Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 12/01/2007, Docket: RP07-718-000, Status: Effective

Sixth Revised Sheet No. 145 Sixth Revised Sheet No. 145 : Effective

Superseding: Fifth Revised Sheet No. 145

GENERAL TERMS AND CONDITIONS

(Continued)

15. BILLING AND PAYMENT

15.1 Billing:

On or before the 9th business day of each calendar month, COMPANY shall

render to SHIPPER an imbalance statement of the daily volumes

and the Btu content of the gas received for the account of SHIPPER

for transportation, the daily volumes and the Btu content of the gas

delivered to or for the account of SHIPPER, and an invoice for transportation

services provided in the preceding month. Rendered is defined as

time-stamped and delivered to the site designated by COMPANY on SoNet Premier or delivered to

SHIPPER by the U.S. Postal Service,

a nationally reputable courier service, or electronically through e-mail. COMPANY shall provide

to SHIPPER notice electronically when SHIPPER's invoice is available on SoNet Premier. The invoice will be

deemed rendered once the COMPANY sends such notice of invoice availability. For those

SHIPPERS who elect to trade imbalances, COMPANY may furnish separate imbalance

invoices after the trading period. COMPANY may also furnish separate

invoices for penalty charges accrued by SHIPPER pursuant to the

terms of COMPANY'S FERC Gas Tariff. Prior to rendering an invoice to SHIPPER,

COMPANY shall offset the bill by all amounts owed by COMPANY to the SHIPPER for that month;

provided,however, that this offset shall not affect disputed amounts.

15.2 Payment:

Billing statements shall be deemed to be received by each SHIPPER on the date of the postmark,

timestamp or electronic delivery of the notice

rendered by COMPANY. SHIPPER shall make payment to COMPANY

for the services performed or charges levied hereunder during the preceding calendar month

by first class U.S. Mail, at the address set forth for COMPANY as indicated

on COMPANY'S statement, no later than ten (10) days after the SHIPPER'S

receipt thereof or, at COMPANY'S election, by electronic bank transfer (i.e.

wire transfer, ACH transfer or other mutually acceptable transfer method),

at such address as COMPANY may hereafter designate, no later than eleven

(11) days after SHIPPER'S receipt thereof. All payments made by SHIPPER

shall include COMPANY'S invoice number (s) for purposes of matching the

payment to the invoice.

15.3 Invoice Disputes and Interest on Unpaid Amounts:

If SHIPPER disputes, in good faith, the amount of any invoice from COMPANY,

it shall provide a description and supporting documentation of its position

and timely submit payment of the amount it states is due to COMPANY along

with remittance detail. In the event SHIPPER pays such invoice through a wire transfer

of funds, then SHIPPER shall provide COMPANY with the remittance detail in writing within

two days of payment. COMPANY shall apply such payment in accordance

with SHIPPER'S documentation. SHIPPER agrees that COMPANY'S acceptance

of a partial payment does not waive COMPANY'S right to full payment

after resolution of the disputed invoice in the future. Should

SHIPPER fail to pay any amount when due and COMPANY and SHIPPER cannot resolve

payment of amounts invoiced, such that COMPANY is forced to take collection

measures, interest on the unpaid amount shall accrue at the rate equal to the

rate then set forth in Section 154.501 of the Commission's Regulations from the

date payment was due until payment is made. COMPANY agrees to waive interest

charges on a late payment if such charge is not in excess of $100.00 or if

SHIPPER, through no fault of its own, fails to receive its notice of invoice

availability by the payment due date and notifies COMPANY of