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. 18K Original Sheet No. 18K : Effective
RATE SCHEDULE LTD-1
FIRM LNG TANKER DISCHARGING SERVICE
(Continued)
5. OPERATING CONDITIONS (Continued)
5.4 Storage and Delivery of LNG (Continued)
(g) Buyer shall withdraw, or otherwise dispose of all of its Liquefied Gas Balance
by the date Buyer's Service Agreement with Operator terminates. If Buyer fails
to withdraw or otherwise dispose of its Liquefied Gas Balance by such date,
Operator may retain and take title to such remaining Liquefied Gas Balance free
and clear of any adverse claims, in which case Buyer shall indemnify Operator
and hold harmless from all costs, damages and liabilities arising out of the
failure of Buyer to remove such LNG and all costs incurred for the disposal of
such LNG by Operator, including any charges resulting from the sale of LNG to
which it takes title hereunder. The value less any costs incurred by Operator
to dispose of the LNG which Operator has taken title to under the provisions of
Section 5.4(g) will be allocated to the accounts of non-offending LTD-1 Buyers
annually, prorated based upon Buyer's fixed cost contributions paid.
5.5 Notwithstanding the quality specifications set forth in Section 8(d) of the General
Terms and Conditions ("GT&C") of this Tariff, Buyer shall be entitled to deliver LNG
to the Cove Point terminal not meeting such quality specifications to the extent that
Operator, in its sole judgment, reasonably exercised, can accept such LNG without
adversely affecting Operator's facilities and if applicable, the parties receiving gas
from Operator agree to accept gas not meeting the applicable quality specifications.
5.6 Routine Maintenance
Operator shall provide Buyer with a schedule for routine maintenance as soon as
practicable but in no event later than three (3) months prior to the deadlines
specified in Section 4.2(a) of this Rate Schedule for submission of Buyer's proposed
LTD-1 Annual Discharge Schedule. Operator shall notify Buyer of any changes to each
schedule for routine maintenance no later than (i) one (1) month prior to the
commencement of the originally scheduled maintenance or (ii) the commencement date for
the changed maintenance period, whichever occurs sooner.
6. RESPONSIBILITY, WARRANTY AND ASSIGNMENT
6.1 Operator shall be deemed to be in control of and have responsibility for the LNG to be
stored by Operator after the receipt thereof by Operator from Buyer, and prior to the
delivery of such LNG or vaporized LNG to Buyer. Operator shall be deemed to have no
responsibility with respect to such LNG prior to Operator's receipt thereof, or after
Operator's delivery of LNG or Natural Gas thereof, to or for Buyer's account.
6.2 Buyer shall be responsible for all port or wharfage fees, pilotage fees, agent fees,
taxes, levies or other charges imposed on Buyer's LNG vessels, or the LNG that Buyer
delivers to the Cove Point terminal. The term "fees" as used herein, shall mean any
fee or charge now or hereafter levied, assessed or made by any governmental authority
on the LNG or vaporized LNG itself or on the act, right or privilege of importing,
producing, processing, transporting, handling, selling, receiving or delivering LNG or
vaporized LNG, however such fees or charges are measured.