Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 09/01/2003, Docket: RP00-476-005, Status: Effective

Original Sheet No. 126.03 Original Sheet No. 126.03 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

Section 12.1(l)(3) (continued)

In the event nominations to a specific Receipt or Delivery

Point exceed the capacity for that point or the line serving

that point, the nominations will be scheduled according to the

priorities of service set forth in Section 12.3 below, subject

to the terms of Section 12.2(d) below, and nothing contained

herein shall prevent Southern from applying its generally

applicable scheduling procedures, as provided in this Section

12 below, to segmented transactions.

12.2 Changes in Nominations:

(a) Changes in Nominations Following Penalty Notices:

In the event COMPANY issues a notice pursuant to Section

41.3 or Section 41.2 of these General Terms and

Conditions, 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 41.2 is still in

effect, including the cancellation 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.