Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Fourth Revised Sheet No. 159 Fourth Revised Sheet No. 159

Superseding: Third Revised Sheet No. 159

GENERAL TERMS AND CONDITIONS

(Continued)

19.5 Pipeline Operations:

COMPANY reserves the right to use gas upstream of the point of processing

and/or liquid separation as is required for the reasonable and prudent opera-

tion of COMPANY'S facilities and the right to make deliveries of gas to

others under the provisions of COMPANY'S FERC Gas Tariff to the extent

that such deliveries do not significantly reduce SHIPPER'S proportionate

share of the liquids or liquefiables transported by COMPANY. It is also

recognized that some losses of gas volumes containing liquids or liquefiables

may occur as a result of such deliveries and/or the operation of such facilities.

SHIPPER'S proportionate part of the liquids or liquefiables so used, delivered

or lost shall be deducted from the quantity of liquefiables otherwise

deliverable to SHIPPER.

19.6 SHIPPER'S Responsibility:

As between SHIPPER and COMPANY, all operations conducted by or on

behalf of SHIPPER in the processing of gas hereunder shall be at SHIPPER'S

sole cost, risk and expense, and SHIPPER shall be responsible for the safe

handling of the gas while it is in SHIPPER'S custody, or the custody of

another on SHIPPER'S behalf, for processing.

20. PREGRANTED ABANDONMENT OF LONG-TERM, FIRM SERVICE AGREEMENTS

20.1 General Provisions for Pregranted Abandonment

The following provisions shall apply to all firm transportation (including storage)

Service Agreements which have a primary term of twelve (12) consecutive months or more and

a rate of the maximum rate eligible for the applicable service or a discounted

rate in effect prior to March 27,2000, except that these provisions shall not apply to

those firm transportation Service Agreements which are the result of conversion from firm

sales service during the period after February 13, 1991, and before May 18, 1992, and,

therefore, are not subject to pregranted abandonment pursuant to Section 284.221(d)(3) of

the Commission's Regulations. These provisions shall not apply to any firm transportation

or storage Service Agreements or packages of capacity which have a negotiated rate as

described in Section 34 of these General Terms and Conditions or a discounted rate

pursuant to Section 42 of these General Terms and Conditions unless COMPANY and SHIPPER

mutually agree under the terms of the negotiated rate or discount exhibit that the rights

hereunder shall accrue to SHIPPER.