NOT BE REQUIRED TO EXCEED A MAXIMUM PRESSURE OF 1200 PSIG.
10.4
NONCONFORMING GAS
(A)
RIGHT TO REJECT.
CUSTOMER SHALL HAVE THE
RIGHT TO REJECT GAS THAT DOES NOT CONFORM TO THE SPECIFICATIONS SET FORTH IN
SECTION 10.3 ("NONCONFORMING GAS") IF THE FAILURE OF SUCH NONCONFORMING GAS TO
SATISFY SUCH SPECIFICATIONS WOULD (A) BE GROUNDS FOR AN OPERATOR OF A DOWNSTREAM
PIPELINE OR A PERSON UNDER CONTRACT WITH CUSTOMER TO PURCHASE SUCH GAS
("DOWNSTREAM PURCHASER") TO REJECT SUCH NONCONFORMING GAS OR (B) OTHERWISE
MATERIALLY AND ADVERSELY AFFECT CUSTOMER, IN CUSTOMER'S REASONABLE OPINION;
PROVIDED, HOWEVER, THAT IF SABINE HAS ACCEPTED SUCH OFF-SPEC LNG PURSUANT TO
SECTION 9.5 BUT THE PARTIES HAVE AGREED UNDER SECTION 9.5(C) TO NOT TREAT SUCH
OFF-SPEC LNG, CUSTOMER SHALL BE DEEMED TO HAVE WAIVED ITS RIGHT TO REJECT GAS
THAT DOES NOT CONFORM TO THE SPECIFICATIONS SET FORTH IN SECTION 10.3.
(B)
SABINE INDEMNITY.
IF CUSTOMER ACCEPTS
DELIVERY OF NON-CONFORMING GAS WHICH IT WOULD OTHERWISE BE ENTITLED TO REJECT,
SABINE SHALL INDEMNIFY AND HOLD HARMLESS CUSTOMER, ITS AFFILIATES AND THEIR
RESPECTIVE DIRECTORS, OFFICERS AND EMPLOYEES FROM ANY AND ALL LIABILITIES,
INCLUDING ANY OF SAME ATTRIBUTABLE TO CLAIMS OF ANY PERSON (INCLUDING OTHER
CUSTOMERS, A DOWNSTREAM PIPELINE AND A DOWNSTREAM PURCHASER), WHICH ARISE OUT
OF, ARE INCIDENT TO OR RESULT FROM THE ACCEPTANCE, HANDLING, DISPOSAL OR USE OF
NON-CONFORMING GAS.
IF CUSTOMER ACCEPTS DELIVERY OF NON-CONFORMING GAS WHICH IT
WOULD OTHERWISE BE ENTITLED TO REJECT, SABINE SHALL BEAR THE FINANCIAL
RESPONSIBILITY FOR ALL REASONABLE AND ACTUAL INCREMENTAL COSTS (OTHER THAN
CAPITAL COSTS) AND LIABILITIES INCURRED BY CUSTOMER OR ANY OF CUSTOMER'S
AFFILIATES, IN EACH CASE ACTING AS A REASONABLE AND PRUDENT OPERATOR, IN
CONNECTION WITH ACCEPTING DELIVERY OF NON-CONFORMING GAS.
ARTICLE 11
PAYMENT
11.1
MONTHLY STATEMENTS
BETWEEN THE FIRST (1ST) DAY OF EACH MONTH AND THE TENTH (10TH) DAY OF EACH
MONTH, COMMENCING WITH THE MONTH PRIOR TO THE COMMERCIAL START DATE, SABINE
SHALL DELIVER TO CUSTOMER A STATEMENT SETTING FORTH THE FOLLOWING:
(A)
THE FIXED COMPONENT FOR THE FOLLOWING
MONTH;
(B)
THE FOC COMPONENT FOR THE FOLLOWING MONTH;
42
(C)
THE INCREMENTAL COSTS, IF ANY, FOR THE
PRIOR MONTH; AND
(D)
ANY CHARGES UNDER SECTION 4.3 FOR THE PRIOR
MONTH.
11.2
OTHER STATEMENTS
If any other moneys are due from one Party to the other hereunder and if
provision for the invoicing of that amount due is not made elsewhere in this
Article 11, then the Party to whom such moneys are due shall furnish a statement
therefor to the other Party, along with pertinent information showing the basis
for the calculation thereof.
11.3
ADJUSTMENTS, AUDIT
(A)
GENERAL.
IF, WITHIN NINETY (90) DAYS OF
THE ISSUANCE BY SABINE OF A STATEMENT, SABINE ACQUIRES INFORMATION INDICATING
THE NECESSITY OF AN ADJUSTMENT TO SUCH STATEMENT RENDERED HEREUNDER, THEN SABINE
SHALL PROMPTLY SERVE ON CUSTOMER A WRITTEN NOTICE SETTING FORTH THAT
INFORMATION.
UNLESS OTHERWISE PROVIDED HEREIN, AFTER OBTAINING THAT
INFORMATION, SABINE SHALL PROMPTLY PREPARE AND SERVE ON CUSTOMER AN ADJUSTED
STATEMENT, SHOWING THE NECESSARY PAYMENT, THE CALCULATION OF THE