Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 09/01/2009, Docket: RP09-427-000, Status: Suspended

Fifth Revised Sheet No. 148 Fifth Revised Sheet No. 148

Superseding: Fourth Revised Sheet No. 148

GENERAL TERMS AND CONDITIONS

(Continued)

Section 16.2 (continued)

(c) If a transmission capacity reduction is limited to only a

part or parts of the COMPANY'S transmission system, the

COMPANY'S allocation orders shall also be limited to that

portion or portions of the COMPANY'S transmission system.

For purposes of allocating the transmission capacity on each

limited portion of the COMPANY'S system, the COMPANY shall

first allocate its available transmission capacity to all

firm transportation services up to the extent of its

transmission capacity in such portion or portions of its

system. If the COMPANY further determines that it has

insufficient transmission capacity on the constrained part

or parts of its transmission system to serve all of the firm

transportation services on that portion or portions on any

day, the COMPANY shall allocate all of its reduced

transmission capacity on that portion or portions of its

system to the firm transportation services based (i) first

on those specific package(s) that have firm capacity on the

path that is being limited; and (ii) second on the ratio of

each SHIPPER'S total MDDQ for its package(s) at the Delivery

Points located on or downstream of the constrained portion

or portions of the transmission system to the total

Transportation Demand of all firm transportation SHIPPERS in

effect at such Delivery Points on or downstream of the

constrained portion or portions of the transmission system.

Each SHIPPER shall be allocated its proportionate share of

the available transmission capacity based on its percentage

share calculated from this ratio.

(d) If the COMPANY does not have to limit its firm

transportation services on a day, the COMPANY shall allocate

the remaining transmission capacity on its system to

interruptible services. If the remaining transmission

capacity is insufficient to satisfy all of the nominations

for interruptible services, the interruptible SHIPPERS shall

be served within the remaining capacity of the COMPANY'S

transmission system with capacity allocations made in the

following order of priority with limitations within each

priority implemented on a pro-rata basis on the basis of the

nominations confirmed for each service provided, however,

COMPANY shall not be required to limit or allocate any

interruptible service under any interruptible rate schedule

if COMPANY determines that such service does not affect or

otherwise cause the limitation of other interruptible

services: