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
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
(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.