Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Second Revised Sheet No. 143 Second Revised Sheet No. 143 : Effective

Superseding: First Revised Sheet No. 143

GENERAL TERMS AND CONDITIONS

(Continued)

(g) In the event there is a prior period adjustment to the quantities of gas

booked under SHIPPER'S Service Agreements due to metering errors

or other errors attributable to COMPANY'S responsibilities under its

Tariff, the quantity of such adjustment shall be cashed out at 100% of

the Index Price for the month in which the error occurred or the

month in which the error was discovered, whichever is to SHIPPER'S

benefit.

(h) Imbalances accrued by SHIPPER under a Liquefiables Transportation

Agreement during a month shall be resolved by SHIPPER and

COMPANY separately pursuant to the provisions of this Section 14.1;

provided, however, that the price to be paid by COMPANY or

SHIPPER for SHIPPER'S Net Monthly Imbalance accrued during

each month with respect to such liquefiables shall be 100% of the

Index Price in effect for that month regardless of SHIPPER'S Net

Imbalance Percentage.

(i) Reserved for future use.