Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Seventh Revised Sheet No. 53B Seventh Revised Sheet No. 53B

Superseding: Sixth Revised Sheet No. 53B

RATE SCHEDULE FT-NN

Firm Transportation Service

(Continued)

Section 3(e) (continued)

(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. 16-17 or 28-29 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").