Common use of Fuel Consumption Clause in Contracts

Fuel Consumption. The parties recognize that Owner will be damaged by an increase in fuel consumption above that which was guaranteed by Builder in the Contract Documents. Because such damages are difficult to ascertain, the parties agree that, in lieu of any other damages or claims arising in connection with the fuel consumption of the Unit, the following provisions shall apply: (i) The guaranteed total per diem average fuel consumption for main propulsion power only (calculated in accordance with Exhibit “H” attached hereto), excluding generators is 7,950 US Gallons Heavy Fuel Oil 380 cSt/50 deg C, and a fuel net calorific heat value of 42,700 kilojoules per kilogram, (in accordance with engine manufacturer’s specifications used for testing and developing performance curves). This rate of consumption is based on an average speed of twelve (12) knots (or lesser speed if a speed deficiency cannot be corrected by Builder) in the average of the optimally ballasted and loaded condition (0.86 specific gravity cargo) in a Beaufort Scale Force 5 condition. (ii) If, however, a Unit’s fuel consumption exceeds the guaranteed rate, or the adjusted rate as necessary for EPA Tier 2 modifications, by more than two hundred (200) gallons per day and it is proven that the Owner Furnished Engines are performing in accordance with the engine manufacturer’s published specific fuel consumption value, including tolerances current at the effective date of this Contract, Builder shall pay to Owner the sum of TEN THOUSAND DOLLARS AND NO CENTS (US$10,000.00) per each one percent (1%) above the guaranteed amount Not to exceed FIFTY THOUSAND DOLLARS AND NO CENTS (US$50,000.00). Owner’s right to such liquidated damages set forth in this Article shall be Owner’s sole and exclusive remedy for breach of the Performance Warranties set forth herein.

Fuel Consumption. The parties recognize that Owner will be damaged by an increase in fuel consumption above that which was guaranteed by Builder in the Contract Documents. Because such damages are difficult to ascertain, the parties agree that, in lieu of any other damages or claims arising in connection with the fuel consumption of the Unit, the following provisions shall apply: (i) The guaranteed total per diem average fuel consumption for main propulsion power only (calculated in accordance with Exhibit “"H” " attached hereto), excluding generators is 7,950 8,600 US Gallons Heavy Fuel Oil 380 cSt/50 deg C, and a of No. 2 Marine Diesel fuel net calorific heat value of 42,700 kilojoules per kilogram, (in accordance with engine manufacturer’s 's specifications used for testing and developing performance curves). This rate of consumption is based on an average speed of twelve (12) knots (or lesser speed if a speed deficiency cannot be corrected by Builder) in the average of the optimally ballasted and loaded condition (0.86 specific gravity cargo) in a Beaufort Scale Force 5 condition. (ii) If, however, a Unit’s 's fuel consumption exceeds the guaranteed rate, or the adjusted rate as necessary for EPA Tier 2 modifications, by more than two hundred (200) gallons per day and it is proven that the Owner Furnished Engines are performing in accordance with the engine manufacturer’s published specific 's fuel consumption value, including tolerances performance curves current at the effective date of this Contract, Builder shall pay to Owner the sum of TEN THOUSAND DOLLARS AND NO CENTS (US$10,000.00) per each one percent (1%) above the guaranteed amount Not to exceed FIFTY THOUSAND DOLLARS AND NO CENTS (US$50,000.00). Owner’s 's right to such liquidated damages set forth in this Article shall be Owner’s 's sole and exclusive remedy for breach of the Performance Warranties set forth herein.