Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 09/01/2009, Docket: RP09-427-002, Status: Effective

Second Revised Sheet No. 45A Second Revised Sheet No. 45A

Superseding: Substitute Original Sheet No. 45A

RATE SCHEDULE FT

Firm Transportation Service

(Continued)

As used in this provision, the term "cost of service," includes, but is

not limited to:

(1) a return on all costs associated with the construction of the

facilities, including overhead and taxes;

(2) incremental operating and maintenance expenses:

(3) depreciation and amortization of expenses; and

(4) incremental tax expenses.

It is understood and agreed that, if COMPANY pays for the cost of constructing the

Interconnection Facilities, title to and ownership of said facilities shall remain

in COMPANY, and COMPANY shall operate such facilities as part of its pipeline

system. It is also understood and agreed that, if the requesting SHIPPER chooses to

incur the costs of constructing the Interconnection Facilities, then COMPANY will

build and operate at least the tap and SCADA portion of the facilities at the

SHIPPER's expense with other portions of the constructed facilities to be built and

operated by the requesting SHIPPER or on behalf of the requesting SHIPPER at the

SHIPPER's expense. The Interconnection Facilities built and operated by the

requesting SHIPPER or on behalf of the requesting SHIPPER shall be built and

operated in accordance with COMPANY'S reasonable specifications and subject to

COMPANY'S inspection at the requesting SHIPPER'S expense; provided, however, such

inspection shall not include SHIPPER's facilities upstream or downstream of the

Interconnection Facilities. COMPANY inspections of measuring equipment shall be

performed consistent with Section 5 of the General Terms and Conditions.

Where COMPANY competes for transportation of gas under this Rate Schedule, conditions

may be such that it is more favorable for SHIPPER to construct, own and operate

certain facilities at or near a Receipt Point or Delivery Point. In such case,

COMPANY may make a contribution in aid of construction ("CIAC") for such facilities.

A CIAC made pursuant to this Section 6 shall not exceed an amount that would

constitute an economically feasible investment for facilities constructed, owned, and

operated by COMPANY. COMPANY shall make CIACs pursuant to this provision on a

nondiscriminatory basis for similarly situated shippers.

7. GENERAL TERMS AND CONDITIONS

All of the General Terms and Conditions contained in this Tariff, including from and

after their effective date any future modifications, additions, or deletions to said

General Terms and Conditions, are applicable to the transportation services rendered

under this Rate Schedule and, by this reference, are made a part hereof. If and to the

extent the provisions of this Rate Schedule conflict with provisions of said General

Terms and Conditions, the provisions of this Rate Schedule shall prevail.