Southern LNG Inc.

Original Volume No. 1

Effective Date: 12/01/2001, Docket: CP99-582-004, Status: Effective

Original Sheet No. 65 Original Sheet No. 65 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

12.3 Confirmation:

(a) Customer's Responsibilities:

Southern LNG shall be entitled to rely conclusively on Customer's nomination as

authorized for purchase or sale.

Customer shall not nominate for service in excess of (i) the volumes of LNG to be

purchased/sold by Customer, or (ii) the volumes of vaporized LNG that third-party

transporter(s) have agreed to accept for transportation upon delivery by Southern LNG,

or (iii) the volumes of vaporized LNG that third-party transporter(s) have agreed to

accept for delivery by Southern LNG, whichever is less. Customer shall be responsible

for all dispatching notices to its seller(s) and third-party transporter(s), for

notifying third-party transporter(s) of any changes in nominations, and for ensuring

that third-party transporter(s) comply with such changes.

(b) Southern LNG's Procedures:

Prior to final scheduling of any nominations by Customer, Southern LNG shall make such

inquiries as it deems necessary, including but not limited to contacting the

responsible dispatching party at the Delivery Point, to determine that the portion of

Customer's nomination that can be scheduled by Southern LNG will be implemented as

stated by Customer. All confirmation activities on Southern LNG's system for next-day

gas flow, both those confirmations received by Southern LNG and those given by

Southern LNG at pipeline interconnects, must be completed no later than 3:30 p.m.

Central Clock Time each day. The confirming party may relieve Southern LNG of its

obligations to send a confirmation notice. If Southern LNG does not receive any

communication from the confirming party, it will schedule the lesser of the nomination

or the quantity Southern LNG determines will be implemented based on other available

information.