Southern LNG Inc.

Original Volume No. 1

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

Second Revised Sheet No. 70 Second Revised Sheet No. 70

Superseding: First Revised Sheet No. 70

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

Should Customer fail to pay any amount when due, interest on the unpaid amount shall accrue at

the rate equal to the rate then set forth in section 154.501 of the Commission's Regulations

(18 C.F.R. § 154.501) from the date payment was due until payment is made. Southern LNG agrees

to waive interest charges on a late payment if such charge is not in excess of $100.00 or if

Customer, through no fault of its own, fails to receive its notice of invoice availability by

the payment due date and notifies Southern LNG of such failure. If any such failure to make

payment continues for twenty (20) days or more, Southern LNG may suspend further service upon

ten (10) days' prior written notice to Customer, but the exercise of such right shall be in

addition to any other remedy available to Southern LNG; provided, however, that if Customer, in

good faith, has disputed the amount of any such bills or parts thereof and paid Southern LNG in

a timely manner such amounts as it concedes to be correct and, at any time thereafter within

thirty (30) days of a demand made by Southern LNG, shall furnish a good and sufficient surety

bond in an amount and with sureties satisfactory to Southern LNG conditioned upon the payment

of any amounts ultimately found due upon such bills after a final determination, which may be

reached either by agreement or judgment of the courts, as the case may be, then Southern LNG

shall not be entitled to suspend further delivery of gas unless and until default be made in

the conditions on such bond. In the event it is finally determined or agreed that no payments

were due from Customer on such disputed bills, then Southern LNG will reimburse Customer for

the cost of procuring the surety bond within ten (10) days after receipt of a detailed invoice

therefor from Customer.

 

13.4 Prepayment in the Event of Default:

 

Upon default in payment for a period in excess of twenty (20) days, Southern LNG may require as

a condition to the continuation or recommencement of services a deposit or other acceptable

credit arrangement in an amount equal to not more than three estimated maximum monthly bills

for services.

 

13.5 Adjustment for Btu factor:

 

Solely for purposes of billing reservation charges per dekatherm of service, any MSQ or MDVQ

expressed in Customer's Service Agreement in Mcf shall be converted to dekatherms by a Btu

factor of 1.021. This adjustment in no manner obligates Southern LNG to deliver gas at 1,021

Btu/Mcf or changes Southern LNG's use of actual Btu content for other purposes.