Southern LNG Inc.

Original Volume No. 1

Effective Date: 03/01/2010, Docket: RP10-271-000, Status: Effective

Second Revised Sheet No. 106 Second Revised Sheet No. 106

Superseding: First Revised Sheet No. 106

GENERAL TERMS AND CONDITIONS

(Continued)

25. APPLICATION OF DISCOUNTED RATES

25.1 Discounts of Reservation Charges and Surcharges:

If Southern LNG discounts the total rate applicable on a reservation basis under a

Customer's Service Agreement under a Firm Rate Schedule, then Southern LNG will

discount the components of the total rate, as applicable, in the following order: (1)

Reservation Charge; (2) reservation surcharges.

25.2 Discounts of Volumetric Charges and Surcharges:

If Southern LNG discounts the total rate applicable on a volumetric basis under a

Customer's Service Agreement under Rate Schedule LNG-2, then Southern LNG will

discount the components of the total rate, as applicable, in the following order: (1)

Monthly Storage Charge.

25.3 Discounted Terms:

In the event Southern LNG agrees to discount its rate to Customer below Southern LNG's

maximum rate under any Rate Schedule, the following discount terms may be reflected on

Exhibit C to the Service Agreement and will apply without the discount constituting a

material deviation from Southern LNG's proforma Service Agreement; provided, however,

any such discount shall not be less than Southern LNG's minimum rate. Such discounted

rate may apply:

(1) only to specified quantities under Customer's Service Agreement(s);

(2) only if specified quantities are achieved or are not exceeded (with maximum rates

applicable to volumes above or below specified quantities or to all quantities if

specified quantities are never achieved or are exceeded);

(3) only in specified relationship to quantities actually stored or withdrawn (i.e.,

that the rates shall be adjusted in a specified relationship to the quantities

actually stored or withdrawn);

(4) only during specified periods of the year or over specifically-defined periods of

time.