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. 34 First Revised Sheet No. 34 : Effective

Superseding: Original Sheet No. 34

RATE SCHEDULE LTD-1

FIRM LNG TANKER DISCHARGING SERVICE

(Continued)

 

5. OPERATING CONDITIONS (Continued)

 

5.4 Storage and Delivery of LNG (Continued)

 

(g) Buyer shall withdraw, or otherwise dispose of all of its Liquefied Gas Balance

by the date Buyer's Service Agreement with Operator terminates. If Buyer fails

to withdraw or otherwise dispose of its Liquefied Gas Balance by such date,

Operator may retain and take title to such remaining Liquefied Gas Balance free

and clear of any adverse claims, in which case Buyer shall indemnify Operator

and hold 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. The value less any costs incurred by Operator

to dispose of the LNG which Operator has taken title to under the provisions of

Section 5.4(g) will be allocated to the accounts of non-offending LTD-1 Buyers

annually, prorated based upon Buyer's fixed cost contributions paid.

 

5.5 Acceptance and Rejection of LNG

 

(a) Operator shall accept LNG for discharging which, when delivered to Operator,

conforms to the specifications in Section 8(h) of the General Terms and

Conditions; provided, however, that Operator shall not be required to accept

LNG if in Operator's reasonable judgment, after accepting such LNG, Operator

would not be able, even after using all available nitrogen injection and LNG

blending capacity, to vaporize and send out such LNG in compliance with the

natural gas quality specifications contained in Sections 8(e)(iv) and 8(j)(ii).

An anticipated reduction in sendout quantity shall not entitle Operator to

refuse to accept LNG that satisfies Section 8(h) of the General Terms and

Conditions and all Buyers under this Rate Schedule LTD-1 understand that any

resulting reduction in sendout quantity shall not result in any demand charge

adjustments provided under Section 3.3 of this Rate Schedule LTD-1.

 

(b) Operator may accept LNG for discharging which does not conform to the

specifications in Section 8(h) of the General Terms, if, in its sole judgment

reasonably exercised, the acceptance of such LNG will not adversely affect the

operations of the facilities or adversely affects Operator's ability to meet

its service obligations under this Tariff. Operator may condition its

acceptance of LNG that does not conform to the specifications in Section 8(h)

upon Operator's ability to blend LNG of varying molecular composition and heat

content and/or Buyer agreeing to restrictions upon scheduling of arrival of

tankers, discharging of tankers, and vaporization of the LNG, including, but

not limited to changes to the schedule for arrival of LNG tankers at the

terminal, limitations on the quantity of LNG that may be discharged,

restrictions on LNG Inventory Transfers among Buyers (Section 11 of the General

Terms and Conditions), and limitations on the scheduling of vaporization.

 

5.6 Routine Maintenance

 

Operator shall provide Buyer with a schedule for routine maintenance as soon as

practicable but in no event later than three (3) months prior to the deadlines

specified in Section 4.2(a) of this Rate Schedule for submission of Buyer's proposed

LTD-1 Annual Discharge Schedule. Operator shall notify Buyer of any changes to each

schedule for routine maintenance no later than (i) one (1) month prior to the

commencement of the originally scheduled maintenance or (ii) the commencement date for

the changed maintenance period, whichever occurs sooner.