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: