POSSESSION AND CONTROL.
POSSESSION AND
CONTROL OF CUSTOMER'S LNG SHALL PASS FROM CUSTOMER TO SABINE UPON DELIVERY OF
SAME AT THE RECEIPT POINT.
POSSESSION AND CONTROL OF CUSTOMER'S INVENTORY SHALL
PASS FROM SABINE TO CUSTOMER UPON DELIVERY OF SAME AT THE DELIVERY POINT.
9.2
NO ENCUMBRANCE
(A)
CUSTOMER'S COVENANTS.
CUSTOMER AGREES TO
FULLY DEFEND, INDEMNIFY AND HOLD SABINE AND ITS AFFILIATES HARMLESS AGAINST ALL
ENCUMBRANCES AND LIABILITIES RELATING TO SUCH ENCUMBRANCES (COLLECTIVELY,
"CLAIMS") REGARDING CUSTOMER'S INVENTORY, INCLUDING CLAIMS BROUGHT BY OTHER
CUSTOMERS, OTHER THAN ANY CLAIMS CAUSED BY SABINE'S ACTS OR OMISSIONS.
FOR
PURPOSES OF THIS SECTION 9.2(A), THE TERM "ENCUMBRANCE" SHALL INCLUDE ANY
MORTGAGE, PLEDGE, LIEN, CHARGE, ADVERSE CLAIM, PROPRIETARY RIGHT, ASSIGNMENT BY
WAY OF SECURITY, SECURITY INTEREST, TITLE RETENTION, PREFERENTIAL RIGHT OR TRUST
ARRANGEMENT OR ANY OTHER SECURITY AGREEMENT OR ARRANGEMENT HAVING THE EFFECT OF
SECURITY.
(B)
SABINE'S COVENANTS.
SABINE COVENANTS THAT
IT HAS THE RIGHT TO DELIVER TO CUSTOMER AT THE DELIVERY POINT ALL GAS HELD FOR
CUSTOMER'S ACCOUNT FREE FROM ALL CLAIMS RELATING THERETO CAUSED BY SABINE'S ACTS
OR OMISSIONS.
SABINE AGREES TO FULLY DEFEND, INDEMNIFY AND HOLD CUSTOMER AND
ITS AFFILIATES HARMLESS FROM AND AGAINST ALL CLAIMS REGARDING CUSTOMER'S
INVENTORY CAUSED BY THE ACTS OR OMISSIONS OF SABINE AND OTHER CUSTOMERS.
9.3
RECEIPT OF LNG
THE RECEIPT OF LNG FROM AN LNG VESSEL AT THE RECEIPT POINT SHALL BE CARRIED OUT
BY USE OF PUMPS AND OTHER EQUIPMENT ON THE LNG VESSEL UNDER SUCH REASONABLE AND
CUSTOMARY CONDITIONS AS ARE SPECIFIED IN THE SABINE PASS MARINE OPERATIONS
MANUAL.
37
9.4
QUALITY AND MEASUREMENT OF CUSTOMER'S LNG
Customer's LNG shall be measured and tested in accordance with Annex I.
Customer shall ensure that all LNG delivered at the Receipt Point for Customer's
account shall conform to the following specifications:
(A)
GROSS HEATING VALUE.
(I)
LNG WHEN DELIVERED BY CUSTOMER TO SABINE
SHALL HAVE, IN A GASEOUS STATE, A GROSS HEATING VALUE OF NOT LESS THAN 950 BTU
PER STANDARD CUBIC FOOT AND NOT MORE THAN 1165 BTU PER STANDARD CUBIC FOOT.
(II)
IF THE GROSS HEATING VALUE OF LNG TO BE
DELIVERED HEREUNDER IS HIGHER THAN THE LIMITS SET FORTH IN SECTION 9.4(A)(I) BY
REASON OF BOIL-OFF OCCURRING DURING A DELAY (OTHER THAN A DELAY WHICH EXTENDS
ALLOTTED UNLOADING TIME UNDER SECTION 8.7(A)) CAUSED BY SABINE IN UNLOADING AN
LNG VESSEL OF MORE THAN THIRTY (30) HOURS AFTER THE NOR BECOMES EFFECTIVE, SUCH
LNG SHALL BE DEEMED TO HAVE MET THE QUALITY SPECIFICATIONS OF THIS AGREEMENT
REGARDING GROSS HEATING VALUE.
(B)
COMPONENTS.
(I)
THE LNG WHEN DELIVERED BY CUSTOMER TO
SABINE SHALL, IN A GASEOUS STATE, CONTAIN NOT LESS THAN EIGHTY-FOUR MOLECULAR
PERCENTAGE (84.0 MOL%) OF METHANE (C1) AND, FOR THE COMPONENTS AND SUBSTANCES
LISTED BELOW, SUCH LNG SHALL NOT CONTAIN MORE THAN THE FOLLOWING:
A.
NITROGEN (N2), 1.5 MOL%;
B.
ETHANE (C2), 11 MOL%;
C.
PROPANE (C3), 3.5 MOL%;
D.
BUTANES (C4) AND HEAVIER, 2 MOL%;
E.
PENTANES (C5) AND HEAVIER, 0.09 MOL%;
F.
HYDROGEN SULFIDE (H2S), 0.25 GRAINS
PER 100 STANDARD CUBIC FEET;