SCHEDULE 9Protective provisions

PART 12For the protection of Immingham Oil Terminal operators

Monitoring for damage to pipelines

schedule 9 paragraph 170 + 170.—(1) When carrying out the relevant work the undertaker must monitor at all times the relevant apparatus and/or premises to establish whether any loss or damage has occurred.

(2) Where any loss or damage occurs to any apparatus and/or premises as a result of the relevant work, the undertaker must immediately cease all work in the vicinity of the damage and must immediately notify the IOT Operators to enable repairs to be carried out to the reasonable satisfaction of the IOT Operators and at no cost to the IOT operators.

(3) If loss or damage has occurred to any apparatus or premises as a result of the relevant work (arising from or caused by the carrying out of the relevant work) the undertaker will, at the request and election of the IOT Operators—

schedule 9 paragraph 170 3 a + (a)afford the IOT Operators all reasonable facilities to enable it to fully and properly repair and make good any damage to any apparatus and to test the any apparatus and to pay to the IOT Operators—

schedule 9 paragraph 170 3 a i + (i)all and any of their costs incurred in doing so including the costs of testing the effectiveness of the repairs and cathodic protection and any further works or testing shown by that testing to be reasonably necessary; and

schedule 9 paragraph 170 3 a ii + (ii)all and any of the costs reasonably incurred by the IOT Operators in stopping, suspending and restoring the supply through its pipeline and make reasonable compensation to the IOT Operators for any other expenses, losses, damages, penalty or costs incurred by the IOT Operators by reason of or in consequence of any such damage or interruption provided that the same arises in consequence of the carrying out of any relevant works; or

schedule 9 paragraph 170 3 b + (b)fully and properly repair any relevant apparatus as soon as reasonably practicable, in which case the repairs must be properly tested by the undertaker and be shown to the reasonable satisfaction of the IOT Operators to have effectively repaired the relevant apparatus asset before any backfilling takes place.

(4) If in the course of carrying out repairs under sub-paragraph (3)(a) or (3)(b) apparatus of a better type, of greater capacity or of greater dimensions is placed in substitution for existing apparatus; or apparatus (whether existing apparatus or apparatus substituted for existing apparatus) is placed at a depth greater than the depth at which existing apparatus was, and the placing of apparatus of that type or capacity or of those dimensions or the placing of apparatus at that depth, as the case may be, is not agreed by the undertaker, or, in default of agreement is not determined by arbitration to be necessary, then, if it involves cost in the execution of the repairs exceeding that which would have been involved if the apparatus placed had been of the existing type, capacity or dimensions, or at the existing depth, as the case may be, the amount which would be payable to the IOT Operators under sub-paragraph (3)(a), or incurred by the undertaker under sub-paragraph (3)(b), by virtue of paragraph (3) will be reduced by the amount of that excess.

(5) Where testing has taken place under sub-paragraph (3)(b), the undertaker must (except where the IOT Operators agree otherwise in writing) provide it with a copy of the results of such testing prior to any backfilling.

(6) Following the completion of a relevant work if damage is found to have occurred to an affected asset as a result of the relevant work, sub-paragraphs (2) to (4) apply to that damage.

(7) In relation to the approved assessment and monitoring work to be undertaken both prior to the construction of the relevant work and during the operation of the authorised development to ascertain any change or damage to any pipeline cathodic protection system, the undertaker must undertake any necessary remedial work.

(8) In the event that the undertaker does not carry out necessary remedial work in a timely manner then the IOT Operators are entitled, but not obliged, to undertake the necessary remedial work and recover all of the costs of doing so from the undertaker.