Dominion Cove Point LNG, LP

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

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

Original Sheet No. 223 Original Sheet No. 223 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

6. OPERATING CONDITIONS (Continued)

 

(e) Creditworthiness of Buyer. (Continued)

 

(iii) Operator may at any time re-evaluate the creditworthiness of Buyer and demand

adequate assurances of payment if Operator determines that Buyer has in any

respect become uncreditworthy. Circumstances under which Operator may re-

evaluate Buyer's creditworthiness include, but are not limited to, a filing by

Buyer for bankruptcy or a submission to bankruptcy or similar federal or state

proceedings, an adverse change in Buyer's payment practices, or a

reorganization of Buyer's business structure. If Operator, following such a

re-evaluation, makes an adverse preliminary creditworthiness determination, and

Buyer is current in its payments to Operator and otherwise has a good credit

history with Operator, Buyer will be given notice of such adverse determination

and be allowed ten (10) days to submit data demonstrating its continued

creditworthiness before Operator will make a final determination of

creditworthiness and, if adverse, demand adequate assurance of payment.

Operator may at any time withdraw or revise its demand for adequate assurance

of payment or extend its due date.

 

(f) General Limitation of Operator's Obligation. Operator shall not be required to

perform or continue service on behalf of any Buyer that, within ten (10) days after

receipt of notice from Operator, fails to comply with any of the terms of the

applicable Rate Schedule and Buyer's Service Agreement with Operator when such failure

is material or may threaten the operational integrity, safety, or continued

performance by Operator of services under this Tariff. If Buyer submits a complaint,

as provided in Section 22 (Complaint Resolution Procedure) of the General Terms and

Conditions, prior to the end of the 10-day period and the subject matter of the

complaint is the provision of the Rate Schedule or Service Agreement on which the

Operator has based its notice, Operator shall continue service for Buyer for a period

of at least ten (10) days after Operator's Final Decision under the Complaint

Resolution Procedures. Notwithstanding the foregoing, Operator shall have the right

to take unilateral action to protect the integrity of its system in the event

Operator, in its reasonable discretion, determines that immediate or irreparable harm

to Operator's facilities or operations will be caused by Buyer's failure to comply

with any of the terms of the applicable Rate Schedule, the terms of Buyer's Service

Agreement with Operator, or the General Terms and Conditions of this Tariff.

 

(g) Balancing at Termination of Service Agreement. Following the termination of a Service

Agreement, Buyer under that Service Agreement shall be required to correct any

outstanding imbalance in receipts and deliveries within sixty (60) days after Operator

determines, and notifies Buyer, that such an imbalance exists, or within such longer

period of time agreed to by Buyer and Operator.