Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 09/01/2003, Docket: RP00-476-004, Status: Effective

First Revised Sheet No. 120 First Revised Sheet No. 120 : Effective

Superseding: Original Sheet No. 120

GENERAL TERMS AND CONDITIONS

(Continued)

8. LIABILITY OF SHIPPER AND COMPANY

8.1 Control of Gas:

For the purpose of determining the liability of COMPANY and SHIPPER,

respectively, SHIPPER shall be deemed to be in exclusive control and

possession of the gas to be transported until such gas has been actually

received by COMPANY at the Receipt Point, while the gas is in SHIPPER'S

custody (or the custody of another on its behalf) for processing in accordance

with Section 19 hereof, and after the gas has been delivered to the account

of SHIPPER hereunder by COMPANY at the Delivery Point. COMPANY

shall be deemed to be in exclusive control and possession of the gas

transported hereunder only while it is in COMPANY'S facilities. Title to that

share of gas deemed to be used as compressor fuel, company-use, vented, lost

or unaccounted-for gas hereunder shall pass to COMPANY at the Receipt

Point.

8.2 Responsibility and Liability:

The party deemed to be in control and possession of the gas to be transported

shall be responsible for and shall indemnify the other party with respect to

any losses, claims, liabilities or damages (except consequential) arising

therefrom.

8.3 Force Majeure:

In the event of either COMPANY or SHIPPER being rendered unable, wholly

or in part, by force majeure to carry out its obligations under the

Service Agreement, other than to make payments due thereunder, it is

agreed that, on such party giving notice and full particulars of such

force majeure in writing, on SoNet Premier, by telephone (followed by

written confirmation) or by facsimile machine to the other party as soon

as possible after the occurrence of the cause relied on, the obligations

of the party giving such notice, so far as they are affected by such

force majeure, shall be suspended during the continuance of any inability

so caused but for no longer period; and such cause shall as far as

possible be remedied with all reasonable dispatch. Upon