Cove Point LNG Limited Partnership

Second Revised Volume No. 1

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Effective Date: 02/01/2001, Docket: RP01-177-000, Status: Effective

First Revised Sheet No. 112 First Revised Sheet No. 112 : Effective

Superseding: Original Sheet No. 112








(g) (ii) If Operator receives an offer for all or a portion of the service rights under

Buyer's long-term Service Agreement, Operator, within five (5) days after the

last day for receiving offers, shall notify Buyer through the EBB of the offer

having the greatest economic value to Operator. For purposes of comparing the

respective values of offers under this section, Operator shall evaluate all

bids in accordance with the criteria set forth above. If Buyer elects to match

the offer, Buyer shall notify Operator of such election through the EBB within

fifteen (15) days after receiving Operator's notice and shall execute a new

Service Agreement matching the offer prior to the termination of the existing

long-term Service Agreement. If no offers are received, Buyer may continue to

receive service on a month-to-month basis or for such other term agreed to by

Operator and Buyer, and at the maximum rate set forth in the applicable Rate



(h) Termination of Long-Term Firm Service Agreements. If a long-term Service Agreement is

not continued by its own terms 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.




(a) Form of Service Agreement. Buyer shall enter into a contract with Operator under

Operator's applicable standard Form of Service Agreement prior to receiving service

from Operator under any Rate Schedule. Buyers with new levels of service shall

execute a new Appendix to their Service Agreements indicating the new level of



(b) Term. The period of time covered by the Service Agreement (exclusive of Assignments

as provided under this Tariff) shall be determined by (i) agreement between the

parties, or (ii) the procedures set forth in Section 4, Bidding for Available Firm

Service, but shall not exceed a primary term of twenty (20) years and extensions from

year to year thereafter unless canceled by either party by providing six (6) months

prior notice to the other party. Where the Service Agreement supersedes or cancels an

existing Service Agreement, however, Operator may require that the term of the Service

Agreement shall be not less than the unexpired portion of the term contained in the

Service Agreement to be superseded or canceled.


(c) Quantity Obligations and Requirements. The quantities of gas to be transported,

injected, withdrawn or stored by Operator shall be set forth in the applicable Service