Cove Point LNG Limited Partnership

Second Revised Volume No. 1

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Effective Date: 06/14/2000, Docket: RP00-389-000, Status: Effective

Original Sheet No. 118 Original Sheet No. 118 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

6. OPERATING CONDITIONS (Continued)

 

(b) (6) Confirmation and Scheduling by Operator (Continued)

 

(iv) Where discrepancies in quantities exist between confirming parties, the

confirmed quantity shall be the lesser of the nominated quantity

(inclusive of any reductions related to capacity allocation) or the

confirmed quantity. Where no communication is received, the lesser of

the nomination or the previously scheduled quantity applies. No intra-

day nomination changes, including reductions, shall become effective

unless the changes are confirmed.

 

(v) When a Buyer has more than one receipt point or more than one delivery

point, such Buyer shall specify in its nomination the supply reduction

priorities and delivery reduction priorities ("Priority Reduction List")

to be utilized at the receipt points or delivery points in the event of a

loss of volume at the receipt points or delivery points.

 

(vi) If only partial confirmations are received by Seller from the upstream

and downstream entities delivering or receiving has on behalf of Buyer,

Buyer's nominations shall be reduced in accordance with the priorities

set forth on the Receipt and Delivery Rankings furnished by Buyer.

 

(vii) If gas is not scheduled and flowing within 48 hours after Operator

notifies a Buyer of interruptible service that it has been unable to

confirm all or any part of nominated gas supplies, Operator shall

allocate such capacity to other Buyers.

 

(viii) If after Buyer's gas is confirmed, Operator is notified that Buyer's gas

is not available, then Operator may cease deliveries. However, Operator

shall hold such interruptible capacity for Buyer for 48 hours before

allocating such capacity to other Buyers.

 

(7) Buyer's Notice of Changes. Except for reasons of force majeure, as described at

Section 14 (Force Majeure) of the General Terms and Conditions, Buyer shall

notify Operator or cause Operator to be notified at least 24 hours in advance of

any anticipated material change in the daily quantity of gas Buyer desires to

deliver or to cause to be delivered to Operator for transportation under

Operator's Rate Schedules. If an unanticipated or a force majeure event causes a

material change in the quantity of gas Buyer will deliver or cause to be

delivered to Operator for transportation, Buyer shall notify or cause Operator

to be notified as soon as possible after occurrence of that event. In the event

of such material changes, Buyer shall tender or cause to be tendered to Operator

such estimated daily quantities at flow rates as close as possible to uniform

hourly rates. Departures by Buyer from the daily quantities that it has notified

Operator it intends to tender to Operator under a Rate Schedule shall be kept to

a minimum and in no event shall exceed the amount permitted by operating

conditions.