Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 02/05/1998, Docket: RP97-420-002, Status: Effective

First Revised Sheet No. 154 First Revised Sheet No. 154 : Effective

Superseding: Original Sheet No. 154

GENERAL TERMS AND CONDITIONS

(Continued)

under this section on a non-discriminatory basis, but the waiver of any penalty

charges shall not constitute an automatic waiver of any future penalty charges.

COMPANY shall maintain a record of all waivers granted under this Section

17.2 and shall post on SONET information concerning such waivers, including

the penalty date, penalty volumes waived, the basis for each waiver, and an

indication of whether the waiver was granted to a COMPANY affiliate.

The record of all waivers granted under this Section

17.2 shall be reviewed after this FERC Gas Tariff has been in effect for one

year to determine whether this provision has operated as intended. After this

review has been completed, any party may file with the Commission a

proposal to change this Section 17.2 in such manner as it deems necessary and

appropriate to ensure that this Section promotes prudent and safe operations

by these SHIPPERS using COMPANY'S pipeline system.

18. NOTICES

18.1 General Notices:

Except for notices concerning nominations, confirmations, limitations,

interruptions, and other similar matters concerning the dispatching of gas, any

notice, request, or demand concerning service under any Service Agreement

may be given in writing and sent by first-class U.S. mail, postage prepaid, to

the address specified in the Service Agreement, but shall be deemed duly

given if in writing and sent by postpaid registered or certified mail to the

address specified in the Service Agreement.

18.2 Addresses and Authorized Personnel:

COMPANY and SHIPPER shall specify in the Service Agreement the name

and address of the person authorized to receive notices, requests, and

demands on its behalf. COMPANY and SHIPPER may specify separate

recipients for different purposes and may change an authorized recipient at

any time by giving the other party prior written notice of such change.