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. 95E Second Revised Sheet No. 95E

Superseding: First Revised Sheet No. 95E

RATE SCHEDULE PAL

PARK AND LOAN SERVICES (continued)

5.2 SHIPPER may be required, upon notification from COMPANY,

to suspend or reduce deliveries for the agreed upon Park

Service, or receipts for the agreed upon Loan Service.

Further, SHIPPER may be required, upon notification from

COMPANY, to remove quantities of gas previously provided

to COMPANY under the Park Service, or return quantities

of gas previously loaned to SHIPPER under the Loan

Service. Such notification shall be made pursuant to the

provisions of Section 18.3 of the General Terms and

Conditions to this Tariff.

5.3 Should COMPANY notify SHIPPER to remove or return

quantities of gas pursuant to Section 5.2 above,

COMPANY's notification shall specify the time frame

within which Park Service quantities shall be removed,

and/or Loan Service quantities shall be returned. Such

notifications shall be consistent with COMPANY's

operating conditions, but in no event shall the specified

time frame be less than three (3) calendar days from the

date of COMPANY's notification unless COMPANY and SHIPPER

mutually agree to a different time frame.

5.4 In the event SHIPPER makes a timely nomination in

response to a notification by COMPANY pursuant to Section

5.3 above, the obligation of SHIPPER to comply with that

notification shall be suspended until such time as

COMPANY's operational conditions allow COMPANY to

schedule the nomination.

6. RATES AND CHARGES

6.1 The daily unit rate for service under this Rate Schedule

is shown on the effective Sheet Number 25 of Volume No. 1

of this tariff. This rate shall be applied to the daily

balance in SHIPPER's PAL account for each separate

transaction for each day service is tendered by COMPANY.

The monthly charges for PAL services shall be the product

of the quantities of gas in SHIPPER's PAL account for

each separate transaction and the maximum or mutually

agreed upon rate for the applicable day(s) service is

provided by COMPANY. Charges shall commence on the first

day of the agreed upon transaction and continue until

SHIPPER's account balance reaches zero or until the last

day of the agreed upon term as set forth in the executed

PAL Agreement.