Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Eighth Revised Sheet No. 86 Eighth Revised Sheet No. 86 : Effective

Superseding: Seventh Revised Sheet No. 86

RATE SCHEDULE ISS

Interruptible Storage Service

(Continued)

Section 4(b) (continued)

account and (2) a percentage of the daily quantity of gas withdrawn for

SHIPPER'S account. The percentage of the quantity of gas to be retained

by COMPANY on injection and withdrawal shall be set forth on the

currently effective Sheet Nos. 21 or 32 and shall be made effective only

at the beginning of a month.

(c) The rates which are stated on the currently effective Sheet Nos. 21 or 32 are

the maximum rates applicable to the service provided under this Rate Schedule

and the range represented by the maximum and minimum rates stated for

such service. SHIPPER shall pay the maximum rate for service under this

Rate Schedule unless COMPANY, in its reasonable judgment, offers to

discount the maximum rates to SHIPPER under this Rate Schedule, or unless the parties

have agreed to a Negotiated Rate under Section 34 of the General Terms and Conditions.

Any discount or Negotiated Rate agreed to by COMPANY and the effective period thereof shall be

stated on an executed Exhibit C or Exhibit D, to the Service Agreement, respectively, and

shall be made on a not unduly discriminatory basis. In the case of a discount, it shall be granted

consistent with the applicable provisions of Section 42 of the General Terms and Conditions. The

rate for service under this Rate Schedule shall not be discounted below the applicable minimum rate

specified on the currently effective Sheet Nos. 21 or 32.

(d) The foregoing charges are to be paid to COMPANY in addition to all

charges incurred under the applicable rate schedule for the transportation

of gas to be injected into and/or withdrawn from Storage for SHIPPER'S account.

5. INJECTION PROCEDURES

(a) SHIPPER, or its agent designated in an executed agency agreement, shall

nominate gas for injection under this Rate Schedule by notifying

COMPANY of the daily quantity of gas expressed in Dth it has

available for injection at the Storage Point pursuant to the nomination

procedures set forth in Section 12 of the General Terms and Conditions by

designating deliveries under SHIPPER's transportation agreement or a third party's

transportation agreement into Storage. In the event the nomination for

injection into storage for SHIPPER'S account is made by a third party shipper

under its own transportation agreement pursuant to the requirements of

Section 12 of the General Terms and Conditions, the third-party shipper's

transportation nomination must designate deliveries into SHIPPER'S

applicable Storage contract account number.