Southern LNG Inc.

Original Volume No. 1

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Effective Date: 12/01/2001, Docket: CP99-582-005, Status: Effective

Substitute Original Sheet No. 20 Substitute Original Sheet No. 20 : Effective

Superseding: Original Sheet No. 20

RATE SCHEDULE LNG-1

(Continued)

 

(c) Customer's Service Agreement terminates; or

 

(d) Southern LNG issues an OFO pursuant to GT&C § 23.

 

Customer shall have completed, through nomination for delivery of vaporized LNG, the withdrawal

of its LNG Balance by the following times:

 

(a) if constrained capacity under Section 10.1(a) above, then the earliest practicable

time consistent with Southern LNG's delivery capacity;

 

(b) if capacity release or recall under Section 10.1(b) above, then the time the release

takes effect or the time specified for recall in the recall notice;

 

(c) if termination under Section 10.1(c) above, then the time the Service Agreement

terminates; or

 

(d) if ordered under Section 10.1(d) above, then the time specified in the OFO.

 

10.2 Withdrawal by Southern LNG:

 

If any Customer fails to withdraw LNG pursuant to this Section 10, then Customer

agrees that Southern LNG may, free and clear of any adverse claim, (i) take title to

the LNG in Customer's LNG Balance and (ii) dispose of the LNG. Customer shall

indemnify Southern LNG and hold Southern LNG harmless from all costs, damages, and

liabilities that result from Southern LNG's disposing of the LNG. Neither Customer's

failure to withdraw gas nor Southern LNG's disposal of the gas, as provided above,

shall be a basis for a claim that Southern LNG breached any duty imposed by this Rate

Schedule, the GT&C of this Tariff, or the Service Agreement. Crediting of Southern

LNG's net proceeds under this section is set forth in Section 26 of the GT&C of this

Tariff.