Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Second Revised Sheet No. 58A Second Revised Sheet No. 58A : Effective

Superseding: First Revised Sheet No. 58A

RATE SCHEDULE FT-NN

Firm Transportation Service - No Notice

(Continued)

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, SHIPPER and COMPANY shall

execute a separate Liquefiables Transportation Agreement in the form set

forth in COMPANY'S FERC Gas Tariff, Seventh Revised Volume No. 1.

7. FACILITIES

In order for COMPANY to receive, measure, transport, and/or deliver the gas to

be transported under this Rate Schedule, it may become necessary for

COMPANY to install facilities or to modify existing facilities at or near a Receipt

Point or Delivery Point. Should SHIPPER request the installation or

modification of said facilities and agree to reimburse COMPANY for the cost

thereof, and should COMPANY agree to install said facilities or to modify its

existing facilities pursuant to SHIPPER'S request, it is agreed that COMPANY

will construct and install, or cause to be constructed and installed, said facilities,

or will modify, or cause to be modified, its existing facilities, and will own and