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. 19G Original Sheet No. 19G : Effective
RATE SCHEDULE LTD-2
INTERRUPTIBLE LNG TANKER DISCHARGING SERVICE
(Continued)
5. OPERATING CONDITIONS (Continued)
5.4 Storage and Delivery of LNG (Continued)
(e) Buyer shall withdraw, or otherwise dispose of all of its Liquefied Gas Balance
by the date Buyer's Service Agreement with Operator terminates or by the end of
the time period specified pursuant to Section 1.1(a). 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 changes 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(f) will be allocated to the accounts of Rate Schedule LTD-1 Buyers
annually, prorated based upon each LTD-1 Buyer's fixed cost contributions paid.
(f) Balancing of actual quantities of LNG received, as adjusted for Retainage, LNG
inventory transfers and vaporized LNG delivered, as adjusted for Retainage,
under this Rate Schedule shall be accomplished by adjustments to Buyer's
Liquefied Gas Balance.
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.
6.3 Operator shall not be liable for any indirect or consequential damages incurred by
Buyer in connection with Operator's performance or failure to perform any service
available under this Tariff. Consequential damages shall include, but not be limited
to, lost profits, lost earnings, and special and punitive damages.
6.4 Buyer shall indemnify, defend and hold Operator harmless from and against any and all
losses, damages, costs, expenses, claims, suits, actions, proceedings and demurrage or
delay arising out of or related to performance or nonperformance in connection with
this Tariff by Buyer or Operator of Buyer's vessel, the owners thereof or any other
third party. Except to the extent that such losses, damages, costs, expenses, claims,
suits, actions, proceedings and demurrage or delay that are the result of Operator's
bad faith or willful misconduct.