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. 55 Original Sheet No. 55 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

7. PRESSURE

 

7.1 Receipt Point:

 

The receipt of LNG from Customer's vessel shall be carried out by use of pumps and other

equipment on Customer's vessel(s) at an hourly rate of approximately one-twelfth (1/12) of the

maximum cargo capacity of Customer's vessel and at an average pressure of forty (40) psig at

the Receipt Point; provided, however, that the hourly rate shall not exceed an hourly rate of

one-tenth (1/10) of the cargo capacity of Customer's vessel. Southern LNG shall not be

obligated to receive LNG at a rate or pressure that exceeds prudent operating conditions under

conditions at that time.

 

7.2 Delivery Point:

 

Southern LNG shall deliver vaporized LNG at the pressure psig stated in the Service Agreement.

 

8. LIABILITY OF CUSTOMER AND SOUTHERN LNG; ALLOCATION OF CONSTRAINED CAPACITY

 

8.1 Risk of Loss

 

(a) Control and Possession of Gas:

 

For the purpose of determining the liability of Southern LNG and Customer,

respectively, Customer shall be deemed to be in exclusive control and possession of

any gas until actually received by Southern LNG at the Receipt Point, and after the

gas has been delivered to the account of Customer by Southern LNG at the Delivery

Point. Southern LNG shall be deemed to be in exclusive control and possession of any

gas only while it is in Southern LNG's facilities. Title to that share of gas deemed

to be (i) used as fuel, (ii) disposed of pursuant to the take-title provision of this

Tariff, and (iii) lost or unaccounted-for gas shall pass to Southern LNG at the

Receipt Point.