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

Third Revised Sheet No. 127 Third Revised Sheet No. 127 : Effective

Superseding: Second Revised Sheet No. 127

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

10. RELEASE AND ASSIGNMENT OF SERVICE RIGHTS (Continued)

 

(a) (4) At any time up to the close of the bidding period for the posted capacity,

Releasor may withdraw its posting for release of capacity if Releasor itself has

an unanticipated use for the capacity and no minimum bid has been made. Such a

withdrawal shall be effected by Releasor placing a notice of withdrawal on

Operator's EBB. Offers will be binding until a notice of withdrawal is received.

 

(b) Posting.

 

Posting of Release Notices on Operator's EBB shall be complete and subject to the

conditions and exceptions set forth below.

 

(1) Exempt Transactions. Posting for purposes of inviting bids shall not be required

for (i) prepackaged Rate Schedule FTS arrangements Releasor has arranged with a

designated Assignee for a period of 31 days or less; or (ii) prepackaged Rate

Schedules LTD-1, FPS-1, FPS-2, FPS-3 and FTS arrangements that Releasor has

arranged with a designated Assignee under which the designated Assignee agrees to

pay the maximum rate under such Rate Schedule(s) and meets all requirements set

forth in this Tariff (collectively "exempt transactions"). The rate received by

Releasor under such prearranged transactions exempt from the ordinary posting and

competitive bidding procedures otherwise set forth in this Section must not

exceed the applicable maximum rate under any such Rate Schedule(s) established in

this Tariff filed with the Commission. 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. In

addition, until September 30, 2002, capacity release transactions with terms of

greater than 31 days and less than one year must be posted for bidding regardless

of rate paid.

 

(2) Limitations on Continuation of Exempt Transactions. Except as provided below, a

Releasor that has employed an exempt transaction to assign service to a

designated assignee for a period of 31 days or less, as described in Section

10.b(1) above: (i) shall not roll over, extend, or otherwise continue that

release beyond its original term without complying with the posting and

competitive bidding requirements applicable to all non-exempt transactions, as

set forth in this Section; and (ii) shall not re-release to the same assignee for

28 days after termination of the earlier release period without fully complying

with the ordinary posting and competitive bidding requirements applicable to all

non-exempt transactions, as set forth in this Section. Prearranged releases at

the maximum rate under Rate Schedules LTD-1, FPS-1, FPS-2, FPS-3 and FTS, meeting

all other items and conditions of the release, may be rolled over from month to

month. Any release of 31 days or less may not be rolled over, extended or in any

way continued without being subject to posting and competitive bidding regardless

of rate paid.