Southern LNG Inc.

Original Volume No. 1

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Effective Date: 11/19/2007, Docket: RP08- 25-000, Status: Effective

Second Revised Sheet No. 81 Second Revised Sheet No. 81 : Effective

Superseding: First Revised Sheet No. 81

GENERAL TERMS AND CONDITIONS

(Continued)

 

(b) Releasing Customer:

 

The Releasing Customer shall remain fully liable on its existing Service Agreement

with Southern LNG for the payment of all reservation charges for the contract quantity

which has not been released permanently, associated surcharges, fixed charges, and

direct bills owing to Southern LNG each month under the existing Service Agreement, as

well as for services performed for the Releasing Customer under its firm Service

Agreement with respect to any capacity not released.

 

16.5 Billing and Payment:

 

An Acquiring Customer shall be billed by Southern LNG and shall make payments to Southern LNG

in accordance with the terms of its executed Service Agreement.

 

On the Releasing Customer's bill for a month in which it released capacity on a

temporary basis, Southern LNG shall credit all reservation charge revenues billed by Southern

LNG to the Acquiring Customer for the released capacity; provided, however, that in the event

the Acquiring Customer fails to pay Southern LNG for any part of the amount credited to the

Releasing Customer's bill, Southern LNG reserves the right, after it exhausts any credit it

has on file for the Acquiring Customer, to reverse the credit on the Releasing Customer's

bill in a later month up to the unpaid amount plus interest. If the Acquiring Customer fails

to pay its reservation charges pursuant to the provisions of GT&C § 15, then the Releasing

Customer shall have the right to recall its capacity by notifying the Acquiring Customer and

Southern LNG pursuant to the provisions of Section 16.3(b)(3) above. Southern LNG shall

provide Releasing Customer with e-mail notification within a reasonable time if Southern LNG

sends any of the following formal notices to Acquiring Customer:

 

(1) Notice regarding the Acquiring Customer's past due, deficiency, or default notice

status pursuant to Section 15 hereof;

(2) Notice regarding Acquiring Customer's suspension of service notice;

(3) Notice regarding Acquiring Customer's contract termination notice due to default or

credit-related issues; and

(4) Notice that the Acquiring Customer is no longer creditworthy and has not provided

credit alternative(s) pursuant to Section 2.1(d) hereof (NAESB 5.3.60).

 

All reservation charge credits to the Releasing Customer's bill shall be final and

nonreversible upon Southern LNG's receipt of payment therefor from the Acquiring Customer. To

the extent Exhibit C or F, as applicable, of a Releasing Customer's firm Service Agreement

provides for the following, Southern LNG shall not be required to credit all reservation charge

revenues billed to the Acquiring Customer when the Releasing Customer pays a discount or

negotiated rate at less than the maximum recourse rate and would otherwise receive credits in

excess of such discounted or negotiated rate.