Dominion Cove Point LNG, LP

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index



Effective Date: 05/01/2007, Docket: RP07-368-001, Status: Effective

Substitute First Revised Sheet No. 282 Substitute First Revised Sheet No. 282 : Effective

Superseding: Substitute Original Sheet No. 282





28. Operational Sales and Purchases of Gas


(a) Operator may from time to time:


(i) sell Regasified LNG or other Natural Gas that it has retained or taken

title to pursuant to the terms of these General Terms and Conditions,

effective Rate Schedules, or Commission orders and that it desires to

remove from its system for operational reasons; or


(ii) purchase LNG or other Natural Gas for operational reasons consistent with

these General Terms and Conditions, effective Rate Schedules or Commission

orders; and


(iii) Operator may make operational sales and purchases: (1) to balance fuel and

lost and unaccounted for quantities; (2) to maintain system pressure and

line pack; (3) to manage imbalance quantities; (4) to perform other

operational functions of Operator in connection with transportation,

storage, and other similar services; and (5) otherwise to protect the

operational integrity of its system.


(b) Sales and/or purchases shall be made on an unbundled basis. The point of sale

shall be at the outlet of Operator's LNG plant and the purchaser of the Regasified

LNG or other Natural Gas shall be responsible for any transportation. The point of

any purchase shall be at Operator's Receipt Point(s), at the points of

interconnection with upstream pipelines prior to receipt into Operator's system or

in Operator's LNG storage tanks. Operational sales or purchases shall have a

lower transportation priority than firm service.


(c) Posting and Bidding:


(i) Prior to making any sales or purchases pursuant to this Section 28,

Operator shall post a notice on its EBB seeking bids for operational sales

or purchases. Operator's posting shall include at a minimum: (1) the

daily quantities to be sold or purchased and whether the quantities are

firm or interruptible; (2) the date(s) on which the quantities are to be

sold or purchased; (3) the point(s) of receipt or delivery; (4) the method

for communicating bids to Operator; and (5) any additional requirements as

determined by Operator.


(ii) Each bid shall contain the following information: (1) bidders legal name

and the name, title, address and phone number of the individual authorized

to sell or purchase LNG, Regasified LNG or Natural Gas; (2) bidders price;

(3) a completed bid form addressing all criteria requested by Operator in

its posting; (4) and any conditions on the bid submission.


(iii) Operator shall evaluate bids and shall award the purchase or sale to the

bidder having a bid containing the lowest price (if a purchase by

Operator) or the highest price (if a sale by Operator) and otherwise

matching the conditions set forth in the posting.


(iv) Operator reserves the right, in its sole discretion, (1) to withdraw its

posting; (2) reject all bids due to operational changes; and (3) reject

any bid that is not complete, contains modifications of the conditions set

forth in the posting or contains conditions that are unacceptable to



(d) Operator will file an annual report on or before August 1 of each year reflecting

the operational sales and purchases for the twelve month period ending the

preceding April 30. The report will state: (1) the source of the gas sold and/or

purchased; (2) the date of the sale and/or purchase; (3) the quantity sold or

purchased; (4) the unit price; (5) the revenues and costs from the sale or

purchase; and (6) the disposition of the associated costs and revenues.