Dominion Cove Point LNG, LP
Original Volume No. 1
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Effective Date: 04/01/2009, Docket: RP09-399-001, Status: Effective
Original Sheet No. 205A Original Sheet No. 205A
GENERAL TERMS AND CONDITIONS
(Continued)
1. DEFINITIONS (Continued)
1.42.B.Firm Import Shipper Capped Retainage Percentage
In the event that the Retainage percentage applicable to Rate Schedule LTD-1 and
the 2004 Terminal Expansion Service pursuant to Section 30 of these General Terms
and Conditions as calculated in accordance with Section 1.42.A. above, exceeds
three percent (3.0%), the Retainage percentage for Buyers under Rate Schedule LTD-1
and the 2004 Terminal Expansion (Firm Import Shippers), will be capped at three
percent (3.0%) of Buyer's quantities received (Capped 3%). During the period when
the Capped 3% is in effect (Cap Period), the difference between the quantities
retained and the actual quantities required by Operator is the "Cap Period Under or
Over Recovery".
For the purposes of this Section 1.42.B., if the cumulative Cap Period Under
Recovery is greater than or equal to 100,000 Dth at the end of any calendar
quarter, then the Cap Period Under Recovery will be reimbursed by the Firm Import
Shippers based upon MDDQ. Notice of such reimbursable share to be tendered by
individual Firm Import Shippers shall be posted on Operator's EBB. Each Firm
Import Shipper will provide its share of Cap Period Under-Recovery quantities to
Operator within 90 days of such notice, via an Operator approved inventory transfer
or via tenders of Natural Gas to Operator at any mutually agreeable location on the
Cove Point Pipeline. Provided, however, that if any Firm Import Shipper wishes to
provide all or any portion of its share of Cap Period Under Recovery quantities via
tenders of Natural Gas to Operator, the Firm Import Shipper shall submit a proposal
to provide such Natural Gas to Operator in uniform quantities over a sixty (60) day
period (or other period acceptable to Operator), specifying the proposed Delivery
Point. Such proposal shall be submitted to Operator within five (5) Business Days
of the posted notice. Operator will review each proposal within five (5) Business
Days. By the end of such five (5) Business Days, Operator shall notify the Firm
Import Shipper either (i) that the proposal is acceptable, or (ii) that operational
conditions make the proposal unacceptable. Operator will not unduly discriminate
among Firm Import Shippers in establishing a schedule for delivery of Natural Gas.
If Operator cannot accommodate Firm Import Shipper's proposal, Operator and the
Firm Import Shipper shall promptly use reasonable efforts to reach agreement on a
mutually acceptable alternative schedule. If, despite the foregoing, Operator and
the Firm Import Shipper are unable to agree on a schedule for delivery of a Firm
Import Shipper's Cap Period Under Recovery Quantities during any calendar quarter,
such Firm Import Shipper shall tender such quantities in the next calendar quarter.
If, after agreeing on a schedule for delivery of Natural Gas by a Firm Import
Shipper in accordance with the provisions of this section, operational conditions
cause Operator to be unable to receive Natural Gas in accordance with such
schedule, Operator shall notify the Firm Import Shipper at least four (4) hours
prior to the Timely Cycle for a particular Gas Day if it is unable to accept said
quantities for such Gas Day. For weekends or holidays, such notice shall be posted
four (4) hours prior to the end of the last Business Day prior to the weekend, or
holiday period, as reported in Gas Daily. In the event Operator notifies a Firm
Import Shipper that it will be unable to receive quantities, the parties will use
good faith reasonable efforts to revise the schedule so that quantities are
transferred or tendered prior to the end of that quarter. Any Firm Import Shipper
who fails to make an approved inventory transfer or to tender Natural Gas in
accordance with an agreed schedule on or before the last day of that quarter,
unless such failure was caused by Operator's actions, shall be subject to a penalty
of $10.00 per Dth not transferred or tendered, which penalty shall be subject to
the provisions of Section 12(e) of the GT&C. This penalty does not relieve the
Firm Import Shipper of the obligation to provide reimbursable quantities to
Operator. Quantities of LNG or Natural Gas received by Operator from Firm Import
Shippers under this section will be treated as quantities retained. If the
cumulative Cap Period Under Recovery at the end of any calendar quarter is less
than 100,000 Dth, then the Cap Period Under Recovery will not be allocated to the
Firm Import Shippers and such balance will be carried forward to the subsequent
period.