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. 119 Original Sheet No. 119 : Effective
GENERAL TERMS AND CONDITIONS
(Continued)
6. OPERATING CONDITIONS (Continued)
(b) (8) Scheduling Under Individual Rate Schedules. To the extent that individual Rate
Schedules set forth nomination scheduling requirements inconsistent with the
requirements set forth in this Section, the applicable Rate Schedules are
controlling and Buyer shall satisfy the requirements set forth in those Rate
Schedules. To the extent that applicable Rate Schedules set forth scheduling
requirements in addition to, but not inconsistent with, the provisions of this
Section, Buyer shall satisfy the requirements of both the individual Rate
Schedules and this Section.
(c) Third Party Arrangements. Buyer shall be responsible for making all necessary
arrangements with third parties (i) at or upstream of the Receipt Points at which
Buyer tenders gas to Operator for transportation services, and (ii) downstream of
Delivery Points at which Operator delivers gas for the account of Buyer. Buyer shall
be responsible for (i) insuring that any such arrangements are consistent with the
terms and conditions of the applicable Rate Schedule under which it seeks to have
Operator provide services, and (ii) requiring such third parties to confirm all of
Buyer's nominations with Operator by telephone, by facsimile transmission or other
means acceptable to Operator and such other third party. Such third-party
arrangements shall be coordinated with Operator.
(d) Service Obligation. Operator shall not be required to perform any newly requested
service under any of its Rate Schedules if any of the facilities necessary to render
the requested service do not exist. In addition, Operator shall not be required to
undertake new services under any of its existing Rate Schedules during periods in
which facilities are scheduled for maintenance or repair or for other existing
conditions identified in Section 16 (Interruptions of Service) of this General Terms
and Conditions. Operator shall not be required to construct or reactivate facilities;
provided, however, that Buyer may request construction of facilities under the
provisions of Section 20 (Construction of Facilities) of the General Terms and
Conditions.
(e) Creditworthiness of Buyer.
(i) Subject to the provisions of subsections (ii) and (iii) below, Operator shall
not be required to perform or to continue to perform service on behalf of any
Buyer that (i) is or has become insolvent, (ii) has applied for bankruptcy
under Chapter 11 of the Bankruptcy Code or is subject to similar proceedings
under State or Federal Law, or (iii) fails, in Operator's reasonable judgment,
to demonstrate minimal creditworthiness for all or any part of the service
requested, based upon Operator's consideration of available credit data
concerning Buyer and Buyer's past payment history, financial statements, and
credit reports. Operator shall apply nondiscriminatory evaluation practices to
determine the acceptability of Buyer's overall financial condition.