or cause to be paid, all Taxes that
may be imposed or levied on Customer's Inventory and the LNG Vessels.
Notwithstanding the foregoing, neither Party shall be responsible for Taxes on
the capital revenue or income derived by the other Party.
ARTICLE 15
INSURANCE
15.1
FLNG'S INSURANCE
FLNG SHALL BE RESPONSIBLE FOR OBTAINING AND MAINTAINING (A) INSURANCE FOR THE
FREEPORT FACILITY TO THE EXTENT REQUIRED BY APPLICABLE LAW; AND (B) ADDITIONAL
INSURANCE, AS IS REASONABLY NECESSARY AND AVAILABLE ON REASONABLE COMMERCIAL
TERMS, AGAINST SUCH OTHER RISKS AND AT SUCH LEVELS AS A REASONABLE AND PRUDENT
OPERATOR OF A SHARED USE LNG RECEIVING AND REGASIFICATION TERMINAL WOULD
OBTAIN.
FLNG SHALL OBTAIN SUCH INSURANCE FROM A REPUTABLE INSURER (OR INSURERS)
REASONABLY BELIEVED TO HAVE ADEQUATE FINANCIAL RESERVES.
ANY INSURANCE POLICY
REQUIRED PURSUANT TO THIS SECTION 15.1 SHALL CONTAIN A STANDARD WAIVER OF
SUBROGATION ENDORSEMENT AND SHALL NAME MAJOR CUSTOMERS AS AN ADDITIONAL
INSURED.
UPON THE REQUEST OF CUSTOMER, FLNG SHALL PROVIDE TO CUSTOMER
SATISFACTORY EVIDENCE THAT THE INSURANCE REQUIRED PURSUANT TO THIS SECTION 15.1
IS IN EFFECT.
IN ANY EVENT, FLNG SHALL BE REQUIRED TO OBTAIN THE FOLLOWING
INSURANCE COVERAGES:
(a)
Commercial General Liability Insurance;
(b)
Worker's Compensation;
(c)
"All-Risk" Property Insurance;
(d)
Wharf Owner's Legal Liability Insurance;
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(e)
Pollution Insurance (which may be included within Commercial
General Liability Insurance); and
(f)
Loss of Product Insurance (including Customer's Inventory).
15.2
CUSTOMER'S INSURANCE
(a)
LNG Vessel Insurance.
Customer shall ensure that each LNG Vessel
procures and maintains (i) insurance in accordance with the following
provisions; or (ii) self-insurance reasonably acceptable to FLNG.
Except in the
case of self-insurance, insurance shall establish insurance coverages consistent
with insurances to the standards which a shipowner operating reputable LNG
vessels, as a Reasonable and Prudent Operator, should observe in insuring LNG
vessels of similar type, size, age and trade as such LNG Vessel.
In this
regard:
(I)
HULL AND MACHINERY INSURANCE SHALL BE PLACED AND MAINTAINED WITH
REPUTABLE MARINE UNDERWRITERS; AND
(II)
PROTECTION & INDEMNITY INSURANCE ("P&I INSURANCE") SHALL BE
PLACED AND MAINTAINED AS AN UNLIMITED ENTRY, IF SUCH ENTRY IS AVAILABLE, WITH
AND SUBJECT TO AND ON THE BASIS OF THE RULES OF ANY OF THE REPUTABLE P&I
INSURANCE ASSOCIATIONS EXPERIENCED IN PROVIDING P&I INSURANCE FOR LNG VESSELS
("APPROVED PROVIDER").
THE TERMS OF THE P&I INSURANCE SHALL BE THOSE OF THE
STANDARD RULES OF THE APPROVED PROVIDER, PROVIDED THAT SPECIAL PROVISIONS
RESULTING FROM TRANSPORTER'S ACCEPTANCE, IF IT DOES SO, OF THE PORT LIABILITY
AGREEMENT PURSUANT TO SECTION 15.3 SHALL BE INCORPORATED INTO THE TERMS OF
TRANSPORTER'S P&I INSURANCE.
(b)
Evidence of Insurance.
Prior to the commencement of deliveries to
the Freeport Facility and thereafter at least once each Contract Year, Customer
shall furnish the following evidence of insurance to FLNG in relation to each
LNG Vessel: (a) certificates of insurance, certificates of entry and (if FLNG
reasonably requests) detailed written information concerning all required
insurance policies and the latest rules of the particular Approved Provider; or
(b) in the event the LNG Vessel is