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. 92 Original Sheet No. 92 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

The best bid shall be subject to the rights of a Prearranged Bidder to match the bid

in accordance with Section 16.6(d) above. If two or more bids are equivalent, then

they will be subject to the outcome of the tie-breaker stipulated in the Releasing

Customer's Offer as explained in Section 16.6(i) below.

 

In its Offer the Releasing Customer may specify any best bid criteria and tie breaker

that comply with Sections 16.6(c)(13) and (14) above. However, if the Releasing

Customer chooses (i) Southern LNG's best bid criteria set forth above or (ii) one of

the following pre-programmed criteria, and one of the tie breakers listed in

Section 16.6(i) below, then the Offer will be eligible for the accelerated schedules

set forth in the timetables in Appendix D to the GT&C:

 

(1) Highest rate;

(2) Price times volume (regardless of term);

(3) Price times volume times term (net revenue); or

(4) Present value

 

If the best bid does not utilize all of the capacity being offered for release and the

Releasing Customer provided in its Offer that it would accept multiple qualifying

bids, then Southern LNG will award the capacity in the order of best bids until it has

awarded all of the offered capacity.

 

(i) Tie Breaker:

 

If two or more bids tie, and no Prearranged Bidder has agreed to match the best bid,

then the winning bid shall be determined by applying the tie breaker stipulated in the

Releasing Customer's Offer. The Releasing Customer may specify one of the following

tie-breakers or a different tie-breaker that is objective, nondiscriminatory, and can

be applied by Southern LNG.