Southern LNG Inc.

Original Volume No. 1

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Effective Date: 12/01/2001, Docket: CP99-582-004, Status: Effective

Original Sheet No. 88 Original Sheet No. 88 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

In all other situations, but except in those situations where Releasing Customer is

not required to post the Offer as set forth above in Section 16.3(c), the Prearranged

Bid shall constitute the minimum bid price for all other bidders, and shall be posted

on the Releasing Customer's Offer as the minimum bid. If Southern LNG does not

receive any better bid by the date on which all bids are due, then the Prearranged Bid

shall be deemed the best bid. If Southern LNG does receive a better bid by the date

on which all bids are due, then the Prearranged Bidder shall have the right to match

the terms of the better bid by the deadline established in Section 16.6(a) above. If

the Prearranged Bidder matches the better bid, then the Prearranged Bidder shall be

deemed to have made the best bid.

 

(e) Prequalified Bidder Requirements:

 

(1) All parties desiring to bid on capacity offered by a Releasing Customer must

be prequalified by Southern LNG as creditworthy before submitting a bid on an

Offer of released capacity. Unless Southern LNG agrees it has already

determined the bidder to be creditworthy or to have suitable credit on file

with Southern LNG, the potential bidder must submit to Southern LNG the

information set forth in GT&C § 2.1(a) to enable Southern LNG to determine

the party's creditworthiness. A bidder's creditworthiness shall be assessed

on the same basis as a Customer's creditworthiness under the terms of the

Tariff applicable to the capacity being offered. If the potential bidder

fails to demonstrate creditworthiness, then the bidder may still prequalify

if it provides one of the credit alternatives set forth in GT&C § 2. If a

party does not prequalify pursuant to this Section 16.6(e), then the party

shall not bid on a Releasing Customer's Offer.

 

(2) Prior to submitting a bid on a Permanent Release of capacity offered by a

Releasing Customer, the bidder must submit to Southern LNG on SoNet a valid

Service Request Form, in the form set forth in Appendix A to the GT&C, for

the released capacity on which the bidder intends to submit a bid.