Cove Point LNG Limited Partnership

Second Revised Volume No. 1

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Effective Date: 07/01/2002, Docket: RP00-486-001, Status: Effective

Second Revised Sheet No. 126 Second Revised Sheet No. 126 : Effective

Superseding: First Revised Sheet No. 126

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

10. RELEASE AND ASSIGNMENT OF SERVICE RIGHTS (Continued)

 

(a) (2) (vii) whether Releasor will accept contingent bids for the capacity being

released and, if so, all terms and conditions of acceptable contingencies

including the manner in which such contingent bids will be evaluated;

 

(viii) the maximum reservation charge (including demand-type surcharges)

applicable to the capacity being released but, pursuant to 18 C.F.R

Section 284.8(i) of the Commission's regulations, until September 30,

2002, the maximum rate ceiling does not apply to capacity release

transactions of less than one year, and the rate paid in any capacity

release transaction not subject to the maximum rate ceiling will not be

subject to refund;

 

(ix) the date and time of (i) the posting of the release notice on Operator's

EBB, and (ii) the close of the bidding for the released capacity;

 

(x) whether the Releasor has a prepackaged arrangement to assign the service

to a specified Assignee;

 

(xi) objective criteria for evaluating responsive bids by potential Assignees,

including a statement as to whether contingent bids will be accepted,

and, if so, how such bids will be evaluated;

 

(xii) the name, telephone number, and facsimile machine number of Releasor's

designated contact person;

 

(xiii) whether bids for the released firm capacity are to be on the basis of a

two-part or a one-part volumetric rate. All Assignees, whether bidding

for firm capacity on the basis of a reservation charge or a volumetric

rate, shall be responsible, in addition to its bid reservation charge or

volumetric rate, for all commodity charges, commodity surcharges and any

penalty or imbalance costs incurred by the Assignee;

 

(xiv) whether bids for the released capacity are to be submitted on a fixed

dollars and cents amount or on a percentage basis;

 

(xv) whether the release is subject to an indemnification provision pursuant

to which the initial Assignee indemnifies Releasor against any claims by

successive Assignees relating to refunds (where Releasor has provided

correctly calculated refunds to the initial Assignee), and all terms of

any such indemnification provision.

 

Releasor at any time may withdraw its posting for release and capacity by

placing a notice of withdrawal on Operator's EBB; and

 

(xvi) Length of time for a pre-arranged Assignee to match the terms and

conditions of the best bid.

 

(3) Evaluating Criteria. Operator shall evaluate bids submitted for capacity offered

for release based on the best bid first utilizing the methodology chosen by

Releasor, including (1) highest rate, (2) net revenue, (3) present value, or (4)

Other. Releasor, upon choosing "Other", must establish alternative,

nondiscriminatory criteria for evaluating bids. Should Releasor choose "Other"

as the method of evaluation, Operator shall not be required to meet the

timelines outlined in Section 10(b)(3) of the General Terms and Conditions.

Releasor shall include all such alternative evaluation criteria in the Release

Notice to be posted on Operator's EBB. When multiple bids meeting minimum

conditions are received, Operator shall award capacity, best bid first, until

all offered capacity is awarded.