NO CONTINUING WAIVER.
ACCEPTANCE OF
OFF-SPEC LNG SHALL NOT PREVENT SABINE FROM REFUSING FUTURE DELIVERIES OF
OFF-SPEC LNG.
NO WAIVER BY SABINE OF ANY DEFAULT BY CUSTOMER OF ANY OF THE
SPECIFICATIONS SET FORTH IN THIS ARTICLE 9 SHALL EVER OPERATE AS A CONTINUING
WAIVER OF SUCH SPECIFICATION OR AS A WAIVER OF ANY SUBSEQUENT DEFAULT, WHETHER
OF A LIKE OR DIFFERENT CHARACTER.
39
(B)
EXTENDED DELIVERY OF OFF-SPEC LNG.
IF (I)
CUSTOMER NOTIFIES SABINE PURSUANT TO SECTION 9.5(B) OF AN ANTICIPATED DELIVERY
OF TWO (2) OR MORE CARGOES OF OFF-SPEC LNG AND (II) THE PARTIES AGREE FOR SABINE
TO INCUR INCREMENTAL CAPITAL COSTS IN ORDER TO ACCEPT DELIVERY OF SUCH CARGOES,
THEN CUSTOMER SHALL, IN ADDITION TO ITS PAYMENT AND INDEMNIFICATION OBLIGATIONS
UNDER SECTION 9.5(C), BEAR THE FINANCIAL RESPONSIBILITY FOR AND DIRECTLY FUND,
AT SABINE'S ELECTION, ALL SUCH INCREMENTAL CAPITAL COSTS.
ARTICLE 10
REDELIVERY OF GAS
10.1
GENERAL
(A)
DELIVERY POINT.
SUBJECT TO SECTION 3.3(A),
THE QUANTITY OF GAS NOMINATED BY CUSTOMER FOR ANY DAY PURSUANT TO SECTION 5.2
SHALL BE DELIVERED AT THE DELIVERY POINT.
(B)
COMMINGLED STREAM.
CUSTOMER ACKNOWLEDGES
AND AGREES THAT CUSTOMER'S INVENTORY SHALL BE DELIVERED BY SABINE IN A
COMMINGLED STREAM, INCLUDING THAT COMBINED WITH LNG RECEIVED BY SABINE FROM
OTHER CUSTOMERS.
CUSTOMER FURTHERS ACKNOWLEDGES AND AGREES THAT CUSTOMER SHALL
HAVE NO RIGHT TO RECEIVE GAS OF THE SAME QUALITY AS CUSTOMER'S LNG, PROVIDED
THAT THE SPECIFICATIONS OF THE COMMINGLED GAS STREAM AT THE DELIVERY POINT
SATISFY THE REQUIREMENTS SET FORTH IN 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.
(C)
ODORIZATION.
SABINE WILL DELIVER
CUSTOMER'S INVENTORY AT THE DELIVERY POINT IN ITS NATURAL STATE WITHOUT THE
ADDITION OF ANY ODORIZING AGENT, AND SABINE SHALL NOT BE OBLIGATED TO ADD
ODORIZING AGENTS TO ANY GAS UNLESS REQUIRED TO DO SO BY A GOVERNMENTAL
AUTHORITY.
SABINE DOES NOT ASSUME ANY RESPONSIBILITY FOR LIABILITIES BY REASON
OF THE FACT THAT IT HAS NOT ODORIZED CUSTOMER'S INVENTORY PRIOR TO ITS DELIVERY
TO CUSTOMER.
10.2
CUSTOMER'S RESPONSIBILITY
(A)
DOWNSTREAM ARRANGEMENTS.
CUSTOMER SHALL
ARRANGE FOR THE TRANSPORTATION OF GAS BY DOWNSTREAM PIPELINES IN ORDER TO MEET
ITS OBLIGATIONS TO TAKE REDELIVERY OF GAS IN ACCORDANCE WITH THE PROVISIONS OF
SECTION 3.3 AT THE RATES NOMINATED PURSUANT TO ARTICLE 5.
CUSTOMER SHALL BE
SOLELY RESPONSIBLE FOR MAKING ALL NECESSARY ARRANGEMENTS WITH THIRD PARTIES AT
OR DOWNSTREAM OF THE DELIVERY POINT TO ENABLE SABINE TO DELIVER GAS TO
DOWNSTREAM PIPELINES ON A TIMELY BASIS PURSUANT TO THE TERMS AND CONDITIONS OF
THIS AGREEMENT.
CUSTOMER SHALL ALSO BE SOLELY RESPONSIBLE FOR ENSURING THAT ALL
SUCH ARRANGEMENTS ARE CONSISTENT WITH THE TERMS AND CONDITIONS OF THIS AGREEMENT
AND SHALL REQUIRE ALL RELEVANT THIRD PARTIES TO CONFIRM TO SABINE ALL OF
CUSTOMER'S NOMINATIONS AND SCHEDULING OF DELIVERIES OF GAS, SUCH CONFIRMATION TO
BE BY TELEPHONE, ELECTRONIC TRANSMISSION, OR OTHER MEANS ACCEPTABLE