Southern LNG Inc.

Original Volume No. 1

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

Second Revised Sheet No. 59 Second Revised Sheet No. 59

Superseding: First Revised Sheet No. 59

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

8.4 Allocation of Constrained Capacity:

 

If a constraint in receipt, delivery, or working storage capacity occurs such that Southern LNG

cannot meet the requirements of Customers, then the available capacity shall be allocated as

follows:

 

(a) for a reduction in working storage capacity, the available working storage capacity

shall be allocated (i) first to each firm Customer in a proportional share based on

the ratio of each firm Customer's MSQ to the total MSQ contracted for by all firm

Customers; and (ii) then, if any capacity remains available, to interruptible

Customers based on the rate paid for service, higher rate first, and then pro rata

among Customers paying the same rate. An interruptible Customer paying a discount or

negotiated rate less than the maximum rate may elect to pay the maximum rate

applicable to its service on any day that its capacity would be allocated otherwise to

allow for the Customer's interruptible service to be queued up with other maximum-rate

interruptible services. Customer must make such election to pay the maximum rate by

the nomination deadline for the day capacity is to be allocated. For negotiated rate

transactions for interruptible service in which Customer is paying a rate exceeding

the maximum rate, Customer shall be deemed to be paying the maximum rate for purposes

of this Section;

 

(b) for a reduction in the capacity to receive LNG from Customer's vessel(s), the

available capacity will be allocated according to the priorities set forth in GT&C §

12.5; and

 

(c) for a reduction in vaporization capacity, the available vaporization capacity shall be

allocated according to the priorities set forth in GT&C § 12.5.

 

 

8.5 Odorization:

 

Except where otherwise required by law, gas delivered by Southern LNG will be delivered in its

natural state without the addition of any odorizing agent. Southern LNG does not assume any

responsibility for damages, claims or liabilities by reason of the fact that it has not

odorized such gas prior to its delivery.

 

Southern LNG will add odorizing agents to gas delivered by it where required by law. Southern

LNG does not assume any responsibility for damages, claims or liabilities by reason of the fact

that it has odorized such gas prior to its delivery, nor does Southern LNG warrant the delivery

of odorized gas.