Southern LNG Inc.
Original Volume No. 1
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Effective Date: 03/01/2010, Docket: RP10-271-001, Status: Effective
Substitute First Revised Sheet No. 60 Substitute First Revised Sheet No. 60
Superseding: First Revised Sheet No. 60
GENERAL TERMS AND CONDITIONS
(Continued)
8.6 Buyout Election for Extended Force Majeure:
(a) Applicability:
The following provisions govern Customer's election to terminate a firm
Service Agreements upon payment of the applicable buyout amounts set out
below. The following provisions shall apply only to a firm Service
Agreement for which a qualifying Buyout Election is noted therein. For
purposes of this Section 8.6, a qualifying electing Customer shall be
referred to as "Electing Customer."
(b) Evaluation Periods
(1) Initial Evaluation Period
If Southern LNG invokes force majeure pursuant to the GT&C of this
Tariff, and the event of force majeure renders Southern LNG unable
to make available at least eighty percent (80%) of Customer's MDVQ
or MSQ under a Service Agreement for which the Buyout Election was
made, then Southern LNG shall immediately begin consulting with
Electing Customer and provide Electing Customer within one-hundred
and eighty (180) days thereafter with a notice in writing of
Southern LNG's initial report. The initial report shall include the
estimated capital cost associated with restoring the capacity lost
due to the event of force majeure, the availability of funds from
both property damage insurance and a resolution of Southern LNG's
governing board to fund such restoration (the sum of insurance
proceeds and board resolution, the "Available Funds"), and the
estimated duration of activities prior to restoring the capacity
starting from satisfaction of any conditions precedent in Section
8.6(b)(1)(D) below (such initial report, the "Initial Restoration
Report").
(A) If the later of the Initial Restoration Report and the
Initial Expert Decision estimates both that (i) the duration
of the force majeure event is no more than forty-eight (48)
months and (ii) the capital cost to restore the capacity is
no more than the Available Funds, then Customer and Southern
LNG hereby agree that Southern LNG shall commence restoring
the capacity.