Cove Point LNG Limited Partnership

Second Revised Volume No. 1

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Effective Date: 06/14/2000, Docket: RP00-437-000, Status: Effective

First Revised Sheet No. 132 First Revised Sheet No. 132 : Effective

Superseding: Original Sheet No. 132

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

10. RELEASE AND ASSIGNMENT OF SERVICE RIGHTS (Continued)

 

(i) Billing.

 

(1) For all assignments, Operator, in accordance with the terms of this Tariff, shall

bill (i) the Releasor for the full reservation charge and any applicable

reservation related surcharges for which Releasor is otherwise obligated to

Operator, less the reservation charge bid by Releasor's Assignee or, when such

Assignee is paying the reservation charge pursuant to a bid volumetric rate, the

portion of the total volumetric charge to be paid by Releasor's Assignee during

the applicable billing period which is attributable to the bid volumetric rate,

and (ii) the Assignee for (A) the reservation charge bid by that Assignee, (B)

all commodity charges, or all payments under one-part volumetric rates, and any

minimum volumetric commitment agreed to but not met by the Assignee, (C) demand

and commodity surcharges, and (D) any penalties or imbalance correction costs, as

any of these charges may change from time to time upon approval of the

Commission. Assignee may, upon notice to Operator, appoint Releasor as its agent

to receive such billings from Operator. The charges shall be pro-rated for a

billing month if necessary.

 

(2) For all assignments of service rights, regardless of which party Operator bills,

Releasor shall remain ultimately responsible to Operator for full payment of the

reservation charge and the demand surcharges (including any changes in those

charges with Commission approval) called for under Releasor's original Service

Agreement with Operator. Upon payment by Assignee to Operator of any unpaid

reservation charges, any claims Releasor may have shall be subordinated to those

of Operator.

 

(3) Releasor shall have the right, if stated as a condition in its Release Notice, to

require Assignee to (i) prepay or post a bond for up to two (2) month's demand

and commodity charges, or (ii) provide other reasonable surety of performance,

if, in Releasor's reasonable judgment, Assignee is uncreditworthy.

 

(4) In the event that an Assignee (including a Secondary Assignee) fails to pay

Operator's invoice relating to the released capacity, Operator shall within five

(5) business days provide the Releasor (the most recent Releasor, where the

capacity has been secondarily assigned) with written or telephonic notice of such

nonpayment, Releasor may immediately recall the assigned capacity upon 24-hour

notice to Assignee unless within such period Assignee pays in full the

outstanding indebtedness, together with accrued interest at the Commission

approved interest rate, and furnishes adequate assurance of payment to Releasor

if required by Releasor.

 

(j) Refunds. The original Releasor of any capacity shall receive from Operator any

reservation charge-related refunds associated with assigned capacity. The Assignee

holding the assigned right to service at the time shall receive from Operator its

share of any commodity charge-related refunds associated with the assigned capacity.

Such commodity charge refunds will be made by Operator directly to Assignee or

indirectly through the Releasor if Assignee has appointed Releasor as its agent for

billings pursuant to Section 11(i)(l) above. 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. The rate paid

in any capacity release transaction not subject to the maximum rate ceiling will not

be subject to refund.

 

(k) Fees. Operator shall not charge a fee for posting of a Release Notice or a Request to

Purchase on its EBB. Operator shall be entitled to charge a reasonable fee if

Releasor and Operator agree that Operator shall receive a fee for actively marketing

the capacity Releasor seeks to release.