Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Third Revised Sheet No. 125 Third Revised Sheet No. 125

Superseding: Second Revised Sheet No. 125

GENERAL TERMS AND CONDITIONS

(Continued)

Section 12.1(e) (continued)

(e) Adjustment for Systemwide Btu factor: Solely for purposes of establishing

the maximum quantities of gas SHIPPER may nominate for transportation

under a firm transportation Service Agreement, SHIPPER'S Transportation

Demand, MDRQ at each firm Receipt Point and MDDQ at each firm Delivery

Point shall be adjusted for an average system thermal content of 1,021

Btu (Btu factor of 1.021). This adjustment in no manner obligates

COMPANY to deliver gas at 1,021 Btu or changes COMPANY'S use of actual

Btu content for accounting and billing purposes. Upon receipt of approval

from the Federal Energy Regulatory Commission, COMPANY may (i) revise the

system average Btu adjustment set forth above as it deems necessary to

significant changes in the system average Btu content of the gas, or

(ii) establish separate Btu adjustments for points on COMPANY'S system

where the Btu content varies significantly from the system average.

(f) Make-up Nominations: When making its nomination, Shipper shall specify

by Service Agreement which portion of the quantities to be transported

by COMPANY is attributable to current transportation and which portion

of the quantities is attributable to make-up within the month of an

estimated imbalance (either positive or negative). As between quantities

of gas received or delivered by COMPANY for current transportation and

gas received or delivered by COMPANY as make-up of estimated imbalances,

the gas received or delivered as current transportation gas shall be

deemed to be received or delivered prior to any make-up gas, and the gas

received or delivered by COMPANY for current transportation shall be

scheduled prior to any make-up gas nominated by SHIPPER.