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. 80 First Revised Sheet No. 80 : Effective

Superseding: Original Sheet No. 80




To bid on capacity for a Permanent Release under Section 16.3(a) above, the bidder

must (i) be preapproved for credit and (ii) have executed a firm Service Agreement, as

more particularly set forth in Section 16.6(e) below. Southern LNG will not award

release offers to Customer until and unless Customer meets Southern LNG's

creditworthiness requirements applicable to all services that it receives from

Southern LNG, including the service requested by the capacity release (NAESB 5.3.59).


Any bid submitted and not withdrawn by the end of the bid period will legally bind the

bidder to the terms of the bid if Southern LNG chooses that bid as the "best bid"

under Section 16.6(h) below. Once a bid on an Offer for a Permanent Release of

capacity is accepted, the Acquiring Customer shall execute an amendment to its Service

Agreement with Southern LNG to utilize the capacity under the terms set forth in the

accepted bid and the terms and conditions of Southern LNG's Tariff applicable to the

capacity released. Before an Acquiring Customer may execute an amendment to its

Service Agreement with Southern LNG to utilize released capacity, the Acquiring

Customer must satisfy all of Southern LNG's requirements relating to the applicable

Rate Schedule.


Once a bid on an Offer for a Temporary Release of capacity under Section 16.3(b) is

accepted, Southern LNG will issue an Addendum to the Service Agreement reflecting the

terms of the bid and the Acquiring Customer agrees that the Addendum to its Service

Agreement provided by Southern LNG shall be binding without further execution.


Once the Acquiring Customer electronically executes its Service Agreement resulting

from a Permanent Release or Southern LNG provides the Acquiring Customer an Addendum

to its Service Agreement, the Acquiring Customer becomes an existing Customer with

separate contract quantities like any other Customer and is subject to the applicable

provisions of Southern LNG's Tariff, including but not limited to Southern LNG's

billing, payment, and operational provisions.