Dominion Cove Point LNG, LP

Original Volume No. 1

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Effective Date: 06/01/2003, Docket: RP03-341-000, Status: Effective

First Revised Sheet No. 211 First Revised Sheet No. 211 : Effective

Superseding: Original Sheet No. 211

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

3. REQUESTS FOR SERVICE (Continued)

 

 

(d) Advance Determinations. A prospective Buyer, or existing Buyer may submit the data

required in this Section 3 for an advance determination of creditworthiness by

Operator prior to bidding for or requesting new or increased service.

 

(e) Deficient Requests. Operator shall promptly notify a Requestor whose request is

deficient. Such notice shall identify the deficiencies that must be corrected in

order to make a valid request to Operator. If the deficient information is supplied

within fifteen (15) days, then the Request shall be considered complete as originally

filed.

 

(f) Material Changes. If any information provided by Requestor pursuant to this Section

materially changes, Requestor shall provide Operator with prompt written notification

of such changes.

 

(g) Denial of Requests. Operator may reject any request for service from a Requestor

that is a prospective Buyer, or an existing Buyer seeking new or increased service

levels, that fails to meet Operator's creditworthiness requirements unless Buyer

provides assurance of payment as provided in Paragraph (h) below. Grounds for

rejection shall include, but shall not be limited to, Requestor's failure (a) to show

that Requestor's obligations are being paid in a timely manner, or (b) to provide

reasonable assurance that Requestor will be able to continue to pay its obligations

in the future.

 

(h) Assurance of Payment. If Operator denies a request for service due to a failure to

satisfy Operator's creditworthiness requirements, Requestor may obtain service if it

provides Operator with assurance of payment as set forth below:

 

(1) In the event Operator must construct or recommission facilities to render service

to a Buyer pursuant to the Tariff. Operator shall accept as assurance of payment

any of the following:

 

(i) advance payment covering the Reservation and estimated Commodity Charges

for a period of time as agreed to by Operator and Buyer;

 

(ii) an irrevocable letter of credit from a creditworthy financial institution

in an amount agreed to by Buyer and Operator;

 

(iii) a guarantee from a creditworthy institution;

 

(iv) a surety bond from an acceptable, creditworthy insurance company in an

amount agreed to by Buyer and Operator;

 

(2) In the event service is to be rendered using Operator's existing, operational

facilities, assurance of payment shall be deemed satisfied when Buyer complies

with Section 6(e)(ii) of the General Terms and Conditions and otherwise complies

with the ongoing creditworthiness requirements set forth in Section 6(e).

 

(3) If Requestor fails to tender such assurance of payment within ten (10) days, or

such longer time period reasonably established by Operator, Operator may deny

Requestor's request for service.

 

(4) Nothing contained in this Section 3(h) shall obligate Operator to construct

facilities in order to render service.