Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 03/01/2010, Docket: RP09-427-003, Status: Effective

Tenth Revised Sheet No. 42 Tenth Revised Sheet No. 42

Superseding: Ninth Revised Sheet No. 42

RATE SCHEDULE FT

Firm Transportation Service

(Continued)

Section 3(e) (continued)

(iv) Filing fees: Any and all filing or other fees required in

connection with transportation under this Rate Schedule that

COMPANY is obligated to pay to the Commission or to any

other governmental authority having jurisdiction. SHIPPER

shall pay COMPANY for such fees within ten (10) days of

receipt of COMPANY'S invoice detailing the amount of such

filing fees.

(v) Facilities: All costs, including reasonable overheads, actually

incurred by COMPANY in the construction and installation,

modification, and/or acquisition of facilities for the receipt,

measurement, or transportation of gas for SHIPPER'S

account which SHIPPER requests and COMPANY, in its

reasonable discretion, agrees to construct, install, modify,

and/or acquire including acquisition of any interests in real

estate and permits associated with the facilities.

(vi) Fuel charge: A percentage of the quantity of gas delivered by SHIPPER for

transportation and accepted by COMPANY at the Receipt Point(s) as gas

which shall be deemed to have been used as compressor fuel, company-use

gas, and unaccounted-for gas. The percentage of the quantity of gas

retained by COMPANY for such purposes shall be set forth on the currently

effective Sheet Nos. 14-15 or 26-27 and shall be made effective only at

the beginning of a month. These fuel retention percentages are updated

annually as set forth in Section 35 of the General Terms and Conditions of

COMPANY's Tariff. On the first day of the month following the effective

date of COMPANY'S Stipulation and Agreement filed in Docket Nos. RP89-224,

et al., COMPANY shall commence retaining fuel for deliveries into and

receipts from COMPANY'S storage fields as follows. On the delivery of gas

for injection into storage under Rate Schedules CSS or ISS, COMPANY shall

retain the fuel applicable to production area deliveries. On the receipt

of gas from storage for subsequent delivery, COMPANY shall retain the fuel

at the rate applicable to the zone of delivery minus the rate applicable

to production area deliveries previously tendered by SHIPPER, but not less

than zero. COMPANY shall not retain fuel on receipts from Receipt Points

that are not connected to COMPANY's contiguous pipeline system shown on

Sheet Nos.5 and 5A("Offsystem Points").