Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 10/01/2004, Docket: RP04-523-000, Status: Effective

First Revised Sheet No. 141A First Revised Sheet No. 141A : Effective

Superseding: First Substitute Original Sheet No. 141A

GENERAL TERMS AND CONDITIONS

(Continued)

The Low Price is equal to the lowest of the prices used by

COMPANY, as set forth below, for calculating the Index Price for

the month in which SHIPPER'S Net Monthly Imbalance was incurred.

The High Price is equal to the highest of the prices used by

COMPANY, as set forth below, for calculating the Index Price

for the month in which SHIPPER'S Net Monthly Imbalance was

incurred.

The Index Price is equal to the sum of the prices published by the

following publications for delivery to COMPANY'S system 1) during the

month in which SHIPPER'S Net Monthly Imbalance was incurred and 2) the

first of the month price or the first weekly price published during the

month following the month in which the imbalance was incurred divided by

the number of such prices utilized by COMPANY as determined below:

(i) Natural Gas Intelligence Weekly Gas Price Index, "South Louisiana,"

"Southern Natural," "Average";

(ii) Inside F.E.R.C.'s Gas Market Report, "Southern Natural Gas

Co.," "Louisiana," "Index".

With respect to Inside F.E.R.C.'s Gas Market Report, COMPANY will

use the posting published for the first of each applicable month. With

respect to Natural Gas Intelligence Weekly Gas Price Index, COMPANY will

use each of the weekly postings published during the month in which the

imbalance was incurred and the first weekly posting in the following

month.