Dominion Cove Point LNG, LP

Original Volume No. 1

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Effective Date: 05/27/2005, Docket: RP05- 43-003, Status: Effective

Substitute First Revised Sheet No. 215 Substitute First Revised Sheet No. 215 : Effective

Superseding: Original Sheet No. 215

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

4. BIDDING FOR AVAILABLE FIRM SERVICE (Continued)

 

(h) Termination of Long-Term Firm Service Agreements. If a long-term Service Agreement is

not continued by its own terms, by an extension, or by reason of the Buyer's exercise

of its right of first refusal, such long-term Service Agreement shall be subject to

pregranted abandonment unless otherwise specified in the Service Agreement and shall

terminate as specified therein and Operator shall have no further obligation to Buyer.

 

(i) New Long-Term Firm Service Agreements. If a new long-term Service Agreement is

executed pursuant to this Section, such Service Agreement shall be subject to

pregranted abandonment unless otherwise specified therein.

 

(j) Reserved Capacity. Operator may elect to reserve for future expansion projects any

unsubscribed capacity or capacity under expiring or terminating service agreements

where such agreements do not have a right of first refusal or Buyer does not exercise

its right of first refusal. If Operator elects to reserve capacity, it will notify

Buyers of its intent as part of Operator's posting under Section 4(a) (EBB Posting

Procedure) of the General Terms and Conditions. Capacity may be reserved for up to

one year prior to the Operator filing for certificate approval for construction of the

proposed expansion and thereafter until such expansion project is placed into service.

Reserved capacity will be made available on an interim basis and will be posted for

competitive bid in accordance with the applicable provisions of Section 4 of the

General Terms and Conditions.

 

(k) Notwithstanding anything to the contrary in this Tariff, Operator may agree with any

Buyer, on a not unduly discriminatory basis, to an extension of any long-term Service

Agreement, with such additional term to be negotiated on a case-by-case basis.

 

(l) Notwithstanding anything to the contrary in this Tariff, in the event that any Rate

Schedule FPS services are terminated, whether by (i) expiration of a service agreement

where Buyer and Operator have not agreed to an extension and Buyer elects not to

exercise its right of first refusal upon the expiration of the contractual term, or

(ii) turnback of Buyer's service rights under the Service Agreement, where Buyer and

Operator have mutually agreed to such turnback, the capacity that becomes available as

a result shall be dedicated to Rate Schedule LTD-1 service and allocated among the

LTD-1 Shippers in proportion to each such Shipper's firm MDDQ and included in such

Shipper's Service Agreement for the remainder of its term, and the applicable storage

ratios for Rate Schedule LTD-1 service will be modified accordingly. In the event of

such a reallocation of storage capacity, Operator will make a compliance filing for

the sole purpose of (i) placing into effect rates that will reflect a reallocation of

the total revenue responsibility associated with such relinquished Rate Schedule FPS

service (at the maximum effective rates), together with the associated storage and

transportation capacity, to Rate Schedule LTD-1 service, and (ii) revising

appropriately the storage ratios applicable to Rate Schedule LTD-1 service. This

Paragraph shall remain in effect for the term of the LTD-1 Service Agreements in

effect as of October 1, 2004, including any extensions of such Service Agreements.