Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 03/01/2005, Docket: RP04-523-000, Status: Effective

Sixth Revised Sheet No. 38 Sixth Revised Sheet No. 38 : Effective

Superseding: Fifth Revised Sheet No. 38

RATE SCHEDULE FT

Firm Transportation Service

(Continued)

Section 3(a)(continued)

but not to include quantities outside of SHIPPER's entitlements or quantities in

excess of SHIPPER's MDRQ or (iii) such quantity as SHIPPER has nominated but

COMPANY was not able to either schedule or receive solely as a result of

COMPANY's inability to receive gas as provided above; provided, however, in the

event SHIPPER has no nomination in place, then the credit shall be applied to the

lesser of (i) or (ii). The applicable Reservation Charge shall not be credited

(w) to the extent that the SHIPPER uses a secondary (A-1) Receipt Point or a

Supply Pool instead of its primary (A) Receipt Point when COMPANY is unable to

receive gas from SHIPPER's primary Receipt Point; (x) to the extent gas cannot be

received at a Receipt Point on a secondary (A-1) basis and receipts can be

accepted at SHIPPER's primary firm Receipt Point(s); (y) to the extent the

affected firm MDRQ has been released under Section 22 of the General Terms and

Conditions to Receipt Points other than the affected primary Receipt Point;

and/or (z) to the extent there are limitations at firm Delivery Points but

COMPANY's ability to accept receipts at SHIPPER's primary Receipt Point(s) has

not been limited.

(B) COMPANY shall not be obligated to credit the Reservation Charge when COMPANY'S

failure to deliver gas to SHIPPER as provided above in (A)(1) results from (1)

the conduct or operations of SHIPPER or the downstream point operator of the

facilities at a primary firm Delivery Point including, but not limited to, damage

or malfunction of the downstream point operator's facilities or the inability of

the downstream point operator to receive gas at SHIPPER's contract delivery

pressure or COMPANY's mainline pressure; (2) such failure occurring within the

earlier of (x) ten (10) days following a force majeure event as set forth in

Section 8.3 of the General Terms and Conditions herein; or (y) the date COMPANY

should have, in the exercise of due diligence, overcome the force majeure event,

if earlier than the period set forth above in (x); (3) COMPANY performing

seasonal shut-in tests at COMPANY's storage fields; or (4) the conduct or

operations of SHIPPER or the upstream point operator of the facilities at a

primary firm Receipt Point including, but not limited to, damage or malfunction

of the upstream point operator's facilities or the inability of the upstream

point operator to deliver gas at COMPANY's mainline pressure; provided, however,

that in the event of damage or malfunction of the point operator's facilities in

(1) or (4) above where COMPANY's facilities also incurred damage and are

inoperable, a credit shall apply under the terms hereof, except for the period

provided in (2) and (3) above, until such time that COMPANY's facilities are

ready to be placed back in service.

be obligated to credit the Reservation Charge when COMPANY'S failure to receive

gas from SHIPPER as provided above in (A)(2) results from (1) the conduct or

operations of SHIPPER or the upstream point operator of the facilities at a

primary firm Receipt Point including, but not limited to, damage or malfunction

of the upstream point operator's