Southern LNG Inc.

Original Volume No. 1

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Effective Date: 11/19/2007, Docket: RP08- 25-000, Status: Effective

Original Sheet No. 106A Original Sheet No. 106A : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

25.4 Negotiated Rates, Charges, and Surcharges

 

(a) Authority

 

(i) Anything to the contrary provided in Southern LNG's FERC Gas Tariff

notwithstanding, Southern LNG and Customer may negotiate a rate for any

service under any rate schedule (Negotiated Rate). Said Negotiated Rate

or Negotiated Rate formula shall be set forth on Exhibit F (LNG-1) or

Exhibit B (LNG-2) to the applicable Service Agreement executed by

Southern LNG and Customer. At the commencement of service pursuant to

any Negotiated Rate or Negotiated Rate formula or prior to such

commencement, Southern LNG shall file with the Commission either the

contract or a revised rate sheet setting forth the name of Customer,

the contract number, contract date and the Negotiated Rate or

Negotiated Rate formula applicable to such agreement. The maximum rate

set forth in Southern LNG's rate schedules applicable to the service to

which the Negotiated Rate applies (Recourse Rate) shall be available

for any Customer that does not execute a negotiated rate with Southern

LNG.

 

(ii)Negotiated Rate shall mean a rate for transportation service agreed

upon by Southern LNG and Customer. Such Negotiated Rate may be greater

than or less than the maximum charges stated in Southern LNG's rate

schedule for that service.

 

(iii)For purposes of allocation of capacity pursuant to Section 16 of the

General Terms and Conditions, Customers paying a Negotiated Rate

which, when calculated on a 100% load factor basis, exceeds Southern

LNG's maximum rate for that service, would be deemed to have paid the

maximum Recourse Rate.

 

(iv)In the event that a Customer desires to exercise its right of first

refusal to continue service beyond the expiration date of its firm

service agreement pursuant to Section 15 of the General Terms and

Conditions, the highest rate that a Customer must match is the maximum

rate applicable to such service as set forth in Southern LNG's rate

schedule for such service.