Common use of Minimum Inventory Obligation Clause in Contracts

Minimum Inventory Obligation. 5.5.1 The User acknowledges that the Operator may cause the Minimum Inventory to be retained in the FSRU at all times during the Term. 5.5.2 The User shall not make any Nomination in respect of any amount of the User’s Inventory that would cause the quantity of LNG in the Terminal to be less than the Minimum Inventory. 5.5.3 If the Operator, acting as a Reasonable and Prudent Operator, determines that the quantity of LNG in the Terminal is reasonably expected to be less than the Minimum Inventory, then the Operator may, at its discretion: (a) require the User to effect an in-tank transfer to or from the Operator such that the Minimum Inventory is retained in the FSRU, provided that in doing so the Operator shall not discriminate among the Terminal Users and, save where Clause 5.5.4 applies, the price applicable to such LNG shall be the applicable THE DA Price on the day of the in-tank transfer; (b) reduce the send-out of Gas so that the Minimum Inventory is maintained; or (c) take any other action as is operationally necessary to maintain the safe and efficient operations at the Terminal. 5.5.4 If the Operator determines, acting as a Reasonable and Prudent Operator, that one or more failures by the User to comply with its obligations under this Agreement (and, if applicable, one or more failures by any other Terminal User(s)) has resulted in the quantity of LNG in the Terminal being less than the Minimum Inventory, the Operator shall be entitled to recover from the User and such Other User(s) the Costs of any cargo tank cool down and reinstatement of the Minimum Inventory provided that in doing so the Operator shall not discriminate among the Terminal Users. Where the Operator is entitled to such recovery from the User, the User shall reimburse the Operator for a proportionate share of any such Costs incurred by the Operator as determined by the Operator, acting as a Reasonable and Prudent Operator. Without prejudice to the foregoing the User shall provide and pay for LNG required for cooling the FSRU’s cargo tanks and other handling systems to the temperatures necessary to commence loading as a result of: (a) the quantity of LNG retained on board being insufficient to enable the FSRU to receive a transfer of LNG from an LNG vessel in a cold and ready to load condition where attributable to any User Party; or (b) breach of any obligation or undertakings by the User necessary for Operator to perform the Services hereunder; (c) any other act or omission of any User Party; (d) the unloading of any Off-Specification LNG under this Agreement provided that such Off-Specification LNG is due to any act or omission of a User Party. 5.5.5 In respect of the last Unloading and Regasification Slot, Operator has the right in its discretion to purchase up to six thousand five hundred cubic meters (6,500 m3) of LNG from the final Cargo unloaded at the Terminal at the applicable THE DA Price on the date of such purchase. In addition, Operator has the right, in its sole discretion, to purchase any User’s Inventory remaining in the Terminal in respect of the final Cargo unloaded by the User at the Terminal at the end of the last Unloading and Regasification Slot.

Minimum Inventory Obligation. 5.5.1 The User acknowledges that the Operator may cause the Minimum Inventory to be retained in the FSRU at all times during the Termtimes. 5.5.2 The User shall not make any Nomination in respect of any amount of the User’s Inventory that would cause the quantity of LNG in the Terminal to be less than the Minimum Inventory. 5.5.3 If the Operator, acting as a Reasonable and Prudent Operator, determines that the quantity of LNG in the Terminal is reasonably expected to be less than the Minimum Inventory, then the Operator may, at its discretion: (a) require the User to effect an in-tank transfer to or from the Operator such that the Minimum Inventory is retained in the FSRU, provided that in doing so the Operator shall not discriminate among the Terminal Users and, save where Clause 5.5.4 applies, the price applicable to such LNG shall be the applicable THE DA Price on the day of the in-tank transfer; (b) reduce the send-out of Gas so that the Minimum Inventory is maintained; or (c) take any other action as is operationally necessary to maintain the safe and efficient operations at the Terminal. 5.5.4 If the Operator determines, acting as a Reasonable and Prudent Operator, that one or more failures by the User to comply with its obligations under this Agreement (and, if applicable, one or more failures by any other Terminal User(s)) has resulted in the quantity of LNG in the Terminal being less than the Minimum Inventory, the Operator shall be entitled to recover from the User and such Other User(s) the Costs of any cargo tank cool down and reinstatement of the Minimum Inventory provided that in doing so the Operator shall not discriminate among the Terminal Users. Where the Operator is entitled to such recovery from the User, the User shall reimburse the Operator for a proportionate share of any such Costs incurred by the Operator as determined by the Operator, acting as a Reasonable and Prudent Operator. Without prejudice to the foregoing foregoing, the User shall provide and pay for LNG required for cooling the FSRU’s cargo tanks and other handling systems to the temperatures necessary to commence loading as a result of: (a) the quantity of LNG retained on board at the end of the User’s Unloading and Regasification Slot being insufficient to enable the FSRU to receive a transfer of LNG from an LNG vessel in a cold and ready to load condition where attributable to any User Party; or; (b) breach of any obligation or undertakings by the User necessary for Operator to perform the Services hereunder; (c) any other act or omission of any User Party;; or (d) the unloading of any Off-Specification LNG under this Agreement provided that such Off-Specification LNG is due to any act or omission of a User Party. 5.5.5 In respect of the last Unloading and Regasification Slot, Operator has the right in its discretion to purchase up to six five thousand five hundred cubic meters (6,500 5,000 m3) of LNG from the final Cargo unloaded at the Terminal at the applicable THE DA Price on the date of such purchase. In addition, Operator has the right, in its sole discretion, to purchase any User’s Inventory remaining in the Terminal in respect of the final Cargo unloaded by the User at the Terminal at the end of the last Unloading and Regasification Slot.

Minimum Inventory Obligation. 5.5.1 5.4.1 The User acknowledges that the Operator may cause the Minimum Inventory to be retained in the FSRU at all times during the Term. 5.5.2 5.4.2 The User shall not make any Nomination in respect of any amount of the User’s Inventory that would cause the quantity of LNG in the Terminal to be less than the Minimum Inventory. 5.5.3 5.4.3 If the Operator, acting as a Reasonable and Prudent Operator, determines that the quantity of LNG in the Terminal is reasonably expected to be less than the Minimum Inventory, then the Operator may, at its discretion: (a) require the User to effect an in-tank transfer to or from the Operator such that the Minimum Inventory is retained in the FSRU, provided that in doing so the Operator shall not discriminate among the Terminal Users and, save where Clause 5.5.4 5.4.4 applies, the price applicable to such LNG shall be the applicable THE DA Price on the day of the in-tank transfer; (b) reduce the send-out of Gas so that the Minimum Inventory is maintained; or (c) take any other action as is operationally necessary to maintain the safe and efficient operations at the Terminal. 5.5.4 5.4.4 If the Operator determines, acting as a Reasonable and Prudent Operator, that one or more failures by the User to comply with its obligations under this Agreement (and, if applicable, one or more failures by any other Terminal User(s)) has resulted in the quantity of LNG in the Terminal being less than the Minimum Inventory, the Operator shall be entitled to recover from the User and such Other User(s) the Costs of any cargo tank cool down and reinstatement of the Minimum Inventory provided that in doing so the Operator shall not discriminate among the Terminal Users. Where the Operator is entitled to such recovery from the User, the User shall reimburse the Operator for a proportionate share of any such Costs incurred by the Operator as determined by the Operator, acting as a Reasonable and Prudent Operator. Without prejudice to the foregoing the User shall provide and pay for LNG required for cooling the FSRU’s cargo tanks and other handling systems to the temperatures necessary to commence loading as a result of: (a) the quantity of LNG retained on board being insufficient to enable the FSRU to receive a transfer of LNG from an LNG vessel in a cold and ready to load condition where attributable to any User Party; or (b) breach of any obligation or undertakings by the User necessary for Operator to perform the Services hereunder; (c) any other act or omission of any User Party; (d) the unloading of any Off-Specification LNG under this Agreement provided that such Off-Specification LNG is due to any act or omission of a User Party. 5.5.5 5.4.5 In respect of the last Unloading and Regasification Slot, Operator has the right in its discretion to purchase up to six five thousand five hundred cubic meters (6,500 5,000 m3) of LNG from the final Cargo unloaded at the Terminal at the applicable THE DA Price on the date of such purchase. In addition, Operator has the right, in its sole discretion, to purchase any User’s Inventory remaining in the Terminal in respect of the final Cargo unloaded by the User at the Terminal at the end of the last Unloading and Regasification Slot.

Minimum Inventory Obligation. ‌ 5.5.1 The User acknowledges that the Operator may cause the Minimum Inventory to be retained in the FSRU at all times during the Termtimes. 5.5.2 The User shall not make any Nomination in respect of any amount of the User’s Inventory that would cause the quantity of LNG in the Terminal to be less than the Minimum Inventory. 5.5.3 If the Operator, acting as a Reasonable and Prudent Operator, determines that the quantity of LNG in the Terminal is reasonably expected to be less than the Minimum Inventory, then the Operator may, at its discretion: (a) require the User to effect an in-tank transfer to or from the Operator such that the Minimum Inventory is retained in the FSRU, provided that in doing so the Operator shall not discriminate among the Terminal Users and, save where Clause 5.5.4 applies, the price applicable to such LNG shall be the applicable THE DA Price on the day of the in-tank transfer; (b) reduce the send-out of Gas so that the Minimum Inventory is maintained; or (c) take any other action as is operationally necessary to maintain the safe and efficient operations at the Terminal. 5.5.4 If the Operator determines, acting as a Reasonable and Prudent Operator, that one or more failures by the User to comply with its obligations under this Agreement (and, if applicable, one or more failures by any other Terminal User(s)) has resulted in the quantity of LNG in the Terminal being less than the Minimum Inventory, the Operator shall be entitled to recover from the User and such Other User(s) the Costs of any cargo tank cool down and reinstatement of the Minimum Inventory provided that in doing so the Operator shall not discriminate among the Terminal Users. Where the Operator is entitled to such recovery from the User, the User shall reimburse the Operator for a proportionate share of any such Costs incurred by the Operator as determined by the Operator, acting as a Reasonable and Prudent Operator. Without prejudice to the foregoing foregoing, the User shall provide and pay for LNG required for cooling the FSRU’s cargo tanks and other handling systems to the temperatures necessary to commence loading as a result of: (a) the quantity of LNG retained on board at the end of the User’s Unloading and Regasification Slot being insufficient to enable the FSRU to receive a transfer of LNG from an LNG vessel in a cold and ready to load condition where attributable to any User Party; or; (b) breach of any obligation or undertakings by the User necessary for Operator to perform the Services hereunder; (c) any other act or omission of any User Party;; or (d) the unloading of any Off-Specification LNG under this Agreement provided that such Off-Specification LNG is due to any act or omission of a User Party. 5.5.5 In respect of the last Unloading and Regasification Slot, Operator has the right in its discretion to purchase up to six five thousand five hundred cubic meters (6,500 5,000 m3) of LNG from the final Cargo unloaded at the Terminal at the applicable THE DA Price on the date of such purchase. In addition, Operator has the right, in its sole discretion, to purchase any User’s Inventory remaining in the Terminal in respect of the final Cargo unloaded by the User at the Terminal at the end of the last Unloading and Regasification Slot.