Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Second Revised Sheet No. 130A Second Revised Sheet No. 130A : Effective

Superseding: First Revised Sheet No. 130A

GENERAL TERMS AND CONDITIONS

(Continued)

Section 12.5 (continued)

(b) If during any day of the month SHIPPER'S total scheduled quantities

at a Receipt Point vary by more than four (4) percent of such

nominations from the daily quantities received by COMPANY for

SHIPPER'S account at the Receipt Point on that day, a scheduling

penalty shall be assessed; provided, however, that said scheduling

penalty shall not be assessed if said variance occurs solely because of

COMPANY'S inability to accept gas delivered to COMPANY for

SHIPPER'S account. Notwithstanding the fact that SHIPPER's scheduled

quantities and SHIPPER'S actual receipts vary by more than the four

(4)percent tolerance described above, if the total scheduled quantities

(i)at the Receipt Point identified in the notice or (ii) at a group

of Receipt Points identified in the notice set forth in 12.5(a)above,

if applicable;or (iii) at those Receipt Points within the group of

Receipt Points in (ii) above, having the same Point Operator as the

Receipt Point at which SHIPPER has scheduled quantities, if applicable,

do not vary by more than four (4) percent of the daily quantities received

by COMPANY at the Receipt Point, the group level, or the operator level,

respectively, then no scheduling penalty shall be assessed hereunder.

Subject to the provisions of Section 12.5(d) below, the scheduling

penalty shall be equal to the maximum Transportation Charge under the

IT Rate Schedule multiplied by the quantities in excess of the allowed

variance, provided, however, that such penalty shall be waived for an

interruptible SHIPPER whose scheduled volumes are bumped by a firm

intra-day nomination but shall be waived only for the day that such

bumping occurs.

Delivery Point by COMPANY for SHIPPER'S account is less than

ninety (90) percent of the daily quantities nominated by SHIPPER for

each Delivery Point, a scheduling penalty shall be assessed. Subject to

the provisions of Section 12.5(d) below,