Dominion Cove Point LNG, LP

Original Volume No. 1

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Effective Date: 08/11/2003, Docket: RP03-548-000, Status: Effective

Second Revised Sheet No. 57 Second Revised Sheet No. 57 : Effective

Superseding: First Revised Sheet No. 57

RATE SCHEDULE LTD-2

INTERRUPTIBLE LNG TANKER DISCHARGING SERVICE

(Continued)

 

5. OPERATING CONDITIONS (Continued)

 

5.4 Storage and Delivery of LNG (Continued)

 

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

by the date Buyer's Service Agreement with Operator terminates or by the end of

the time period specified pursuant to Section 1.1(a). 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 changes 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(f) will be allocated to the accounts of Rate Schedule LTD-1 Buyers

annually, prorated based upon each LTD-1 Buyer's fixed cost contributions paid.

 

(f) Balancing of actual quantities of LNG received, as adjusted for Retainage, 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.

 

5.5 Non-Conforming LNG

 

Operator shall not accept LNG from Buyer if in Operator's reasonable judgment, after

accepting such LNG, Operator would not be able to send out Natural Gas that would

comply with the quality specifications contained in Sections 8(e)(iv) and 8(j)(ii)

without any possible reduction in the send out quantity Operator anticipates will be

scheduled by firm Buyers. For purposes of determining whether such Natural Gas would

comply with such specifications under this provision, (i) Operator shall consider the

anticipated availability of nitrogen blending upon delivery of such LNG, and (ii)

Operator shall consider available LNG blending upon delivery of such LNG.

 

6. RESPONSIBILITY, WARRANTY AND ASSIGNMENT

 

6.1 Operator shall be deemed to be in control of and have responsibility for the LNG to be

stored by Operator after the receipt thereof by Operator from Buyer, and prior to the

delivery of such LNG or vaporized LNG to Buyer. Operator shall be deemed to have no

responsibility with respect to such LNG prior to Operator's receipt thereof, or after

Operator's delivery of LNG or Natural Gas thereof, to or for Buyer's account.

 

6.2 Buyer shall be responsible for all port or wharfage fees, pilotage fees, agent fees,

taxes, levies or other charges imposed on Buyer's LNG vessels, or the LNG that Buyer

delivers to the Cove Point terminal. The term "fees" as used herein, shall mean any

fee or charge now or hereafter levied, assessed or made by any governmental authority

on the LNG or vaporized LNG itself or on the act, right or privilege of importing,

producing, processing, transporting, handling, selling, receiving or delivering LNG or

vaporized LNG, however such fees or charges are measured.

 

6.3 Operator shall not be liable for any indirect or consequential damages incurred by

Buyer in connection with Operator's performance or failure to perform any service

available under this Tariff. Consequential damages shall include, but not be limited

to, lost profits, lost earnings, and special and punitive damages.

 

6.4 Buyer shall indemnify, defend and hold Operator harmless from and against any and all

losses, damages, costs, expenses, claims, suits, actions, proceedings and demurrage or

delay arising out of or related to performance or nonperformance in connection with

this Tariff by Buyer or Operator of Buyer's vessel, the owners thereof or any other

third party. Except to the extent that such losses, damages, costs, expenses, claims,

suits, actions, proceedings and demurrage or delay that are the result of Operator's

bad faith or willful misconduct.