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. 60F Original Sheet No. 60F

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

9. WARRANTY OF TITLE AND INDEMNIFICATION

 

Both Customer and Southern LNG warrant good title or good right to all gas transferred by

it to the other party. Unless otherwise provided in this Tariff, Customer shall retain title to

gas while in the control and possession of Southern LNG. Customer further represents and warrants

that it will pay and satisfy, or make provision for the payment and satisfaction of, any and all

claims of every nature to the title to all gas received by Southern LNG. Customer agrees to

defend at its cost, and when notified by Southern LNG to indemnify Southern LNG against, all

suits, judgments, claims, demands, causes of action, costs, losses, and expenses arising out of or

in any way connected with any claims to the title to all gas received by Southern LNG.

 

Southern LNG assumes no obligation whatever to any royalty owner or to the owner of any

other interest of any kind in any gas received by Southern LNG for the account of Customer, and

Customer or its seller shall pay all such royalties or other interests upon or in respect to such

gas.

 

Customer warrants permission and any requisite licensing or certification from government

agencies having jurisdiction for the receipt by Southern LNG of gas for Customer's account.

Customer agrees to defend at its cost, and when notified by Southern LNG to indemnify Southern LNG

against, all enforcement actions, penalties, and sanctions arising out of or in any way connected

with any failure to obtain that permission, license, or certificate.

 

10. CYCLING

 

Within 120 Days after a quantity of LNG is received by Southern LNG at the Terminal for

Customer's account, Customer shall have caused that quantity to have been vaporized and

delivered by Southern LNG, unless Southern LNG agrees otherwise. If Customer fails to so

withdraw such LNG, then Southern LNG may, at its option, take title to such LNG free and clear

of any adverse claims, in which case Customer shall indemnify Southern LNG and hold it harmless

from all costs, damages, and liabilities arising out of the failure of Customer to remove such

LNG and the disposal of such LNG by Southern LNG, including charges under the applicable rate

schedule. Southern LNG shall credit any net proceeds from the sale of LNG to which it takes

title hereunder. Crediting of Southern LNG's net proceeds under this section is set forth in

Section 26 of the GT&C of this Tariff. Southern LNG shall extend the time available for

Customer to remove its Gas from Storage by one Day for every Day that Customer has been unable

to withdraw properly nominated quantities due to force majeure or operating conditions invoked

by Southern LNG.