PORT OF CORPUS CHRISTI AUTHORITY EASEMENT SUMMARY Grantee:
Cheniere Corpus Christi Pipeline, L.P. 700 Milam Street, Suite 1900 Houston, Texas 77002
Easement Location:
See Exhibit Attached
Use:
The Pipeline will transport natural gas to supply the Corpus Christi Liquefaction, LLC plant being constructed adjacent to the East side of the PCCA La Quinta Terminal.
Term:
Thirty (30) years
Start Date:
August 16, 2016 – August 15, 2046
Fee:
$403,098.19 for the first ten year period of which $337,469.24 has already been paid leaving a balance of $65,628.95 payable within 10 days of approval.
Adjustment of Fee:
At the beginning of each succeeding ten (10) year period during the Term of this Agreement, the fee shall be the greater of (i) the adopted Pipeline and Utility Easement Fee Schedule B of the Authority, for pipelines forty-eight inches (48”) in diameter, in effect at the time of each ten year anniversary of this Agreement or (ii) an amount equal to the fee paid for the preceding ten year term of this Agreement multiplied by the increase in the Producers Price index for Ports and Harbors Published by the United States Department of Labor compounded annually for each year of the preceding ten year term.
Remarks:
Grantee acknowledges that Authority has stated Authority’s intention to fully develop for industrial purposes Authority’s land that borders on either side of the Pipeline Easement, and Grantee covenants that Grantee will design, construct and operate the Pipeline in a manner consistent with, and in regulatory compliance with, the Pipeline’s close proximity to such industrial buildings, equipment, operations and personnel. Accordingly, Grantee agrees to construct the Pipeline at a minimum to the design standards required by 49 CFR Part 192 for “Class 3 Locations” as that term is defined by 49 C.F.R. 192.5. Prior to the commencement of construction of the Pipeline, Grantee will furnish Authority issued-for-construction drawings for the Pipeline Easement, if different from the Plans attached hereto. Grantee shall construct and maintain the Pipeline in in compliance with 49 CFR Part 192 for “Class 3 Locations” as defined by 49 C.F.R. 192.5. Warning signs for the existence of the Pipeline that conform to Federal and State laws applicable to such warning signs will be posted at the required locations along the Pipeline Easement.