Dominion Cove Point LNG, LP

Original Volume No. 1

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Effective Date: 03/01/2009, Docket: RP09-293-000, Status: Effective

Third Revised Sheet No. 244 Third Revised Sheet No. 244

Superseding: Second Revised Sheet No. 244

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

10. RELEASE AND ASSIGNMENT OF SERVICE RIGHTS (Continued)

 

(b).(6) Bidding Procedure. (Continued)

 

 

(xiv) Whether bids for the released firm capacity are to be on the basis of a

two-part or a one-part volumetric rate. All Assignees, whether bidding for

firm capacity on the basis of a reservation charge or a volumetric rate,

shall be responsible, in addition to its bid reservation charge or

volumetric rate, for all commodity charges, commodity surcharges and any

penalty or imbalance costs incurred by the Assignee.

 

(xv) Whether the release is subject to an indemnification provision pursuant to

which the initial Assignee indemnifies Releasor against any claims by

successive Assignees relating to refunds (where Releasor has provided

correctly calculated refunds to the initial Assignee), and all terms of any

such indemnification provision.

 

(xvi) Whether the Replacement Customer is an asset manager as defined in the

Commission's Regulations, 18 C.F.R. Section 284.8(h)(3) (2008) and whether

the offer is to be exempt from bidding pursuant to Section 10.(b).(5).(ii),

above. If the offer is to be exempt from bidding, the Releasing Customer

must disclose the asset manager's obligation to deliver gas to, or purchase

from, the releasing shipper.

 

(xvii) Whether the Replacement Customer is a marketer participating in a state-

regulated retail access program as defined in the Commission's Regulations,

18 C.F.R. Section 284.8(h)(4) (2008) and whether the offer is to be exempt

from bidding pursuant to Section 10.(b).(5).(iii), above.

 

(xviii) Any other conditions applicable to the release.

 

a. For releases with a term greater than one year, if the release includes

the aggregation of capacity on other pipelines in addition to Operator,

the maximum rate to be charged for such aggregated capacity (by all

parties) to Replacement Customer may not exceed the sum of the maximum

tariff rates applicable to each affected pipeline's service. Releasing

Customer is responsible for posting such aggregate releases on the

bulletin board of each pipeline upon which capacity is released.

 

b. With the consent of the affected Releasing Customers, Operator may

combine releases posted by several Releasing Customers into one

replacement contract to improve marketability.

 

(7) Within the posted bid period, a bidder seeking capacity at terms that meet or

exceed the minimum terms of the release must post its complete bid on Operator's

EBB.

 

(i) Such bids must be in the most current form of Bid Agreement, as posted on

Operator's EBB, which when executed by Operator will constitute a binding

contract.

 

(ii) The name of the bidder will not be revealed on Operator's EBB unless the

bidder submits a winning bid.

 

(c) Evaluating Bids.

 

(1) Operator shall determine the "best bid," in accordance with the nondiscriminatory

criteria posted by Releasing Customer in the Release Notice; provided, however,

that Operator shall reject any bid which does not match any single minimum

specification of the posted notice. If there are multiple bids meeting minimum

conditions, Operator will award the bids, best bid first, until all offered

capacity is awarded.