Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Seventh Revised Sheet No. 63 Seventh Revised Sheet No. 63 : Effective

Superseding: Sixth Revised Sheet No. 63

RATE SCHEDULE IT

Interruptible Transportation Service

(Continued)

4. SIMULTANEOUS RECEIPT AND DELIVERY OF GAS

(a) Although services under this Rate Schedule will be provided on the basis

that gas will be received and delivered by COMPANY on a simultaneous

basis, COMPANY'S obligation under this Rate Schedule to deliver gas to

or for the account of SHIPPER on any day of transportation is limited to

making available at the Delivery Point(s) a thermally equivalent quantity of

gas (less gas retained for compressor fuel, company-use gas, and

unaccounted-for gas) to the quantity of gas tendered by or for the account

of SHIPPER at the Receipt Point(s). SHIPPER'S right under this Rate

Schedule to take gas at a Delivery Point on a day of transportation is

limited to taking a thermally equivalent quantity of gas (less gas retained

for compressor fuel, company-use gas, and unaccounted-for gas) to the

quantity of gas tendered by or for the account of SHIPPER at the Receipt

Point(s).

(b) It is recognized that because of dispatching and other variations, certain

minor imbalances may occur between the daily quantities of gas received

by COMPANY for transportation under this Rate Schedule and the daily

quantities of gas delivered by COMPANY. SHIPPER shall use every

reasonable effort to ensure that receipts and deliveries remain in balance

on both a daily and monthly basis.

5. 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. CCT 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

four (4) calendar days' written notice of any change to this information).

In the event SHIPPER injects, or causes to be injected, liquids into COM-

PANY'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.