Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Fifth Revised Sheet No. 44A Fifth Revised Sheet No. 44A : Effective

Superseding: Fourth Revised Sheet No. 44A

RATE SCHEDULE FT

Firm Transportation Service

(Continued)

 

(b) Liquefiables: For quantities of gas which are received at a Receipt

Point from which the gas enters into a stream of gas which is

processed at a processing facility on COMPANY'S pipeline system

for the removal of liquefiables, as defined in the General Terms and

Conditions, the party with the right to process the ownership interest

therein ("SHIPPER") may elect to process such gas for its account

subject to the further provisions hereof. SHIPPER shall notify

COMPANY by 5:00 p.m. CCT at least four (4) calendar days prior to the

beginning of the month if the liquefiables are to be processed for the

account of SHIPPER and shall give COMPANY four (4) calendar days

written notice of any change to this election prior to the beginning

of the month for which the change is to be effective. COMPANY may extend

the election deadline on a nondiscriminatory basis in the event (1) SHIPPER

brings on a new source of production at or behind a receipt point during the

production month or (2) has a change in interest ownership or liquefiables

marketing rights, and such election is made prior to the Intraday 2

nomination deadline for the first day of the production month for which the

election applies. In its notice

SHIPPER shall specify its Liquefiables Transportation Agreement

(by contract number), the Receipt Point code and source of the

subject gas, the working interest owner of the gas, the duration of

the election, the Delivery Point code of the processing plant to

which the gas is to be delivered and verification that all processing

arrangements are in place if the election is to process. In the event

SHIPPER fails to make an election and the liquefiables are not

being processed under a direct processing arrangement with the processing plant,

COMPANY shall be authorized to act as

SHIPPER'S agent in arranging said processing and, at COMPANY'S

election, either (i) assess to SHIPPER its allocated share of plant

volume reduction and credit SHIPPER with its allocated share of

revenues received by COMPANY for said liquefiables, or

(ii) replace the allocated share of plant volume reduction in

Dth. Such processing arrangements may have a lower processing priority with

the processing plant than might be available to SHIPPER by contracting directly

with the processing plant for the processing of its gas.

 

The gas remaining after processing shall be returned to

COMPANY'S pipeline at a mutually agreeable point downstream

from the processing plant. Such processing shall not cause the gas

to fail to meet the quality specifications set forth in the General

Terms and Conditions.

 

SHIPPER shall tender a request for transportation of liquefiables

pursuant to the provisions of Section 2 of the General Terms and

Conditions. Upon submission of a valid request for service,