Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 03/01/2001, Docket: RP01-216-000, Status: Effective

Third Revised Sheet No. 98A Third Revised Sheet No. 98A : Effective

Superseding: Second Revised Sheet No. 98A

GENERAL TERMS AND CONDITIONS

(Continued)

Section 1(v) (continued)

COMPANY'S current types of OFOs are set forth in Section 41 of these

General Terms and Conditions.

(w) Ranked PDA - the predetermined allocation methodology used to allocate

gas flow among scheduled line item nominations at a point where the

line item nomination with the lowest rank value is allocated before

the next sequentially higher-ranked line item nomination.

(x) Pro Rata PDA - the predetermined allocation methodology used to allocate

gas flow among scheduled line item nominations at a point where the

total quantity to be allocated is multiplied by the ratio established

by taking each scheduled line item and dividing it by the total line

items applicable to the quantity to be allocated.

(y) Percentage PDA - the predetermined allocation methodology used to

allocate gas flow among scheduled line item nominations at a point

where the allocation is derived by taking the total quantity to be

allocated at a location and multiplying it by the percentage pro-

vided for each line item.

(z) Swing PDA - the predetermined allocation methodology used to

allocate gas flow among scheduled line item nominations at a

point where one of the scheduled line items, or alternatively a

separate contract, is designated as the "swing." All other

scheduled line items are allocated the scheduled quantity. The

line item(s) identified as "swing" are allocated the remaining

difference between the total quantity to be allocated and quantities

allocated to non-swing line items, in accordance with the instructions

provided with the PDA. The swing line item(s)/contract is not

permitted to be allocated a quantity which would result in a negative

number, therefore any negative quantity is allocated to the remain-

ing scheduled line items on a pro rata basis.

(aa) Operator Provided Value (OPV) PDA - the predetermined allocation methodology used to allocate

gas flow among scheduled line item nominations at a point where a quantity in Dth is provided

for each scheduled line item nomination such that the sum of the quantities equals the metered

flow at the point. If the sum of the Dth quantities allocated to the scheduled line item

nominations at the point is different from the total Dth quantity metered at the point, the

difference will be allocated to a designated swing contract. The swing contract will be

allocated the difference in accordance with the instructions provided with the Swing PDA.