Southern LNG Inc.

Original Volume No. 1

Effective Date: 07/01/2002, Docket: RP02-290-000, Status: Effective

First Revised Sheet No. 63 First Revised Sheet No. 63 : Effective

Superseding: Original Sheet No. 63

GENERAL TERMS AND CONDITIONS

(Continued)

(g) Southern LNG shall have the right to refuse to deliver vaporized LNG not timely or

properly nominated in accordance with GT&C § 12. Southern LNG shall not be liable to

Customer or any other person as a direct or indirect consequence of such refusal and

Customer shall indemnify Southern LNG from and against any and all losses, damages,

expenses, claims, suits, actions and proceedings whatsoever threatened, incurred or

initiated as a result of such refusal.

(h) Volumetric Capacity Release Nominations or Intraday Cycle Recalls:

On its nomination form for a firm Service Agreement, Customer must indicate the offer

number for each nomination of volumetric capacity release or a recall of a release on

an intraday nomination cycle so that Southern LNG can track and calculate the

appropriate credit to the Releasing Customer.

(i) Make-up Nominations: When making its nomination, Customer shall specify by Service

Agreement which portion of the quantities to be transported by Southern LNG is

attributable to current transportation and which portion of the quantities is

attributable to make-up within the month of an estimated imbalance (either positive or

negative). As between quantities of gas received or delivered by Southern LNG for

current service and gas received or delivered by Southern LNG as make-up of estimated

imbalances, the gas received or delivered as current service shall be deemed to be

received or delivered prior to any make-up gas.

(j) Package ID: A Package ID is a way to differentiate between discrete business

transactions. Use of the Package ID is at the discretion of the service requester

and, if sent, will be accepted and processed by Southern LNG. When used, Package IDs

shall be supported for nominating, scheduling, and allocating, but not for invoicing

unless mutually agreeable.