Southern LNG Inc.

Original Volume No. 1

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Effective Date: 09/01/2005, Docket: RP05-395-000, Status: Effective

First Revised Sheet No. 67 First Revised Sheet No. 67 : Effective

Superseding: Original Sheet No. 67

GENERAL TERMS AND CONDITIONS

(Continued)

 

12.6 Delivery Point Allocation:

 

(a) Use of PDAs:

 

On a daily basis at the Delivery Point, Southern LNG shall allocate the quantities of

gas metered at the point among the quantities of gas scheduled at the point for the

account of its Customers, based on the Pro Rata PDA method unless another PDA method

is provided by the party that owns or operates the downstream facilities

interconnecting with Southern LNG's facilities at the Delivery Point (the "downstream

operator"). The alternative PDA methodologies from which the downstream operator may

choose include the Swing PDA, a Ranked PDA, a Percentage PDA, or any other mutually

agreeable allocation methodology. A new allocation detail may be needed when a

nomination changes. The PDA shall be provided by the downstream operator on a line

item basis at the level of nomination detail provided by Southern LNG for

confirmation. Southern LNG shall then use the predetermined priority provided by

Customer in its nomination for applying the PDA to the Package ID level within the

line item nomination level. Customer agrees that Southern LNG shall have the right to

rely conclusively on the PDA provided pursuant to this Section 12 for the purposes of

determining the daily quantities of gas delivered by Southern LNG for the account of

Customer at each Delivery Point. Downstream operators should communicate to the other

customers that their transaction(s) for allocation purposes are lowest ranked or

swing, when such customers' transaction(s) are identified by the downstream operator

in the PDA statement submitted to Southern LNG as being lowest ranked or swing (NAESB

2.3.63).

 

(b) PDA Deadlines:

 

Each PDA must be submitted to Southern LNG, by facsimile machine or through SoNet

during the confirmation of that day's nominations or after confirmation but prior to

start of Gas Day; provided that any revisions to the PDA may be made by the downstream

operator during the confirmation period on the day of flow for intraday nomination

changes. If there are no additions in nominations by a Customer at the Delivery Point

or other changes, the current PDA will stay in effect as submitted until it is changed

pursuant to the foregoing procedures. A new allocation detail may be needed when a

nomination changes. In the event Customer adds a nomination at the Delivery Point,

then Southern LNG must provide, or cause to be provided, as set forth above, a PDA at

the Delivery Point which recognizes Customer's nomination.