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. 19F Original Sheet No. 19F : Effective










5.3 Port Facilities and LNG Discharging (Continued)


(f) Each LNG tanker shall be allowed a berth time of 32 hours for discharging a

cargo of LNG ("Berth Time"). Berth Time shall begin to run at the time the LNG

tanker is secure in berth at the Cove Point terminal and end at the time the

last line is released upon departure from the berth. Time shall not be counted

as Berth Time or wharfage if Operator's fault or failure of facilities in

discharging the LNG tanker delays the LNG tanker. Operator will provide Buyer

notice to depart if Buyer has failed to depart at the end of the 32 hours.

Should the then-noticed Buyer fail to act upon the notice to depart, Buyer shall

pay Operator a wharfage fee of $50,000 per day, prorated hourly, for the period

during which the LNG tanker remains at berth in excess of its Berth Time.

Wharfage fees collected from a Buyer will be credited to Rate Schedule LTD-1

Buyers monthly prorated based on each respective LTD-1 Buyer's actual fixed cost



(g) If an LNG tanker does not arrive at the Cove Point terminal as scheduled,

Operator shall perform the LNG discharging service at the first available time

when such service, including the scheduling, vaporization and delivery of LNG in

Operator's storage tanks, can be accomplished without detriment to any other

scheduled service; and, provided further, that all necessary modifications to

the affected Monthly and Annual Discharge Schedules have been agreed upon by all

affected parties. Buyer shall pay all costs incurred by Operator as a result of

its LNG tanker's failure to arrive at the Cove Point terminal as scheduled.


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 Boil-Off 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; (3) increased or

reduced as applicable to account for inventory transfers under Section 11 of the



(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.