Dominion Cove Point LNG, LP

Original Volume No. 1

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Effective Date: 06/01/2003, Docket: RP03-392-000, Status: Effective

First Revised Sheet No. 21 First Revised Sheet No. 21 : Effective

Superseding: Original Sheet No. 21

RATE SCHEDULE LTD-1

FIRM LNG TANKER DISCHARGING SERVICE

(Continued)

 

 

 

2. APPLICABILITY AND CHARACTER OF SERVICE (Continued)

 

2.2 Firm LNG tanker discharging service of Operator under this Rate Schedule shall have

the priority specified in Section 15 (Capacity and Imbalance Allocation) of the GT&C

and shall be subject to interruption only to the extent provided in this Rate Schedule

or in Sections 14 (Force Majeure) and 16 (Interruptions of Service) of the GT&C.

Service hereunder shall be performed on a nondiscriminatory basis under the Natural

Gas Act.

 

2.3 In accordance with the further provisions of this Rate Schedule, Operator shall

receive from or on behalf of Buyer LNG from LNG tanker(s) having specifications as set

forth in Section 5.3 of this Rate Schedule LTD-1, provided that Operator shall not be

obligated to receive more than Buyer's Maximum Contract Storage Quantity ("MCSQ").

Buyer's MCSQ shall equal [4.58 prior to new storage capacity] [8.51 after new storage

capacity in service] x Buyer's MDDQ. Operator shall subsequently deliver to or for

Buyer, the thermally equivalent quantity of Natural Gas, less Buyer's allocated share

of Retainage and Boil-Off. Buyer shall nominate daily deliveries of Natural Gas, and,

pursuant to Sections 6 (Operating Conditions) and 15 (Capacity and Imbalance

Allocations) of the GT&C, Operator shall schedule for delivery the Scheduled Daily

Delivery Quantities ("SDDQ") of Natural Gas to points of delivery along the Cove Point

Pipeline, such SDDQ to include Buyer's share of Boil-Off.

 

Upon the request of Buyer, Operator shall, on a nondiscriminatory basis, allow

nominations in excess of Buyer's MCSQ when in Operator's sole judgment, reasonably

exercised, there is unused physical capacity which would allow Operator to accept such

excess quantity nominated by Buyer without adversely affecting Operator's firm

services to others or operations at the Cove Point Plant (such quantity being referred

to herein as "excess storage quantity"). Whenever Operator, in its sole judgment,

exercised reasonably and on a nondiscriminatory basis, deems necessary due to

operating conditions at the Cove Point Plant or to assure that Operator can render

service to firm service Buyers, Operator may, upon notification to Buyer at the

earliest possible time, (i) cease receipts from Buyer, in whole or in part, as

directed by Operator and (ii) require Buyer within the time period specified by

Operator, which period shall be no less than one (1) day, to withdraw all, or any

part, of the excess storage quantity, consistent with Operator's withdrawal

capabilities as communicated in Operator's notification to Buyer. If Buyer fails to

withdraw all or any part of the excess storage quantity equal to the quantity

specified in Operator's notification to Buyer by the date specified in such

notification, then Operator may retain and take title to the excess storage quantity

not timely withdrawn free and clear of any adverse claims, in which case Buyer shall

indemnify Operator and hold Operator harmless from all costs, damages, and liabilities

arising out of the failure of Buyer to remove such excess storage quantity, including

any costs incurred by Operator in excess of any proceeds for the sale of such excess

storage quantity and any charges resulting from the sale of the quantity to which

Operator takes title hereunder. The value of such excess storage quantity sold by

Operator, less any costs incurred by Operator to dispose of such quantity, shall be

allocated annually to all other Buyers under this Rate Schedule LTD-1, prorated based

upon each such Buyer's fixed cost contributions paid.

 

2.4 Subject to Section 2.3 and 2.5 of this Rate Schedule LTD-1, at no time shall Operator

be obligated to receive LNG from Buyer if such receipt shall cause Buyer's total

aggregate quantity of LNG in storage to exceed Buyer's MCSQ.