Southern LNG Inc.

Original Volume No. 1

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Effective Date: 03/01/2010, Docket: RP10-271-000, Status: Effective

Third Revised Sheet No. 107 Third Revised Sheet No. 107

Superseding: Second Revised Sheet No. 107







This section shall govern the manner in which Southern LNG provides credits for

"Net Interruptible Revenues" or "Gas Sales Proceeds," defined below, collected by

Southern LNG. Southern LNG will provide credits to Customers with Firm Service

Agreements and with Interruptible Service Agreements.


At the end of the twelfth (12th) full calendar month after this provision becomes

effective, and at the end of each subsequent twelve (12) month period, Southern LNG

shall determine the Net Interruptible Revenues and Gas Sales Proceeds during the

12-month period. The Net Interruptible Revenues shall equal the revenues collected

under Rate Schedule LNG-2 minus the total surcharge, commodity rate, fuel, and

electric power cost adjustment (but not Dredging Surcharges) revenues billed to

LNG-2 service agreements during the 12-month period, which Southern LNG shall have

the right to retain. Gas Sales Proceeds shall equal the proceeds collected from

the sale of Gas or LNG that Southern LNG has taken title to and disposed of

pursuant to the Tariff minus any expenses incurred by Southern LNG.


The credit to Customers shall equal the total Net Interruptible Revenues and Gas

Sales Proceeds less any net imbalance payments made by or plus any net imbalance

payments received by Southern LNG pursuant to an operational balance agreement. The

credit for Net Interruptible Revenues will be allocated pro rata to Customers based

on the proportion of the revenue collected by Southern LNG through each LNG-1

Customer's Monthly Reservation Charge and each LNG-2 Customer's Monthly Storage

Charge to the total Monthly Reservation Charge and Monthly Storage Charge revenues

collected by Southern LNG for the 12-month period. The credit for Gas Sales

Proceeds will be allocated pro rata to Customers whose gas has not been taken

during the 12-month period ("Non-offending Customers") based on the proportion of

the revenue collected by Southern LNG through each Non-offending Customer's Monthly

Reservation Charge or Monthly Storage Charge, as applicable, to the total such

charges collected from Non-offending Customers for the 12-month period. Credits

under this section shall be calculated within sixty (60) days after the end of each

12-month period. Each eligible Customer shall receive its credit within thirty (30)

days following the date on which the credit is calculated.