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. 57 Original Sheet No. 57 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

8.3 Force Majeure & Operating Condition:

 

If Southern LNG or Customer becomes unable, wholly or in part, by either force majeure or

operating condition, as applicable, to carry out its obligations under the Service Agreement

(other than to make payments due thereunder) it is agreed that, on such party's giving notice

and full particulars in writing of such force majeure or operating condition, by telephone

(followed by written confirmation) to the other party as soon as possible after the occurrence

of the cause relied on, the obligations of the party giving such notice (other than to make

payments due under the Service Agreement), so far as they are affected by the force majeure or

operating condition, shall be suspended during the continuance of any inability so caused but

for no longer period; and the cause shall as far as possible be remedied with all reasonable

dispatch.

 

The term "force majeure" means, with respect to either Southern LNG or Customer, any event or

circumstance beyond the reasonable control of a party while acting and having acted as a

Reasonable and Prudent Operator, defined below, and that results in or causes the failure by

the party affected to perform any one or more of its obligations under the Service Agreement

and applicable Rate Schedule and GT&C. Events or circumstances of force majeure include without

limitation acts of God, acts of government agents, hurricanes, storms, fires, explosions, and

unplanned outages and repairs to Southern LNG's facilities. Southern LNG shall also be excused

for failure to carry out its obligations under this Tariff to the extent that the event of

force majeure relates to the downstream facilities or equipment of Southern Natural Gas Company

(Southern Natural) that enable gas delivered by Southern LNG to enter the mainline facilities

of Southern Natural or other downstream pipeline.

 

For the purposes of the definition of "force majeure," a Reasonable and Prudent Operator shall

mean a person acting in good faith with the intention of performing its contractual

obligations, and who in so doing and in the general conduct of its undertaking exercised the

degree of skill, diligence, prudence, and foresight that would reasonably and ordinarily be

exercised by a skilled and experienced person complying with applicable law and engaged in the

same type of undertaking under the same or similar circumstances and conditions. Southern LNG

shall provide to Customer, or to a third party designated by Customer, reasonable access to

data in Southern LNG's possession regarding the operation and maintenance of the Terminal.