Waiver Fees

Category 1 Waiver Fees

Short Notice fee

Waivers requested less than 72 hours before they are required will incur the following fees in addition to the regular waiver charge.

Methanol & Water ad-hoc waivers All other ad-hoc waivers
£150 £500

Late Close Out fee

Ad-hoc waivers that are not closed out within 24 hours of exporting the off-specification pipeline liquids will incur a fee of £150 per waiver in addition to the regular waiver charge.

Annual waivers that are not covered by a timely quarterly volumes reporting will incur a fee of £1000 per chemical per unreported quarter.

Breach fee

The following revised breach notification fees will be charged in addition to the regular waiver charge based on the breach notification time. Notifying INEOS within 24 hours off the start of export into FPS will incur a smaller fee than notification outside the 24 hour window.

Within 24 hours window Outside 24 hour window
£3500 £7000

Contaminant Waivers (e.g. H2S) fees

All contaminant waivers will be charged a fixed fee of £2500 per waiver.

Note that short notice, late close out and breach fees still apply to contaminant waiver charges.

Admin fee

This fee covers the costs incurred by FPS in administering each waiver and is based on the manhours spent assessing and processing each waiver.

Standard ad-hoc waiver (exc. contaminants) Non-standard ad-hoc waiver Annual waiver
£250 £650 £450

OPEX fee

This fee covers the costs incurred by FPS in processing the fluids containing the chemical products.

Non-standard ad-hoc waiver Water waiver Methanol waiver Biocide waiver Glycol waiver Annual waiver
£15/waiver £1/bbl £1600/m3 £1000/m3 £200/m3 £105/waiver

FPS margin

A charge of 10% of the combined admin plus OPEX charges will be applied to all waivers except contaminant waivers.

Duration fee

This fee covers the increased risk to FPS that comes with reduced certainty over timing of injections. The wider the window, the higher the charge. The charges will be as follows:

Duration of waiver Duration fee
0-48 hours £0
49-168 hours (1 week) £100
169-744 hours (1 month) £500
Annual waiver £0

Risk fee

This fee covers everyday risk to FPS operations and its regulatory compliance from typical changes to offshore operations, assuming operators abide by the terms of their granted waivers. This charge explicitly does not cover risk to system operation whenever the terms of the waiver are breached.

Risk fees for standard waivers

Chemical product Current FPS daily limit Contribution towards FPS Daily Limit
  <10% <10%-50% 50%-100%
Methanol 1.8 m3 £2000 £4000 £6000
Glycol 1 m3 £400 £2000 £4000
Biocide Fixed risk fee of £1000
Water 7000 bbl No risk fee

Risk fees for non-standard waivers

For each of the 40 assessment criteria based on FPS PPC, effluent trading agreement and company accepted limits, FPS will assess the contribution of the granted waiver towards the FPS daily limits, and charge as follows:

  Contribution towards FPS Daily Limit
  <10% (Risk score 1) 10%-50% (Risk score 2) 50%-100% (Risk score 3) >100% (Risk score 4)
Each FPS criteria £30 £110 £250 £1000

If no data is provided for any of the criteria listed on the revised waiver request form, the pricing mechanism will default to >100% of FPS daily limit for that specific criteria.

For the chemicals that are insoluble in water, each criteria will by default be assessed as ‘<10%’. For the chemicals that are classified as PLONOR under CEFAS classification, no risk fees will be charged.

Note that it is unlikely that FPS would grant an ad-hoc waiver that contributed >100% of FPS daily limit.

Annual waiver fees

FPS will calculate Annual waiver charges following the same process as for ad-hoc waivers. The risk is increased due to higher number of injections but this is partially offset due to consistency of injections. For each of the 40 assessment criteria based on FPS PPC, effluent trading agreement and company accepted limits, FPS will assess the contribution of the granted waiver towards the FPS daily limits, and charge as follows:

    Contribution towards FPS Daily Limit
    <10% 10%-50% 50%-100% >100%
Each FPS criteria £210 £770 £1750 £7000

Note that it is unlikely that FPS would grant an annual waiver that contributed >100% of FPS daily limit.

Category 2 Waiver Fees

Category 2 waiver fees are calculated on a case by case basis driven by the man-hours spent agreeing the waiver conditions, operational costs incurred by FPS in processing the waived fluids, the risk level posed to FPS operations.

Invoicing

FPS will invoice customers for the appropriate waiver fee 6 weeks in arrears. The invoice will state the quantity and types of waiver that the customer has applied for during the relevant month.

Escalation

The waiver charges outlined here will be revised periodically whenever FPS carries out a detailed cost review or if there are any significant operational/regulatory changes.  Waiver charges will otherwise be escalated at the annual escalation factor to match the indexation formula used in the standard FPS TPA (as amended from time to time, available on the FPS website https://www.ineos.com/businesses/ineos-fps/commercial/simplified-contract/)