Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 09/22/2004, Docket: RP04-494-000, Status: Effective

Eighth Revised Sheet No. 58 Eighth Revised Sheet No. 58 : Effective

Superseding: Seventh Revised Sheet No. 58

RATE SCHEDULE FT-NN

Firm Transportation Service - No Notice

(Continued)

6. TRANSPORTATION OF LIQUIDS AND LIQUEFIABLES

(a) Liquids: Any party with the ownership interest to liquids, as defined in the

General Terms and Conditions, separated prior to measurement at the

Receipt Point(s) may request that such liquids be delivered to COMPANY

for transportation by injection of such liquids into COMPANY'S system

immediately downstream from said measurement, and COMPANY may, in

its reasonable discretion, agree to accept the liquids for transportation.

SHIPPER shall notify COMPANY by 5:00 p.m. at least four (4) calendar days

prior to the month when the transportation of liquids is requested to commence,

and submit the information required in Section 5(b) below (and shall give

COMPANY five (5) business days' written notice of any change to this

information). In the event SHIPPER injects, or causes to be injected,

liquids into COMPANY'S system, SHIPPER shall cause the removal of

such liquids from the gas delivered into COMPANY'S system at liquid

removal facilities installed and operated by the owners of such liquids or

their agents at a mutually agreeable point on COMPANY'S onshore

pipeline facilities and subject to mutually agreeable accounting procedures.

SHIPPER and COMPANY shall execute a separate Service Agreement for

the transportation of said liquids.

(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