Dominion Cove Point LNG, LP

Original Volume No. 1

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Effective Date: 07/23/2004, Docket: RP04-340-000, Status: Effective

First Revised Sheet No. 252 First Revised Sheet No. 252 : Effective

Superseding: Original Sheet No. 252

GENERAL TERMS AND CONDITIONS

(Continued)

12. PENALTIES (Continued)

(d) Miscellaneous. (Continued)

(4) Operator may waive its right to collect all or any portion of the penalties assessed against

Buyer, provided that any such waiver is granted in a nondiscriminatory manner.

(5) To the extent that any imbalance directly results from Buyer's reliance on inaccurate data

from Operator, no penalty will be assessed for that portion of the imbalance shown by Buyer

to be attributable to such inaccurate data.

(e) Penalty Revenue Sharing.

(1) The following definitions shall apply to this Section 12(e):

(i) "Related Costs" are all out-of-pocket costs incurred as a direct result of an

Offending Buyer's failure to abide by an OFO, or other misconduct, to the extent that

Operator demonstrates that the costs are not already recovered in rates.

(ii) "Non-Offending Buyers" are Buyers that were not assessed a penalty by Operator in the

applicable month.

(iii) "Offending Buyers" are Buyers that were assessed a penalty by Operator in the

applicable month.

(2) Operator shall record each month the penalty revenues, net of Related Costs, received by

Operator from Offending Buyers. For each month, Operator shall determine the Non-Offending

Buyers that are eligible to share in the penalty revenue collected in that month. Refunds

will be apportioned to Non-Offending Buyers based on each respective Non-Offending Buyer's

actual fixed cost contribution as a percentage of the total fixed cost contribution of all

such Non-Offending Buyers during each month of the refund period (or portion thereof, if

applicable).

(3) If the total accumulated amount of penalty revenues collected as of March 31 equals or

exceeds $25,000, Operator shall refund that balance, including interest, on or before June

30 of that year. Refunds to Non-Offending Buyers shall be distributed via check or wire

transfer. However, where a credit amount due to any Non-Offending Buyer is less than

$10,000, Operator shall have the option to provide the amount as a credit to Non-Offending

Buyer's bill, which shall be identified separately as such a credit.

(4) Within 30 days of such distribution of penalty revenues, Operator shall post on its EBB the

penalty revenues distributed and file a report with the Commission setting forth, by month,

the amount of penalty revenues received from Offending Buyers and Related Costs that

Operator netted against such penalty revenues allocated to each Non-Offending Buyer. The

report shall detail the nature of the Related Costs and the nexus between the incurrence of

the Related Costs and the action that resulted in a penalty. To the extent that the

Commission finds that Operator has not demonstrated that the Related Costs reported qualify

as such under the definition set forth in this Section 12(e)(1)(i) above or that Operator

has not demonstrated that such costs were reasonably incurred under the circumstances,

Operator shall return any such amounts to the relevant subaccount with interest.

(5) Any penalty revenues, net of Related Costs, collected by Operator shall accrue interest

calculated pursuant to Section 154.501(d) of the Commission's regulations until distributed.

(6) If the total accumulated amount of penalty revenues collected is less than $25,000 on March

31, Operator shall report on or before June 30, via posting on its EBB, the principal

amount collected for each of the 12-month periods (April 1 through March 31) and the

cumulative total since the last distribution pursuant to section 12(e)(3) above.