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. 42 Original Sheet No. 42 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

3. QUALITY

3.1 In order to permit delivery into downstream facilities, the LNG received by Southern LNG under

any Service Agreement shall be merchantable and shall have in its gaseous state:

(a) A gross heating value of not less than 1,000 Btu and not more than 1,075 Btu; and

(b) Constituent elements conforming to the following:

(i) free of objectionable liquids and solids and be commercially free from dust,

gums, gum-forming constituents, or other liquid or solid matter which might

become separated from the gas in the course of vaporization or transportation

through any downstream pipeline;

(ii) not contain more than 200 grains of total sulphur or 10 grains of hydrogen

sulphide, or 0.30 gallons of isopentane and heavier hydrocarbons, per Mcf;

(iii) not contain more than 3% by volume of carbon dioxide or nitrogen or 1% of

oxygen;

(iv) not contain any water; and

(v) free of liquids at 800 psig and 50° F.

3.2 The gas delivered by Southern LNG will be merchantable gas.