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

(Continued)

 

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).

 

(b) Definitions:

 

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

month.

 

(ii) GRO - The term "GRO" shall consist gas used as fuel for compression,

vaporization, and power generation and gas otherwise used and accounted for

in operations.

 

(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.