Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 09/22/2004, Docket: RP04-494-000, Status: Effective

Third Revised Sheet No. 84 Third Revised Sheet No. 84 : Effective

Superseding: Second Revised Sheet No. 84

RATE SCHEDULE ISS

Interruptible Storage Service

(Continued)

(5) days, to withdraw all or part of its gas from Storage. COMPANY'S

notice shall specify the quantity of gas to be withdrawn by SHIPPER. For

each day COMPANY is unable to accept SHIPPER'S nomination to

withdraw gas from Storage, the period specified by COMPANY for

withdrawal shall be extended a corresponding number of days. If

SHIPPER fails by the end of the period designated by COMPANY to

withdraw the specified quantity of gas, or transfer such quantity pursuant

to the options set forth in Section 7(f) hereof, any remaining balance at the

end of said period shall be forfeited to COMPANY free and clear of any

liens or claims.

(d) Service under this Rate Schedule shall consist of:

(i) the receipt and injection into Storage of the gas delivered at the

Storage Point on SHIPPER'S behalf under a transportation

agreement;

(ii) the storage of SHIPPER'S gas in the Storage fields; and

(iii)the withdrawal of SHIPPER'S gas from Storage and delivery of such

gas on SHIPPER'S behalf at the Storage Point for further

transportation under a transportation agreement.

(e) The terms of this Rate Schedule shall apply equally to gas purchased by

SHIPPER from COMPANY and gas purchased by SHIPPER from a third

party.

(f) SHIPPER may sell its storage gas hereunder to any purchaser so long as

SHIPPER adheres to the procedures set forth herein for the transfer or

withdrawal of such gas.

(g) SHIPPER may use its storage service hereunder to correct the net aggregate

monthly imbalance for which SHIPPER is responsible under Section 14.1(a)

of the General Terms and Conditions of COMPANY'S Tariff.

3. DEFINITIONS

The following terms shall have the meanings defined below: