Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 03/01/2005, Docket: RP04-523-000, Status: Effective

First Revised Sheet No. 158 First Revised Sheet No. 158 : Effective

Superseding: Original Sheet No. 158

GENERAL TERMS AND CONDITIONS

(Continued)

SHIPPER shall furnish COMPANY with monthly statements, or cause the

same to be done, setting forth the quantity of its liquids so injected and

removed.

19.4 Transportation Rates:

SHIPPER shall pay COMPANY for transporting liquids or liquefiables in

COMPANY'S facilities to the liquids removal facility or processing plant site

from the point of receipt at the applicable rate or rates set forth in currently

effective Sheet Nos. 22 or 34.

If for any reason the Commission or other governmental body having jurisdic-

tion from time to time requires or approves by order of general or specific

applicability or otherwise (including an order approving a settlement) a rate

or rates higher than those provided above to be charged for the transportation

of liquids or liquefiables or assigned to such transportation as a credit against

COMPANY'S cost of service, then SHIPPER shall pay to COMPANY such

higher rate. If the Commission does not approve a rate to be charged for or

assigned to the transportation of liquids or liquefiables but, in the exercise of

its cost allocation powers in approving COMPANY'S transportation rates, ap-

proves the allocation of a portion of COMPANY'S cost of service to the

transportation of liquids and liquefiables, then SHIPPER shall pay

COMPANY for the transportation of liquids and liquefiables a rate, if higher

than the rate otherwise provided above, which shall enable COMPANY to

recover the entire portion and amount of COMPANY'S cost of service

allocated or attributable to such transportation. If COMPANY is required by

order of the Commission (including order approving settlement) to make

refunds to its SHIPPERS arising out of the transportation of liquids and

liquefiables hereunder, SHIPPER shall reimburse COMPANY its pro rata

share of the entire amount, including interest, that COMPANY is required to

refund.