Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 01/09/2009, Docket: RP09-147-000, Status: Effective

Seventh Revised Sheet No. 123 Seventh Revised Sheet No. 123

Superseding: Sixth Revised Sheet No. 123

GENERAL TERMS AND CONDITIONS

(Continued)

10.2 Authorized Fluctuations in Flow Rates:

SHIPPER shall be entitled to take gas at any Delivery Point at an hourly rate necessary to

serve its firm markets; provided, however, that SHIPPER shall not be entitled to take, and

COMPANY shall not be obligated to deliver, gas during any hour at any Delivery Point in excess

of 6% of the firm Maximum Daily Delivery Quantity for such Delivery Point ("hourly flow rate

entitlement"). SHIPPER may elect to take a portion of its hourly flow rate entitlement at a

secondary firm Delivery Point; provided that this secondary firm Delivery Point is in the path

of SHIPPER's primary firm Delivery Point and is downstream of all compression required to

deliver to SHIPPER's primary firm Delivery Point. The hourly flow rate entitlement at

SHIPPER's primary firm Delivery Point shall be reduced by the amount of the hourly flow rate

entitlement received at the secondary firm Delivery Point. The hourly flow rate entitlement at

delivery points interconnecting with third party pipelines shall be stated in the OBA between

COMPANY and third party pipeline with such hourly flow rate entitlement not to exceed 6%.

Notwithstanding the foregoing, SHIPPER and COMPANY may mutually agree to an hourly flow rate

entitlement of less than 6% and such agreement shall be specified on Exhibit "B" to SHIPPER's

Service Agreement.

10.3 Notice to Observe Maximum Authorized Fluctuations in Flow Rates:

If COMPANY determines in its reasonable judgment that SHIPPER'S takes of gas in excess of an

hourly rate of 6% of the firm Maximum Daily Delivery Quantity for a Delivery Point threaten the

integrity of its pipeline system, including the ability to deliver to any other SHIPPER its

Daily Entitlement, COMPANY shall give SHIPPER four (4) hours' prior notice to reduce its

takes of gas at such Delivery Point to an hourly rate equal to 6% of the SHIPPER's firm Maximum

Daily Delivery Quantity for such Delivery Point less the uniform hourly flow of all SHIPPERS

scheduling service at secondary points on the affected line segment, provided that the affected

SHIPPER shall always be entitled to receive at least 6% of its scheduled volumes on an hourly

basis at its primary delivery point on the affected line segment unless SHIPPER and COMPANY

have mutually agreed to an hourly flow rate entitlement of less than 6% as specified on Exhibit

"B" to SHIPPER's Service Agreement. Available capacity that is in excess of an hourly rate of

6% of the affected SHIPPERS' scheduled volumes shall be allocated on a pro-rata basis according

to each firm SHIPPERS' applicable MDDQ.

At the same time such notice is given, COMPANY shall also give notice to all SHIPPERS receiving

interruptible transportation service at said Delivery Point that their service will be

interrupted in accordance with their Service Agreements. COMPANY will also give notice to limit

the performance of interruptible transportation service at any other Delivery Points where the

performance of such services would adversely affect the firm transportation services being

limited pursuant to this Section 10.

11. INSTALLATION OF FLOW CONTROL EQUIPMENT

COMPANY may elect to construct, install, and operate flow control equipment at any location on its

pipeline system whenever it determines in its reasonable judgment that such equipment will contribute

to the safe, reliable, efficient, and orderly operation of its pipeline system in a manner that is

consistent with its obligations to provide service under all of its rate schedules.

12. NOMINATIONS

12.1 Nomination Procedures:

(a) General: SHIPPER, or its agent designated in an executed Agency Agreement, shall

nominate gas for transportation, including any volumes for injection into or withdrawal

from storage, under its transportation and storage Service Agreements by notifying

COMPANY, pursuant to the provisions of this Section 12, of the daily quantity of gas

expressed in Dth it has available for transportation at each Receipt Point and of

the quantity of gas it desires to have delivered at each Delivery Point.