NUMBER OF SUCH
DOWNSTREAM PIPELINE INTERCONNECTION REQUESTS IT SUBMITS TO SABINE;
(C)
THE TRANSPORTATION OF GAS BEYOND THE
DELIVERY POINT;
(D)
THE MARKETING OF GAS AND ALL ACTIVITIES
RELATED THERETO (EXCEPT AS EXPRESSLY PROVIDED IN SECTION 3.4); AND
(E)
THE REMOVAL, MARKETING AND TRANSPORTATION
OF LIQUIDS AND ALL ACTIVITIES RELATED THERETO.
FOR THE AVOIDANCE OF DOUBT,
SABINE RESERVES THE RIGHT TO SEPARATE AND/OR EXTRACT LIQUIDS FROM LNG UPSTREAM
OF THE DELIVERY POINT, PROVIDED THAT SUCH SEPARATION DOES NOT RESULT IN GAS
FAILING TO MEET THE QUALITY SPECIFICATIONS AT THE DELIVERY POINT REQUIRED UNDER
SECTION 10.3 AND PROVIDED, FURTHER, THAT SABINE DELIVERS AT THE DELIVERY POINT A
QUANTITY OF GAS THAT IS, LESS RETAINAGE AND CUSTOMER'S INVENTORY, THE THERMAL
EQUIVALENT OF THE QUANTITY OF LNG RECEIVED BY SABINE FOR CUSTOMER'S ACCOUNT AT
THE RECEIPT POINT.
ARTICLE 3
SALE AND PURCHASE OF SERVICES
3.1
SERVICES QUANTITY
(A)
PURCHASE AND SALE OF SERVICES.
DURING EACH
CONTRACT YEAR, SABINE SHALL MAKE AVAILABLE TO CUSTOMER, AND CUSTOMER SHALL
PURCHASE AND PAY FOR IN AN AMOUNT EQUAL TO THE FEE, THE SERVICES QUANTITY.
(B)
SERVICES QUANTITY.
THE QUANTITY OF SERVICES
(THE "SERVICES QUANTITY") SABINE SHALL MAKE AVAILABLE TO CUSTOMER DURING A
CONTRACT YEAR, AND FOR WHICH CUSTOMER SHALL PURCHASE AND PAY FOR PURSUANT TO
SECTION 3.1(A), SHALL CONSIST OF THE FOLLOWING:
(I)
UNLOADING OF LNG.
SABINE SHALL MAKE THE
SABINE PASS FACILITY AVAILABLE DURING UNLOADING WINDOWS TO ALLOW BERTHING,
UNLOADING AND RECEIPT OF CUSTOMER'S LNG IN A QUANTITY UP TO THE MAXIMUM LNG
RECEPTION QUANTITY; PROVIDED, HOWEVER, THAT SABINE SHALL USE
REASONABLE EFFORTS
TO ALLOW BERTHING, UNLOADING AND RECEIPT OF CUSTOMER'S LNG IN QUANTITIES IN
EXCESS OF THE MAXIMUM LNG RECEPTION QUANTITY, UNDER THE FOLLOWING CIRCUMSTANCES
ONLY:
A.
TO THE EXTENT THAT AN ADDITIONAL
QUANTITY OF LNG IN EXCESS OF THE MAXIMUM LNG RECEPTION QUANTITY (SUCH EXCESS
BEING THE "ROUND UP QUANTITY") MUST BE DELIVERED IN ORDER TO PERMIT THE
10
DELIVERY OF THE MAXIMUM LNG RECEPTION QUANTITY IN WHOLE CARGO LOTS IN ANY
CONTRACT YEAR, THE MAXIMUM LNG RECEPTION QUANTITY SHALL BE INCREASED BY SUCH
ROUND-UP QUANTITY, SUBJECT TO CUSTOMER'S PAYMENT TO SABINE OF ADDITIONAL
COMPENSATION IN THE AMOUNT OF $0.28 PER MMBTU OF SUCH ROUND UP QUANTITY; AND
B.
SUBJECT TO SECTION 5.1(B)(I), IN THE
EVENT THAT ANY CARGO OF LNG THAT WAS ORIGINALLY SCHEDULED, PURSUANT TO THE
CUSTOMER LNG RECEIPT SCHEDULE, TO BE UNLOADED IN DECEMBER OF A CONTRACT YEAR IS,
AS A RESULT OF CHANGES TO THE CUSTOMER LNG RECEIPT SCHEDULE, UNLOADED IN THE
FIRST FOURTEEN (14) DAYS OF THE SUBSEQUENT CONTRACT YEAR, SUCH CARGO SHALL BE
DEEMED TO HAVE BEEN RECEIVED BY SABINE IN THE CONTRACT YEAR IN WHICH SUCH CARGO
WAS ORIGINALLY SCHEDULED TO BE UNLOADED AND SHALL NOT BE APPLIED AGAINST THE
MAXIMUM LNG RECEIPT QUANTITY IN SUCH SUBSEQUENT CONTRACT YEAR.
(II)
STORAGE OF CUSTOMERS' INVENTORY.
SABINE
SHALL CAUSE CUSTOMER'S INVENTORY, NET OF RETAINAGE, TO BE HELD TEMPORARILY IN
STORAGE UNTIL REDELIVERED IN ACCORDANCE WITH SECTION 3.1(B)(III) BELOW; AND
(III)
REDELIVERY OF GAS AT DELIVERY POINT.
SUBJECT TO