Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 09/01/2005, Docket: RP05-390-000, Status: Effective

Second Revised Sheet No. 102A Second Revised Sheet No. 102A : Effective

Superseding: First Revised Sheet No. 102A

GENERAL TERMS AND CONDITIONS

(Continued)

(vii) Notwithstanding the net present value determination, COMPANY reserves

the right to decline requests for service (i) that offer less than

the maximum rate; (ii) that may detrimentally impact the operational

integrity of COMPANY's system; (iii) that do not satisfy all the

terms of a specific open season; (iv) for which the requestor does

not demonstrate creditworthiness; (v) that contain terms and

conditions other than those set forth in the Tariff; or (vi)

that contain contingencies that cannot be removed within a time

frame acceptable to COMPANY.

accepting the request as provided above subject to the provisions

of Sections 2.1(a), 2.1(b), and 2.1(d) of this section, COMPANY shall

prepare and tender to SHIPPER for execution a Service Agreement under

the applicable transportation Rate Schedule in the pro forma format

attached to this tariff. If SHIPPER fails to execute and return to

COMPANY the Service Agreement within ten (10) business days of the date

received by SHIPPER, where the terms of the Service Agreement are

identical to the request or bid submitted by the SHIPPER, or fifteen (15)

business days where the terms of the Service Agreement have changed from

the request or bid submitted by the SHIPPER, then COMPANY may deem the

request for service null and void, and the available capacity will then

be reallocated according to Section 2.1(b)(iv) above.

(d) COMPANY shall not be required to perform services under a

transportation Service Agreement for any SHIPPER who (i) is or has

become insolvent, (ii)fails to demonstrate creditworthiness either before

initiation of service or on an ongoing basis after initiation of service,

or (iii) fails to make payments pursuant to Section 15 hereof (except if

SHIPPER has disputed a bill and made provision for such payment in

accordance with Section 15.3 hereof). If, during the ongoing credit

evaluation process following initiation of service, COMPANY should desire

additional credit information from SHIPPER, COMPANY will provide the

reason(s) to SHIPPER for requesting such additional information unless

COMPANY and SHIPPER have mutually agreed to waive this requirement.

COMPANY and SHIPPER shall comply with the following guidelines for credit

evaluation:

(A) COMPANY shall designate on its website or by written

notice, two representatives who are authorized to receive notice

and information regarding SHIPPER's creditworthiness, and COMPANY

shall manage internal distribution of any such information;