Dominion Cove Point LNG, LP
Original Volume No. 1
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Effective Date: 06/01/2003, Docket: RP03-341-000, Status: Effective
Original Sheet No. 33 Original Sheet No. 33 : Effective
RATE SCHEDULE LTD-1
FIRM LNG TANKER DISCHARGING SERVICE
(Continued)
5. OPERATING CONDITIONS (Continued)
5.4 Storage and Delivery of LNG
(a) Operator shall have the unqualified right to commingle LNG received and stored
hereunder with LNG from other sources and to treat and handle all such LNG as
its own. All receipts, storage and deliveries of LNG or Natural Gas hereunder
shall be made on a thermal equivalent basis with proper accounting of Boil-Off
and Retainage quantities as provided for herein. Buyer shall make no claim
arising from the fact that LNG or Natural Gas delivered by Operator to or for
Buyer's account may not consist of the same molecules as those molecules
contained in the LNG discharged from Buyer's LNG tanker.
(b) Buyer may transfer by sale or otherwise all or a portion of its LNG held in
Operator's tanks pursuant to the terms and conditions of Section 11 (LNG
Inventory Transfers Among Buyers) of the GT&C.
(c) Buyer's Liquefied Gas Balance shall be (1) increased for receipts by Operator
of Buyer's LNG (excluding Regasified LNG returning to Buyer's vessel(s) during
discharge of LNG), and (2) reduced by (i) the quantity delivered for Buyer's
account, including deliveries of Boil-Off; and (ii) Buyer's Retainage; or (3)
increased or reduced as applicable to account for inventory transfers under
Section 11 of the GT&C.
(d) Buyer shall make all necessary arrangements for the delivery of Buyer's share
of the Boil-Off on any Day, which share shall be the ratio of Buyer's beginning
of day Liquefied Gas Balance to the total quantity of LNG in Operator's tanks
attributable to Rate Schedule LTD-1 and LTD-2 Buyers.
(e) Balancing of actual quantities of LNG received, as adjusted for Retainage,
Boil-Off, LNG inventory transfers and vaporized LNG delivered, as adjusted for
Retainage, under this Rate Schedule shall be accomplished by adjustments to
Buyer's Liquefied Gas Balance.
(f) Unless otherwise agreed by Operator, within 120 days after a quantity of LNG is
discharged by Operator from an LNG tanker for Buyer's account, Buyer shall have
caused that quantity to have been vaporized and delivered pursuant to this Rate
Schedule and GT&C of this Tariff. If a Buyer fails to withdraw such LNG, then
Operator may, at its option, take title to such LNG free and clear of any
adverse claims, in which case Buyer shall indemnify Operator and hold it
harmless from all costs, damages and liabilities arising out of the failure of
Buyer to remove such LNG and all costs incurred for the disposal of such LNG by
Operator, including any charges resulting from the sale of LNG to which it
takes title hereunder. Operator shall extend the time available for Buyer to
remove its LNG from storage by one Day for every Day that Buyer is unable to
withdraw properly scheduled quantities due to force majeure, actions or
inactions of Operator or operating conditions invoked by Operator. The value
less any costs incurred by Operator to dispose of a particular Buyer's LNG
which Operator has taken title to under the provisions of Section 5.4(f) will
be allocated to the other LTD-1 Buyers annually, prorated based upon each such
Buyer's fixed cost contributions paid.