CONSTRUCTION AGREEMENT

Construction Agreement

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This Construction Agreement involves

CHENIERE ENERGY INC | CHENIERE CREOLE TRAIL PIPELINE, L.P. | SUNLAND CONSTRUCTION, INC.

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Title: CONSTRUCTION AGREEMENT
Governing Law: Texas Date: 3/16/2007
Industry: OILPRD Sector: ENERGY

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Construction Agreement dated March 12, 2007

Exhibit 10.1

CONFORMED COPY

CONSTRUCTION AGREEMENT

for the

CREOLE TRAIL PIPELINE - SEGMENT 1 PROJECT

PREFERRED ROUTE SINGLE LINE OPTION

by and between

CHENIERE CREOLE TRAIL PIPELINE, L.P.

as Owner

and

SUNLAND CONSTRUCTION, INC.

as Contractor

Dated as of the 12th Day of March, 2007

TABLE OF CONTENTS


ARTICLE 1	DEFINITIONS	1

ARTICLE 2	RELATIONSHIP OF OWNER, CONTRACTOR AND SUBCONTRACTORS	7

2.1	Status of Contractor	7

2.2	Key Personnel	7

2.3	Subcontractors and Sub-subcontractors	7

2.4	Subcontracts and Sub-subcontracts	7

2.5	Contractor Investigations of the Site and Differing Site Conditions	7

ARTICLE 3	CONTRACTOR’S RESPONSIBILITIES	8

3.1	Scope of Work	8

3.2	Specific Obligations	8

3.3	Contractor’s Tools and Construction Equipment	8

3.4	Employment of Personnel	9

3.5	Clean-up	9

3.6	Safety and Security	9

3.7	Emergencies	9

3.8	Books, Records and Audits.	9

3.9	Temporary Utilities, Roads, Facilities and Storage	10

3.10	Hazardous Materials	10

3.11	Reports and Meetings	10

3.12	Title to Materials Found	10

3.13	Cooperation with Others	11

3.14	Responsibility for Property	11

3.15	Used or Salvaged Materials	11

3.16	Compliance with Real Property Interests	11

3.17	Review of Shop Drawings	11

3.18	Layout	11

3.19	Substitutions	12

ARTICLE 4	OWNER’S RESPONSIBILITIES	12

4.1	Payment	12

4.2	Access to the Site	12

4.3	Owner-Provided Equipment	12

4.4	Engineering	12

4.5	Permits	12

ARTICLE 5	COMMENCEMENT OF WORK, PROJECT SCHEDULE, AND SCHEDULING OBLIGATIONS	12

5.1	Commencement of Work at the Site	12

5.2	Project Schedule	12

5.3	CPM Schedule	13

5.4	Recovery and Recovery Schedule	13

5.5	Acceleration and Acceleration Schedule	14

ARTICLE 6	CHANGES; FORCE MAJEURE; AND OWNER-CAUSED DELAY	14

6.1	Change Orders Requested by Owner	14

6.2	Change Orders Requested by Contractor	15

6.3	Estimated Contract Price Adjustment; Contractor Documentation	16

6.4	Change Orders Act as Accord and Satisfaction	16

6.5	Timing Requirements for Notifications and Change Order Requests by Contractor	16

6.6	Adjustment Only Through Change Order	17

6.7	Force Majeure	17

6.8	Delay Caused by Owner or Delay Caused by Changes in the Work	18

6.9	Delay	18


6.10		Contractor Obligation to Mitigate Delay	18

ARTICLE 7		CONTRACT PRICE AND PAYMENTS TO CONTRACTOR	18

7.1		Contract Price and Estimated Contract Price	18

7.2		Interim Payments	18

7.3		Final Completion and Final Payment	19

7.4		Payments Not Acceptance of Work	19

7.5		Payments Withheld	20

7.6		Release of Retainage	20

ARTICLE 8		TITLE AND RISK OF LOSS	20

8.1		Title	20

8.2		Risk of Loss	20

ARTICLE 9		INSURANCE AND PAYMENT AND PERFORMANCE BONDS	20

9.1		Insurance	20

9.2		Payment and Performance Bonds	20

ARTICLE 10		DOCUMENTATION	21

10.1		Patents and Royalties	21

10.2		Owner Provided Documents	21

ARTICLE 11		MECHANICAL COMPLETION, SUBSTANTIAL COMPLETION, AND FINAL COMPLETION	21

11.1		Notice and Requirements for Mechanical Completion	21

11.2		Notice and Requirements for Substantial Completion	21
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