Cove Point LNG Limited Partnership
Second Revised Volume No. 1
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Effective Date: 06/01/2003, Docket: CP01- 76-003, Status: Effective
Original Sheet No. 18A Original Sheet No. 18A : Effective
RATE SCHEDULE LTD-1
FIRM LNG TANKER DISCHARGING SERVICE
(Continued)
2. APPLICABILITY AND CHARACTER OF SERVICE (Continued)
2.2 Firm LNG tanker discharging service of Operator under this Rate Schedule shall have
the priority specified in Section 15 (Capacity and Imbalance Allocation) of the GT&C
and shall be subject to interruption only to the extent provided in this Rate Schedule
or in Sections 14 (Force Majeure) and 16 (Interruptions of Service) of the GT&C.
Service hereunder shall be performed on a nondiscriminatory basis under the Natural
Gas Act.
2.3 In accordance with the further provisions of this Rate Schedule, Operator shall
receive from or on behalf of Buyer LNG from LNG tanker(s) having specifications as set
forth in Section 5.3 of this Rate Schedule LTD-1, provided that Operator shall not be
obligated to receive more than Buyer's Maximum Contract Storage Quantity ("MCSQ").
Buyer's MCSQ shall equal [4.78 prior to new storage capacity] [8.51 after new storage
capacity in service] x Buyer's MDDQ. Operator shall subsequently deliver to or for
Buyer, the thermally equivalent quantity of Natural Gas, less Buyer's allocated share
of Retainage and Boil-Off. Buyer shall nominate daily deliveries of Natural Gas, and,
pursuant to Sections 6 (Operating Conditions) and 15 (Capacity and Imbalance
Allocations) of the GT&C, Operator shall schedule for delivery the Scheduled Daily
Delivery Quantities ("SDDQ") of Natural Gas to points of delivery along the Cove Point
Pipeline, such SDDQ to include Buyer's share of Boil-Off.
Upon the request of Buyer, Operator shall, on a nondiscriminatory basis, allow
nominations in excess of Buyer's MCSQ when in Operator's sole judgment, reasonably
exercised, there is unused physical capacity which would allow Operator to accept such
excess quantity nominated by Buyer without adversely affecting Operator's firm
services to others or operations at the Cove Point Plant (such quantity being referred
to herein as "excess storage quantity"). Whenever Operator, in its sole judgment,
exercised reasonably and on a nondiscriminatory basis, deems necessary due to
operating conditions at the Cove Point Plant or to assure that Operator can render
service to firm service Buyers, Operator may, upon notification to Buyer at the
earliest possible time, (i) cease receipts from Buyer, in whole or in part, as
directed by Operator and (ii) require Buyer within the time period specified by
Operator, which period shall be no less than one (1) day, to withdraw all, or any
part, of the excess storage quantity, consistent with Operator's withdrawal
capabilities as communicated in Operator's notification to Buyer. If Buyer fails to
withdraw all or any part of the excess storage quantity equal to the quantity
specified in Operator's notification to Buyer by the date specified in such
notification, then Operator may retain and take title to the excess storage quantity
not timely withdrawn free and clear of any adverse claims, in which case Buyer shall
indemnify Operator and hold Operator harmless from all costs, damages, and liabilities
arising out of the failure of Buyer to remove such excess storage quantity, including
any costs incurred by Operator in excess of any proceeds for the sale of such excess
storage quantity and any charges resulting from the sale of the quantity to which
Operator takes title hereunder. The value of such excess storage quantity sold by
Operator, less any costs incurred by Operator to dispose of such quantity, shall be
allocated annually to all other Buyers under this Rate Schedule LTD-1, prorated based
upon each such Buyer's fixed cost contributions paid.
2.4 Subject to Section 2.3 and 2.5 of this Rate Schedule LTD-1, at no time shall Operator
be obligated to receive LNG from Buyer if such receipt shall cause Buyer's total
aggregate quantity of LNG in storage to exceed Buyer's MCSQ.