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. 103 Original Sheet No. 103 : Effective
GENERAL TERMS AND CONDITIONS
24. FUEL & ELECTRIC POWER CHARGE ADJUSTMENTS
24.1 CUSTOMER'S PRO RATA SHARE OF FUEL AND LOST AND UNACCOUNTED FOR GAS
(a) Delivery of Equivalent Volume for the Account of Customer:
Subject to the applicable Rate Schedule and Customer's Service Agreement, Southern LNG
shall be obligated to deliver only an equivalent volume of vaporized LNG for
Customer's account. As used in the preceding sentence, an "equivalent volume" shall
mean the sum of the quantities of LNG expressed in Dth received by Southern LNG for
Customer's account at the Receipt Point during a given billing month reduced by
Customer's pro rata share of (i) gas required for operations (GRO) and (ii) gas
otherwise lost and unaccounted for (LAUF).
As used in this subsection, these terms shall have the following meaning:
(i) Pro rata share - The term "pro rata share" shall mean the ratio that gas
delivered by Southern LNG for the account of Customer for a month bears to
the total monthly volume of gas delivered for all Customers during such
(ii) GRO - The term "GRO" shall consist gas used as fuel for compression,
vaporization, and power generation and gas otherwise used and accounted for
(iii) LAUF - The term "LAUF" shall mean the difference between the sum of all
receipts and the sum of all output volumes, as adjusted for changes in
inventory during the month; provided, however, that LAUF shall not include
gas losses (i) incurred by Southern LNG as a result of its failure to act as
a reasonable and prudent operator or (ii) for which insurance proceeds are
recovered by Southern LNG.
(c) If during a given billing month GRO and LAUF exceed deliveries, then in the next
billing month with sufficient deliveries, the equivalent volume shall be reduced by
the unrecovered GRO and LAUF.
(d) Southern LNG shall provide to Customer reasonable access to data in Southern LNG's
possession regarding GRO and LAUF.