Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 03/01/2008, Docket: RP08-180-000, Status: Effective

Seventh Revised Sheet No. 40 Seventh Revised Sheet No. 40 : Effective

Superseding: Sixth Revised Sheet No. 40

RATE SCHEDULE FT

Firm Transportation Service

(Continued)

Section 3(c) (continued)

transportation services rendered for SHIPPER each month under

this Rate Schedule:

(i) Small Shipper Charge: The applicable rate set forth on the currently

effective Sheet Nos. 14-15 or 26-27 multiplied by the quantities of gas

delivered for SHIPPER'S account each day during the month up to the

SHIPPER'S total Transportation Demand multiplied by the systemwide Btu

factor set forth in Section 12.1 of the General Terms and Conditions

hereto. For transportation of gas on a backhaul basis, a backhaul

transportation charge, as shown on the above referenced rate sheets shall

apply. These charges shall not apply to deliveries made hereunder for

injection into a storage account under Rate Schedule CSS or ISS, but it

shall be charged on the transportation of gas from said account(s).

(ii) Downstream Delivery Charge: If gas is delivered for SHIPPER'S account to

an Exhibit B-1 Delivery Point in a zone downstream of the zone of SHIPPER'S

Exhibit B Delivery Points, SHIPPER shall pay, in addition to the Small

Shipper Charge for the zone of SHIPPER'S Exhibit B Delivery Points, the

maximum applicable Transportation Charge under Rate Schedule IT from

SHIPPER'S Exhibit B delivery zone to the zone of the downstream Delivery

Point multiplied times the volumes delivered to the downstream Delivery

Point within SHIPPER'S Transportation Demand. This charge shall be applied

to the daily deliveries pursuant to the method set forth in Section 13.7 of

the General Terms and Conditions.

(d) The rates which are stated on the currently effective Sheet Nos. 14-15

or 26-27 set forth the maximum rates applicable to each service provided

under this Rate Schedule, and the range represented by the

maximum and minimum rates stated for each such service.

SHIPPER shall pay the maximum rates for service under this Rate

Schedule unless COMPANY, in its reasonable judgment, offers to

discount its rate to SHIPPER under this