Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Second Revised Sheet No. 108A Second Revised Sheet No. 108A : Effective

Superseding: First Revised Sheet No. 108A

GENERAL TERMS AND CONDITIONS

(Continued)

Section 3.1(g) (continued)

*Aggregation Groups which conform to the posted HDP Specification set

forth in the limitation posting. In the event that volumes of gas that

do not meet the HDP Specification must be limited, COMPANY will schedule

the gas under any limitation hereunder during COMPANY's regular NAESB

scheduling cycles according to the following procedures:

(i) The total quantity of equivalent gallons of Hexanes and

heavier (C6+) hydrocarbons contained in the gas stream at the

Monitoring Point(s) that must be reduced to meet the HDP Specification

will be calculated;

(ii) The gallons calculated in (i) will then be allocated

proportionately based on the GPM Factor to (a) each Receipt Point that

is not part of an Aggregation Group where the gas received at the

Receipt Point does not meet the HDP Specification and (b) each

Aggregation Group where the gas received from the Aggregation Group

exceeds the HDP Specification;

(iii) Except as provided in (iv) below, the gallons allocated to

an Aggregation Group as provided above in (ii) will be allocated

proportionately based on the GPM Factor to each Receipt Point which does

not meet the HDP Specification within such Aggregation Group; and

(iv) For Aggregation Group(s) that include Receipt Points that

are upstream of a processing plant that is directly-connected to

COMPANY's system, the following exception to the proportionate

allocation in (iii) above shall apply. The gallons allocated to such

Aggregation Group(s)as provided in (ii) shall be allocated

proportionately to that gas entering COMPANY's system for which there

has been no demonstration of proof of processing as provided below. In

order to demonstrate proof of processing, the party with the right to

process the ownership interest at the Receipt Point must verify in

writing to COMPANY that such gas, for which proof of processing is being

provided, at the Receipt Point proposed to be limited hereunder will be

processed through the Toca Plant under either (x) ownership rights in

the Toca Plant; or (y) a gas processing arrangement with the Toca Plant

for the month in which the limitation occurs. Prior to granting a proof

of processing priority for gas at a Receipt Point, COMPANY must receive

confirmation from the operator of the Toca Plant acknowledging that such

gas will be processed during the month under the arrangement provided

above in (x) or (y), and that the Toca Plant has the capability to

process the SHIPPER's Maximum Daily Receipt Quantity, or such lesser

volume as indicated by the operator of the Toca Plant. In the event that

the volume of gas for which proof of processing has been demonstrated

still does not meet the HDP Specification at the common sampling point

described above, downstream of the Toca Plant after all of the gas for

which no proof of processing was demonstrated has been limited, the

remaining gallons shall be allocated proportionately to said Receipt

Point(s) for which proof of processing has been demonstrated as provided

above. COMPANY shall rely upon such verified statements in the

allocation of the gallons allocated to the Aggregation Group effective

with the next available scheduling cycle.

*This section is not new. It was moved from the succeeding page to this page.