LNG Operational Heel Sample Clauses

The LNG Operational Heel clause defines the minimum quantity of liquefied natural gas (LNG) that must remain in a vessel's tanks after cargo discharge to ensure safe and efficient operations. This residual amount is not available for sale or delivery and is necessary to maintain tank pressure, temperature, and the vessel’s ability to continue functioning properly. By specifying the operational heel, the clause ensures the vessel’s systems remain operational and prevents damage or safety risks associated with fully emptying the tanks.
LNG Operational Heel. (a) During normal operations, Terminal Operator will need to maintain the LNG Operational Heel. Should the LNG storage level fall below or be expected to fall below the LNG Operational Heel arising from but not limited to one or more of the following: (i) Retainage including losses in terminal operations, (ii) a Failed LNG Cargo, (iii) requirements of terminal maintenance, (iv) and any other operational needs that require use of LNG, then the Terminal Operator shall have the right to (A) purchase an LNG Cargo for the purposes of maintaining the LNG Operational Heel in the Terminal, for and on behalf of all Users, and (B) recover the costs of such purchase as operational costs under the Terminal Access Code. Such costs shall be apportioned pro rata between all Users of the Terminal at the time such costs are accrued and shall be invoiced by Terminal Operator to Terminal User in accordance with clause 12, except for cases of a Failed LNG Cargo, where the costs will be recovered by the Defaulting User, as described in the IUA. (b) If, acting as a Reasonable and Prudent Operator, Terminal Operator identifies a need to replenish the LNG Operational Heel, then Terminal Operator shall have the right to replenish the LNG Operational Heel using, at its discretion, LNG from any LNG Cargo unloaded at the Terminal, by any User.
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