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

Original Sheet No. 18J Original Sheet No. 18J : Effective











5.4 Storage and Delivery of LNG


(a) Operator shall have the unqualified right to commingle LNG received and stored

hereunder with LNG from other sources and to treat and handle all such LNG as

its own. All receipts, storage and deliveries of LNG or Natural Gas hereunder

shall be made on a thermal equivalent basis with proper accounting of Boil-Off

and Retainage quantities as provided for herein. Buyer shall make no claim

arising from the fact that LNG or Natural Gas delivered by Operator to or for

Buyer's account may not consist of the same molecules as those molecules

contained in the LNG discharged from Buyer's LNG tanker.


(b) Buyer may transfer by sale or otherwise all or a portion of its LNG held in

Operator's tanks pursuant to the terms and conditions of Section 11 (LNG

Inventory Transfers Among Buyers) of the GT&C.


(c) Buyer's Liquefied Gas Balance shall be (1) increased for receipts by Operator

of Buyer's LNG (excluding Regasified LNG returning to Buyer's vessel(s) during

discharge of LNG), and (2) reduced by (i) the quantity delivered for Buyer's

account, including deliveries of Boil-Off; and (ii) Buyer's Retainage; or (3)

increased or reduced as applicable to account for inventory transfers under

Section 11 of the GT&C.


(d) Buyer shall make all necessary arrangements for the delivery of Buyer's share

of the Boil-Off on any Day, which share shall be the ratio of Buyer's beginning

of day Liquefied Gas Balance to the total quantity of LNG in Operator's tanks

attributable to Rate Schedule LTD-1 and LTD-2 Buyers.


(e) Balancing of actual quantities of LNG received, as adjusted for Retainage,

Boil-Off, LNG inventory transfers and vaporized LNG delivered, as adjusted for

Retainage, under this Rate Schedule shall be accomplished by adjustments to

Buyer's Liquefied Gas Balance.


(f) Unless otherwise agreed by Operator, within 120 days after a quantity of LNG is

discharged by Operator from an LNG tanker for Buyer's account, Buyer shall have

caused that quantity to have been vaporized and delivered pursuant to this Rate

Schedule and GT&C of this Tariff. If a Buyer fails to withdraw such LNG, then

Operator may, at its option, take title to such LNG free and clear of any

adverse claims, in which case Buyer shall indemnify Operator and hold it

harmless from all costs, damages and liabilities arising out of the failure of

Buyer to remove such LNG and all costs incurred for the disposal of such LNG by

Operator, including any charges resulting from the sale of LNG to which it

takes title hereunder. Operator shall extend the time available for Buyer to

remove its LNG from storage by one Day for every Day that Buyer is unable to

withdraw properly scheduled quantities due to force majeure, actions or

inactions of Operator or operating conditions invoked by Operator. The value

less any costs incurred by Operator to dispose of a particular Buyer's LNG

which Operator has taken title to under the provisions of Section 5.4(f) will

be allocated to the other LTD-1 Buyers annually, prorated based upon each such

Buyer's fixed cost contributions paid.