Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Sixth Revised Sheet No. 85 Sixth Revised Sheet No. 85 : Effective

Superseding: Fifth Revised Sheet No. 85

RATE SCHEDULE ISS

Interruptible Storage Service

(Continued)

Section 3(a) (continued)

(a) Storage Inventory - The actual quantity of gas SHIPPER has in Storage on

any day.

(b) Storage Point - The point or points on COMPANY'S system, as more

particularly specified in the Service Agreement, at which COMPANY

receives gas for injection into or delivers gas withdrawn from Storage,

whichever is applicable.

4. RATES AND CHARGES

(a) For storage service rendered for SHIPPER each month under this Rate

Schedule, SHIPPER shall pay COMPANY the following:

(i) Average Daily Balance Charge: The applicable rate set forth on the currently

effective Sheet Nos. 21 or 32 multiplied by SHIPPER'S average daily balance of gas

in Storage during the month.

(ii) Injection Charge: The applicable rate set forth on the currently

effective Sheet Nos. 21 or 32 multiplied by the aggregate quantities of

gas injected for SHIPPER's account pursuant to the nomination procedures

contained in Section 5 of this Rate Schedule on each day during the month.

(iii) Withdrawal Charge: The applicable rate set forth on the currently effective Sheet

Nos. 21 or 32 multiplied by the aggregate quantities of gas withdrawn for SHIPPER's

account pursuant to the nomination procedures contained in Section 6 of this Rate

Schedule on each day during the month.

(b) In addition to the charge specified above, SHIPPER shall pay to

COMPANY as a fuel charge for performing storage services hereunder

(1) a percentage of the daily quantity of gas injected for SHIPPER'S