Cove Point LNG Limited Partnership
Second Revised Volume No. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 06/01/2003, Docket: CP01- 76-003, Status: Effective
Original Sheet No. 19F Original Sheet No. 19F : Effective
RATE SCHEDULE LTD-2
INTERRUPTIBLE LNG TANKER DISCHARGING SERVICE
5. OPERATING CONDITIONS (Continued)
5.3 Port Facilities and LNG Discharging (Continued)
(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 Operator's fault or failure of facilities in
discharging the LNG tanker delays the LNG tanker. Operator will provide Buyer
notice to depart if Buyer has failed to depart at the end of the 32 hours.
Should the then-noticed Buyer fail to act upon the notice to depart, 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 in excess of its Berth Time.
Wharfage fees collected from a Buyer will be credited to Rate Schedule LTD-1
Buyers monthly prorated based on each respective LTD-1 Buyer's actual fixed cost
contribution.
(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; and, provided further, that all necessary modifications to
the affected Monthly and Annual Discharge Schedules have been agreed upon by all
affected parties. Buyer shall pay all costs incurred by Operator as a result of
its LNG tanker's failure to arrive at the Cove Point terminal as scheduled.
5.4 Storage and Delivery of LNG
(a) Operator shall have the unqualified right to commingle LNG received and stored
hereunder with LNG from other sources and to treat and handle all such LNG as
its own. All receipts, storage and deliveries of LNG or Natural Gas hereunder
shall be made on a thermal equivalent basis with proper accounting of Boil-Off
and Retainage quantities as provided for herein. Buyer shall make no claim
arising from the fact that LNG or Natural Gas delivered by Operator to or for
Buyer's account may not consist of the same molecules as those molecules
contained in the LNG discharged from Buyer's LNG tanker.
(b) Buyer may transfer by sale or otherwise all or a portion of its LNG held in
Operator's tanks pursuant to the terms and conditions of Section 11 (LNG
Inventory Transfers Among Buyers) of the GT&C.
(c) Buyer's Liquefied Gas Balance shall be (1) increased for receipts by Operator of
Buyer's LNG (excluding Boil-Off returning to Buyer's vessel(s) during discharge
of LNG), and (2) reduced by (i) the quantity delivered for Buyer's account,
including deliveries of Boil-Off; and (ii) Buyer's Retainage; (3) increased or
reduced as applicable to account for inventory transfers under Section 11 of the
GT&C.
(d) Buyer shall make all necessary arrangements for the delivery of Buyer's share of
the Boil-Off on any Day, which share shall be the ratio of Buyer's beginning of
day Liquefied Gas Balance to the total quantity of LNG in Operator's tanks
attributable to Rate Schedule LTD-1 and LTD-2 Buyers.