Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 09/01/2009, Docket: RP09-427-000, Status: Suspended

First Revised Sheet No. 95B First Revised Sheet No. 95B

Superseding: Original Sheet No. 95B

RATE SCHEDULE PAL

PARK AND LOAN SERVICES (continued)

(c) COMPANY's return of parked quantities of gas

to SHIPPER at the PT in the zone where

SHIPPER delivered the gas.

COMPANY shall hold the quantity of gas parked under the PAL

Agreement for SHIPPER up to the term as specified in the

executed PAL Agreement. COMPANY shall then return such parked

gas to SHIPPER at the PT where SHIPPER tendered gas

to COMPANY, subject to the nomination procedures set forth in

Section 4 of this Rate Schedule.

(ii) Loan Service: Loan Service is an interruptible

service which provides for:

(a) SHIPPER's receipt of gas quantities from

COMPANY at a PT on COMPANY's system; and

(b) SHIPPER's return of the loaned gas

quantities to COMPANY at the PT where

SHIPPER received the gas.

COMPANY shall make the quantity of gas loaned under the PAL

Agreement available at the PT for a time period up to the

maximum term as specified in the executed PAL Agreement.

Loaned quantities shall be returned to COMPANY at

the PT where SHIPPER received gas, subject to the nomination

procedures set forth in Section 4 of this Rate Schedule.

(iii) The combination of (i) and (ii) above under the

same PAL Agreement.

2.2 The parking and loaning of natural gas under this Rate

Schedule shall be on an interruptible basis and shall be

scheduled when and to the extent that COMPANY

determines, using its reasonable discretion, that

capacity is available on its existing facilities and

that it has the operational flexibility to provide the

service without detriment or disadvantage to COMPANY's

firm or interruptible transportation or storage

services.

2.3 Service under this Rate Schedule will be made available

on a first come, first served basis, to any SHIPPER

willing and able to pay maximum rates or such other rate

mutually agreed upon by COMPANY and SHIPPER, subject to

all applicable provisions of the General Terms and

Conditions of COMPANY's Tariff. COMPANY shall be under

no obligation to provide service under this Rate

Schedule at less than the maximum rate.