Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 01/01/2001, Docket: RP00-514-000, Status: Effective

Original Sheet No. 126.01 Original Sheet No. 126.01 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

12.2 Changes in Nominations:

(a) Changes in Nominations Following Penalty Notices:

issues a notice pursuant to Section 12.5 or Section 16.4 of these General

Terms and Conditions or Section 1.3 of a Supply Pool Balancing Agreement,

SHIPPER may submit or change its current nomination under its Service

Agreement on the day prior to the day on which the penalty notice goes

into effect pursuant to the deadlines and the procedures

set forth in Section 12.1 above. Whenever COMPANY notifies SHIPPER

of an increase in the level of capacity to be made available while

a notice under Section 16.4 is still in effect, including the cancella-

tion of such notice, SHIPPER will have four (4) hours from the time such

notice is given in which it may choose to renominate for the following

day of service pursuant to Section 12.1 hereof.