Southern LNG Inc.

Original Volume No. 1

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Effective Date: 08/01/2009, Docket: RP09-857-000, Status: Effective

Second Revised Sheet No. 78 Second Revised Sheet No. 78

Superseding: Original Sheet No. 78





(4) Secondary Release of Firm Capacity:


An Acquiring Customer who has acquired capacity hereunder on a temporary

basis may subsequently release the capacity it has acquired, as set forth on

the Addenda to its Capacity Release Service Agreement(s), in accordance with

the terms of this Section 16. The Acquiring Customer thereby becomes a

Releasing Customer. A Secondary Release of capacity cannot operate to

release greater capacity rights than the capacity acquired by the Releasing

Customer. Furthermore, to the extent that a Releasing Customer acquired firm

capacity subject to a right of recall, the capacity then released by the

Releasing Customer, and any subsequent Secondary Release of the capacity,

shall also be subject to the right of recall.


(c) Prearranged Release of Capacity:


A Releasing Customer who wishes to release its capacity to a prearranged bidder on a

temporary basis may do so without posting an offer for its firm capacity, unless it

elects to post its offer for competitive bidding, if the proposed capacity release is:


(i) for a term of thirty-one (31) days or less,

(ii) for a term of more than one (1) year for which customer has obtained a

Prearranged Customer and the Prearranged Customer is paying the maximum rate

and all other terms and conditions of the release are met,

(iii) to an asset manager as defined in Section 284.8(h)(3) of the Commission's

regulations, or

(iv) to a marketer participating in a state-regulated retail access program as

defined in Section 284.8(h)(4) of the Commission's regulations.


If such prearranged bid qualifies under (i)-(iv) above, the release shall not be

subject to the competitive bidding requirements of Section 16.6 below, but shall be

subject to all other provisions of this Section 16.


Unless capacity is released pursuant to either an asset management arrangement or

state-regulated retail access program, a Releasing Customer may not roll over, extend,

or in any way continue the release to the same Acquiring Customer using the 31 days or

less bidding exemption until 28 days after the first release period has ended. The 28-

day hiatus does not apply to any re-release to the same replacement shipper that is

posted for bidding or that qualifies for any of the other exemptions from bidding set

forth herein.


The minimum term for a release of capacity for a period of thirty-one (31) days or

less shall be one (1) contract day and the term must be for a consecutive number of



The timetables set forth in Appendix D hereto shall not apply to the non-posted

releases set forth above, except for those releases of 31 days or less which the

Releasing Customer elects to post for competitive bidding.