Dominion Cove Point LNG, LP
Original Volume No. 1
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Effective Date: 03/01/2009, Docket: RP09-293-000, Status: Effective
Third Revised Sheet No. 246 Third Revised Sheet No. 246
Superseding: Second Revised Sheet No. 246
GENERAL TERMS AND CONDITIONS
10. RELEASE AND ASSIGNMENT OF SERVICE RIGHTS (Continued)
(1) Operator must contract directly with the bidders who make the best bids, as
determined above. Subject to agreement by the winning bidders to pay at least the
maximum applicable usage and fuel charges, Operator must accept the bids and
contract to provide the released capacity to the winning bidders, by executing the
winning bidders' Bid agreements upon award of the winning bids. Such executed Bid
agreement shall become an Exhibit to the Bid for Capacity Release agreement between
each winning bidder, as Replacement Customer, and Operator. Replacement Customer,
like any other Customer, shall be subject to all applicable provisions of
Operator's FERC Gas Tariff.
(2) Unless Operator expressly agrees otherwise, Releasing Customer's Service Agreement
with Operator shall remain in effect until the normal expiration of the contract
term, notwithstanding any capacity release transaction.
(i) Releasing Customer shall remain liable on its contract with Operator, and
shall pay all applicable reservation charges, and related surcharges and
interest, for released capacity, directly to Operator; provided, however,
that Operator and Customer may, in connection with their agreement to a
Negotiated Rate, agree upon Releasing Customer payment obligations and
procedures and crediting mechanisms in the event of a capacity release that
varies from or has term in addition to those set forth herein. The
provisions of this Section 10.(d).(ii).(a) do not authorize Operator to
negotiate terms and conditions of service. In the case of permanent
releases, Operator will not unreasonably refuse to relieve Releasing
Customer from liability under its Service Agreement.
(ii) Unless otherwise agreed under Section 10.(e).(3) below, Releasing Customer
will receive a contingent credit for reservation charges and associated
surcharges actually paid to and received by Operator, attributable to
capacity rights released by Releasing Customer.
a. Operator will grant Releasing Customer a contingent credit for the
reservation charges and reservation-related surcharges attributable to
capacity rights released by such customer. In the event Operator is not
paid the applicable reservation charges for the released capacity,
Operator shall have the right to reverse such contingent credit and to
charge applicable interest to Releasing Customer.
b. Operator will fully credit Releasing Customer for Reservation Charges
and reservation-related surcharges paid by the Replacement Customer,
even if such revenues exceed the rate contractually payable by Releasing
Customer for the released capacity.
c. Reservation Charge credits to Releasing Customer will be reduced by any
marketing fees applicable to releases in which Operator actively markets
the capacity, as negotiated between Operator and Releasing Customer.
d. In the event of partial payments by Replacement Customer, funds will
first be used to pay reservation charges and related surcharges, whether
owed to Operator or to Releasing Customer.