Pipeline System. Pipeline Company in consideration of the provisions of this PS Agreement and Termination Payment, if any, shall assign all of its rights, title, and interest in and to the Pipeline System to CPC with good title and free from any Encumbrance as on the date falling immediately after the expiration of the Lease Period or earlier on the date on which this PS Agreement stands terminated (“Transfer Date”). Such transfer shall be in accordance with the transfer plan as set put in Schedule [18] (“Transfer Plan”). An Integrity Test shall be initiated by a mutually agreed Independent Inspector at least fifteen (15) months prior to the transfer of the pipeline system, in order to ensure the agreed lifespan of at least forty (40) years of the pipeline system without any fault subject to the clauses of this Agreement and such assessment report shall be completed and submitted to CPC and the Pipeline Company at least twelve (12) months before the transfer of the Pipeline system in accordance with the Transfer Plan as set out in Schedule 18 (Transfer Plan). The cost of Independent Inspector shall be borne equally between CPC and the Pipeline Company. Pipeline Company shall be bound to rectify the defaults identified by the Integrity Assessment within four (04) months from the date of the Assessment report and as such rectification shall be reviewed by the Independent Inspector for clearance. The Pipeline Company shall be bound to rectify the defects of the Pipeline system and endeavor to exercise all reasonable steps to ensure the smooth functioning of the Pipeline System for the Agreed lifespan before the transfer of the Pipeline System, in accordance with the Transfer Plan, Schedule 18. The Pipeline Company shall be entitled for a reasonable extension of time to rectify the defects of the PS , upon agreement by the CPC; the Pipeline Company shall be bound to pay Liquidated Damages (Defects Notification prior to Transfer delay LDs) caused by any excessive delay occurred by the Pipeline Company in rectifying such defects beyond the agreed time at the rate set out as in Clause 5.4 (a) (i) and (ii). If the delay to rectify defects before the transfer is caused by “CPC Delay Events”, the date of transfer shall be postponed by the aggregate of all CPC delay as set out in Clause 5.5. Failure of the Pipeline Company or its successor (if any) shall be held liable for damages after litigation/arbitration proceedings even after the expiration of this Agreement
Pipeline System the Gas pipelines and other facilities used by Buyer for receiving Seller’s Gas covered by this Agreement.
