Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 09/22/2004, Docket: RP04-494-000, Status: Effective

Fourth Revised Sheet No. 113 Fourth Revised Sheet No. 113 : Effective

Superseding: Third Revised Sheet No. 113

GENERAL TERMS AND CONDITIONS

(Continued)

5.4 Check Measuring Equipment:

SHIPPER may install, maintain and operate, at its own expense, such check

measuring equipment as it shall desire, provided that such equipment shall be

so installed as not to interfere with the operation of COMPANY'S measuring

equipment. COMPANY shall have access to such measuring equipment at

all reasonable hours, but the reading, calibrating and adjusting thereof and the

changing of charts shall be done only by SHIPPER.

5.5 Prior Period Adjustments:

The deadline for closing measurement data shall be no later than 5 business days

after the month of flow. Any measurement data or corrections received by COMPANY

(including corrections to allocations) after it has closed the previous month

of flow shall be handled as a prior period adjustment. COMPANY shall process

late measurement data or corrections of measurement errors under Section 5.3

as soon as practicable but no later than 6 months after the applicable month

of flow in question. The correction shall be made to the month of flow

for allocation and billing purposes. If SHIPPER disputes the measurement

adjustment, it will have 3 months after the prior period adjustment is made to

provide information that rebuts the adjustment. Excluding government required

rate changes and as otherwise provided herein, no prior period adjustments

of any kind shall be made after 6 months following the invoiced month

for transportation, storage or pooling services (or after 7 months following

the invoiced month for sales service). These deadlines do not apply in the

case of deliberate omission or misrepresentation or mutual mistake of fact.

The parties' other statutory or contractual rights shall not be

diminished by this provision.

RECEIPT AND DELIVERY POINTS

6.1 Receipt Point:

Each Receipt Point available for transportation service under this Tariff,

shall be at the inlet side of COMPANY'S measurement facilities, or

such other point as may be mutually agreed upon between COMPANY and SHIPPER.

On Exhibit A to the Service Agreement under

Rate Schedule FT or Rate Schedule FT-NN, COMPANY