These excerpts taken from the LNG 10-K filed Feb 27, 2008.
Pipeline Construction Guarantee
In January 2007, Cheniere Creole Trail Pipeline, L.P. (CCTP), a wholly owned subsidiary of Cheniere, entered into an agreement with Sunland Construction, Inc. (Sunland) for the construction of approximately 23 miles of the Creole Trail Pipeline. Under the terms of the agreement, Sunland will provide CCTP with equipment, labor, inspection, manufacture, fabrication, installation, delivery, transportation, storage, assembly and construction services in connection with the Creole Trail Pipeline. As of December 31, 2007, change orders for $5.7 million had been approved, increasing the total estimated contract price to $75.8 million. Progress payments will be paid based on quantities of work performed, minus 5% retainage on construction work that will be paid upon final completion. CCTP may at any time terminate, for convenience, Sunlands performance effective upon receipt of a written notice by Sunland and payment for items provided or services performed prior to termination. The agreement is subject to a cancellation fee not to exceed 5% of the estimated contract price. Such work is expected to be fully complete in the second quarter of 2008. Cheniere has guaranteed up to $12.0 million of CCTPs obligations under the construction agreement with Sunland.
Pipeline Construction GuaranteeSTYLE="margin-top:0px;margin-bottom:-6px">
In January 2007, Cheniere Creole Trail Pipeline, L.P. (CCTP), a