Southern LNG Inc.

Original Volume No. 1

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Effective Date: 12/01/2001, Docket: CP99-582-004, Status: Effective

Original Sheet No. 36 Original Sheet No. 36 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(aa) Ranked PDA - The predetermined allocation methodology used to allocate gas flow among scheduled

line item nominations at a point where the line item nomination with the lowest rank value is

allocated before the next sequentially higher-ranked line item nomination.

(bb) SoNet Premier - Any computer system used by Southern Natural Gas Company to communicate with

customers, as described in GT&C § 20. This Tariff also refers to SoNet Premier as SoNet.

(cc) Swing PDA - The predetermined allocation methodology used to allocate gas flow among scheduled

line item nominations at a point where one of the scheduled line items, or alternatively a

separate contract, is designated as the “swing.” All other scheduled line items are allocated

the scheduled quantity. The line items identified as “swing” are allocated the remaining

difference between the total quantity to be allocated and quantities allocated to non-swing

line items, in accordance with the instructions provided with the PDA. The swing line

items(s)/contract is not permitted to be allocated a quantity which would result in a negative

number, therefore any negative quantity is allocated to the remaining scheduled line items on a

pro rata basis.

(dd) Tariff - Southern LNG’s effective FERC Gas Tariff, as revised from time to time.

(ee) Terminal – The facilities owned and operated by Southern LNG on Elba Island, Georgia for the

receipt, storage, and vaporization of LNG and the delivery of vaporized LNG imported by

Customers.

(ff) Terminal Service or Service - The receipt, storage, vaporization, and delivery of LNG on behalf

of Customers.

Thermie – One thousand kilocalories, or one million calories. Two hundred and fifty-two (252)

Thermies equal one Dth.