Dominion Cove Point LNG, LP

Original Volume No. 1

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Effective Date: 12/15/2005, Docket: RP06- 96-000, Status: Effective

First Revised Sheet No. 251 First Revised Sheet No. 251 : Effective

Superseding: Original Sheet No. 251

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

12. PENALTIES

 

The penalties set forth in this Section apply to all Operator's Rate Schedules, unless

otherwise indicated in this Section or in individual Rate Schedules.

 

(a) Takes in Excess of Scheduled Daily Quantity under Rate Schedules FTS and ITS. If

Buyer's takes under Rate Schedules FTS or ITS on any day exceed the Hourly Scheduled

Quantity (the Hourly Scheduled Quantity being defined as the Scheduled Daily Delivery

Quantity divided by twenty-four (24)) during any hour by at least 20,000 Dth and/or

exceed the Scheduled Daily Delivery Quantity by at least 20,000 Dth, Operator shall

assess a penalty per Dth equal to the higher of $10.00 or two times the average of the

midpoint prices for Transco, zone 5 delivered and Transco, zone 6 non-N.Y. as

published in Platts Gas Daily for the day on which the penalty is incurred, on all

quantities in excess of the Hourly Scheduled Quantity each hour and/or the Scheduled

Daily Delivery Quantity. The midpoint prices associated with the beginning of the Gas

Day will be applicable for the entire Gas Day.

 

(b) Failure to Interrupt Service. If Buyer fails to interrupt service as directed by

Operator pursuant to Section 16 (Interruptions of Service) of the General Terms and

Conditions, and thereby delivers gas to or takes gas from Operator in excess of 103

percent of the sum of the lowered Scheduled Daily Receipt Quantity or lowered

Scheduled Daily Delivery Quantity established under Rate Schedules FTS, ITS, FPS-1,

FPS-2 or FPS-3 by Operator's interruption order, Buyer shall be assessed and pay a

penalty per Dth equal to the higher of $25.00 or three times the average of the

midpoint prices for Transco, zone 5 delivered and Transco, zone 6 non-N.Y. as

published in Platts Gas Daily for the day on which the penalty is incurred, on all

quantities taken or delivered in excess of one hundred three percent (103%) of its

reduced Scheduled Daily Receipt Quantity or reduced Scheduled Daily Delivery Quantity.

The midpoint prices associated with the beginning of the Gas Day will be applicable

for the entire Gas Day.

 

(c) Failure to Comply with Operational Flow Orders. If Buyer fails to comply with an

operational flow order issued by Operator pursuant to Section 17 (Operational Flow

Orders) of the General Terms and Conditions, a penalty per Dth per day equal to the

higher of $25.00 or three times the average of the midpoint prices for Transco, zone 5

delivered and Transco, zone 6 non-N.Y. as published in Platts Gas Daily for the day on

which the penalty is incurred, shall be assessed on all quantities taken or delivered

in violation of that operational flow order. The midpoint prices associated with the

beginning of the Gas Day will be applicable for the entire Gas Day.

 

(d) Miscellaneous.

 

(1) All penalties and charges assessed under this Section shall be paid in addition

to the applicable transportation rates and charges, including any Excess

Withdrawal charge. If an action by Buyer results in a penalty under more than

one paragraph of this Section 12, the penalty resulting in the highest payment by

Buyer shall apply.

 

(2) In the event Buyer seeks to avoid any penalty provided for in this Section on the

ground that such charge was incurred because of a force majeure event as defined

at Section 14 (Force Majeure) of the General Terms and Conditions, Buyer shall

document such force majeure event to Operator. Operator shall waive penalties to

the extent that the imbalance was caused by a force majeure event as defined at

Section 14.

 

(3) Operator may not assess against or collect from a Buyer any penalty set forth in

this Section 12, in whole or in part, if Buyer's imbalance did not affect

Operator's ability to provide service under any of its Rate Schedules in this

Tariff. Operator's determination not to assess or collect a penalty for any

individual occurrence shall not operate or be construed as a waiver of any

penalty or penalties for future occurrences whether of like or different nature.