Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 09/01/2003, Docket: RP00-476-004, Status: Effective

Second Revised Sheet No. 93 Second Revised Sheet No. 93 : Effective

Superseding: First Revised Sheet No. 93

RATE SCHEDULE ISS

Interruptible Storage Service

(Continued)

(d) SHIPPER shall not be charged a Transportation Charge for the volume of gas delivered to

Tennessee at the Bear Creek Storage Field from a Storage account pursuant to this Section

9; provided, however, that SHIPPER shall pay all volumetric surcharges assessed under

Section 3 of Rate Schedules FT, FT-NN or IT on gas withdrawn from a Storage account for

subsequent delivery, including but not limited to the ACA charge. To the extent COMPANY

charged SHIPPER the GRI volumetric surcharge on gas injected into Storage which is

subsequently delivered to Tennessee at Bear Creek Storage Field, COMPANY shall credit said

surcharge to SHIPPER'S bill.

(e) Nothing contained herein changes SHIPPER'S obligation to pay the Injection Charge,

Withdrawal Charge and associated fuel under this Rate Schedule.

10. FACILITIES

Should SHIPPER request the installation or modification of the facilities

necessary to perform the interruptible storage service requested hereunder and

agree to reimburse COMPANY for the cost thereof, and should COMPANY

agree to install said facilities or to modify its existing facilities pursuant to

SHIPPER'S request, it is agreed that COMPANY will construct and install, or

cause to be constructed and installed, said facilities, or will modify, or cause to be

modified, its existing facilities, and will own and operate such facilities and all

related appurtenant facilities. In the event SHIPPER does not agree to pay the

costs of installing or modifying said facilities, COMPANY may agree to construct

or modify such facilities so long as such facilities are constructed or modified on a

nondiscriminatory basis for similarly situated SHIPPERS. Whether said facilities

will provide a benefit to all SHIPPERS using COMPANY'S Storage facilities such

that it is appropriate to include the cost of said facilities in COMPANY'S general

system rates will be determined in the rate proceeding in which COMPANY

proposes to include such costs in its general system rates. It is understood and

agreed that title to and ownership of said facilities shall remain in COMPANY,

and COMPANY shall operate such facilities as part of its natural gas system.

11. GENERAL TERMS AND CONDITIONS

All of the General Terms and Conditions contained in this Tariff, and any future

modifications, additions or deletions thereto, are applicable to the storage services

rendered under this Rate Schedule and, by this reference, are incorporated

herein, except for the provisions of Sections 1(h-n), 2, 6, 10, 12.5, 13, 14.1(a-e, g-

h), 16, 17, 19, 20, 21, 22 and 28-35 and Appendices A, D, G, H, and J thereof. If

and to the extent the provisions of this Rate Schedule conflict with the provisions

of said General Terms and Conditions, the provisions of this Rate Schedule shall

prevail.