THE PROVISIONS OF THIS AGREEMENT, INCLUDING SECTION 3.3(A), SABINE
SHALL, ON A DAILY BASIS, MAKE GAS FROM CUSTOMER'S INVENTORY AVAILABLE TO
CUSTOMER AT THE DELIVERY POINT AT THE RATE NOMINATED BY CUSTOMER PURSUANT TO
SECTION 5.2(G), WHICH NOMINATED RATE SHALL BE AT THE GAS REDELIVERY RATE;
PROVIDED, HOWEVER, THAT SABINE SHALL, ON A DAILY BASIS, MAKE EXCESS GAS
AVAILABLE TO CUSTOMER AND OTHER CUSTOMERS AT THE DELIVERY POINT IN THE
QUANTITIES DETERMINED AND ALLOCATED PURSUANT TO SECTION 5.2.
(C)
EXPIRATION OF SERVICES QUANTITY.
EXCEPT AS
PROVIDED IN SECTION 3.1(B)(I)B ABOVE AND SECTION 4.4(C), IF CUSTOMER DOES NOT
USE ANY PORTION OF THE SERVICES QUANTITY MADE AVAILABLE TO CUSTOMER PURSUANT TO
THE TERMS OF THIS AGREEMENT DURING THE RELEVANT PERIOD, CUSTOMER SHALL NOT
ACCRUE ANY RIGHT TO RECEIVE ANY SERVICES IN EXCESS OF THE SERVICES QUANTITY WITH
RESPECT TO ANY SUBSEQUENT PERIOD.
3.2
CUSTOMER'S USE OF SERVICES QUANTITY
Customer shall be entitled to use the Services Quantity (and Services in respect
of any Make-Up Quantity) in whole or in part by itself, or may assign its rights
and obligations as provided in Article 17.
3.3
GAS REDELIVERY
(A)
NO PRE-DELIVERY RIGHT.
ON ANY GIVEN DAY
DURING A CONTRACT YEAR, CUSTOMER SHALL NOT BE ENTITLED TO RECEIVE QUANTITIES OF
GAS IN EXCESS OF CUSTOMER'S INVENTORY.
(B)
GAS REDELIVERY RATE.
FOR PURPOSES OF THIS
AGREEMENT, THE TERM "GAS REDELIVERY RATE" MEANS, SUBJECT TO THE LAST SENTENCE OF
THIS SECTION 3.3(B), 1,050,000 MMBTU PER DAY OR SUCH LESSER RATE NOMINATED BY
CUSTOMER; PROVIDED, HOWEVER THAT AT NO TIME SHALL CUSTOMER'S INVENTORY EXCEED
SIX (6) BILLION STANDARD CUBIC
11
FEET.
AT ALL TIMES WHEN AN LNG VESSEL IS UNLOADING ON BEHALF OF CUSTOMER,
CUSTOMER SHALL BE REQUIRED TO NOMINATE GAS FOR REDELIVERY AT THE DELIVERY POINT
AT A MINIMUM RATE EQUIVALENT TO THE RATE REQUIRED TO MANAGE BOIL-OFF GENERATED
DURING UNLOADING OF SUCH LNG.
3.4
FAILURE TO TAKE DELIVERY OF GAS AT DELIVERY
POINT
IF ON ANY DAY CUSTOMER MATERIALLY FAILS TO TAKE REDELIVERY OF ANY GAS AT THE
DELIVERY POINT AT THE RATE NOMINATED BY CUSTOMER AND CONFIRMED BY SABINE
PURSUANT TO ARTICLE 5 AND SUCH FAILURE IS FOR REASONS OTHER THAN FORCE MAJEURE
AFFECTING A DOWNSTREAM PIPELINE, THEN SABINE MAY, AT ITS SOLE DISCRETION, TAKE
TITLE TO SAME FREE AND CLEAR OF ANY CLAIMS, AND SELL OR OTHERWISE DISPOSE OF
SUCH CUSTOMER'S INVENTORY USING GOOD FAITH EFFORTS TO OBTAIN THE BEST AVAILABLE
PRICES AND TO MINIMIZE COSTS.
CUSTOMER SHALL INDEMNIFY, DEFEND AND HOLD
HARMLESS SABINE, ITS AFFILIATES, AND THEIR RESPECTIVE DIRECTORS, OFFICERS,
MEMBERS AND EMPLOYEES, FOR THE ACTUAL AND REASONABLE COSTS INCURRED BY SABINE AS
A RESULT OF SUCH SALE OR OTHER DISPOSITION OF SAME BY SABINE.
SABINE SHALL
CREDIT TO CUSTOMER'S ACCOUNT THE NET PROCEEDS FROM THE SALE OR OTHER DISPOSITION
OF CUSTOMER'S INVENTORY TO WHICH IT TAKES TITLE HEREUNDER, MINUS TRANSPORTATION
COSTS, THIRD PARTY CHARGES, AND AN ADMINISTRATIVE FEE OF U.S. $0.05 PER MMBTU;
PROVIDED, HOWEVER, THAT IF THE AMOUNT OF THE CREDIT EXCEEDS THE AMOUNT DUE TO
SABINE UNDER