Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 01/09/2009, Docket: RP09-147-000, Status: Effective

Ninth Revised Sheet No. 133 Ninth Revised Sheet No. 133

Superseding: Eighth Revised Sheet No. 133

GENERAL TERMS AND CONDITIONS

(Continued)

Section 13.1(b) (continued)

The party providing an OPV PDA under Section 13.1(b) above, will also

designate the Service Agreement to be used to handle any variance between

the total quantity entered for allocation at the point under the OPV PDA

methodology and the total quantity measured at the point on a day. The

PDA shall be provided by each party under this Section 13.1 for each line

item nomination provided by COMPANY for confirmation. COMPANY shall then

use the predetermined priority provided by SHIPPER in its nominations for

applying the PDA to the Package ID level within the line item nomination

level. The party providing the PDA under this Section 13.1 should

communicate to the other shippers that their transaction(s) for allocation

purposes are lowest ranked or swing, when such shippers' transactions(s)

are identified in the PDA statement submitted to COMPANY by the allocating

party as being lowest ranked or swing.

Points interconnecting with third-party pipelines shall be provided by the

third-party pipeline and shall rank the various Service Agreements to

be supplied at the Receipt Point in accordance with one of the

methodologies enumerated in Section 13.1(b)(i) above or in Section 13.3

below. In the event there is a conflict between the foregoing

methodologies and the third-party pipeline's provision in its FERC Gas

Tariff governing the allocations of deliveries, said pipeline company and

COMPANY shall mutually agree on the predetermined allocation methodology

to be used. The ranking shall include the contract number assigned by

COMPANY to each Service Agreement and the name of the SHIPPER thereunder.

(d) PDA Deadlines and Default PDA: Each predetermined allocation statement

must be submitted to COMPANY, by facsimile machine or through SoNet

Premier, during the confirmation of that day's nominations or after

confirmation but prior to 5:00 p.m. CCT two (2) business days following

the gas day. COMPANY shall extend the PDA deadline to no later than four

(4) business days following the end of the month in which the gas was

transported in the event all of the affected parties, including the Point

Operator and all shippers, send notice to COMPANY in writing that they are

in agreement on the PDA to be used and have no objection to a change in

the PDA. If there are no additions in nominations by a SHIPPER at a

Receipt Point or other changes, the current predetermined allocation

statement will stay in effect as submitted until it is changed pursuant to

the foregoing procedures. A new allocation detail may be needed when a

nomination changes. In the event SHIPPER tenders a nomination at a

Receipt Point (or from a seller) currently not providing supplies to

SHIPPER, then SHIPPER must provide, or cause to be provided, as set forth

above a revised predetermined allocation statement at the Receipt Point