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

Second Revised Sheet No. 131 Second Revised Sheet No. 131 : Effective

Superseding: First Revised Sheet No. 131

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

10. RELEASE AND ASSIGNMENT OF SERVICE RIGHTS (Continued)

 

(g) Recall; Reassignment of Assigned Service Rights.

 

(1) Agreements Subject to Recall. Releasors shall be permitted to specify as a

condition for releasing capacity the right to recall that assigned capacity upon

notice to Operator and Assignee. Any such recall provision must be included in

the Release Notice originally submitted by Releasor and in the Service Agreement

executed following assignment of the capacity. Releasors may, to the extent

permitted as a condition of the capacity release, recall released capacity

(scheduled or unscheduled) at the Timely Nomination Cycle and the Evening

Nomination Cycle, and recall unscheduled released capacity at the Intra-Day 1 and

Intra-Day 2 Nomination Cycles by providing notice to Operator by the following

times for each cycle: 8:00 a.m. CCT for the Timely Nomination Cycle; 5:00 p.m.

CCT for the Evening Nomination Cycle; 8:00 a.m. CCT for the Intra-Day 1

Nomination Cycle; and 3:00 p.m. CCT for the Intra-Day 2 Nomination Cycle.

Notification to Assignee will be provided by Operator within one hour of receipt

of recall information. Assignee shall be permitted to make secondary assignments

of all or any part of the capacity contained in its Service Agreement that is

subject to Releasor's right to recall, unless prohibited by the Releasor,

provided, however, that the second assignment shall not vary the recall

provisions contained in the original assignment.

 

(2) Conditions and Limitations of Reassignment. An Assignee that desires to release

some or all of its assigned capacity (Assignee/Secondary Releasor) may release

and reassign all or a portion of the assigned capacity to other parties

(Secondary Assignees) if the original assignment is not subject to recall by the

original Releasor, as described in paragraph (1) immediately above. Any such

reassignment must satisfy all of the posting, bidding and notice requirements set

forth in this Section, and any Secondary Assignee must satisfy all of the

creditworthiness and other requirements set forth in this Section. No limitation

unless prohibitied by the Releasor shall be placed on the number of times service

rights may be reassigned, provided, however, that an Assignee/Secondary Releasor

may not assign rights any greater than the rights it received pursuant to the

earlier assignment, and may not place any unreasonable or discriminatory

conditions on such assignments. An Assignment Agreement that contains a

volumetric rate to be paid by the Assignee for firm capacity may not be released

and reassigned by the Assignee.

 

(h) Transfer of LNG Inventory.

 

(1) If an assignment of capacity is made under Rate Schedule LTD-1, FPS-1, FPS-2 or

FPS-3, the Releasor shall, contemporaneously with the assignment of capacity,

transfer to the Assignee any LNG then being held in storage for the account of

the Releasor or, if only a portion of the Releasor's capacity is assigned,

Releasor shall assign to the Assignee a proportionate portion of its LNG

inventory in excess of its retained storage capacity. All assignments of LNG

shall be pursuant to Section 11 (Inventory Transfers) of the General Terms and

Conditions.

 

(2) In the event of an assignment of capacity under Rate Schedule LTD-1, FPS-1, FPS-2

or FPS-3 requiring the transfer of LNG inventory to the Assignee, the requirement

of such a transfer shall be included in the EBB posting and Releasor may

designate a minimum price for the inventory to be transferred.