Southern LNG Inc.

Original Volume No. 1

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Effective Date: 09/01/2005, Docket: RP05-395-000, Status: Effective

First Revised Sheet No. 77A First Revised Sheet No. 77A : Effective

Superseding: Substitute Original Sheet No. 77A




The Releasing Shipper should provide in its notification to Southern LNG the

quantity in terms of adjusted total released capacity entitlements based upon

the Elapsed Prorata Capacity (EPC) (NAESB 5.3.55). The EPC shall mean that

portion of the capacity that would have theoretically been available for use

prior to the effective time of the intraday recall based upon a cumulative

hourly use of the capacity (NAESB 5.2.3). In the event of an intra-day

capacity recall, Southern LNG should determine the allocation of capacity

between the Releasing Shipper and the Acquiring Customer(s) based upon the

EPC (NAESB 5.3.56). Southern LNG is not obligated to deliver in excess of

the total daily contract quantity of the release (NAESB 5.3.57). The amount

of capacity allocated to the Acquiring Customer(s) should equal the original

released capacity less the recalled capacity that is adjusted based upon the

EPC (NAESB 5.3.58).


A Releasing Customer must notify, or cause to be notified, the first

Acquiring Customer at the same time it provides notice to Southern LNG as set

forth above under the form of notification agreed upon by Releasing Customer

and Acquiring Customer (NAESB 5.3.44(i)(a) & 5.1.2) in a manner that will

permit affected parties sufficient time to place nominations or take other

corrective actions to avoid penalties (NAESB 5.1.4). Affected Acquiring

Customer should manage internal distribution of modifications of recall

received from Southern LNG (NAESB 5.3.52). Southern LNG has the right to rely

on a Releasing Customer's notice and a Releasing Customer shall defend and

indemnify Southern LNG against any claims, losses, liabilities, or expenses

resulting from claims by the Acquiring Customer that it was not notified or

that capacity was not recalled in accordance with the recall rights specified

by the Releasing Customer in its Offer.


If, following the recall, time remains in the term for which the capacity as

temporarily released, the capacity shall revert back to the last Acquiring

Customer upon notice given by the Releasing Customer in the same manner and

time as set forth above for exercising a recall of capacity prior to the

contract day on which the capacity is to again be released. If following

the recall no time remains in the term for which the capacity was

temporarily released, the capacity rights shall remain with the Releasing

Customer either for continued utilization by Releasing Customer or for

release again pursuant to this Section 16. When capacity is recalled, it

may not be reput for the same gas day (NAESB 5.3.53). The deadline for

notifying Southern LNG of a reput is 8:00 a.m. on the day that nominations

are due for the Daily Nomination Cycle set forth above in GT&C Section

12.1(c) (NAESB 5.3.54).