Dominion Cove Point LNG, LP
Original Volume No. 1
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Effective Date: 05/27/2005, Docket: RP05- 43-003, Status: Effective
Substitute First Revised Sheet No. 215 Substitute First Revised Sheet No. 215 : Effective
Superseding: Original Sheet No. 215
GENERAL TERMS AND CONDITIONS
4. BIDDING FOR AVAILABLE FIRM SERVICE (Continued)
(h) Termination of Long-Term Firm Service Agreements. If a long-term Service Agreement is
not continued by its own terms, by an extension, or by reason of the Buyer's exercise
of its right of first refusal, such long-term Service Agreement shall be subject to
pregranted abandonment unless otherwise specified in the Service Agreement and shall
terminate as specified therein and Operator shall have no further obligation to Buyer.
(i) New Long-Term Firm Service Agreements. If a new long-term Service Agreement is
executed pursuant to this Section, such Service Agreement shall be subject to
pregranted abandonment unless otherwise specified therein.
(j) Reserved Capacity. Operator may elect to reserve for future expansion projects any
unsubscribed capacity or capacity under expiring or terminating service agreements
where such agreements do not have a right of first refusal or Buyer does not exercise
its right of first refusal. If Operator elects to reserve capacity, it will notify
Buyers of its intent as part of Operator's posting under Section 4(a) (EBB Posting
Procedure) of the General Terms and Conditions. Capacity may be reserved for up to
one year prior to the Operator filing for certificate approval for construction of the
proposed expansion and thereafter until such expansion project is placed into service.
Reserved capacity will be made available on an interim basis and will be posted for
competitive bid in accordance with the applicable provisions of Section 4 of the
General Terms and Conditions.
(k) Notwithstanding anything to the contrary in this Tariff, Operator may agree with any
Buyer, on a not unduly discriminatory basis, to an extension of any long-term Service
Agreement, with such additional term to be negotiated on a case-by-case basis.
(l) Notwithstanding anything to the contrary in this Tariff, in the event that any Rate
Schedule FPS services are terminated, whether by (i) expiration of a service agreement
where Buyer and Operator have not agreed to an extension and Buyer elects not to
exercise its right of first refusal upon the expiration of the contractual term, or
(ii) turnback of Buyer's service rights under the Service Agreement, where Buyer and
Operator have mutually agreed to such turnback, the capacity that becomes available as
a result shall be dedicated to Rate Schedule LTD-1 service and allocated among the
LTD-1 Shippers in proportion to each such Shipper's firm MDDQ and included in such
Shipper's Service Agreement for the remainder of its term, and the applicable storage
ratios for Rate Schedule LTD-1 service will be modified accordingly. In the event of
such a reallocation of storage capacity, Operator will make a compliance filing for
the sole purpose of (i) placing into effect rates that will reflect a reallocation of
the total revenue responsibility associated with such relinquished Rate Schedule FPS
service (at the maximum effective rates), together with the associated storage and
transportation capacity, to Rate Schedule LTD-1 service, and (ii) revising
appropriately the storage ratios applicable to Rate Schedule LTD-1 service. This
Paragraph shall remain in effect for the term of the LTD-1 Service Agreements in
effect as of October 1, 2004, including any extensions of such Service Agreements.