Cove Point LNG Limited Partnership

Second Revised Volume No. 1

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Effective Date: 06/14/2000, Docket: RP00-389-000, Status: Effective

Original Sheet No. 138 Original Sheet No. 138 : Effective

 

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

15. CAPACITY AND IMBALANCE ALLOCATIONS (Continued)

 

(d) (1) Except as prescribed in Section 15(a)of the General Terms and Conditions, if

confirming parties cannot agree upon an allocation methodology, "pro rata based

upon confirmed nominations" shall be used as the default method.

 

(2) Operator may negotiate and enter into OBA's with interstate pipelines, intrastate

pipelines and other entities. No Difference balanced in-kind shall be allocated

to any Buyer at the receipt or delivery points covered by the OBA. If an

interstate pipeline charges Operator for Differences in the OBA, however

characterized, Operator shall charge such interstate pipeline an equivalent and

offsetting charge. If Operator is unable to charge or collect such equivalent

and offsetting charges for such Differences, Operator, on an as-billed basis,

shall allocate and bill such charges to Buyers responsible for the imbalance at

the point of interconnection at which the Difference giving rise to the charges

occurred.

 

(3) Where an OBA exists between interconnecting parties, a PDA is not necessary.

 

(4) Changes to a PDA may be made prospectively during the Month if such changes are

approved by Operator. Only one PDA may be submitted per Gas Day. Operator may

in its reasonable discretion make retroactive reallocations of transactions to

correct for errors. Otherwise, no retroactive reallocations of any transactions

shall be permitted without the approval of Operator and the agreement of those

Buyers with Service Agreements affected by such retroactive reallocations,

provided that the agreement by such affected Buyers shall not be unreasonably

withheld.

 

(5) PDA's shall remain in effect until a replacement PDA is received from the

interconnecting operator or upstream title holder; provided, however, PDA's shall

be updated at the beginning of each Month or as needed during a Month as Buyers'

nominations change.

 

(6) If the PDA is provided using EDI, Operator shall respond with an EDI confirmation

indicating receipt of the PDA within 15 minutes, and whether there are any errors

associated with the PDA.

 

(e) Prior Period Adjustments. Except for minor variations as agreed to by Operator and

Buyer, prior period measurement adjustments will be taken back to the Month during

which such gas flowed and reflected as such on invoices, imbalance statements and

allocation statements. A meter adjustment becomes a prior period adjustment after the

fifth business day following the business month. Measurement corrections shall be

processed within 6 Months of the end of the flow Month, within a 3 Month rebuttal

period. This provision does not apply in cases of deliberate omission, or

misrepresentation, or mutual mistake of fact. No Party's other statutory or

contractual rights are affected by this provision.