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. 222 Original Sheet No. 222 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

6. OPERATING CONDITIONS (Continued)

 

(d) Service Obligation. Operator shall not be required to perform any newly requested

service under any of its Rate Schedules if any of the facilities necessary to render

the requested service do not exist. In addition, Operator shall not be required to

undertake new services under any of its existing Rate Schedules during periods in

which facilities are scheduled for maintenance or repair or for other existing

conditions identified in Section 16 (Interruptions of Service) of this General Terms

and Conditions. Operator shall not be required to construct or reactivate facilities;

provided, however, that Buyer may request construction of facilities under the

provisions of Section 20 (Construction of Facilities) of the General Terms and

Conditions.

 

(e) Creditworthiness of Buyer.

 

(i) Subject to the provisions of subsections (ii) and (iii) below, Operator shall

not be required to perform or to continue to perform service on behalf of any

Buyer that (i) is or has become insolvent, (ii) has applied for bankruptcy

under Chapter 11 of the Bankruptcy Code or is subject to similar proceedings

under State or Federal Law, or (iii) fails, in Operator's reasonable judgment,

to demonstrate minimal creditworthiness for all or any part of the service

requested, based upon Operator's consideration of available credit data

concerning Buyer and Buyer's past payment history, financial statements, and

credit reports. Operator shall apply nondiscriminatory evaluation practices to

determine the acceptability of Buyer's overall financial condition.

 

(ii) Operator may require assurance of payment for any service under this Tariff

requested by an insolvent or uncreditworthy Buyer. Such a Buyer may receive

or continue to receive service if it provides adequate assurance of payment for

service within fifteen (15) days after the date of written demand by Operator.

Adequate assurance of payment may include:

 

(1) a deposit with Operator of an amount equal to two (2) months of

Reservation and estimated Commodity charges for the service, as set forth

in the applicable Service Agreement, provided that such deposit may be

applied by Operator to satisfy a delinquent account;

 

(2) advance payment for service at the time service is scheduled;

 

(3) an irrevocable letter of credit from a creditworthy financial

institution;

 

(4) a guarantee from a creditworthy entity; or

 

(5) a surety bond from an acceptable, creditworthy insurance company.