58. For the protection of CATS, the following provisions have effect, unless otherwise agreed in writing between the undertaker and CATS.
59. In this Part of this Schedule—
“CATS” means CATS North Sea Limited (Company number 09250798) whose registered address is Suite 17th Floor, 50 Broadway, London, United Kingdom, SW1H 0BL and any successor in title or function to the CATS pipelines;
“CATS pipeline(s)” means the following pipelines, owned by CATS and operated by Wood UK Ltd—
The 36″ CATS pipeline (PL-774) transporting high pressure natural gas 411.84km (404km subsea, 7.84km onshore) from the CATS Riser Platform, located in the Central Graben Development of the North Sea, to processing facilities at the CATS Terminal in Teesside;
Onshore 6″ Condensate export pipeline (PL-937) transporting natural gas condensate 2.87km from the CATS Terminal to Sabic, North Tees plant;
Onshore 6″ Condensate export pipeline (PL-938) transporting natural gas condensate 2.45km from the CATS Terminal to the Navigator Terminals storage site;
Onshore 6″ Propane pipeline (CAT-Pipeline-04) transporting Propane 1.09km from the CATS Terminal to ConocoPhillips storage site;
CAT-Pipeline-05 6″ Butane pipeline transporting butane 1.09km from the CATS Terminal to Conoco Phillips storage site;
“CATS requirements” means the requirements applicable for works undertaken within 50 metres of the CATS pipelines as set out in the—
CATS Wayleaves Guidance for Landowners and Third Parties, Doc Number: CAT-PPI-PRC-019;
CATS Conditions and Restrictions for Work Activities in Close Proximity to CATS Pipelines, Doc Number: CAT-PPI-PRC-020; and
CATS Procedures for the Excavation and Backfill of CATS Pipelines, Doc Number: CAT-PPI-PRC-021,
or any updates or amendments thereto as notified to the undertaker in writing; and
“works details” means—
plans and sections;
details of the proposed method of working and timing of execution of works;
details of vehicle access routes for construction and operational traffic; and
any further particulars provided in response to a request under paragraph 60.
60. Before commencing any part of the authorised development within 50 metres of the CATS pipelines, the undertaker must submit to CATS the works details for the proposed works and such further particulars as CATS may, within 28 days from the day on which the works details are submitted under this paragraph, reasonably require in line with the CATS requirements.
61. No works comprising any part of the authorised development within 50 metres of the CATS pipelines are to be commenced until the works details in respect of those works submitted under paragraph 60 have been approved by CATS.
62.—(1) Any approval of CATS required under paragraph 61 must not be unreasonably withheld or delayed but may be given subject to such reasonable requirements as CATS may require to be made having regard to the CATS requirements.
(2) Where CATS consider that the authorised development will adversely affect the safe operation of the CATS pipelines it is entitled to withhold its authorisation until the undertaker can demonstrate to the reasonable satisfaction of CATS that the authorised development will not adversely affect the safe operation of the CATS pipeline.
(3) The authorised development must be carried out in accordance with the works details approved under paragraph 61 and any requirements imposed on the approval under sub-paragraph (1).
(4) Where there has been a reference to an arbitrator in accordance with paragraph 70 and the arbitrator gives approval for the works details, the authorised development must be carried out in accordance with the approval and conditions contained in the decision of the arbitrator under paragraph 70.
63. Where formal consent is required under the CATS requirements for works within the wayleave of the CATS pipelines (between 3.5 metres to 7.5 metres either side of the pipeline, depending on location), approval given by CATS under paragraph 61 constitutes formal consent for the purposes of the CATS requirements.
64. In undertaking any works or exercising any rights within 50 metres of the CATS pipelines, the undertaker must comply with such conditions, requirements or regulations as are set out in the CATS requirements.
65. No explosives for blasting are to be used within 400 metres of any part of the CATS pipeline(s) or associated installations, until the details in respect of those works have been submitted to and approved by CATS, such approval not to be unreasonably withheld or delayed and shall be deemed to have been given if no response is received from CATS within 60 days of a request having been made by the undertaker.
66.—(1) When undertaking any works or exercising any rights within 50 metres of the CATS pipelines, the undertaker must monitor the CATS pipelines to establish whether damage has occurred.
(2) Where any damage occurs to the CATS pipelines as a result of the works, the undertaker must immediately cease all work in the vicinity of the damage and must notify CATS to enable repairs to be carried out to the reasonable satisfaction of CATS.
(3) If damage has occurred to the CATS pipelines as a result of the works the undertaker will, at the request and election of CATS—
(a)afford CATS all reasonable facilities to enable it to fully and properly repair and test the CATS pipelines and pay to CATS its 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; or
(b)fully and properly repair the affected pipeline 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 CATS to have effectively repaired the affected pipeline before any backfilling takes place.
(4) Where testing has taken place under sub-paragraph (3)(b), the undertaker must (except where CATS agrees otherwise in writing) provide CATS with a copy of the results of such testing prior to any backfilling.
(5) Following the completion of any works within 50 metres of the CATS pipelines if damage is found to have occurred to any of the CATS pipelines as a result of the relevant works, sub-paragraphs (2) to (4) of this paragraph apply to that damage.
(6) In the event that the undertaker does not carry out necessary remedial work in a timely manner then CATS is entitled, but not obliged, to undertake the necessary remedial work and recover the cost of doing so from the undertaker.
67.—(1) If any damage occurs to a CATS pipeline causing a leakage or escape from a pipeline, all work in the vicinity must cease and CATS must be notified immediately.
(2) Where there is leakage or escape, the undertaker must immediately—
(a)evacuate all personnel from the immediate vicinity of the leak;
(b)inform CATS;
(c)prevent any approach by the public;
(d)shut down any machinery and other sources of ignition within at least 350 metres from the leakage; and
(e)assist emergency services as may be requested.
68.—(1) Subject to sub-paragraphs (2) and (3), if by reason or in consequence of the construction of any of the works referred to in paragraph 60, any damage is caused to the CATS Pipelines, or there is any interruption in any service provided, or in the supply of any goods, by CATS, the undertaker must—
(a)bear and pay the cost reasonably incurred by CATS in making good such damage or restoring the supply; and
(b)make reasonable compensation to CATS for any other expenses, loss, damages, penalty or costs incurred by CATS, by reason or in consequence of any such damage or interruption.
(2) Nothing in sub-paragraph (1) imposes any liability on the undertaker with respect to any damage or interruption to the extent that it is attributable to the act, neglect or default of CATS, its officers, employees, servants, contractors or agents.
(3) CATS must give the undertaker reasonable notice of any such claim or demand and no settlement or compromise is to be made without the consent of the undertaker which, if it withholds such consent, has the sole conduct of any settlement or compromise or of any proceedings necessary to resist the claim or demand.
(4) CATS must use its reasonable endeavours to mitigate in whole or in part and to minimise any costs, expenses, loss, demands, and penalties to which the indemnity under this paragraph 68 applies. If requested to do so by the undertaker, CATS must provide an explanation of how the claim has been minimised or details to substantiate any cost or compensation claimed pursuant to sub-paragraph (1). The undertaker shall only be liable under this paragraph 68 for claims reasonably incurred by CATS.
69.—(1) Subject to the following provisions of this paragraph, the undertaker must repay to CATS the reasonable expenses incurred by them in, or in connection with, the inspection, removal, alteration or protection of any CATS pipeline which may be required in consequence of the execution of any such works referred to or approved under this Part, including without limitation—
(a)authorisation of works details in accordance with paragraphs 60 to 63;
(b)the engagement of an engineer and their observation of the authorised works affecting the CATS pipelines and the provision of safety advice in accordance with the CATS requirements; and
(c)any reasonable costs incurred by CATS in engaging and retaining such external experts, consultants and contractors as may be reasonably necessary.
(2) Prior to incurring any fees, costs, charges or expenses associated with the activities outlined in sub-paragraph (1), CATS must give prior written notice to the undertaker of the activity or activities to be undertaken and an estimate of the fees, costs, charges or expenses to be incurred.
(3) Any fees, costs, charges and expenses reasonably incurred by the operating partner of the CATS pipeline (who for the time being is Wood Group UK Limited) shall not be notifiable costs in terms of paragraph (2).
70. Any difference or dispute arising between the undertaker and CATS under this Part of this Schedule must, unless otherwise agreed in writing between the undertaker and CATS, be referred to and settled by arbitration in accordance with article 47 (arbitration).