Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 01/01/2001, Docket: RP00-514-000, Status: Effective

First Revised Sheet No. 151 First Revised Sheet No. 151 : Effective

Superseding: Original Sheet No. 151

GENERAL TERMS AND CONDITIONS

(Continued)

allocated sales gas equal to its percentage share of the COMPANY'S

gas supply available for sales on such day, and customer shall ensure

that its transportation nomination for such day actually reflects the

allocation order received pursuant to this Section 16.3.

(c) On any day in which a sales allocation order pursuant to Section

16.3(b) is in effect and the COMPANY later determines it has suffi-

cient gas supply to meet the actual gas sales demand on that day, the

COMPANY may release the sales customers fully or partially from any

allocation orders issued pursuant to Section 16.3(b) above; provided,

however, that any partial release shall be apportioned among the gas

sales customers on the same basis as the allocation orders.

16.4 Gas Taken In Excess of SHIPPER'S Daily Entitlement

(a) Whenever COMPANY determines in its reasonable judgment that

because of an event of force majeure, the need to allocate capacity on

its pipeline system, the inability to confirm SHIPPER'S supply

nominations, or any other similar reason, system operations must be

maintained within SHIPPERS' Daily Entitlements, COMPANY shall

notify SHIPPER that gas taken in excess of either (i) its Daily

Entitlement for all of its Delivery Points, or (ii) the quantity of gas

allocated for delivery to SHIPPER at a specific Delivery Point or

group of Delivery Points will be subject to Section 16.4(d). All SHIP-

PERS shall comply at any time of day with a notice to limit the taking

of gas to the maximum quantity of gas permitted to be taken pursuant

to the several provisions of this Section 16. The notices under this

section shall be designated as being under one of three operating

conditions: Alert Mode, Critical Mode, and Emergency Mode as further

described in Section 16.4(b) below. When COMPANY changes the operating

condition from Alert to Normal, Alert to Critical, Critical to Alert

or Critical to Normal, COMPANY shall provide notice to its SHIPPERS

by posting such change on its SoNet Premier web site. Notices to implement

an operational flow order under this section or to change to or from an

Emergency Mode shall be delivered to SHIPPER by telephone pursuant to the

terms of Section 18 of these General Terms and Conditions. Notices shall be

given as soon as practicable but no shorter than the notice periods set

forth below. An operational flow order under this Section 16.4 will not go into

effect, however, until a notice is given as follows: (i) For Alert Mode

notices: at least 24 hours prior to the beginning of the gas day to which

the notice applies; (ii) For Critical Mode Notices: At least 20 hours prior

to the beginning of the gas day in which the notice goes into effect;

(iii) for Emergency Mode notices: At least 4 hours prior to the effective

time of the notice. Such notice shall specify the beginning time of the

operational flow order and such operational flow order shall remain in

effect until cancelled by COMPANY. In the notice COMPANY shall specify

the reason for the operational order and the expected conditions that

would cause release of the order.