Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Fourth Revised Sheet No. 127A Fourth Revised Sheet No. 127A : Effective

Superseding: Third Revised Sheet No. 127A

GENERAL TERMS AND CONDITIONS

(Continued)

Section 12.2(f)(1) (continued)

SHIPPER for the receipt and delivery of gas

under SHIPPER'S firm transportation Service Agreement;

(2) If SHIPPER nominates at Exhibit A-1 Receipt Points and/or

Exhibit B-1 Delivery Points under its firm transportation

Service Agreement, the determination by COMPANY in its

reasonable judgment that sufficient capacity is available to

provide the requested service; and

(3) The receipt by COMPANY of written confirmation by the

third-party storage provider and any third-party

transporters that gas will be delivered or received by

such storage provider and transporters as nominated

by SHIPPER.

12.3 Scheduling of Nominations:

(a) Notice of Scheduled Quantities: After receiving notice of the next-day

nominations requested by SHIPPER under its Service Agreement, COMPANY

shall advise SHIPPER of the quantities of gas for current transportation

and the quantities of gas for make-up of an estimated imbalance it will

schedule at the Receipt Point(s) and deliver at the Delivery Point(s)

under SHIPPER'S Service Agreement by 4:30 p.m. Central Clock Time for the

11:30 a.m. nomination cycle and by 10:00 p.m. Central Clock

Time for the evening nomination cycle on the day

prior to the gas day for which SHIPPER has made its nominations.

In addition to making scheduled quantities information available by the

times set forth above, COMPANY shall also make

available to SHIPPER information containing scheduled quantities,

including scheduled intraday nominations and any other scheduling changes.

At the end of each gas day, COMPANY shall provide to SHIPPERS the final

scheduled quantities for the just completed gas day. With respect to

SHIPPERS using EDI, COMPANY shall send by EDI an end of the day

Scheduled Quantity document. Any SHIPPER may waive the delivery of

such end of the day Scheduled Quantity document.

After receiving notice of the intraday nomination changes requested by

SHIPPER under its Service Agreement, COMPANY shall advise SHIPPER of the

quantity of gas for current transportation and the quantities of gas

for make-up of an estimated imbalance that it is able to schedule on an

intraday basis prior to the effective time for such change. COMPANY shall

also notify other interruptible SHIPPERS of any interruption in service

caused by an intraday nomination prior to such interruption being

effective.

(b) Scheduling Procedures for Interruptible Nominations: Quantities of gas

nominated at an Exhibit A-1 Receipt Point to a firm transportation Service

Agreement shall be scheduled on a pro rata basis. Quantities of gas nominated

at an Exhibit B-1 Delivery Point under a firm transportation Service Agreement

shall be scheduled as follows: (i) to those nominations in which the Exhibit B-1

Delivery Point is in the capacity path of any Exhibit B Delivery Point under

the Service Agreement; and then (ii)to those nominations which are outside the

path of any Exhibit B Delivery Point under the Service Agreement; provided,

however, that any quantities of gas nominated by a SHIPPER