Exhibit 10.2
OMNIBUS
AGREEMENT
This OMNIBUS
AGREEMENT (this Agreement),
dated as of this 2nd day of September, 2004 (the Effective
Date), is made by and between TOTAL LNG USA, INC.,
a company incorporated under the laws of the state of Delaware, with a place of
business at One Memorial City Plaza, 800 Gessner, Suite 700, Houston, Texas
U.S.A. 77024 (Customer) and SABINE PASS LNG, L.P., a Delaware limited partnership with a
place of business at 717 Texas Avenue, Suite 3100, Houston, Texas, U.S.A. 77002
(SABINE). Customer and SABINE are each sometimes
referred to herein as a Party and are
together sometimes referred to herein as the Parties.
RECITALS
WHEREAS, SABINE
intends to construct, own and operate an LNG terminal facility in Cameron Parish,
Louisiana capable of performing certain LNG terminalling services, including:
the ability to berth LNG Vessels; the receiving and storing of LNG which has
been unloaded from LNG Vessels; the regasification of LNG; and the
delivery of natural gas to a pipeline interconnection point at the terminal
facility;
WHEREAS, the Parties are executing simultaneously herewith an LNG
Terminal Use Agreement (TUA) under
which SABINE will, subject to Customer exercising its option hereunder, provide
LNG terminalling services to Customer at the Sabine Pass Facility, and the
Parties agree to condition the effectiveness of the TUA on the fulfillment of
certain conditions precedent;
WHEREAS, the Parties desire to address the possibility of certain
changes to their contractual relationship under certain circumstances; and
WHEREAS, the Parties wish to memorialize other understandings
supplementing the TUA, including Customers obligation to pay certain capacity
reservation fees and additional Customer rights with respect to the expansion
of the Sabine Pass Facility.
NOW,
THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged by the Parties, SABINE
and Customer agree as follows:
ARTICLE 1
DEFINITIONS
Capitalized
terms used in this Agreement and not otherwise defined herein have the meanings
given to them in the TUA; provided that
the terms defined below shall have the following meanings:
1.1 Condition Fulfillment Date means
June 30, 2005.
1.2 FERC Application means that
certain application (as amended immaterially from time to time) filed by SABINE
with the FERC on December 22, 2003, in Docket No. CP04-47-000 in relation to the Sabine Pass Facility
pursuant to Section 3(a) of the Natural Gas Act (NGA)
and the corresponding regulations of the FERC.
1.3 FERC Approval means the order of
the FERC granting to SABINE the approvals requested in the FERC Application
(for the avoidance of doubt, FERC Approval does not mean an order of the FERC
granting the approvals requested in the applications filed by Cheniere Sabine
Pass Pipeline Company in FERC Docket Nos. CP04-38-000, CP04-39-000 and
CP04-40-000 pursuant to Section 7(c) of the NGA in relation to the pipeline to
interconnect with the Sabine Pass Facility).
ARTICLE 2
CAPACITY RESERVATION FEES
2.1 Capacity
Reservation Fee First Installment.
Within thirty (30) days of the Effective Date, Customer shall confirm in
writing to SABINE whether or not Customer has obtained the approval of the
Customers Board of Directors for this Agreement and the TUA. Thereafter (and notwithstanding receipt of
such approval), at Customers option, to be exercised by Customer in its sole
and absolute discretion no later than Monday, the 15th day of
November 2004, Customer shall: (i) pay to SABINE the amount of U.S.$10,000,000
(the Capacity Reservation Fee First Installment)
by wire transfer in immediately available funds to an account specified in
writing by SABINE (which account SABINE shall so specify the earlier of
November 8, 2004 or upon request by Customer) and (ii) cause TOTAL S.A. to
execute and deliver to SABINE the Guarantee.
Except as provided in Clause 2.3, SABINE shall have no obligation to
refund to Customer the Capacity Reservation Fee First
Installment for any reason. In the event
that: (i) confirmation of Customers Board of Directors approval has not
been given to SABINE (for any or no reason whatsoever) within the above thirty
(30) day period; or (ii) Customer elects (for any or no reason whatsoever) to
not make the payment; or (iii) Customer elects (for any or no reason
whatsoever) to not cause TOTAL S.A. to execute and deliver the Guarantee under
this Clause 2.1 by November 15, 2004, then, for all purposes,
(a) Customer shall be deemed to have not exercised the foregoing option
and (b) this Agreement and the TUA shall terminate automatically (and,
without in any way limiting the generality of the foregoing, SABINE and
Customer shall each be discharged from all obligations and liabilities under
this Agreement and the TUA).
2.2 Capacity
Reservation Fee Second Installment.
No later than three (3) Business Days following satisfaction of the
Conditions Precedent and the exercise of the option by Customer pursuant to
Clause 2.1, Customer shall pay to SABINE an additional amount of
U.S.$10,000,000 (the Capacity Reservation Fee
Second Installment) by wire transfer in immediately available funds
to an account specified in writing by SABINE.
Except as provided in Clause 2.3, SABINE shall have no obligation to
refund to Customer the Capacity Reservation Fee Second
Installment for any reason.
2.3 Fee
Adjustment for the Capacity Reservation Fee. The Capacity Reservation Fee First
Installment and the Capacity Reservation Fee Second Installment shall be
recouped by Customer through a monthly reduction in the Fee equal to $166,667
for each month during the first one hundred and twenty (120) months following
the Commercial Start Date of the Sabine Pass Facility. For the relevant one hundred and twenty (120)
month period, the reduction will be reflected in the monthly statement SABINE
provides Customer pursuant to Section 11.1 of the TUA.
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ARTICLE 3
CONDITIONS PRECEDENT TO EFFECTIVENESS OF THE TUA
3.1 Conditions Precedent
The Parties acknowledge and agree that the provisions of this Agreement
are effective and binding as of the Effective Date. Any provision of the TUA notwithstanding, the
Parties acknowledge and agree that only the provisions of Article 1, Article 17, Article 18, Article
19, Article 20, Article 21, Article 23, and Article 24 of the TUA are
effective and binding as of the Effective Date; provided, however, that
Customers obligations under Section 17.2(c) of the TUA shall not be effective
or binding on Customer unless and until the date on which Customer exercises
its option under Clause 2.1. Any
provision of the TUA notwithstanding, the Parties also acknowledge and agree
that all other provisions contained in the TUA shall not become effective and
binding unless and until both of the following conditions (Conditions Precedent) have been satisfied by no later than
the Condition Fulfillment Date:
(a) FERC
Approval. SABINE shall have obtained
and provided to Customer evidence of the FERC Approval (the Approval Condition Precedent); and
(b) Financing
Approval. SABINE shall have provided
to Customer evidence that it can finance the expected cost of development and
construction of the Sabine Pass Facility (the Financing
Condition Precedent). The
Financing Condition Precedent shall be deemed to have been satisfied if, but
only if, the following conditions are satisfied or waived in writing by
Customer:
(i) SABINE
has entered into (and provided Customer with a copy of) a definitive loan
agreement with creditworthy lenders experienced in making energy project loans
under the terms of which the lenders agree to lend to SABINE an amount which
when aggregated with the equity contributed to SABINE is sufficient to fund the
engineering, procurement and construction of the Sabine Pass Facility, such
loan agreement being subject to no conditions precedent other than customary
and routine conditions (including FERC Approval) that are reasonably expected
to be satisfied; and
(ii) SABINE has entered
into (and provided Customer with a copy of) an EPC contract, acceptable to the
lenders, with a contractor that is an internationally recognized, reputable,
creditworthy and experienced engineering, procurement and construction company,
such EPC contract remains in full force and effect, there is no default
thereunder, SABINE has issued a written notice to proceed to the EPC contractor
under such EPC Contract, and the EPC contractor has accepted in writing SABINEs
notice to proceed.
3.2 Satisfaction of Conditions Precedent; Notification; Waiver and
Termination
(a) General.
SABINE shall endeavor to procure the satisfaction of the Conditions Precedent
by the Condition Fulfillment Date, and shall keep Customer reasonably
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informed as to the progress
being made towards satisfaction of the Conditions Precedent.
(b) Notification. SABINE shall promptly notify Customer in
writing of satisfaction of any of the Conditions Precedent. Moreover, SABINE shall promptly notify
Customer in writing upon SABINEs determination that a Condition Precedent
cannot be met or is not likely to be met by the Condition Fulfillment Date and
the basis for such non-satisfaction.
(c) Termination
for Non-Satisfaction of Approval Condition Precedent. If the Approval Condition Precedent has not
been satisfied by the Condition Fulfillment Date, then Customer may terminate
this Agreement and the TUA with immediate effect by giving written notice of
such termination to SABINE within thirty (30) days after the Condition
Fulfillment Date. In the event of a termination of this Agreement under this Clause 3.2(c),
SABINE and Customer shall each be discharged from any further obligations or
liabilities under this Agreement and the TUA.
(d) Termination
for Unacceptable FERC Approval. If
the FERC Approval contains a condition that limits or would have the effect of
limiting the cargo capacity of LNG vessels that may use the Sabine Pass
Facility to less than 250,000 cubic meters, then Customer may terminate this
Agreement and the TUA with immediate effect by giving written notice of such
termination to SABINE within thirty (30) days after the sixty (60) day cure
period provided below. SABINE shall have
a period of sixty (60) days following receipt of FERC Approval in which to
cause FERC to eliminate the above cargo capacity condition imposed by the
FERC. In the event of a termination of this Agreement under this Clause 3.2(d),
SABINE and Customer shall each be discharged from any further obligations or
liabilities under this Agreement and the TUA.
(e) Failure
to Satisfy Financing Condition Precedent.
If the Financing Condition Precedent has not been satisfied by the
Condition Fulfillment Date, then Customer may terminate this Agreement and the
TUA with immediate effect by giving written notice of such termination to
SABINE within thirty (30) days after the Condition Fulfillment Date. In the event of a termination
of this Agreement under this Clause 3.2(e), SABINE and Customer shall each be
discharged from any further obligations or liabilities under this Agreement and
the TUA.
(f) Failure
to Satisfy Conditions Precedent. If
either or both of the Conditions Precedent have not been satisfied by the
Condition Fulfillment Date and Customer has not exercised its termination
rights as provided for in this Clause 3.2, then SABINE shall use its
commercially reasonable efforts to obtain the approvals necessary for the
fulfillment of the Conditions Precedent.
Subsequent to the Condition Fulfillment Date, Customer may, in its sole
discretion, propose financing adequate to satisfy the Financing Condition
Precedent, which SABINE may accept or reject in its sole discretion. In the event that by January 1, 2006 the
Conditions Precedent are not met then either Party hereto may terminate this
Agreement and the TUA. In the event of a termination of this Agreement under this Clause 3.2(f),
SABINE and Customer
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shall each be discharged from
any further obligations or liabilities under this Agreement and the TUA other
than liabilities accruing prior to termination..
ARTICLE 4
EXPANSION AND EXPANSION RECEPTION QUANTITY
If at any time within the period ending two (2) years after the
Effective Date, SABINE determines that it desires to expand the regasification
capacity of the Sabine Pass Facility, it shall provide written notice to
Customer. No later than a period of two
(2) years after the Effective Date, Customer may provide written notice to SABINE
of its desire for the LNG storage and regasification capacity at the Sabine
Pass Facility to be expanded. In this
respect, the Parties shall exclusively negotiate the proposed terms and
conditions of such expansion in good faith for a period of ninety (90) days
from the date such written notice is received by the other Party; provided that SABINE shall be obliged to enter into such
negotiations only if Customer desires to increase its Maximum LNG Reception
Quantity (as determined by Customer in its sole discretion) by an amount equal
to between 195,457,500 MMBTUs per Contract Year and 390,915,000 MMBTUs per
Contract Year upon the date commercial operations commence with respect to the
expansion. The reservation fee for the expansion quantity shall equal $0.24 per
MMBTU multiplied by the expansion quantity, assuming the storage to
regasification ratio to be 3 to 1.
Additionally, notwithstanding the foregoing obligation of the Parties
to negotiate the proposed terms and conditions of the expansion in good faith,
Customer acknowledges and agrees that the timing of the development and
construction of the expansion shall be at SABINEs sole and absolute
discretion.
ARTICLE 5
OPERATING MATTERS
5.1 Tug
and Line Handling Boats
The Parties acknowledge that three (3) 5,000-horsepower, 70 ton bollard
pull tug boats with fire-fighting capability and two (2) line handling boats to
assist with the safe berthing of LNG Vessels will be dedicated to the Sabine
Pass Facility. Such tug and line
handling boats will be available to Customer and all Other Customers of the
Sabine Pass Facility on a non-discriminatory basis. The Parties agree to cooperate in seeking
competitive bids to fulfill the requirements for these tugs. Customer shall have the right to nominate
potential vendors to bid on these services.
The Parties, along with Other Customers, shall exercise commercially
reasonable efforts in the selection of a third-party supplier which has the
most competitive bid taking into account multiple factors including price,
contractual terms and conditions, specifications of the bid, the reputation,
financial condition and technical capability of the bidders and responsiveness
of service.
5.2 Secondments
From and after the date on which the Capacity Reservation Fee Second
Installment is paid, or earlier if the Parties so agree, and throughout the
effectiveness of the TUA, Customer shall have the right, in its sole
discretion, to second employees to SABINE, not exceeding four (4) in number at
any one time, to occupy technical positions within SABINE with
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responsibilities relating to such matters as engineering, design,
construction supervision, and operations, but not commercial matters. The employees so seconded shall report to
SABINE, shall comply with all personnel policies of SABINE, shall be competent
to safely perform the duties of the position which they fill, shall be paid in
accordance with the SABINE pay scale, and shall be terminable at the discretion
of SABINE. For the purpose of this
Clause 5.2, SABINE shall mean SABINE, an operating company created by Cheniere
Energy, Inc. or its Affiliate to operate the Sabine Pass Facility or a third
party contractor selected to operate the Sabine Pass Facility.
ARTICLE 6
LNG AND GAS QUALITY SPECIFICATIONS
6.1 Notwithstanding compliance by
Customer and SABINE with their respective obligations under Sections 9.4 and
10.3 of the TUA, the Parties acknowledge that the Gas redelivered or to be
redelivered by SABINE to Customer pursuant to the TUA may not conform to the
quality specifications of one or more of Customers Downstream Pipelines. The
Parties also acknowledge that Gas redelivered or to be redelivered by SABINE to
Other Customers also may not conform to the quality specifications of one or
more of their Downstream Pipelines.
Either or both of these potential occurrences are defined as Downstream Pipelines Nonconformance.
6.2 The
Parties further acknowledge that the U.S. natural gas industry is addressing
and attempting to resolve, on an industry-wide basis, existing and potential
quality nonconformance problems such as Downstream Pipelines Nonconformance.
6.3 Customer
Nonconformance means any Downstream Pipelines Nonconformance with
respect to any of Customers Downstream Pipelines that exists or is reasonably
likely to exist because the Gas to be redelivered to Customer under the TUA (Redelivered Gas) will not meet the specifications of any of
Customers applicable Downstream Pipelines solely as a result of the Customers
LNG to be delivered under the TUA (Delivered LNG)
not meeting such Downstream Pipelines specifications.
6.4 SABINE
Nonconformance means any Downstream Pipelines Nonconformance with
respect to any of Customers Downstream Pipelines that exists or is reasonably
likely to exist on any of Customers Downstream Pipelines for any reason other
than a Customer Nonconformance.
6.5 On or before June 30, 2006,
either Party may provide written notice to the other Party that any Downstream
Pipelines Nonconformance may reasonably be expected to exist on or after the
Commercial Start Date (the Nonconformance Notice).
6.6 Upon delivery and receipt of the
Nonconformance Notice, the Parties shall expeditiously negotiate in good faith
a commercially reasonable and mutually satisfactory resolution of such
Downstream Pipelines Nonconformance such that Customers Redelivered Gas
satisfies the specifications of Customers Downstream Pipelines. Such agreement shall be referred to as the Compliance Agreement.
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6.7 If (i) any Downstream
Pipelines Nonconformance identified in the Nonconformance Notice is a SABINE
Nonconformance or (ii) on or prior to June 30, 2006, Customer
notifies SABINE in writing of the specifications with respect to any of Customers
Downstream Pipelines and or thereafter there is a SABINE Nonconformance
involving any such Downstream Pipelines due to such specifications and the
Parties have been unable within ninety (90) days of the Nonconformance Notice
to agree upon a Compliance Agreement, SABINE shall either cure the SABINE
Nonconformance or reimburse, through a reduction in the Fee payable under the
TUA, Customers reasonably incurred cost of treating to the extent necessary to
eliminate the SABINE Nonconformance.
6.8 If the Nonconformance Notice
identifies any Customer Nonconformance, and the Parties have been unable to
reach a Compliance Agreement, then Customer shall bear the costs of its own
treating.
6.9 If at any time after June 30,
2005, SABINE notifies Customer that it has received a bona fide offer to
purchase terminalling services at the Sabine Pass Facility having an annual
reception quantity of at least one hundred eighty three billion Standard Cubic
Feet (183 bcf) and a term of at least fifteen (15) years from an Other Customer
whose LNG is reasonably expected to cause a Sabine Nonconformance, Customer
shall have thirty (30) days within which to elect either (a) to reduce the LNG
specification under the TUA to the greater of 1065 BTU per Standard Cubic Foot
or the level that would be necessary, in the absence of any other LNG, to
prevent a Downstream Pipelines Nonconformance or (b) terminate Customers right
to reimbursement under Clause 6.7 above.
ARTICLE 7
APPLICABLE LAW
The substantive laws of the State of New York, United States of
America, exclusive of any conflicts of laws principles that could require the
application of any other law, shall govern this Agreement for all purposes.
ARTICLE 8
DISPUTE RESOLUTION
Any Dispute
arising under this Agreement shall be exclusively and definitively resolved
through final and binding arbitration pursuant to the provisions of Section
20.1 of the TUA. For the purposes of
this Agreement, Dispute means any dispute,
controversy, or claim (of any and every kind or type, whether based on
contract, tort, statute, regulation, or otherwise) arising out of, relating to,
or connected with this Agreement, including any dispute as to the construction,
validity, interpretation, termination, enforceability, or breach of this
Agreement, as well as any dispute over arbitrability or jurisdiction.
ARTICLE 9
CONFIDENTIALITY
Each Party acknowledges and agrees that it shall be bound by the
rights, duties and obligations set forth in Article 21 of the TUA with respect
to the disclosure of information or documents that come
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into such Partys possession and the issuance of public announcements
in connection with this Agreement. Each
Party reserves its rights under Section 21.2 of the TUA to issue and make
public announcements, press releases and statements regarding this Agreement.
ARTICLE 10
NOTICES
All notices authorized or required between the Parties shall be
provided in the manner set forth in Article 23 of the TUA.
ARTICLE 11
REPRESENTATIONS AND WARRANTIES
11.1 SABINE
hereby represents and warrants to Customer as follows:
(a) SABINE
is and shall remain duly formed and in good standing under the laws of the
State of Delaware and duly qualified to do business in the State of
Louisiana. SABINE is duly qualified to
do business and is in good standing as a foreign limited partnership in all
jurisdictions in which the nature of its activities and of its properties (both
owned and leased) makes such qualification necessary, except for those jurisdictions
in which failure to do so would not have a material adverse effect on SABINE or
its business.
(b) SABINE
has the requisite power, authority and legal right to execute and deliver, and
to perform its obligations, under this Agreement. All partnership action on the part of SABINE
and its officers, directors and partners necessary for the authorization of
this Agreement and the performance of all obligations of SABINE hereunder and
thereunder has been taken.
(c) Neither
the execution, delivery nor performance of this Agreement, violates or will
violate, results or will result in a breach of, or constitutes or will
constitute a default under, any provision of SABINEs organizational documents,
any law, judgment, order, decree, rule or regulation of any court,
administrative agency or other instrumentality of any governmental authority or
of any other material agreement or instrument (including permits and licenses)
to which SABINE is a party.
(d) SABINE
is not in violation of any applicable statute, rule, regulation, order,
permits, licenses or restriction of any domestic or foreign government or any
instrumentality or agency thereof in respect of the conduct of its business or
the ownership of its properties, which violation would materially and adversely
affect the business, financial condition, or operations of SABINE or the Sabine
Pass Facility.
11.2 Customer
hereby represents and warrants to SABINE as follows:
(a) Customer
is and shall remain duly formed and in good standing under the laws of the
State of Delaware and duly qualified to do business in the State of
Louisiana. Customer is duly qualified to
do business and is in good standing as a foreign corporation in all
jurisdictions in which the nature of its activities and of its
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properties (both owned and
leased) makes such qualification necessary, except for those jurisdictions in
which failure to do so would not have a material adverse effect on Customer or
its business.
(b) Subject
to the next sentence, Customer has the requisite power, authority and legal
right to execute and deliver, and to perform its obligations, under this
Agreement. In the event Customers Board
of Directors hereafter approves this Agreement, then all corporate action on
the part of Customer and its officers, directors and shareholders necessary for
the authorization of this Agreement and the performance of all obligations of
Customer hereunder and thereunder shall have been taken.
(c) Neither
the execution, delivery nor performance of this Agreement, violates or will
violate, results or will result in a breach of, or constitutes or will
constitute a default under, any provision of Customers organizational
documents, any law, judgment, order, decree, rule or regulation of any court,
administrative agency or other instrumentality of any governmental authority or
of any other material agreement or instrument (including permits and licenses
to which Customer is a party).
(d) Customer
is not in violation of any applicable statute, rule, regulation, order, permit
or license or restriction of any domestic or foreign government or any
instrumentality or agency thereof in respect of the conduct of its business or
the ownership of its properties, which violation would materially and adversely
affect the business, financial condition, or operations of Customer or the
Sabine Pass Facility.
ARTICLE 12
MISCELLANEOUS
12.1 Amendments. This Agreement may not be amended, modified,
varied or supplemented except by an instrument in writing signed by SABINE and
Customer.
12.2 Successors
and Assigns. This Agreement shall
inure to the benefit of and be binding upon the respective successors and
permitted assigns of the Parties.
12.3 Waiver. No failure to exercise or delay in exercising
any right or remedy arising from this Agreement shall operate or be construed
as a waiver of such right or remedy.
Performance of any condition or obligation to be performed hereunder
shall not be deemed to have been waived or postponed except by an instrument in
writing signed by the Party who is claimed to have granted such waiver or
postponement. No waiver by either Party
shall operate or be construed as a waiver in respect of any failure or default
not expressly identified by such written waiver, whether of a similar or
different character, and whether occurring before or after that waiver.
12.4 No
Third Party Beneficiaries. The
interpretation of this Agreement shall exclude any rights under legislative
provisions conferring rights under a contract to persons not a party to that
contract. Nothing in this Agreement
shall otherwise be construed to create any duty to, or standard of care with
reference to, or any liability to, any person other than a Party.
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12.5 Interpretation.
(a) Headings. The headings used in this Agreement are for
convenience only.
(b) Singular
and Plural. Reference to the
singular includes a reference to the plural and vice versa.
(c) References. Unless otherwise provided, reference to any
Clause means a Clause of this Agreement and reference to a Section means a
Section of the TUA.
(d) Include. The words include and including shall
mean include or including without limiting the generality of the description
preceding such term and are used in an illustrative sense and not a limiting
sense.
(e) Time
Periods. References to day, month,
quarter and year shall mean a day, month, quarter and year of the Gregorian
calendar, respectively.
(f) Statutory
References. Unless the context
otherwise requires, any reference to a statutory provision is a reference to
such provision as amended or re-enacted or as modified by other statutory
provisions from time to time and includes subsequent legislation and
regulations made under the relevant statute.
(g) Currency. References to United States dollars shall be
a reference to the lawful currency from time to time of the United States of
America.
12.6 Severance
of Invalid Provisions. If and for so
long as any provision of this Agreement shall be deemed to be judged invalid
for any reason whatsoever, such invalidity shall not affect the validity or
operation of any other provision of this Agreement.
12.7 Expenses. Each Party shall be responsible for and bear
all of its own costs and expenses incurred in connection with the preparation
and negotiation of this Agreement.
12.8 Entire
Agreement; Conflicts. This Agreement
together with the TUA constitutes the entire agreement between the Parties
relating to the subject matter hereof and supersedes and replaces any
provisions on the same subject contained in any other agreement between the
Parties, whether written or oral, prior to the date of the original execution
hereof. In the event any conflict arises
between this Agreement and the TUA, this Agreement shall prevail.
12.9 Counterpart
Execution. This Agreement may be
executed in any number of counterparts and each such counterpart shall be
deemed an original Agreement for all purposes.
ARTICLE 13
PRICING TERMS
13.1 If, on
or before the Commercial Start Date, SABINE enters into any terminal use
agreement (New TUA) with any
Other Customer for at term of five (5) years or longer, covering a reception
quantity of 19,500,000 MMBtu or more per annum, SABINE shall as soon as
practicable provide written notice to Customer, which notice shall include the
pricing terms of the New TUA. For a
period of thirty (30) days following receipt of such notice by Customer,
Customer shall have the option to elect, by providing written notice to SABINE
within such thirty (30) day period, to adopt the pricing terms of the New TUA
in lieu of the
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existing pricing terms of the TUA, for the
remaining term of the TUA. Pricing terms
shall mean the pricing terms including fuel or Retainage.
13.2 The
right of Customer to Adopt new pricing terms under Clause 13.1 shall not apply
to any New TUA with either J & S Cheniere S.A or an Affiliate of
SABINE, unless a third party receives an assignment of Services under the New
TUA for a term exceeding five (5) years.
Subsequent assignments prior to the Commercial Start Date by
J & S Cheniere S.A. or an Affiliate of SABINE will be deemed a
New TUA and subject to the provisions of Clause 13.1.
IN WITNESS WHEREOF, each Party has caused this Agreement to be duly
executed and signed by its duly authorized officer as of the Effective Date.
SABINE PASS LNG, L.P.
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TOTAL LNG USA, INC.
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By: Sabine Pass LNG-GP, Inc.,
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its General Partner
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By:
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/s/ Charif Souki
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By:
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/s/ Sveinung J. Stohle
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Name: Charif Souki
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Name: Sveinung J. Stohle
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Title: Chairman
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Title: President and General
Manager
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Additional Signatories of the Omnibus Agreement for Limited Purposes
Cheniere Energy, Inc. (Cheniere),
which directly or indirectly owns all of the voting rights of SABINE, hereby
joins in the execution of this Agreement solely to evidence the following:
(1) Cheniere expressly
agrees that this (a) Agreement and the TUA supersede and cause the expiration
of the term of that certain Confidentiality Agreement dated January 5, 2004,
between Cheniere and TOTAL GAS & POWER NORTH AMERICA, INC. and (b) it will
comply with the last sentence of Article 9 of this Agreement.
(2) Cheniere shall use
all reasonable efforts to cause SABINE to satisfy the Conditions Precedent by
the Condition fulfillment Date and, if the Conditions Precedent are not
satisfied by such date, then Cheniere shall continue to use all reasonable efforts
to cause SABINE to satisfy the Conditions Precedent as soon as thereafter as is
reasonably possible.
Cheniere Energy, Inc.
By:
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/s/ Charif Souki
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Name: Charif Souki
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Title: Chairman
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TOTAL GAS & POWER NORTH AMERICA, INC., an
Affiliate of Customer, hereby joins in the execution of this Agreement solely
to expressly agree that this Agreement and the TUA supersede and cause the
expiration of the term of that certain Confidentiality Agreement dated January
5, 2004, between Cheniere and TOTAL GAS & POWER NORTH AMERICA, INC.
TOTAL GAS & POWER NORTH AMERICA, INC.
By:
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/s/ J. Mark Ingram
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Name: J. Mark Ingram
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Title: President and General Manager
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