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. 89 Original Sheet No. 89 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(3) Prior to submitting a bid on a Temporary or Permanent Release of capacity

offered by a Releasing Customer, the bidder must request and execute a firm

Service Agreement in the form set forth in this Tariff. A potential bidder

shall request a Service Agreement by submitting to Southern LNG on SoNet a

valid Request Form in the format set forth in Appendix A to the GT&C. The

parties shall execute the Service Agreement electronically through SoNet,

followed by written execution as soon as possible. If a temporary release,

the terms of each winning bid shall be set forth on an addendum to the

Acquiring Customer's applicable Service Agreement. If a permanent release,

the terms of each winning bid shall be set forth on an amendment to the

Acquiring Customer's applicable Service Agreement.

(f) Bidding Procedures:

All bids on a Releasing Customer's Offer, except as provided in Section 16.3(c) above,

shall be transmitted electronically to Southern LNG on SoNet in the standard form

provided on SoNet. Southern LNG shall date and time stamp all bids as they are

received. Southern LNG shall post for viewing by other parties during the bid period

all bids, if complete, received on a Releasing Customer's Offer, except for the names

of the bidders. A separate bid shall be submitted for each separate Releasing

Customer's Offer on which a bidder wishes to bid. The price bid on any Offer of

capacity must be submitted on a reservation charge basis unless the Offer states that

bids on a volumetric rate basis are required.

The bid shall include, among other things, the following information included in the

standard bid form on SoNet:

(1) the bidder's name;

(2) the bidder's DUNS number;

(3) the Offer number and contract number(s) of the Releasing Customer's Service

Agreement(s) on which the bid is being made;