Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 04/01/2001, Docket: RP01-242-000, Status: Effective

Original Sheet No. 95A Original Sheet No. 95A : Effective

RATE SCHEDULE PAL

PARK AND LOAN SERVICES

1. AVAILABILITY

This Rate Schedule is available for the parking and loaning of

natural gas on an interruptible, non-discriminatory basis by

Southern Natural Gas Company ("COMPANY") to any party

("SHIPPER"):

(a) which has submitted a valid Park and Loan ("PAL")

Service Request Form; and

(b) which has executed a PAL Form of Service Agreement ("PAL

Agreement") for service under this Rate Schedule.

2. APPLICABILITY AND CHARACTER OF SERVICE

This Rate Schedule shall apply to all PAL services rendered by

COMPANY for SHIPPER. PAL services under this Rate Schedule

shall be provided for a minimum of one (1) day and a maximum of

thirty-one (31) days, or a term otherwise mutually agreed upon

by both COMPANY and SHIPPER. The term and quantity(ies) of

each PAL Agreement shall be set forth in the executed PAL

Agreement. PAL transactions will occur at a Point of

Transaction ("PT") according to the zone specified by SHIPPER.

The PT will not be a physical Receipt or Delivery Point on

COMPANY's system, but it will be a paper point in each of

COMPANY's rate zones. Such PAL transaction shall be nominated

from or to a PT to or from a supply pool under a Supply Pool

Balancing Agreement or to or from a Service Agreement under

Rate Schedules FT, FT-NN, or IT; provided, however, any gas

which has been parked must be nominated from the PT where the

gas is parked to a supply pool in the same zone or to a

transportation agreement that has capacity in the same zone as

the PT.

2.1 Service under this rate schedule will be provided as

follows:

(i) Park Service: Park Service is an interruptible

service which provides for:

(a) COMPANY's receipt of gas quantities that

have been delivered by SHIPPER to a PT on

COMPANY's system;

(b) COMPANY holding the parked quantities on

COMPANY's system; and