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
First Revised Sheet No. 133 First Revised Sheet No. 133 : Effective
Superseding: Original Sheet No. 133
GENERAL TERMS AND CONDITIONS
11. LNG INVENTORY TRANSFERS AMONG BUYERS
(a) Transfers. Upon receiving the approval of Operator, a Buyer may transfer LNG
inventory under its Rate Schedule LTD-1, LTD-2, FPS-1, FPS-2 or FPS-3 to a different
Buyer's account under Operator's Rate Schedule LTD-1, LTD-2, FPS-1, FPS-2 or FPS-3, if
such other Buyer agrees in writing to the transfer.
(b) Requests to Transfer; LNG Inventory Transfer Form. Operator will, upon a Buyer's
request, post an announcement of Buyer's desire to transfer inventory, but Buyer shall
remain responsible for making all arrangements effecting the proposed transfer. To
request an inventory transfer, the Transferor and Transferee Buyers shall send a
completed Inventory Transfer Form (in the form included under Miscellaneous Forms in
this Tariff) via fax or mail to Operator. Within two business days of Operator's
receipt of a completed and executed Inventory Transfer Form, Operator shall notify the
Buyers listed on that completed and executed Inventory Transfer Form of Operator's
acceptance or rejection pursuant to Section 11(c) below of the proposed transfer.
Transfers shall be effective upon Operator's notice of acceptance. Retroactive
transfers shall not be permitted.
(c) Rejection by Operator. Operator may reject any proposed transfer under this Section
11 if it determines that such transfer cannot be accommodated: (i) without
diminishing Operator's ability to provide firm service to any Buyer; (ii) without
increasing Operator's firm service obligations; (iii) because the LNG sought to be
transferred is not available in Buyer's account; (iv) because of an imbalance status
of the transferor's and transferee's accounts, as reflected in Operator's records; or
(v) because the requested transfer is retroactive.
The penalties set forth in this Section apply to all Operator's Rate Schedules, unless
otherwise indicated in this Section or in individual Rate Schedules.
(a) Takes in Excess of Scheduled Daily Quantity under Rate Schedules LTD-1, LTD-2, FTS and
ITS. If Buyer's takes under Rate Schedules FTS or ITS on any day exceed the Hourly
Scheduled Quantity (the Hourly Scheduled Quantity being defined as the Scheduled Daily
Delivery Quantity divided by twenty-four (24)) during any hour by at least 20,000 Dth
and/or exceed the Scheduled Daily Delivery Quantity by at least 20,000 Dth, Operator
shall assess a penalty of $5.00 per Dth on all quantities in excess of the Hourly
Scheduled Quantity each hour and/or the Scheduled Daily Delivery Quantity.
(b) Failure to Interrupt Service. If Buyer fails to interrupt service as directed by
Operator pursuant to Section 16 (Interruptions of Service) of the General Terms and
Conditions, and thereby delivers gas to or takes gas from Operator in excess of 103
percent of the sum of the lowered Scheduled Daily Receipt Quantity or lowered
Scheduled Daily Delivery Quantity established under Rate Schedules LTD-1, LTD-2, FTS,
ITS, FPS-1, FPS-2 or FPS-3 by Operator's interruption order, Buyer shall be assessed
and pay penalties of $5.00 per Dth on all quantities taken or delivered in excess of
one hundred three percent (103%) of its reduced Scheduled Daily Receipt Quantity or
reduced Scheduled Daily Delivery Quantity.