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
Second Revised Sheet No. 131 Second Revised Sheet No. 131 : Effective
Superseding: First Revised Sheet No. 131
GENERAL TERMS AND CONDITIONS
10. RELEASE AND ASSIGNMENT OF SERVICE RIGHTS (Continued)
(g) Recall; Reassignment of Assigned Service Rights.
(1) Agreements Subject to Recall. Releasors shall be permitted to specify as a
condition for releasing capacity the right to recall that assigned capacity upon
notice to Operator and Assignee. Any such recall provision must be included in
the Release Notice originally submitted by Releasor and in the Service Agreement
executed following assignment of the capacity. Releasors may, to the extent
permitted as a condition of the capacity release, recall released capacity
(scheduled or unscheduled) at the Timely Nomination Cycle and the Evening
Nomination Cycle, and recall unscheduled released capacity at the Intra-Day 1 and
Intra-Day 2 Nomination Cycles by providing notice to Operator by the following
times for each cycle: 8:00 a.m. CCT for the Timely Nomination Cycle; 5:00 p.m.
CCT for the Evening Nomination Cycle; 8:00 a.m. CCT for the Intra-Day 1
Nomination Cycle; and 3:00 p.m. CCT for the Intra-Day 2 Nomination Cycle.
Notification to Assignee will be provided by Operator within one hour of receipt
of recall information. Assignee shall be permitted to make secondary assignments
of all or any part of the capacity contained in its Service Agreement that is
subject to Releasor's right to recall, unless prohibited by the Releasor,
provided, however, that the second assignment shall not vary the recall
provisions contained in the original assignment.
(2) Conditions and Limitations of Reassignment. An Assignee that desires to release
some or all of its assigned capacity (Assignee/Secondary Releasor) may release
and reassign all or a portion of the assigned capacity to other parties
(Secondary Assignees) if the original assignment is not subject to recall by the
original Releasor, as described in paragraph (1) immediately above. Any such
reassignment must satisfy all of the posting, bidding and notice requirements set
forth in this Section, and any Secondary Assignee must satisfy all of the
creditworthiness and other requirements set forth in this Section. No limitation
unless prohibitied by the Releasor shall be placed on the number of times service
rights may be reassigned, provided, however, that an Assignee/Secondary Releasor
may not assign rights any greater than the rights it received pursuant to the
earlier assignment, and may not place any unreasonable or discriminatory
conditions on such assignments. An Assignment Agreement that contains a
volumetric rate to be paid by the Assignee for firm capacity may not be released
and reassigned by the Assignee.
(h) Transfer of LNG Inventory.
(1) If an assignment of capacity is made under Rate Schedule LTD-1, FPS-1, FPS-2 or
FPS-3, the Releasor shall, contemporaneously with the assignment of capacity,
transfer to the Assignee any LNG then being held in storage for the account of
the Releasor or, if only a portion of the Releasor's capacity is assigned,
Releasor shall assign to the Assignee a proportionate portion of its LNG
inventory in excess of its retained storage capacity. All assignments of LNG
shall be pursuant to Section 11 (Inventory Transfers) of the General Terms and
(2) In the event of an assignment of capacity under Rate Schedule LTD-1, FPS-1, FPS-2
or FPS-3 requiring the transfer of LNG inventory to the Assignee, the requirement
of such a transfer shall be included in the EBB posting and Releasor may
designate a minimum price for the inventory to be transferred.