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. 135A First Revised Sheet No. 135A : Effective

Superseding: Original Sheet No. 135A

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

13. DISCOUNTING (Continued)

 

(c) (iii) (Continued)

 

If a Buyer has previously submitted a request to retain its discount at an

alternate point, and Operator has determined that Buyer may not retain its

discount at such point, then Operator need not respond to repeated requests by

the Buyer to retain its discount at the same alternate point, unless Operator's

determination has changed to allow Buyer to retain its discount.

 

(iv) Applicable Rate When Discount is Retained: A Buyer retaining its discount at

an alternate point shall pay the higher of its contractual discounted rate or

the discount rate being offered at the alternate point. If Operator ceases to

offer a discount in a similarly situated transaction at the alternate point,

then Buyer shall revert to the maximum rate.

 

 

14. FORCE MAJEURE

 

(a) Definition. The term "force majeure" means any event or condition or combination of

events and/or conditions which prevents, hinders, or delays the performance of any

obligation, in whole or in part, under the applicable Service Agreement, Rate Schedule

or these General Terms and Conditions, which is not within the reasonable control of

the party claiming suspension by reason of force majeure and which the party claiming

suspension is unable to prevent or overcome by the exercise of due diligence. Such

events or conditions, provided that the foregoing requirements are met, include, but

are not defined by or limited to, acts of God, strikes, lockouts, acts of a public

enemy, acts of sabotage, wars, blockades, insurrections, riots, epidemics, landslides,

subsidence, earthquakes, fires, hurricanes, storms, tornadoes, storm warnings, floods,

washouts, civil disturbances, explosions, accidents, freezing of wells or pipelines,

partial or entire electronic, mechanical or physical failure that affects the ability

to transport gas or LNG by pipeline, or to operate treatment, liquefaction,

vaporization, storage or LNG tanker discharging facilities or the binding order of any

court, legislative body, or governmental authority. Failure by any party claiming

suspension to prevent or settle any strike or strikes shall not be considered to be an

event or condition within the control of such party.

 

(b) Effect. If either party to the applicable service agreement is rendered unable,

wholly or in part, by force majeure to carry out its obligations under the applicable

service agreement, then such party shall give notice and reasonably full particulars

of such force majeure in writing or by facsimile or telephone to the other party

within a reasonable time after it becomes aware of the occurrence of the force

majeure, and the obligations of such party, insofar as they are affected by such force

majeure, shall be suspended from the commencement of such force majeure through the

continuance of any inability so caused, but for no longer period, and such force

majeure shall so far as possible be remedied with all reasonable dispatch.

Notwithstanding the foregoing, no claim of force majeure of a party shall relieve such

party from its payment obligations under the applicable service agreement. If a party

is unable, wholly or in part, to render service to another party due to force majeure

the party not receiving service shall be relieved of any payment obligation to the

extent and for so long as it is not receiving service.