Southern LNG Inc.

Original Volume No. 1

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Effective Date: 08/01/2009, Docket: RP09-857-000, Status: Effective

Second Revised Sheet No. 91 Second Revised Sheet No. 91

Superseding: Original Sheet No. 91

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

(1) the bid (or bidder) does not comply with all of the terms, conditions, and

deadlines of this Section 16; or

 

(2) the bid submitted exceeds the bidder's pre-approved credit term or limits; or

 

(3) the bid does not meet the minimum terms of the Releasing Customer's Offer; or

 

(4) the bidder has not removed a contingency by the deadline set forth in the

Offer.

 

(h) The Best Bid Determination:

 

All bids that remain eligible following Southern LNG's initial review shall be

considered in determining the best bid. The best bid shall be determined by Southern

LNG pursuant to the objective criteria for determining the best bid set forth in the

Releasing Customer's Offer.

 

If the Offer does not specify non-standard best-bid criteria, then the eligible bids

will be evaluated by Southern LNG by multiplying the price bid times the volume bid.

Bids for a term of more than one (1) month that vary in price or term shall be

discounted to present value based on currently effective Commission interest rates (18

C.F.R. § 154.501(d)) or such other published, objective financial measure as posted by

Southern LNG in advance of the offer/bid cycle. This formula will generate a revenue

number for comparison of the bids and the bid producing the most revenue shall be the

best bid. For temporary releases that become effective on or after July 30, 2008,

potential Acquiring or Prearranged Customers may submit bids in excess of the maximum

tariff rate for the applicable service agreement if the term of the proposed release

is one (1) year or less and such release is to take effect on or before one (1) year

from the date on which COMPANY is notified of such release. Such rate will be utilized

in the determination of the best bid.