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. 150 First Revised Sheet No. 150 : Effective

Superseding: Original Sheet No. 150

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

20. CONSTRUCTION OF FACILITIES

 

(a) Arrangement for Construction of Receipt and Delivery Facilities. Subject to

conditions specified in this Section 20, Operator will construct or provide facilities

necessary for the receipt and delivery of Natural Gas or LNG into its system if

Operator determines (i) that no undue burden will thereby be placed upon Operator, and

(ii) that no impairment of Operator's ability to render adequate service to its

customers will result therefrom; and provided that Operator first is able to obtain

all necessary governmental and other authorizations.

 

(b) Method of Payment. In the event Operator constructs facilities at the request of

Buyer, Buyer shall pay Operator for the costs of such facilities in a manner agreed to

in writing by Buyer and Operator in advance of construction of any such facilities.

Such methods of payment may include, but shall not be limited to, a lump sum payment

covering all the costs of such facilities, including income tax gross-up and

applicable operation and maintenance.

 

(c) Construction of Other Facilities. Operator in its sole discretion may construct other

facilities in accordance with the regulations of the Commission.

 

 

21. SCHEDULES AND CONTRACTS SUBJECT TO REGULATION AND REVISION

 

(a) Subject to Regulation. This Tariff, including the Rate Schedules, the General Terms

and Conditions, and the respective obligations of the parties under the Service

Agreements and assignment Agreements, is subject to all valid laws, orders, rules, and

regulations of duly constituted authorities having jurisdiction.

 

(b) Subject to Revision. Unless otherwise specified in the Service Agreement, Operator

reserves the right from time to time to unilaterally file and to make effective

revisions in the terms or rate levels (to the extent they are stated rates on file

with the Commission and not negotiated based upon market conditions) of its Rate

Schedules and the applicability thereof, the General Terms and Conditions or any other

provisions of Operator's Tariff, subject to the applicable provisions of the Natural

Gas Act and the Commission's Regulations thereunder.