Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Original Sheet No. 163 Original Sheet No. 163 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

based on the ratio of the volumes requested by each firm SHIPPER

to the total volumes requested by all firm SHIPPERS. Any remaining

capacity will be allocated to all other parties on a pro rata basis based

on the ratio of the volumes requested by each such party to the total

volumes requested by all such parties.

21.3 Downstream Pipelines' Assignment of Firm Capacity on the COMPANY'S

System:

(a) To the extent any downstream pipeline provides to the COMPANY an

offer for assignment of its firm transportation capacity on the

COMPANY'S system which the downstream pipeline has solicited

under the provisions of Section 284.242 of the Commission's Regula-

tion's, the potential assignee(s) must meet the following criteria as a

condition precedent to the COMPANY'S consent to the assignment,

unless COMPANY agrees otherwise in a nondiscriminatory manner:

(1) the assignee must be creditworthy or qualify for credit under

the provisions of Section 2 of the General Terms and

Conditions;

(2) the assignee must be willing to pay the maximum rate

applicable to the service to be assigned;

(3) the assignee must be willing to accept the existing Receipt and

Delivery Points under the agreement to be assigned; and

(4) the assignee must be willing to accept the other terms and

conditions of the agreement.

(b) If a potential assignee meets the above stated criteria, it shall execute

a Service Agreement with the COMPANY in accordance with the

terms of the assignment and the terms and conditions of the

COMPANY'S Rate Schedule FT. Thereafter, the assignee shall be

fully liable under its Service Agreement