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. 40 Original Sheet No. 40 : Effective





(iv) Southern LNG may, in its sole discretion, hold open seasons from time to time

for potential expansion projects or for capacity that has become available.

During any such open season, Southern LNG will allocate capacity subject to

the open season on the basis of the highest net present value to Southern

LNG. To the extent Southern LNG has available unsubscribed capacity,

Southern LNG shall have the right, but not the obligation, to reserve that

capacity for any open seasons that are to be held within the next twelve (12)

months. All requests received during an open season remain binding on the

requesting Customer through the end of the open season unless withdrawn by

the requesting Customer; provided, however, a requesting Customer may

withdraw its previous request and submit a request with a higher net present

value during the open season, but neither the requesting Customer nor an

affiliate thereof may submit a request with a lower net present value during

the open season. At the end of the open season, all requests either

withdrawn or not accepted shall be deemed null and void. If the Customer

awarded capacity does not execute a Service Agreement within the time period

described in Section 2.1(c) below, then Southern LNG may elect to offer the

capacity to other Customers on the basis of the next highest net present



(v) Notwithstanding the net present value determination, Southern LNG reserves

the right to decline requests for service (i) that offer less than the

maximum rate; (ii) that may detrimentally impact the operational integrity of

Southern LNG's system; (iii) that do not satisfy all the terms of a specific

open season; (iv) that do not demonstrate creditworthiness; or (v) that

contain terms and conditions other than those set forth in the Tariff.