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

Third Revised Sheet No. 129 Third Revised Sheet No. 129 : Effective

Superseding: Second Revised Sheet No. 129

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

10. RELEASE AND ASSIGNMENT OF SERVICE RIGHTS (Continued)

 

(c) (5) Releasors that have multiple Service Agreements with Operator may post Release

Notices for capacity under such Service Agreements with a "Stand-Alone" or "Not

Stand Alone" indicator. Potential Assignees must submit bids on all parcels that

"Stand Together".

 

(6) Bids shall not exceed any maximum rate or be less than any minimum rate permitted

by the Commission for the released services. Bids for firm capacity offered at a

volumetric rate shall not exceed any applicable maximum reservation charge, which

determination shall be made by converting the reservation charge to a volumetric

rate at a one hundred percent (100%) load factor. 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.

 

(7) Bids are binding, other than contingent bids, until written or electronic notice

of withdrawal is received. Bids may be withdrawn before the close of the bidding

period.

 

(d) Evaluation of Bids and Assigning Service Rights.

 

(1) Operator shall perform the evaluation of bids in accordance with the criteria

specified in the Release Notice and shall determine which, if any, bids to

accept.

 

(2) In the absence of any such Releasor-developed alternative criteria to the

contrary, as specified in Releasor's Release Notice, bids shall be evaluated and

rights to released capacity assigned by Operator in accordance with the bid

evaluation criteria referenced at Section 10(a)(3).

 

(3) Where Releasor has posted a prepackaged arrangement, the designated Assignee

under that arrangement will be awarded the capacity if, within the time limit

specified in Section 10(b)(3) immediately above, that designated Assignee matches

the highest competing bid(s).