Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 10/01/2004, Docket: RP04-523-000, Status: Effective

Substitute Ninth Revised Sheet No. 41 Substitute Ninth Revised Sheet No. 41 : Effective

Superseding: Eighth Revised Sheet No. 41

RATE SCHEDULE FT

Firm Transportation Service

(Continued)

Section 3(d) (continued)

Rate Schedule, or unless the parties have agreed to a Negotiated Rate under

Section 34 of the General Terms and Conditions. Any discount or Negotiated Rate agreed to by

COMPANY and the effective period of any such discount shall be stated on an executed

Exhibit E or Exhibit F to the Service Agreement, respectively, and shall be made on a not

unduly discriminatory basis. In the case of a discount, it shall be granted consistent with

the applicable provisions of Section 42 of the General Terms and Conditions. The rates for

service under this Rate Schedule shall not be discounted below the applicable minimum

rates specified on the currently effective Sheet Nos. 14-15 or 26-27.

(e) In addition to the charges specified above, SHIPPER shall pay to

COMPANY the following charges and such other charges applicable

to service hereunder as may be set forth from time to time in the

General Terms and Conditions:

(i) GRI surcharges: Unless collected by another party or

discounted, the current Gas Research Institute surcharges as set

forth in Section 29 of the General Terms and Conditions of

COMPANY'S FERC Gas Tariff, Seventh Revised Volume No.

1, as said charges may be changed from time to time.

(ii) ACA charge: An Annual Charge Adjustment charge as prescribed by

Section 28 of the General Terms and Conditions of COMPANY'S FERC

Gas Tariff, Seventh Revised Volume No. 1, as said charge may be

changed from time to time. The ACA charge shall not be assessed,

however, on deliveries to a SHIPPER'S Rate Schedule CSS or ISS

storage account.

(iii) SCRM surcharge: A Storage Cost Reconciliation Mechanism Surcharge as prescribed by

Section 14.2 of the General Terms and Conditions of COMPANY'S FERC Gas Tariff, Seventh

Revised Volume No. 1, as said charge may be changed from time to time. The SCRM

surcharge shall be applied as either a credit or a debit to the Transportation Volumes as

defined in Section 14.2.