Dominion Cove Point LNG, LP

Original Volume No. 1

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Effective Date: 05/01/2003, Docket: RP03-341-000, Status: Effective

Original Sheet No. 214 Original Sheet No. 214 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

4. BIDDING FOR AVAILABLE FIRM SERVICE (Continued)

 

(e) Adjustment to Bid Rate. When the rate bid by a Bidder for service is at the Maximum

Base Reservation Charge for service under the applicable Rate Schedule, that bid rate

shall be subject to adjustment in accordance with the provisions of this Tariff and

shall be no more than the currently effective rate specified on the Currently

Effective Rates sheet of this Tariff.

 

(f) Short-Term Firm Service Agreements. Upon the termination of any firm Service

Agreement having a term of less than one year, the capacity associated with such

terminated Service Agreement shall be made available for bidding under the procedures

described in this Section 4, provided that: (i) the capacity is not previously

committed under the terms of this Tariff; and (ii) facility capacity remains

available.

 

(g) Long-Term Service Agreements/Right of First Refusal. If Buyer's long-term Service

Agreement does not extend according to its terms, Buyer may continue service upon

termination of that Service Agreement by (i) agreeing to match the highest value bid

offered to Operator for Buyer's firm service, or any portion thereof, through the

bidding process described in this Section 4; and (ii) executing a new Service

Agreement incorporating the new rate and term. A Buyer is eligible for a right of

first refusal if the Buyer is receiving firm service at the maximum applicable rate

pursuant to a Service Agreement with either (1) a term of service of at least twelve

consecutive months or (2) for a service which is not available for 12 consecutive

months, a contract term of more than one year. A Buyer is eligible for a right of

first refusal if the Buyer is receiving firm service at less than the maximum

applicable rate pursuant to a Service Agreement that meets the foregoing term criteria

and was executed prior to March 26, 2000; however, the right of first refusal will not

apply to any re-executed Service Agreement not at the maximum applicable rate. If

Buyer intends to exercise its right of first refusal as described herein, Buyer shall

notify Operator through Operator's EBB or facsimile transmission of that intent not

less than ninety (90) days before the termination date of its Service Agreement.

 

(i) In the event that Buyer provides Operator with a 90-day notice of intent to

exercise its right of first refusal, Operator shall promptly post on its EBB

the information described in Paragraph (a). Not later than sixty (60) days

prior to the termination of such Service Agreement, and for thirty (30) days

thereafter, Operator shall begin accepting bids from any prospective Buyer,

including prospective Buyers that already have submitted requests for service

for all or a portion of the service rights under the existing Buyer's long-term

Service Agreement.

 

(ii) If Operator receives an offer for all or a portion of the service rights under

Buyer's long-term Service Agreement, Operator, within five (5) days after the

last day for receiving offers, shall notify Buyer through the EBB of the offer

having the greatest economic value to Operator. For purposes of comparing the

respective values of offers under this section, Operator shall evaluate all

bids in accordance with the criteria set forth above. If Buyer elects to match

the offer, Buyer shall notify Operator of such election through the EBB within

fifteen (15) days after receiving Operator's notice and shall execute a new

Service Agreement matching the offer prior to the termination of the existing

long-term Service Agreement. If no offers are received, Buyer may continue to

receive service on a month-to-month basis or for such other term agreed to by

Operator and Buyer, and at the maximum rate set forth in the applicable Rate

Schedule.