Southern LNG Inc.

Original Volume No. 1

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Effective Date: 03/01/2010, Docket: RP10-271-000, Status: Effective

Original Sheet No. 32C Original Sheet No. 32C

 

RATE SCHEDULE LNG-3

(Continued)

 

(b) Boil-Off Gas:

 

(i) Definitions:

 

Boil-off gas includes gas (1) boiling off from Southern LNG's unloading and

storage facilities, (2) flashing from the liquid phase to the gaseous phase

during unloading LNG from Customer's vessel(s), (3) returning to Customer's

vessel(s) during receipt of LNG, and (4) boiling off during the operation of

Southern LNG's process equipment.

 

(ii) Disposal:

 

Customer must arrange for the delivery on each day of Customer's share of

boil-off gas (except boil-off gas returning to Customer's vessel(s) during

receipt of LNG). If all necessary arrangements (including nomination and

confirmation) are not complete, then Southern LNG shall take title to the

boil-off gas. Crediting of Southern LNG's net proceeds under this section is

set forth in Section 26 of the GT&C of this Tariff. Customer shall indemnify

Southern LNG against any claim, demand, or action arising from Customer's

failure under this paragraph; provided, however, that Southern LNG shall not

take title to, and will allocate to Customer's Service Agreement, boil-off

that enters the downstream pipeline.

 

(iii) Allocation:

 

Customer's share of boil-off gas on any day equals a proportionate share

based on the ratio of Terminal Service provided to Customer on that day to

all Terminal Service provided on that day.