Southern LNG Inc.

Original Volume No. 1

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Effective Date: 03/01/2010, Docket: RP10-271-000, Status: Effective

First Revised Sheet No. 61 First Revised Sheet No. 61

Superseding: Original Sheet No. 61

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

11. INSTALLATION OF FLOW CONTROL EQUIPMENT

 

Southern LNG may elect to construct, install, and operate flow control equipment at any location on its

facilities whenever it determines in its reasonable judgment that such equipment will contribute to the

safe, reliable, efficient, and orderly operation of its facilities in a manner that is consistent with

its obligations to provide service under any Rate Schedule.

 

12. NOMINATIONS, SCHEDULING & DETERMINATION OF DELIVERIES

 

This section shall govern the delivery by Southern LNG of vaporized LNG for Customer's account.

 

12.1 Nomination Procedures:

 

(a) General: Customer, or its agent designated in an executed Agency Agreement, shall

nominate gas for all volumes for deliveries under any Service Agreement by notifying

Southern LNG, pursuant to the provisions of this Section 12, of the daily quantity of

gas, expressed in Dth, that it has available for delivery.

 

For purposes of converting the Customer's MDVQ, expressed in Mcf, into a thermal

equivalent quantity for nomination purposes, the Mcf shall be multiplied by the

weighted average Dth per Mcf of gas in Customer's LNG Balance, rounded to three

decimal places ("BTU Factor"). The BTU factor shall be calculated and displayed for

each Customer in SoNet Premier upon receipt of Mcf into Customer's account from either

an LNG Vessel or a Balance Transfer. Thereafter, the BTU Factor shall remain

unchanged until recalculated and superseded following subsequent receipt of Mcf into

Customer's account. The BTU Factor shall equal the weighted average of (1) the posted

BTU Factor for the Customer's LNG Balance immediately prior to receipt of Mcf into

Customer's account and (2) the BTU Factor of the Mcf received into Customer's account.

The recalculated BTU Factor shall be calculated and displayed for each Customer in

SoNet Premier prior to the first nomination cycle following completion of the receipt

into such Customer's account.

 

Customer shall also specify the first date that the nomination is to be effective

("begin date") and the last date that the nomination is to be effective ("end date").

Customers may nominate for several days, months, or years provided the begin and end

dates are within the term of Customer's Service Agreement with Southern LNG. All

nominations, excluding intraday nominations, shall have roll-over options. Unless

Customer wishes to change its nomination, Customer shall not be required to resubmit

its nomination during the begin and end dates.

 

By submitting a nomination, Customer warrants that it has obtained all necessary

regulatory approvals to deliver LNG to Southern LNG.