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.