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. 60C Original Sheet No. 60C

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

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 ("Interim

Buyout Amount"), which Interim Buyout Amount shall not,

unless Southern LNG expressly agrees otherwise in writing,

equal less than the sum of (I) the NPV Prepayment plus (II)

Customer's pro rata share of the Available Funds Southern

LNG has expended or committed to expend during restoration

(less proceeds Southern LNG has received for such

restoration under property damage insurance). Customer's pro

rata share for the preceding sentence shall equal the total

amount multiplied by the ratio of Customer's total

reservation charge obligations per month divided by the

total reservation charges owed Southern LNG per month under

currently effective Service Agreements.

 

(C) If Electing Customer does not terminate its Service

Agreements and pay the Interim Buyout Amount, then Southern

LNG's obligation to continue with restoration shall be

subject to the following conditions precedent:

 

(I) Electing Customer and Southern LNG's amending the

Excess Negotiated Rate under Section 8.6(b)(1)(D)(I)

above to provide for Customer's paying increased

charges that recover the increased cost of service of

the capital cost (less proceeds paid to Southern LNG

from property damage insurance) and operating

expenses to restore the capacity under its Service

Agreements; and

 

(II) Electing Customer provides Excess Credit Support in

addition to the amount provided pursuant to Section

8.6(b)(1)(D)(II) above equal to the estimated

increase in cost to restore (from the later of the

Interim Restoration Report or the Interim Expert

Decision).