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.