Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Tenth Revised Sheet No. 62 Tenth Revised Sheet No. 62

Superseding: Ninth Revised Sheet No. 62

RATE SCHEDULE IT

Interruptible Transportation Service

(Continued)

Section 3(c)(v) (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. 18 or 30 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., on March 15, 1995, 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").