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. 135 First Revised Sheet No. 135 : Effective

Superseding: Original Sheet No. 135

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

13. DISCOUNTING

 

(a) In General. Operator may at any time in its sole discretion selectively discount the

rate(s) applicable to any individual Buyer under any Rate Schedule set forth in this

Tariff; provided, however, that such discounted rate(s) shall not be less than the

Minimum Rate(s) for the applicable service as set forth in the currently-effective

rate sheets of this Tariff. If Operator discounts any rate to any Buyer, Operator

shall file with the Commission any required reports respecting such adjusted rate.

Operator and Buyer shall enter into a written agreement describing the terms of any

such discounting of Buyer's rate(s).

 

(b) Allocation or Interruption. To the extent that Operator allocates or interrupts

service rights based upon price, as set forth in Section 15 (Capacity Allocation) and

Section 16 (Interruptions of Service) of the General Terms and Conditions, the price

used by Operator for such purposes, where rates for service have been discounted by

Operator, shall be Buyer's discounted rate for the service.

 

(c) Portability of Discounts

 

(i) Rebuttable Presumption: A Buyer holding a discount at a specific point or

points may retain a discounted rate if it chooses to use an alternate point

(whether through segmentation, capacity release or its own exercise of flexible

receipt and delivery point rights), pursuant to the procedures set forth

herein, if Operator has granted a discount to a similarly situated transaction

at the alternate point.

 

(ii) Request Required to Retain Discount at Alternate Point: In order to retain its

discount at such an alternate point not expressly provided for in its discount

agreement, Buyer must submit a timely request to retain its discount prior to a

nomination to use the alternate point (whether through segmentation, capacity

release or its own exercise of flexible receipt and delivery point rights). A

request is timely if it is submitted at least two hours before the applicable

nomination deadline. Operator will process such request and determine whether

Buyer may retain its discount within two hours of receipt of the request,

provided, however, that it will act on overnight requests to retain discounts

(relating to nominations after the 6:00 p.m. Evening Nomination) by no later

than 8:30 a.m. CCT the next morning. Requests to retain discounts must be

submitted by telephone.

 

(iii) Determination by Operator: Operator shall make a determination in response to

the request to retain a discount at an alternate point as follows:

 

(1) If Operator is not providing a discount in another transaction at the

alternate point, then Buyer shall not retain its discount.

 

(2) If Operator is providing a discount in another transaction at the

alternate point, then Buyer shall retain its discount to the extent

provided in Section (iv) below, unless Operator determines that Buyer is

not similarly situated to the other transaction(s) receiving a discount at

the alternate point.

 

(3) If Operator is providing a discount in another transaction at the

alternate point, but that transaction is determined not to be similarly

situated to Buyer, then Buyer shall not retain its discount.