MOTEMS. Notwithstanding the provisions of MOTEMS or this Agreement to the contrary, and in consideration of the provisions of this Agreement (including but not limited to the use and compensation provisions), as between City and Tenant, as to the improvements depicted on Exhibit “B,” Tenant shall be solely responsible for compliance with the MOTEMS and shall bear all costs and expenses arising from or related to compliance with the MOTEMS (including but not limited to the costs of any engineering studies, audits, wharf modifications, reinforcements or upgrades) and any successor laws, rules or regulations regarding engineering and/or maintenance standards for marine oil terminal facilities, including without limitation such facilities’ wharves. Tenant acknowledges and agrees that any demands, orders, penalties or other liability for MOTEMS compliance to which the City may become subject shall be Tenant’s responsibility.
MOTEMS. Operator is currently in discussions with the POLB about certain MOTEMS modifications of the Berths and related facilities that will be required in 2012 and 2013, a portion of which must be paid by Operator. The State of California requires MOTEMS audits on rolling three year intervals, beginning in 2014, but the timing will be adjusted to match the requirements set forth in the final Lease HD-2114. Further modifications of the Berths and other facilities may be required as a result of MOTEMS audits.
