Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 11/01/1993, Docket: RS92- 10-003, Status: Effective

Original Sheet No. 157 Original Sheet No. 157 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

19.2 Transportation of Liquefiables:

COMPANY agrees to deliver to SHIPPER for processing a volume of gas

containing as nearly as practical the same number of gallons of propane and

heavier hydrocarbons as are delivered to COMPANY by SHIPPER at the

Receipt Point, less volumes used by COMPANY pursuant to Section 19.5

hereof. If gas other than gas received from SHIPPER hereunder is also being

transported through COMPANY'S pipeline, SHIPPER shall have the right to

process a quantity of the commingled gas in COMPANY'S pipeline which

contains as nearly as practical a quantity of propane and heavier hydrocarbons

equal to the propane and heavier hydrocarbons contained in the gas delivered

at the Receipt Point. The redelivery of residue gas and the accounting

therefor shall be in accordance with procedures mutually satisfactory to COM-

PANY and SHIPPER. Gas received for SHIPPER'S account at Receipt

Points on "wet" lines located upstream of the processing plants located near

Toca, Louisiana, will not be processed prior to delivery to COMPANY.

19.3 Transportation of Liquids:

The composition and characteristics of the liquids transported hereunder shall

be such that they will not (i) cause the formation of hydrates in COMPANY'S

pipeline, (ii) cause damage to said pipeline by internal corrosion, or (iii) cause

the gas in said pipeline to fail to meet the quality specifications set forth in

Section 3 of these General Terms and Conditions upon receipt by

COMPANY or after SHIPPER has removed such liquids from COMPANY'S

pipeline downstream of the Receipt Points, and such liquids shall contain not

more than one percent (1%) of basic sediment and water. COMPANY shall

have the right to commingle the gas and liquids delivered by SHIPPER to

COMPANY with gas delivered by others into which gas others have likewise

injected liquids, and COMPANY shall likewise have the right to transport

such liquid hydrocarbons for others. In such event, there shall be only one

point of removal of liquid hydrocarbons on COMPANY'S pipeline, and

SHIPPER and such other parties shall remove such liquid hydrocarbons at

such point and agree as to the proportionate ownership of the liquid hydro-

carbons so removed.