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. 44 Original Sheet No. 44 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

3.5 Noncompliance with Specifications:

 

(a) Should Customer tender for receipt any LNG that causes the composite gas stream in

Southern LNG's facilities to fail the requirements of the downstream pipeline,

Southern LNG may take whatever action necessary on Southern LNG's own accord or use of

a third party, as solely determined by Southern LNG, at Customer's sole cost and

expense, to treat and/or process the gas stream such that the gas stream can be

delivered to the downstream pipeline. Until remedial action is taken to make gas

acceptable to the downstream pipeline, Southern LNG may refuse to accept receipt of

any gas, in Southern LNG's sole discretion, which prevents Southern LNG from making

deliveries into the downstream pipeline. Any reduction in the energy content of the

gas treated and/or processed shall be determined and deducted from Southern LNG's

transportation volumes tendered for delivery to the downstream pipeline.

 

(b) No waiver by Southern LNG of any default by Customer in any of the specifications set

forth above or in any other provision of this Tariff shall operate as a continuing

waiver of such specification or as a waiver of any subsequent default whether of a

like or different character.

 

4. MEASUREMENT

 

4.1 Measurement of Quantity of LNG Received from Customer's Vessel(s):

 

(a) The volume of LNG received by Southern LNG and reflected as an increase in Customer's

LNG Balance shall exclude the amount of vapor returning to Customer's vessel during

unloading of LNG. Southern LNG shall have no obligation to receive quantities that

cause Customer to exceed the volume equivalent of its MSQ (or that part of its MSQ

allocated to Customer during periods of constrained capacity).