Dominion Cove Point LNG, LP
Original Volume No. 1
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Effective Date: 03/01/2009, Docket: RP09-293-000, Status: Effective
Fourth Revised Sheet No. 247 Fourth Revised Sheet No. 247
Superseding: Substitute Third Revised Sheet No. 247
GENERAL TERMS AND CONDITIONS
(Continued)
10. RELEASE AND ASSIGNMENT OF SERVICE RIGHTS (Continued)
(d) Contracting (Continued)
(iii) For release transactions: (1)effective prior to July 30, 2008 and those (2)
effective on or after July 30, 2008, with a term greater than one year
which provide for a rate between the applicable minimum and maximum rates,
refunds will be allocated first to Replacement Customer, to the extent
required. To the extent that Operator owes refund amounts attributable to
the release transaction in excess of the amounts refunded to Replacement
Customer, then Operator will make such refunds to Releasing Customer.
(iv) For release transactions effective on or after July 30, 2008, with a term
of one year or less, which are not subject to the maximum rate cap, the
rate paid by the Replacement Customers will be deemed a final rate and will
not be subject to refund.
(v) Upon thirty (30) days written notice to Releasing Customer and Replacement
Customer(s) that Releasing Customer's Service Agreement will be terminated,
and provided that Releasing Customer's Service Agreement is subsequently
terminated pursuant to such notice, Operator may elect to terminate any
Replacement Customer's Capacity Release Agreement if (1) the rate(s) stated
in that Replacement Customer's Capacity Release Agreement is less than the
rate(s) set forth in the Releasing Customer's Service Agreement and (2) the
Replacement Customer has not, prior to the expiration of the notice period,
executed an amendment to such Replacement Customer's Capacity Release
Agreement, agreeing to pay, beginning the first day after the end of the
notice period and for the remainder of the term of the Replacement
Customer's Service Agreement provided the Releasing Customer's Service
Agreement is terminated, the lesser of (a) the Releasing Customer's
contract rate(s), (b) the maximum tariff rate(s) for the service, or (c)
the mutually agreed upon rate(s). To the extent the Replacement Customer's
capacity is obtained through segmentation of the Releasing Customer's
capacity, Operator may elect to terminate a Replacement Customer's Capacity
Release Agreement if (1) the rate stated in that Replacement Customer's
Capacity Release Agreement is less than the rate(s) for the full capacity
path of the Releasing Customer's contracted for service and (2) the
Replacement Customer has not, prior to the expiration of the notice period,
executed an amendment to such Replacement Customer's Capacity Release
Agreement, agreeing to pay, beginning the first day after the end of the
notice period and for the remainder of the term of the Replacement
Customer's Service Agreement provided the Releasing Customer's Service
Agreement is terminated, the lower of (a) the Releasing Customer's contract
rate(s) for the full capacity path, (b) the maximum tariff rate(s)
applicable to the Releasing Customer's full capacity path, or (c) the
mutually agreed upon rate(s). Nothing herein shall require Operator to
permit a Replacement Customer under a segmented capacity release to retain
its geographic segment of capacity. To the extent two or more Replacement
Customers have obtained segmented capacity from Releasing Customer and more
than one has agreed to execute a Service Agreement amendment setting forth
the requirements described herein, Operator shall allocate the Releasing
Customer's Capacity to such Replacement Customers in proportion to the
maximum contractual quantities stated in the Capacity Release Agreement.