Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Original Sheet No. 95C Original Sheet No. 95C : Effective

RATE SCHEDULE PAL

PARK AND LOAN SERVICES (continued)

2.4 COMPANY shall not be required to provide service under

this Rate Schedule that would require COMPANY to

install, operate or maintain any additional facilities.

3. QUALIFICATIONS FOR SERVICE

In addition to the information provided in the PAL Agreement,

SHIPPER also shall provide the following information to COMPANY

with its initial request for service:

(i) Certification - Certification from SHIPPER that:

(a) SHIPPER will warrant for itself, its successors

and assigns, that it will at the time of delivery

to COMPANY have title to all gas free and clear of

all liens, encumbrances, and claims whatsoever.

SHIPPER will indemnify COMPANY and hold it

harmless from all suits, actions, debts, accounts,

damages, costs, losses, and expenses arising from

or out of adverse claims of any or all persons or

parties to said gas, including claims for

royalties, taxes, license fees or charges

applicable to such gas or to the delivery thereof

to COMPANY under this Rate Schedule; and

(b) it has entered into all necessary arrangements to

assure that upstream and downstream

transportation, if any, will be in place prior to

the commencement of service on COMPANY's system.

(ii) Credit information - SHIPPER shall furnish credit

information as prescribed in Section 2.1(a)(ix) of the

General Terms and Conditions.

4. NOMINATIONS AND SCHEDULING

4.1 SHIPPER shall nominate PAL services under this Rate

Schedule in accordance with the nomination deadlines set

forth in Section 12.1(c) of the General Terms and

Conditions of this tariff. SHIPPER shall nominate the

agreed upon park or loan quantities at the PT. Such

nominated quantities shall be subject to confirmation by

COMPANY. The confirmed quantity shall be deemed the

scheduled quantity provided that SHIPPER's corresponding

gas supply or transportation service is scheduled.