Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 04/01/1999, Docket: RP98-363-000, Status: Effective

First Revised Sheet No. 77 First Revised Sheet No. 77 : Effective

Superseding: Original Revised Sheet No. 77

RATE SCHEDULE CSS

Contract Storage Service

(Continued)

or transfer its Storage Inventory to an ISS Service Agreement with

COMPANY subject to the provisions of Rate Schedule ISS. Until

SHIPPER'S Storage Inventory is withdrawn or transferred, SHIPPER will

continue to pay COMPANY all rates and charges hereunder. If SHIPPER

fails to withdraw or transfer its entire Storage Inventory by the end of the

subject withdrawal period, COMPANY shall retain and take title to, at no

cost to COMPANY, SHIPPER'S remaining Storage Inventory.

(g) If SHIPPER'S CSS Service Agreement was entered into hereunder as the

result of a temporary release of storage capacity pursuant to Section 22 of

the General Terms and Conditions, SHIPPER must withdraw its Storage

Inventory by the effective date of any recall and by the end of its contract

term. In lieu of withdrawing its Storage Inventory, SHIPPER can also

attempt to sell its Storage Inventory to another SHIPPER hereunder or

transfer its Storage Inventory to an ISS Service Agreement with

COMPANY subject to the provisions of Rate Schedule ISS. If SHIPPER

fails to withdraw or transfer its Storage Inventory by the effective date of

any recall or the end of the contract term, title to SHIPPER'S remaining

Storage Inventory will be vested, at no cost, in the RELEASING SHIPPER

who released its capacity to SHIPPER on a temporary basis.

8. TRANSFER PROCEDURES

SHIPPER, or its agent designated in an executed agency agreement, may

nominate gas for transfer into its Storage capacity hereunder from another

SHIPPER'S Storage Inventory so long as such nomination does not exceed

SHIPPER'S available capacity in Storage and COMPANY receives a matching

nomination from the other SHIPPER to transfer gas from its Storage Inventory.

SHIPPER, or its agent, may also nominate gas for transfer from its Storage

Inventory hereunder into another SHIPPER'S Storage account so long as such

nomination does not exceed SHIPPER'S Storage Inventory and COMPANY

receives a matching nomination from the other SHIPPER to transfer gas into its

Storage account. Each nomination to transfer gas between Storage accounts must

be tendered electronically via SoNet Permier or by facsimile to COMPANY'S

Pipeline Customer Services Department pursuant to the nomination deadlines set

forth in