Cove Point LNG Limited Partnership

Second Revised Volume No. 1

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Effective Date: 06/01/2003, Docket: CP01- 76-004, Status: Effective

Substitute Second Revised Sheet No. 137 Substitute Second Revised Sheet No. 137 : Effective

Superseding: First Revised Sheet No. 137

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

15. CAPACITY AND IMBALANCE ALLOCATIONS (Continued)

 

(6) Sixth, among Buyers nominating Authorized Overrun Service under Rate Schedule

LTD-2.

 

(7) Seventh, among Buyers under Rate Schedule ITS with nominations for service

commencing other than on the first day of a month. Where such nominations exceed

the available capacity at the nominated Delivery or Receipt Point, Operator shall

allocate the available capacity as follows:

 

(i) to Buyers paying the highest rate up to the level of the quantities

flowing at that rate, on the date of the nomination;

 

(ii) then, to Buyers currently flowing Natural Gas at the given Delivery or

Receipt Point pro rated, if necessary, based upon the quantities flowing

for each Buyer at that point on the day preceding Operator's receipt of

the nomination;

 

(iii) then, to the remaining Buyers paying the same highest rate based upon the

order in which Operator received nominations from those Buyers;

 

(iv) then, equally to any remaining Buyers nominating quantities at the

relevant Delivery or Receipt Point.

 

(b) Delivery Point Allocation. If deliveries are made to a third party (that is not a

Buyer) for the accounts of multiple Buyers, the Difference shall be allocated pro rata

among all Buyers at that delivery point on the basis of those Buyer's Scheduled Daily

Delivery Quantities, unless, prior to the gas actually flowing, all affected Buyers at

that delivery point have agreed to a Predetermined Allocation Method (PDA) specifying

a different allocation methodology and such agreement is provided to Operator in

writing and approved by Operator. The party responsible for custody transfer (the

party performing the measurement function) should provide the allocation. Month-end

allocations shall be based on a measurement closing date of the fifth Business Day

after the Month. If actual quantities are not available, quantities will be estimated

by the Measuring Party. When actual data becomes available, it should be treated as a

prior period adjustment.

 

(c) Receipt Point Allocation. Differences at a receipt point shall be allocated pro rata

among all Buyers at that receipt point on the basis of the Scheduled Daily Receipt

Quantities, unless the upstream point operator providing the point confirmation

submits a PDA to the allocating party before the start of the Gas Day, and Operator

accepts the PDA. The party responsible for the custody transfer (the party performing

the measurement function) should provide the allocation.

 

(d) Predetermined Allocation Method (PDA). As used in this Section 15, a PDA is an

agreement by or among point operators, prior to the beginning of the Gas Day, at a

receipt or delivery point to allocate the difference between the scheduled daily

quantity and the actual daily flow of gas in a mutually agreeable manner. Types of

allocation methods include, but are not limited to, Rank, Pro Rata, Percentage, Swing

and Operator Provided Value. PDA's shall be provided by the interconnecting operator,

and for multi-tiered allocations, may be provided by the upstream titleholders or

shippers. Interconnecting operators at receipt locations shall provide a PDA to

allocate to upstream titleholders. Upstream titleholders may provide a PDA to

allocate to the parties taking possession of their gas at a receipt location. Buyers

may provide a PDA to allocate to their nominations or imbalances at either receipt or

delivery locations.