Southern LNG Inc.

Original Volume No. 1

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

Third Revised Sheet No. 41 Third Revised Sheet No. 41

Superseding: Second Revised Sheet No. 41

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

(c) Within five (5) business days (or a mutually agreed-upon time) after accepting the

request, subject to the other provisions of this section, Southern LNG shall prepare

and tender to Customer for execution a Service Agreement under the applicable Rate

Schedule in the pro forma format attached to this Tariff. If Customer fails to

execute and return to Southern LNG the Service Agreement within thirty (30) days of

the date tendered, then Southern LNG may deem the request for service null and void,

and the available capacity then will be reallocated according to Section 2.1(b) above.

 

(d) Southern LNG shall not be required to perform services under a Service Agreement for

any Customer who (i) is or has become insolvent, (ii) fails to demonstrate

creditworthiness either before initiation of service or on an ongoing basis after

initiation of service, or (iii) fails to make payments pursuant to GT&C § 13 (except

if Customer has disputed a bill and made provision for partial payment in accordance

with GT&C § 13). If during the ongoing credit evaluation process following initiation

of service, Southern LNG should desire additional credit information from Customer,

Southern LNG will provide the reason(s) to Customer for requesting such additional

information unless Southern LNG and Customer have mutually agreed to waive this

requirement. Southern LNG and Customer shall comply with the following guidelines for

credit evaluation (NAESB 0.3.3):

 

(A) Southern LNG shall designate on its website or by written notice two

representatives who are authorized to receive notice and information

regarding Customer's creditworthiness, and Southern LNG shall manage

internal distribution of any such information (NAESB 0.3.7);

 

(B) Southern LNG shall designate a date that the credit information is

due from Customer (NAESB 0.3.5);

 

(C) Upon receipt of either an initial or follow-up request from Southern

LNG for credit evaluation information, Customer's authorized representatives

should acknowledge receipt of Southern LNG's request unless Southern LNG and

Customer have mutually agreed to waive this requirement. The Customer's

obligation to provide confirmation of receipt is met by sending such

confirmation to the representatives described in Section 2.1(d)(A) above

(NAESB 0.3.4);

 

(D) Customer shall provide Southern LNG with all the credit information

requested by Southern LNG's designated due date, or provide to Southern LNG

the reason(s) why the information cannot be provided (NAESB 0.3.5); and

 

(E) Once Southern LNG receives all required credit information from

Customer, Southern LNG will notify Customer's authorized representative(s)

of such receipt unless Southern LNG and Customer have mutually agreed to

waive this requirement (NAESB 0.3.6);