Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Fourth Revised Sheet No. 135 Fourth Revised Sheet No. 135

Superseding: Third Revised Sheet No. 135

GENERAL TERMS AND CONDITIONS

(Continued)

Section 13.2(b)

(b)Allocations to No-Notice Service: If the total quantity allocated

to a SHIPPER at a Delivery Point pursuant to the PDA in effect for

the gas day is different from the total quantity scheduled by

SHIPPER at the Delivery Point for that day, the difference shall be

allocated, if applicable to SHIPPER'S available no-notice service

under Rate Schedule FT-NN at the Delivery Point in the following

manner:

(i) Excess Difference: To the extent the total quantity

allocated to SHIPPER is greater than the total quantity

scheduled for SHIPPER at a Delivery Point ("Excess

Difference"), then such Excess Difference, plus applicable

fuel, shall be withdrawn from SHIPPER'S CSS account on a no-

notice basis, not to exceed SHIPPER'S available no-notice

quantity applicable to the point. If SHIPPER'S available

no-notice withdrawal capacity is not sufficient to satisfy

its Excess Differences at all Delivery Points under its FT-

NN service, then SHIPPER'S total available no-notice

withdrawal capacity will be allocated pro rata among its FT-

NN Delivery Points with Excess Differences in each zone

based on the ratio that the Excess Differences, not to

exceed the FT-NN capacity at the point, bear to each other.

(ii) Deficient Difference: To the extent the total quantity

allocated to SHIPPER is less than the total quantity

scheduled for SHIPPER at a Delivery Point ("Deficient

Difference"), then such Deficient Difference, plus

applicable fuel, shall be injected into SHIPPER'S CSS

account on a no-notice basis, not to exceed SHIPPER'S

available no-notice quantity applicable to the point. If

SHIPPER'S available no-notice injection capacity is not

sufficient to satisfy its Deficient Differences at all

Delivery Points under its FT-NN service, then SHIPPER'S

total available no-notice injection capacity will be

allocated pro rata among its FT-NN Delivery Points with

Deficient Differences in each zone based on the ratio that

the Deficient Differences, not to exceed the FT-NN capacity

at the point, bear to each other.

(iii) Operator-Provided Injection Option: If the downstream operator at

a Delivery Point has available no-notice injection capacity, after

resolving the Deficient Differences of its own service agreements

under subsection (ii) above, or if the downstream operator at a

Delivery Point has released no-notice capacity to SHIPPER(S) at

the Operator's Delivery Point(s) and SHIPPER(S) have available no-

notice injection capacity at the Delivery Point, the downstream

operator may agree to apply all or part of the remaining available

no-notice injection capacity toward SHIPPER(S)'S unresolved

Deficient Difference(s) at the Delivery Point.