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. 102 Substitute Original Sheet No. 102 : Effective

Superseding: Original Sheet No. 102

GENERAL TERMS AND CONDITIONS

(Continued)

 

23.5 Nothing shall limit Southern LNG's right to take action as required to physically adjust actual

receipts and actual deliveries of Gas in order to alleviate conditions that threaten the

integrity of the facilities.

 

23.6 Southern LNG will provide Customer with as much advance notice of OFO's as is reasonable under

then existing conditions through SoNet, and pursuant to the notice provisions set forth in

Section 14.3 above. The notice will provide the time and date the OFO is to become effective,

the time the OFO is expected to remain in effect, the action required of the Customer, the

reason for issuing the OFO, together with operating variables providing the basis for issuing

the order, and any other information which may be required in the circumstances. Ordinarily,

the notice will be issued by 10:00 a.m. CT on the Gas Day before the OFO is to be effective.

The OFO will ordinarily become effective at 9:00 a.m. CT on the following Gas Day.

 

23.7 Follow-up Reports

 

Within 30 days after lifting an OFO, Southern LNG shall provide, via posting on SoNet Premier,

a report which details the underlying causes which warranted the issuance of the OFO, explains

why the actions required by the OFO were necessary to alleviate the identified problems, and

provides the factors that caused the OFO to be lifted.

 

23.8 Indemnity

 

(a) Southern LNG shall have no responsibility to inform Customer's end users, suppliers,

other transporters or any others involved in the transaction, as to any OFO.

 

(b) Customer shall indemnify Southern LNG from and against any and all losses, damages,

expenses, claims, suits, actions, and proceedings whatsoever threatened, incurred, or

initiated as a result of Southern LNG's performance under this Section 23.