Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 09/01/2009, Docket: RP09-427-001, Status: Effective

Second Revised Sheet No. 95D Second Revised Sheet No. 95D

Superseding: First Revised Sheet No. 95D

RATE SCHEDULE PAL

PARK AND LOAN SERVICES (continued)

4.2 The park or loan quantity of gas nominated on a daily basis

shall equal the agreed upon daily quantity of gas stated in

the PAL Agreement unless otherwise mutually agreed upon by

both COMPANY and SHIPPER. The total park or loan quantity

of gas shall equal the total park or loan quantity agreed

upon in the PAL Agreement unless COMPANY and SHIPPER

mutually agree to a different total quantity. COMPANY shall

not schedule any overrun quantities under the PAL Agreement

which encroach upon any services provided to other

shippers. COMPANY may terminate the PAL Agreement if

shipper nominates quantities other than either the daily or

total quantity in the PAL Agreement or the mutually agreed

upon quantity. COMPANY may decrease SHIPPER'S nominations

to the extent SHIPPER consistently over nominates

quantities that COMPANY has scheduled and SHIPPER fails to

deliver to COMPANY.

4.3 PAL services will be provided on an interruptible basis.

Interruption of PAL services may include decreasing,

temporarily suspending, or discontinuing the receipt or

delivery of gas if COMPANY in its reasonable discretion

determines that such decrease, suspension or discontinuance

is necessary to maintain system integrity or when a higher

priority service so requires.

4.4 If, on any day, SHIPPER nominates quantities of gas to be

withdrawn from or deposited into its PAL account, but

COMPANY is unable to confirm and schedule any of the

quantities nominated, COMPANY shall suspend the Park and/or

Loan Service rate charges for that quantity not scheduled

until COMPANY is able to schedule the quantity nominated.

Additionally, COMPANY and SHIPPER may mutually agree to

extend the agreed upon term, in the event it is

operationally feasible, if SHIPPER's account balance is not

zero on the last day of the agreed upon term as set forth

in the executed PAL Agreement in order to reach a zero

balance.

5. NOTIFICATIONS, ALLOCATIONS AND LIMITATIONS

5.1 For purposes of restricting PAL services, COMPANY will give

priority to PAL Agreements with the highest average rate on

a per unit basis to COMPANY. Such unit rate shall be

calculated by taking the total revenue generated during the

term of the PAL Agreement and dividing by the total park

and loan quantity to arrive at the average rate on a per

unit basis. For purposes of calculating the average unit

rate, SHIPPERS willing to pay more than the maximum rate

listed on Sheet Number 25 of this tariff will be considered

to be paying the maximum tariff rate. Service will be

allocated or limited on a pro rata basis among SHIPPERS

with the same average unit rate for PAL services.