Southern LNG Inc.

Original Volume No. 1

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Effective Date: 03/01/2002, Docket: RP02-129-004, Status: Effective

Original Sheet No. 105A Original Sheet No. 105A : Effective


GENERAL TERMS AND CONDITIONS(Continued)24.3Maintenance Dredging

Cost AdjustmentThis section of the GT&C sets forth the

procedures to reflect changes in the amounts incurred by

Southern LNG for maintenance dredging of the turning basin at

the Elba Island Terminal.(a)Definitions(i)Maintenance Dredging

– The work required to maintain the required depth and

integrity of the turning basin, channel and berths at the Elba

Island Terminal, including the costs of disposing of spoil

associated with such work.(ii)Maintenance Dredging Annual

Period – The annual period beginning on March 1, 2002, and

each annual period thereafter.(iii)Maintenance Dredging Costs

– The cost for Maintenance Dredging.(iv)Actual Maintenance

Dredging Costs – The actual cost incurred by Southern LNG for

Maintenance Dredging. Such actual cost shall include all

charges attributable to any period encompassed by the

effectiveness of this Section 24.3, including all refunds,

surcharges, billing adjustments and interest, positive or

negative. (v)Estimated Maintenance Dredging Costs – The

projected Maintenance Dredging Costs for the Maintenance

Dredging Annual Period.(vi)Estimated Reservation Charge

Billing Determinants – The projected annual reservation charge

billing determinants, which shall not be less than 49,008,000

Dth of MSQ. (vii)Deferral Period – The period of 12 months

ending December 31 prior to the beginning of each Maintenance

Dredging Annual Period.(viii)Affected Rate Schedules –

Affected Rate Schedules shall be Rate Schedules LNG-1 and

LNG-2.(b)Filing Procedure(i)The Dredging Surcharge set forth

on the rate sheets of Southern LNG’s Tariff shall be increased

or be decreased as set forth in this Section 24.3.