Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 10/01/2004, Docket: RP04-523-000, Status: Effective

Sixth Revised Sheet No. 61 Sixth Revised Sheet No. 61 : Superseded

Superseding: Fifth Revised Sheet No. 61

RATE SCHEDULE IT

Interruptible Transportation Service

(Continued)

Section 3(c) (continued)

COMPANY the following charges and such other charges applicable to

service hereunder as may be set forth from time to time in the General

Terms and Conditions:

(i) GRI surcharge: Unless collected by another party or discounted,

the current Gas Research Institute surcharge as set forth in Section

29 of the General Terms and Conditions of COMPANY'S FERC

Gas Tariff, Seventh Revised Volume No. 1, as said charge may be

changed from time to time.

(ii) ACA charge: An Annual Charge Adjustment charge as prescribed

by Section 28 of the General Terms and Conditions of

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

said charge may be changed from time to time. The ACA charge shall

not be assessed, however, on deliveries to a SHIPPER'S Rate Schedule

CSS or ISS storage account.

(iii) SCRM surcharge: A Storage Cost Reconciliation Mechanism Surcharge as prescribed

by Section 14.2 of the General Terms and Conditions of COMPANY'S FERC Gas Tariff,

Seventh Revised Volume No. 1, as said charge may be changed from time to time.

The SCRM surcharge shall be applied as either a credit or a debit to the

Transportation Volumes as defined in Section 14.2.

(iv) Filing fees: Any and all filing or other fees required in connection

with transportation under this Rate Schedule that COMPANY is

obligated to pay to the Commission or to any other governmental

authority having jurisdiction. SHIPPER shall pay COMPANY for

such fees within ten (10) days of receipt of COMPANY'S invoice

detailing the amount of such filing fees.

(v) Facilities: All costs, including reasonable overheads, actually

incurred by COMPANY in the construction and installation,

modification, and/or acquisition of facilities for the receipt,

measurement, or transportation of gas for SHIPPER'S account

which SHIPPER requests and COMPANY, in its reasonable

discretion, agrees to construct, install, modify, and/or acquire

including acquisition of any interests in real estate and permits

associated with the facilities. Title and ownership of such