Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Fourth Revised Sheet No. 64 Fourth Revised Sheet No. 64 : Effective

Superseding: Third Revised Sheet No. 64

RATE SCHEDULE IT

Interruptible Transportation Service

(Continued)

(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 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