Southern LNG Inc.

Original Volume No. 1

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Effective Date: 12/01/2001, Docket: CP99-582-005, Status: Effective

Substitute Original Sheet No. 101 Substitute Original Sheet No. 101 : Effective

Superseding: Original Sheet No. 101

GENERAL TERMS AND CONDITIONS

(Continued)

 

(e) The release of capacity under Section 16, if releasing Customer does not reduce its

LNG Balance accordingly;

 

(f) The recall of capacity under Section 16, if acquiring Customer does not reduce its LNG

Balance accordingly; or

 

(g) Failure of Customer to cycle receipts of LNG pursuant to Section § 10; or

 

(h) Failure of Customer to arrange for the receipt of scheduled deliveries when the

failure interferes with Southern LNG's ability to provide scheduled service or with

prudent operation of the facilities.

 

23.3 If an OFO directs Customer to withdraw and take delivery of LNG or vaporized LNG, and Customer

fails to nominate and schedule as directed, then Southern LNG may, as provided in the

applicable Rate Schedule, take title to those quantities free and clear of any adverse claims.

Customer shall indemnify Southern LNG and hold it harmless from all costs, damages, and

liabilities arising out of the failure of the Customer to remove such quantities and the

disposal of such quantities by Southern LNG, including storage charges under the applicable

rate schedule. Southern LNG shall be permitted to sell the quantities to which it takes title

in accordance with this Section 23. Crediting of Southern LNG's net proceeds under this

section is set forth in Section 26 of the GT&C of this Tariff.

 

23.4 An OFO may be issued on a contract basis for all or a portion of the facilities. An OFO

issued by 10:00 a.m. on a Gas Day will generally be effective at the beginning of the

following Gas Day. When operating conditions threaten the terminal's integrity, three hours

notice, or lesser notice if necessary, may be given. An OFO may be issued for a specific

period of time or until further notice is given. Before issuing an OFO, Southern LNG will

attempt to remedy those operating conditions through requests for voluntary action7 provided,

however, exigent circumstances may exist which require immediate issuance of an OFO.