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

Third Revised Sheet No. 139 Third Revised Sheet No. 139 : Effective

Superseding: Second Revised Sheet No. 139

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

15. CAPACITY AND IMBALANCE ALLOCATIONS (Continued)

 

(f) Disputed Allocations. Disputed allocations shall be communicated to Operator within 6

Months of the initial Month-end allocation, with a 3 Month rebuttal period. This time

limitation shall not apply in the case of deliberate omission or misrepresentation, or

mutual mistake of fact. No Party's other statutory or contractual rights are affected

by this provision.

 

(g) Monitoring. For operational monitoring at electronically measured locations,

allocated quantities shall be available the next Business Day after the gas has flowed

at the end of the Gas Day. The scheduled quantity shall be made available at

locations which are not measured electronically. The party receiving nominations

shall provide allocation statements to the appropriate party for the meters it

operates each Month. Measurement data available upstream of any aggregation point

should be sent to the allocating party and used to allocate the aggregate volume back

to the upstream points.

 

(h) Imbalance Netting and Trading. All of Buyer's imbalances including any prior period

adjustments will be netted across rate schedules at the end of each month. Trading of

the previous month's netted imbalances will be allowed between Buyers from the 1st

calendar day until the end of the 17th business day following the end of the month.

Trading will be allowed when the resulting trade will reduce the imbalances for each

Buyer. Netting and trading shall be provided to Buyers at no charge.

 

(i) Third Party Imbalance Management Service. Operator will not discriminate against

third party imbalance management service providers.

 

16. INTERRUPTIONS OF SERVICE

 

Interruptions of service for purposes of this Tariff (i) shall include but not be limited to

decreasing, suspending, or discontinuing the discharging of LNG or receipt or delivery of

Natural Gas, and (ii) shall be effected by Operator in accordance with the provisions of

this Section.

 

(a) Interruptions of Firm Services.

 

(1) If due to force majeure, routine maintenance, modifications, tests or repairs to

Operator's facilities or the need to protect the integrity or performance

capability of its facilities, the available capacity in Operator's facilities or

a portion thereof is temporarily insufficient to meet all of Operator's

authorized firm services on any day, then Operator, upon providing as much notice

as possible, shall interrupt all such services in accordance with the priorities

set forth at Section 16(d) below. Operator will specify in interruption orders

issued pursuant to this Section the: (i) date and time by which Buyer must

comply; and (ii) the revised quantity (if any) authorized to flow (Lowered

Quantity). Operator will make every effort to schedule routine maintenance so

that its firm delivery obligations under Rate Schedule FPS-1, FPS-2 and FPS-3 can

be met during the Withdrawal Season.

 

(2) Where Operator's ability to render service is impaired in a particular portion of

Operator's facilities, interruptions of firm services shall be effected, in

accordance with Section 16(a)(1) above, only for those Buyers served through the

portion(s) of Operator's facilities in which service has been impaired.

 

(3) A Buyer that fails to interrupt its firm service as directed by Operator shall be

subject to penalties as set forth at Section 12 (Penalties) of the General Terms

and Conditions.