Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 04/01/2001, Docket: RP01-242-001, Status: Effective

Substitute Original Sheet No. 95I Substitute Original Sheet No. 95I : Effective

Superseding: Original Sheet No. 95I

RATE SCHEDULE PAL

PARK AND LOAN SERVICES (continued)

7.3 If on a consistent basis for a period of one or more days,

SHIPPER's deliveries to or receipts from the PT are less than

or exceed the scheduled quantities such that SHIPPER is

encroaching on other shipper's services, COMPANY may cancel

the PAL transaction.

7.4 At any time that operational conditions on the system require

SHIPPER to respond to that condition by complying with an

operational flow order, COMPANY may issue an operational flow

order, as the applicable circumstances may allow

pursuant to the relevant provisions of the operational flow

orders set forth in Section 41 of the General Terms and

Conditions of this Tariff. The terms of the relevant provisions

listed in Section 41 of the General Terms and Conditions shall

apply to service under this Rate Schedule. COMPANY may not issue

an operational flow order until it has complied with the

applicable notice provisions set forth in the relevant tariff

provisions.

8. GENERAL TERMS AND CONDITIONS

The provisions of the General Terms and Conditions of COMPANY's

FERC Gas Tariff, currently effective Volume No. 1, as such may

be amended from time to time, are hereby incorporated by

reference and made a part of this Rate Schedule PAL and shall

apply to services rendered hereunder as stated herein.