Southern LNG Inc.
Original Volume No. 1
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Effective Date: 03/01/2010, Docket: RP10-271-000, Status: Effective
Original Sheet No. 60A Original Sheet No. 60A
GENERAL TERMS AND CONDITIONS
(Continued)
(B) If the Initial Expert Decision either (i) estimates the
duration of the force majeure event at more than forty-eight
(48) months or (ii) estimates the capital cost to restore
the capacity at more than the Available Funds, then Southern
LNG may within sixty (60) days thereafter notify Electing
Customer in writing of its intent to supplement the
Available Funds to either shorten the estimated duration to
within forty-eight (48) months, increase the Available Funds
to cover the estimated capital cost, or both as applicable
("Supplemental Restoration Report"), which Supplemental
Restoration Report the parties agree shall be referred to
expert decision as provided below. If the Supplemental
Expert Decision affirms the Supplemental Restoration Report,
then Customer and Southern LNG hereby agree that Southern
LNG shall commence restoration.
(C) If either Southern LNG does not provide a Supplemental
Restoration Report or the Supplemental Expert Decision does
not affirm the Supplemental Restoration Report, then within
thirty (30) days thereafter, Electing Customer may terminate
its Service Agreement for which a Buyout Election was made.
Termination shall occur upon receipt by Southern LNG from or
on behalf of Electing Customer in immediately available U.S.
dollars an amount in settlement of Electing Customer's
obligations to pay the reservation charges applicable to
such Service Agreement ("Initial Buyout Amount"), which
Buyout Amount for each Service Agreement to be terminated
shall not, unless Southern LNG expressly agrees otherwise in
writing, equal less than the net present value at the
Commission refund rate of the remaining monthly reservation
charges for the MSQ and MDVQ calculated at the higher of
Customer's negotiated rate or the effective maximum recourse
rate for such MSQ and MDVQ for the duration of the primary
term of the Service Agreement ("NPV Prepayment").
(D) If the estimated cost of restoration (from the later of the
Initial Restoration Report, the Initial Expert Decision or
the Supplemental Restoration Report) exceeds the available
insurance funds stated in the Initial Restoration Report
("Cost Exceedance"), then Southern LNG's obligation to
commence and continue restoration activities shall be
subject to the following conditions precedent: