Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 07/01/2003, Docket: RP03-381-000, Status: Effective

Fourth Revised Sheet No. 129 Fourth Revised Sheet No. 129 : Effective

Superseding: Third Revised Sheet No. 129

GENERAL TERMS AND CONDITIONS (Continued)

12.4 Confirmation:

 

(a) SHIPPER'S Responsibilities: COMPANY shall be entitled to rely

conclusively on SHIPPER'S nomination of the quantities to be

delivered at the Receipt Point as authorized for purchase from

its seller(s) or sale to its end-user(s). SHIPPER shall not nominate

for transportation in excess of: (i) the volumes to be purchased/sold

by SHIPPER, (ii) the volumes third-party transporter(s) have agreed to accept

for transportation for delivery to COMPANY, or (iii) the volumes third-party

transporter(s) or local distributor(s) have agreed to accept for delivery by

COMPANY, whichever is less. SHIPPER shall be responsible for all dispatching

notices to its seller(s) or end-user(s) and third-party transporter(s), for

notifying seller(s) or end-user(s) and third-party transporter(s) of any

changes in nominations, and for insuring that seller(s) or end-user(s) and

third-party transporter(s) comply with such changes.

 

(b) COMPANY'S Procedures: Prior to final scheduling of any nominations by

SHIPPER, COMPANY shall make such inquiries as it deems necessary, including

but not limited to contacting the responsible dispatching party at each

Receipt Point and each Delivery Point, to determine that the portion

of SHIPPER'S nomination which can be scheduled by COMPANY will be

implemented as stated by SHIPPER ("Confirmation Request"). COMPANY may

require confirmation by a Confirming Party no later than 3:30 p.m.

Central Clock Time for the 11:30 a.m. nomination cycle and by 9:00 p.m.

for the evening nomination cycle. A Confirmation Requester is a Service

Provider, including a Point Operator, which is seeking to confirm a

a quantity of gas via the information outlined in NAESB Standard 1.4.3

with another Service Provider ("Confirming Party"), with respect to

a nomination at a location. A Confirming Party is a Service Provider,

including a Point Operator, which provides a confirmation for a

quantity of gas via the information outlined in NAESB Standard 1.4.4

to a Confirmation Requester with respect to a nomination at a

location. Confirming Parties refers to a Confirmation Requester

and the Confirming Party. The receiver of a nomination initiates

the confirmation process. The party that would receive a

Confirmation Request or an unsolicited Confirmation Response may

waive the obligation of the sender to send. Confirming Parties

may agree that one party deems all requests at a location are

confirmed by the other party ("Confirmation by Exception") without

a response communication from that party. The Confirmation

by Exception party can take exception to any Confirmation

Request by so informing the Confirmation Requester within

a mutually agreed upon time frame. Absent mutual agreement

between the Confirming Parties, the explicit confirmation process

is the default methodology. The explicit confirmation process

requires that the Confirming Party respond to a Confirmation Request

or initiate an unsolicited Confirmation Response. Under the explicit

confirmation process, if the Confirming Parties do not agree upon a

nomination quantity, then the lesser of the confirmation quantities

should be the confirmed quantity; provided that for decreases during

the intraday nomination/confirmation process, the confirmed quantity

shall not be less than the elapsed-prorated-scheduled quantity.

With respect to a nomination to make up an estimated imbalance,

COMPANY will accept such nomination as long as the available information

(e.g., metered volumes, estimated production reports or confirmed

nominations) indicates that an imbalance has been incurred, but if it is

ultimately determined that no imbalance was incurred, COMPANY will not be

responsible in any manner to SHIPPER for accepting its nomination.