-Discretionary Capital Projects initiated during the year that were not included in the Annual Plan; to the extent practical, such information shall be provided not less than 30 days prior to commencing work for the Capital Project. Subject to Section 2.10(c), each Partner shall be invoiced --------------- under Section 2.4 for its Pro Rata share of the Capital Costs.

Mandatory Capital Projects. 6.2.1 The PE shall, latest within 15 months of the Effective Date, complete the Mandatory Capital Projects set out under Schedule 7 at the times set forth therein and in accordance with the terms and conditions set forth therein. The PE shall provide quarterly updates on the progress to the Nodal Officer and the IC. The IC shall be responsible for monitoring the progress of aforesaid on its timeliness and quality. 6.2.2 In the event that the PE delays the commencement of construction of a Mandatory Capital Project at the time set forth in Schedule 7 and no explanation for the delay is provided by the PE to the IC or the Nodal Officer that is satisfactory to the IC (at its sole discretion), the Nodal Officer, on the recommendation of the IC, shall have the right to levy liquidated damages on the PE equivalent to 0.5% of the estimated capital cost of such Mandatory Capital Project for each month of delay in the commencement of construction of such Mandatory Capital Project. 6.2.3 The Nodal Officer, on the recommendation of the IC or suo-motto, shall further have the right to levy liquidated damages on the PE at the same rate specified in Clause 6.2.2, in the event the time period for the completion of any Mandatory Capital Project exceeds the time period for completion of such Mandatory Capital Project as set out in Schedule 7, subject to the delay not being on account of delay in commencement, in respect of which liquidated damages have been paid by the PE to the SAMB. Provided further that if the relevant Mandatory Capital Project is completed within the time period set in the Master Plan inspite of delay in commencement, 95% of the liquidated damages already levied on the PE by SAMB with regards to delay in commencement shall be returned to the PE by SAMB. 6.2.4 The Nodal Officer, on the recommendation of the IC or suo-motto, shall, further, have the right to levy liquidated damages on PE at the rate of 0.5% of the estimated capital cost of such Mandatory Capital Project for each month if actual capital cost of any Mandatory Capital Project is lower than the capital cost of the respective Mandatory Capital Project as reflected in the DPR. Provided however that the total liability of the PE under this Clause 6.2 for delay or the lower capital cost incurred in respect of a particular Mandatory Capital Project shall not exceed 10% of the total capital cost of the relevant Mandatory Capital Project.