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. 18I Original Sheet No. 18I : Effective

 

 

RATE SCHEDULE LTD-1

FIRM LNG TANKER DISCHARGING SERVICE

(Continued)

 

 

5. OPERATING CONDITIONS (Continued)

 

5.3 Port Facilities and LNG Discharging (Continued)

 

(e) No LNG tanker shall engage in or cause any repairs, other than minor

housekeeping repairs that do not materially affect the operation of an LNG

tanker, to be made while berthed at the Cove Point pier without the express

prior written consent of Operator, which shall not be unreasonably withheld;

provided, however, upon written notice and explanation to Operator, an LNG

tanker may make repairs which the United States Coast Guard requires to be made

in order for that LNG tanker to travel in United States territorial waters.

 

(f) Each LNG tanker shall be allowed a berth time of 32 hours for discharging a

cargo of LNG ("Berth Time"). Berth Time shall begin to run at the time the LNG

tanker is secure in berth at the Cove Point terminal and end at the time the

last line is released upon departure from the berth. Time shall not be counted

as Berth Time or wharfage if force majeure, Operator's fault or failure of

facilities in discharging the LNG tanker delays the LNG tanker. Operator shall

provide notice to Buyer to depart if the LNG tanker has failed to depart at the

end of the Berth Time. If the LNG tanker has failed to depart at the time

specified in Operator's notice, Buyer shall pay Operator a wharfage fee of

$50,000 per day, prorated hourly, for the period during which the LNG tanker

remains at berth beyond the time specified in Operator's notice except to the

extent such delay in departing is caused by Operator or an event of force

majeure. For the avoidance of doubt, force majeure shall not include, for

purposes of thi Section 5.3(f), the disability of a tanker if such disabled

tanker can be removed from the berth through the exercise of due diligence

(including the use of tugs). Wharfage fees collected from LTD-1 and LTD-2

Buyers will be credited to the next monthly invoice of the other LTD-1 Buyers,

prorated based upon each such Buyer's fixed cost contributions paid.

 

(g) If an LNG tanker does not arrive at the Cove Point terminal as scheduled,

Operator shall perform the LNG discharging service at the first available time

when such service, including the scheduling, vaporization and delivery of LNG

in Operator's storage tanks, can be accomplished without detriment to any other

scheduled service.

 

(h) Operator's port facility shall include a berth and discharging facilities such

that Buyer's LNG tankers that meet the specifications and requirements

contained in Sections 5.2(a) and 5.3(a) of this Rate Schedule LTD-1 can safely

enter, berth and depart, always afloat, at any time of day. For purposes of

this Section 5.3(h), Operator's berth and discharging facilities shall be

limited to the area and facilities that are located within Restricted Area

165.502 as identified on U.S. National Oceanic and Atmospheric Administration

Chart No. 12264. Buyer, as of the date upon which Buyer originally executed

its Service Agreement with Operator, shall inspect Operator's berth and

discharging facility, and examine charts of the berth setting forth

navigational requirements for vessels calling at that facility and Buyer shall

thereafter have the right, but not the obligation, to inspect Operator's berth

and discharging facilities, and charts of the berth. Operator will provide

Buyer with notice of all known hazards related to the berth at the Cove Point

LNG terminal. Operator assumes no liability as a bailee for Buyer's vessel(s)

at any time. Operator assumes no responsibility for the inspection of Buyer's

vessel while moored or any mooring lines. Notwithstanding any of the

foregoing, this Section 5.3(h) shall not be interpreted to either (i) waive any

defense that would otherwise be available to Buyer or Operator under general

maritime law, nor (ii) relieve either Buyer or Operator of any duty that would

otherwise be imposed upon such party under general maritime law.