Southern LNG Inc.

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

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

Fourth Revised Sheet No. 75 Fourth Revised Sheet No. 75

Superseding: Third Revised Sheet No. 75

GENERAL TERMS AND CONDITIONS

(Continued)

16. CUSTOMER RELEASE OF FIRM CAPACITY

16.1 General:

This Section 16 sets forth the exclusive means by which a firm Customer (Releasing

Customer) may, pursuant to Section 284.8 of the Commission's Regulations (18 C.F.R. §

284.8), release its capacity rights under a Service Agreement with Southern LNG to a third

party (Acquiring Customer).

16.2 Capacity Eligible For Release:

A Customer with a Service Agreement with Southern LNG under any firm Rate Schedule may

release firm capacity for Terminal Service (in proportional amounts of storage and

vaporization capacity).

16.3 Types of Releases:

(a) Permanent Release:

A Releasing Customer may release all or part of its firm capacity, with all

associated receipt, storage, and delivery rights under a Service Agreement with

Southern LNG, for the entire remaining term of the Service Agreement (Permanent

Release) pursuant to the provisions of this Section 16.

A Permanent Release operates as an assignment of capacity. Therefore, the

Acquiring Customer must meet Southern LNG's requirements related to

creditworthiness set forth in Section 2 of the General Terms and Conditions or as

applicable to the Releasing Customer's Service Agreement under the terms of a

Precedent Agreement related to the expansion of Southern LNG's facilities. It

will be necessary for Southern LNG to consent to the permanent release of the

capacity, unless otherwise previously agreed under a precedent agreement for the

construction of Southern LNG's facilities for an assignment to an Affiliate or

Joint Venture Partner, or unless the credit support provided by the Releasing

Customer remains in place to support the Acquiring Customer's capacity, such

consent not to be unreasonably withheld. In any event, Southern LNG shall allow a

permanent release if the Acquiring Customer meets the credit requirements in

Section 2.1 (d) and all other applicable requirements of the General Terms and

Conditions. Upon the permanent release, Releasing Customer's credit support shall

be proportionately decreased in relation to the capacity transferred to the

Acquiring Customer and the credit requirements associated with any such permanent

release shall not result in an increase in value of the credit requirements

associated with all such capacity. The Acquiring Customer shall be required to

execute a separate Service Agreement with Southern LNG for the released capacity

(i) at the discounted, negotiated, or maximum rate applicable to Releasing

Customer's Service Agreement (and attachments thereto) and (ii) for the primary

term remaining under the Releasing Customer's Service Agreement with Southern

LNG, unless Southern LNG agrees otherwise in a nondiscriminatory manner.

Furthermore, the Acquiring Customer must contract for the Receipt Point and

Delivery Point specifically set forth in a Releasing Customer's Offer of firm

capacity under Section 16.6 below.