Southern LNG Inc.

Original Volume No. 1

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Effective Date: 03/01/2010, Docket: RP10-271-001, Status: Effective

Substitute First Revised Sheet No. 137A Substitute First Revised Sheet No. 137A

Superseding: First Revised Sheet No. 137A

 

FORM OF SERVICE AGREEMENT

UNDER A FIRM RATE SCHEDULE

(Continued)

Service Agreement No. ___________

EXHIBIT F

 

Negotiated Rate Agreement

 

This Exhibit F is entered into pursuant to the authorization in Section 25.4 of the General Terms and Conditions

of SOUTHERN LNG's FERC Gas Tariff.

 

The negotiated rate set forth under this Exhibit F shall remain in full force and effect through ___________.

 

Customer and Southern LNG hereby agree that the right of first refusal in Section 15 of the General Terms and

Conditions of the Tariff ___ [does/does not] apply to the service subject to this Exhibit F.

 

Customer agrees to pay a negotiated rate as follows for firm terminal service provided under the terms of this

Service Agreement and Rate Schedule LNG-1 or LNG-3 of Southern LNG's Tariff: _________________________________

_______________________________________________________________________________________________________________.

 

[If applicable] Customer and Southern LNG hereby agree that, notwithstanding Customer's selection of the Buyout

Election under Section 4.5.2 of Rate Schedule LNG-1 or LNG-3 for the MDQ and MDVQ to which this Exhibit F

applies, during the period of an SLNG Force Majeure (as defined therein), this negotiated rate shall be adjusted

as follows: _____________________________________________.

 

Customer and Southern LNG agree that neither Party shall take any steps nor actions during the term of this

Negotiated Rate Agreement to change, adjust or terminate this Negotiated Rate. Except as provided herein,

Customer shall have the right to intervene, protest and fully participate in proceedings involving the recourse

rates, Tariff and services of Company.

 

Customer shall not, directly or indirectly, take a position in a Company proceeding at FERC that any revenue

generated from the Negotiated Rate hereunder in excess of the recourse rate should be credited to Company's

recourse rate shippers under any rate schedule.

 

In the event of a material breach by Customer of the covenants in the two preceding paragraphs in a FERC

proceeding dealing exclusively with Company, Customer may be responsible for damages for lost revenue up to the

lost revenue equal to the difference, if any, between the revenue generated by the rate under this negotiated

rate agreement and the revenue generated by the revised rate established as a result of the material breach of

the two paragraphs immediately above.

 

In the event of a material breach by Company of the covenants above, Company shall refund to Customer such

amounts improperly credited, together with interest thereon, at the FERC Refund Rate.

 

[If applicable,] This Exhibit F shall supersede the Exhibit F dated ___________.

 

Accepted and agreed to this _____ day of ___________, _____.

 

 

____________________________ __________________________________

(Customer) (Southern LNG, Inc.)