SECTION THREE

RATES, RULES AND REGULATIONS GOVERNING
THE BULK TERMINAL, CRANES AND ASSOCIATED EQUIPMENT

ITEM 300
APPLICATION OF SECTION-III

SECTION-III contains rules, regulations and rates governing the rental, use and operation of equipment associated with Port Authority owned Bulk Terminal.

As used in SECTION-III the term "Bulk Terminal" means Bulk Materials Dock No. 1 (BMD1) and Bulk Materials Dock No. 2 (BMD2). The term "Traveling Gantry Crane" refers to the machinery and equipment located at BMD1. The term "Radial Ship Loader" refers to the machinery and equipment located at BMD2.

ITEM 301
RENTAL AND USE OF TRAVELING CANTRY CRANE AND RADIAL SHIP LOADER

The renting or using of the Traveling Gantry Crane or the Radial Ship Loader ("Equipment") by or on behalf of all vessels, their owners, agents, stevedores, contractors and any other party ("User") shall be upon and subject to the conditions and charges specified herein. The acceptance of possession and/or use of the Traveling Gantry Crane or Radial Ship Loader by User shall constitute acknowledgement of the existence of an agreement between User and Authority binding User to pay the charges published herein and binding both parties to all terms and conditions herein.

ITEM 302
CONDITION OF EQUIPMENT AND RESPONSIBILITY OF USER TO RETURN IN GOOD CONDITION

Equipment furnished by Authority is presumed to be in good operating condition when turned over to the User and acceptance and use by User shall constitute an acknowledgement that the equipment is in good condition. However, Authority does not warrant the mechanical condition of the Equipment and its sole responsibility shall be to furnish mechanics believed competent to make such repairs as are called to its attention by User. The Port Authority will not be responsible for delays caused User by breakdown of Equipment or other causes. By receiving possession of Equipment, Users agree that upon termination of the period of use, the Equipment will be returned to Authority in the same condition it was in when it was received, ordinary wear and tear alone excepted.

ITEM 304
RESPONSIBILITY FOR DAMAGES

It is understood an agreed that Equipment will be operated under the direction and control of the User and that the User shall be responsible for the operation thereof, and the User assumes all risk for injuries or damages which may arise or grow out of the use or operation of the Equipment.

A charge for the service of Equipment operators is made by Authority as part of the charge for use of the Equipment and it is understood as part of this agreement that Authority acts solely as agent of the User in engaging Equipment operators employed by Authority, such operators shall be under the direction and control of the User and the operators shall be considered as the agent or servant of the User and User shall be responsible for the acts of such operator during the time of Equipment rental or lease. The User shall make a thorough inspection and be satisfied as to the physical condition and capacity of the Equipment as well as the competency of the operator before commencing any use of the Equipment, there being no representation or warranties with reference to such matters.

User assumes sole responsibility and liability for any damage or injury to property (including property of the Port Authority and Equipment itself) and for injury to or death of any person whomsoever (including property of Authority) occasioned by, incident to, arising out of, or connected with the possession, use and operation of Equipment by User and any operator furnished to User. User agrees to protect, indemnify and save Authority harmless from and against any and all liability and expense for or in respect to any claims, demands and suits for damages which may be made or brought against Authority arising out of the use and operation of the Equipment by User, including the acts or omissions of the operator of the Equipment.

This item is not to be construed as requiring any User to indemnify the Port Authority for that portion or percentage of such claim or damage, if any, caused by the negligence of Authority.

ITEM 306
RESPONSIBILITY FOR DELAYS

Equipment is presumed to be in good operating condition when turned over to User but Authority will not be responsible for delays caused User by equipment breakdowns, nor for delays from other causes.

ITEM 308
APPLICATION OF STRAIGHT TIME, OVERTIME AND DOUBLE TIME

STRAIGHT TIME – Applies from 0800 to 1200, 1300 to 1700 Monday through Friday.

OVERTIME – Applies from 0100 to 0600, 0700 to 0800, 1700 to 1800, 1900 to 2400 Monday through Friday, and on Saturdays and Sundays except where double time applies

DOUBLE TIME – Applies during the following meal periods on any day: 2400 to 0100, 0600 to 0700, 1200 to 1300, 1800 to 1900, and on Port Authority holidays named in Item 100 herein,

ITEM 310
RIGHT TO REFUSE USE

The Port Authority reserves the right to refuse to handle any commodity, which, in its opinion, is not suitable for handling through the Bulk Terminal.

ITEM 312
MOORING VESSELS

Vessels docking or undocking at the Bulk Terminal are responsible for all labor to attend and handle lines required to make fast or release the vessels.

ITEM 316
REQUEST FOR USE OF BULK TERMINAL EQUIPMENT OR SERVICES

Requests for use of the Bulk Terminal must be placed with the Bulk Terminal Office no later than 4:00 p.m. (1600 hrs) the preceding day except that requests for use on Saturdays, Sundays or holidays must be placed with the Bulk Terminal office no later than 4:00 p.m. (1600 hrs) the preceding regular work day.

ITEM 318
CANCELLATION OF REQUEST FOR USE OR THE BULK TERMINAL EQUIPMENT OR SERVICES

Cancellation of a request for use of the Bulk Terminal must be placed with the Bulk Terminal office no later that 5:00 p.m. (1700 hrs) the day preceding request use date except that cancellation for Saturdays, Sundays or holidays must be placed no later than 4:00 p.m. (1600 hrs) the preceding regular work day. Cancellation received later than the times specified in this item will be subject to the charges named in Items 336 and 338 herein.

ITEM 320
WASHING OF VESSELS

General washing of vessels berthed at the Bulk Terminal is prohibited. However, Port management may permit limited washing down upon request provided the work is performed in a manner so that no splash or flow of water is allowed to get on Bulk Terminal equipment, the wharf surface or enter the ship channel.

ITEM 322
CONGESTION

When in the opinion of Port management the Bulk Terminal is determined to be congested, Port management shall have the authority to determine the type of equipment to be used in expediting the handling of vessels to be loaded or unloaded.

Any and all vessels berthed at the Bulk Terminal docks after completion of loading or discharging may be required to vacate the berth. However, at the discretion of Port management, two hours grace may be allowed after completion of loading or discharging before sailing, and any or all vessels finishing loading or discharging after midnight may be allowed to remain in berth until 0600 hours the same day.

This Item is subject to the provisions of Item 285, Port of Corpus Christi Tariff 100-A

ITEM 324
DESIGNATION OF FACILITY TO BE USED

Port management shall have authority to determine the Bulk Terminal dock to be used in expediting the handling of vessels to loaded or unloaded.

ITEM 326
RESPONSIBILITY FOR DELAYS TO VESSELS

The Port Authority will not be responsible for delays to vessels docked at or seeking berths at the Bulk Terminal regardless of the cause.

This Item is subject to the provisions of Item 285, Port of Corpus Christi Tariff 100-A

ITEM 336 (A) 1-1-2009
LOADING OR UNLOADING ON OVERTIME AND DOUBLE TIME

Vessels loading, unloading, trimming cargo, or on standby at the Bulk Terminal during overtime and double time hours will be assessed additional charges per hour as follows:

See Item 308 herein for definition and application of Overtime and Double Time.

ITEM 337
OVERTIME ORDERED AS A CONTINUATION OF A SCHEDULED SHIFT

Overtime ordered as a continuation of a scheduled shift followed by a meal period shall be subject to a 2-hour minimum charge at the current standby rates stated in Item 338 herein.

ITEM 338 (A) 1-1-2009
CHARGES FOR STANDBY LABOR

When labor is ordered and/or held on standby at the Bulk Terminal for a requested service, and when such standby results from conditions beyond the control of the Port Authority, the charges stated below will be assessed per hour subject to a four (4) hour minimum, in addition to the charges named in Item 336 herein.

ITEM 340
VOLUME RATES

Volume rates will be quoted upon request to users of the Bulk Terminal.

ITEM 341 (D) 1-1-2009
TRIMMING OF RAIL CARS AT RAILROAD TRACK SCALE

Provision Deleted

ITEM 342 (A) 1-1-2009
CHARGES FOR USE OF TRAVELING GANTRY CRANE (BMD1)
(Subject to Notes 1 through 3 of this Item)

RATES IN DOLLARS PER TON

Due to differences in rounding between short tons and metric tons, charges will be calculated and assessed in short tons.

Note 1: Handling charges for commodities not named above will be quoted upon request.

Note 2: Where in the opinion of Port management there is a potential for a reduction in productivity, or a potential for or damage to plant and equipment resulting from a condition or conditions beyond the control of the Port, the published rates in this Item will not apply. In such cases authorized Port personnel will quote a handling rate and such rate shall apply in lieu of the published rate in this Item. Examples of situations or conditions which may reduce productivity or cause damage include, but are not limited to characteristics of the commodity; vessel configuration; and Users’ ability to deliver to or receive cargo from BMD1 equipment.

Note 3: The provisions of Note 2 of this Item will apply for use of the Traveling Gantry Crane (BMD1) for loading or unloading bulk commodities located in tank spaces of ships and barges.

ITEM 344 (A) 1-1-2009
CHARGES FOR USE OF RADIAL SHIP LOADER (BMD2)
(Subject to Notes 1 through 3 of this Item)

RATES IN DOLLARS PER TON

Due to differences in rounding between short tons and metric tons, charges will be calculated and assessed in short tons.

Note 1: Handling charges for commodities not named above will be quoted upon request.

Note 2: Where in the opinion of Port management there is a potential for a reduction in productivity, or a potential for or damage to plant and equipment resulting from a condition or conditions beyond the control of the Port, the published rated in this Item will not apply. In such cases authorized Port personnel will quote a handling rate and such rate shall apply in lieu of the published rate in this Item. Examples of situations or conditions which may reduce productivity or cause damage include, but are not limited to characteristics of the commodity; vessel configuration; and Users’ ability to deliver to or receive cargo from BMD2 equipment.

Note 3: The loading rates in this Item apply on bulk commodities, which will readily flow through the system. Users are responsible for any additional handling or necessary processing for any product which will not readily flow from rail car or motor carrier equipment through the grating at the rail car/truck dump.

ITEM 346 (A) 1-1-2009
UNLOADING OF RAIL CARS AT BULK DOCK 2

For the service of unloading bottom dump rail cars through the car dump at bulk Dock 2, the following charges will apply and are in addition to all other applicable charges.