Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 05/05/2008, Docket: RP04- 42-003, Status: Effective

Fifth Revised Sheet No. 107 Fifth Revised Sheet No. 107 : Effective

Superseding: Fourth Revised Sheet No. 107

GENERAL TERMS AND CONDITIONS

(Continued)

 

(3) Most recent audited financial statement, annual report, Form 10-K, a

list of affiliates and three (3) credit references in order to enable

COMPANY to evaluate the requesting party's creditworthiness.

Upon receipt of all of the required information and a determination

of creditworthiness or the provision of approved credit support as set

forth in Section 2.1(d) above, COMPANY shall prepare and tender to

the requesting party a Supply Pool Balancing Agreement in the pro

forma format set forth in Appendix D to these General Terms and

Conditions. This Agreement must be executed, complete and unrevised,

before the requesting party shall be eligible to sell gas from its

Supply Pool under Article 7 of a transportation Service Agreement or

provide TTT services on COMPANY's system. The provisions of this Section

2.2 and the terms and conditions of the Supply Pool Balancing Agreement

shall govern to the extent of any conflict with Article 7 or Exhibit D of

a transportation Service Agreement.

3. QUALITY

3.1 The gas delivered for transportation under Rate Schedules FT, FT-NN and

IT will be merchantable gas and will upon delivery by SHIPPER to

COMPANY:

(a) be free of objectionable liquids and solids and be commercially free

from dust, gums, gum-forming constituents, or other liquid or solid

matter which might become separated from the gas in the course of

transportation through the pipeline or which could cause inaccurate

measurement;

 

(b) not contain more than 200 grains of total sulfur or 3.0 grains of

hydrogen sulfide per Mcf;

 

(c) not contain more than 3% by volume of carbon dioxide or nitrogen or

1% of oxygen;

 

(d) not contain more than 7 pounds of water per 1,000 Mcf;

 

(e) have a temperature of not more than 120 degrees Fahrenheit, nor less

than 40 degrees Fahrenheit;

 

(f) have a gross heating value of at least nine hundred fifty (950) Btu per

cubic foot of dry gas. The gross heating value of the gas shall be

determined by a mutually acceptable test of one cubic foot of gas at a

temperature of sixty degrees Fahrenheit and at a pressure of fourteen

and seventy-three hundredths (14.73) pounds per square inch absolute.

Tests for such determination of heating value shall be conducted on a

monthly basis, or such other intervals as determined necessary by COMPANY,

by a method or methods to be mutually agreed upon; or