Dominion Cove Point LNG, LP
Original Volume No. 1
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Effective Date: 05/27/2005, Docket: RP05- 43-000, Status: Suspended
First Revised Sheet No. 214 First Revised Sheet No. 214 : Suspended
Superseding: Original Sheet No. 214
GENERAL TERMS AND CONDITIONS
(Continued)
4. BIDDING FOR AVAILABLE FIRM SERVICE (Continued)
(d) (Continued)
awarded on a pro rata basis to all bidders that submitted equivalent highest value
bids.
(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 Service Agreement
with a term of one year or longer 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 a new or re-executed Service Agreement with a negotiated rate or that is not
at the maximum applicable rate unless otherwise agreed between Operator and Buyer. 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 have already 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; provided, however, that
Buyer shall be required to match only offers for service rights under the same
Rate Schedule as Buyer's expiring Service Agreement. 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.