Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Seventh Revised Sheet No. 49 Seventh Revised Sheet No. 49 : Effective

Superseding: Sixth Revised Sheet No. 49

RATE SCHEDULE FT-NN

Firm Transportation Service - No Notice

(Continued)

Section 3(a) (continued)

(i) Reservation Charge: The applicable rate set forth on the currently effective Sheet Nos. 16-17

or 28-29 multiplied by the Transportation Demand multiplied by the systemwide Btu factor set

forth in Section 12.1 of the General Terms and Conditions.

(A) Reservation Charge Credit: (1) In the event COMPANY is unable to make deliveries of at

least 98% of the volume of gas to which SHIPPER has firm entitlements on any day at primary

Delivery Point(s) under this firm Rate Schedule, and SHIPPER is a consenting party under the

Stipulation and Agreement filed in Docket No. RP04-523, then the applicable Reservation

Charge shall be credited to SHIPPER for such day, except as provided in Section

3(a)(i)(A)(1), 3(a)(i)(A)(2), 3(a)(i)(B), and 3(a)(i)(C) below. Such credit shall be applied

to the lesser of (i) the applicable MDDQ; (ii) an average of the immediately previous 7

day's daily quantities allocated to the primary firm service at the Delivery Point, but not

to include quantities outside of SHIPPER's entitlements or quantities in excess of SHIPPER's

MDDQ; or (iii) such quantity as SHIPPER has nominated but COMPANY was not able to either

schedule or deliver solely as a result of COMPANY's inability to make deliveries as provided

above; provided, however, in the event SHIPPER has no nomination in place, then the credit

shall be applied to the lesser of (i) or (ii). The applicable Reservation Charge shall not

be credited (w) to the extent that the SHIPPER uses a secondary (B-1) Delivery Point instead

of its primary (B) Delivery Point when COMPANY is unable to make deliveries at SHIPPER's

primary Delivery Point; (x) to the extent deliveries cannot be made to a Delivery Point on a

secondary (B-1) basis and deliveries can be made to SHIPPER's primary Delivery Point(s); (y)

to the extent the affected firm MDDQ has been released under Section 22 of the General Terms

and Conditions to Delivery Points other than the affected primary Delivery Point; and/or (z)

to the extent there are limitations at firm Receipt Points but COMPANY's ability to make

deliveries at Shipper's primary Delivery Point(s) as provided above has not been limited.

(2) In the event all of SHIPPER'S primary Delivery Point(s) are interstate pipeline

interconnection(s) or in the event SHIPPER's primary Receipt Point is the interconnection

with Southern LNG at its Elba Island LNG terminal, then SHIPPER may elect, at the time the

Service Agreement is executed, or, for existing contracts, at the time the Stipulation and

Agreement in Docket No. RP04-523 becomes effective, for the reservation charge credit to

apply at SHIPPER's primary Receipt Point(s) instead of its primary Delivery Point(s), in the

event COMPANY is unable to receive at such Receipt Point(s) at least 98% of the volume of

gas to which SHIPPER has firm entitlements on any day. Such credit shall be applied to the

lesser of (i) the applicable MDRQ; (ii) an average of the immediately previous 7 day's daily

quantities allocated to the primary firm service at the Receipt Point(s), but not to include

quantities outside of SHIPPER's entitlements or quantities in excess of SHIPPER's MDRQ or

(iii) such quantity as SHIPPER has nominated but COMPANY was not able to either schedule or

receive solely as a result of COMPANY's inability to receive gas as provided above;

provided, however, in the event SHIPPER has no nomination in place, then the credit shall be

applied to the lesser of (i) or (ii). The applicable Reservation Charge shall not be

credited