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

First Revised Sheet No. 130 First Revised Sheet No. 130 : Effective

Superseding: Original Sheet No. 130

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

10. RELEASE AND ASSIGNMENT OF SERVICE RIGHTS (Continued)

 

(d) (4) Where highest bids of equal value are received for released capacity from more

than one bidder, and there is no designated Assignee under a prepackaged

arrangement or the designated Assignee does not match the highest competing bids,

the capacity shall be assigned pro rata on the basis of the respective quantities

bid by the winning bidders. Bidders may specify in their bids the minimum

quantities they will accept. If a pro rata allocation would result in assignment

of quantities below a bidder's minimum quantity, any such bidder will not be

assigned the capacity, and the total quantity available for assignment will then

be re-allocated among the remaining highest value bidders on a pro rata basis

provided that the Releasor has failed to specify a tie-breaking method of its

own.

 

(e) Assignment Agreements.

 

(1) Operator and Assignee shall execute an Assignment Agreement in the form contained

in this Tariff that includes all terms and conditions of the release and

assignment.

 

(2) All releases and assignments pursuant to this Section shall have pregranted

abandonment authority.

 

(f) Implementation; Receipt and Delivery Points. Following acceptance of a bid for

assignment and execution of a Service Agreement, Operator will accept nominations or

requests for alternate receipt or delivery points for the assigned capacity.

Quantities flowing under assigned service rights shall have the same priority as those

quantities had under the applicable underlying service agreement originally entered

into by Releasor and Operator, and that priority shall be unaffected by whether or not

the assignment is subject to recall, as described in paragraph (g) below.