Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 07/30/2008, Docket: RP09-288-000, Status: Effective

Second Revised Sheet No. 164 Second Revised Sheet No. 164

Superseding: First Revised Sheet No. 164

GENERAL TERMS AND CONDITIONS

(Continued)

with the COMPANY, and the downstream pipeline shall be relieved

of all contractual obligations with the COMPANY with respect to the

capacity assigned, except for any liabilities which have accrued under

the agreement prior to the effective date of assignment.

22. SHIPPER RELEASE OF FIRM CAPACITY

22.1 General:

This Section 22 sets forth the sole means by which a firm SHIPPER ("RELEASING

SHIPPER") may, pursuant to Section 284.8 of the Commission's Regulations, release its

firm capacity rights under a Service Agreement with the COMPANY to a third party

("ACQUIRING SHIPPER").

22.2 Capacity Eligible For Release:

A SHIPPER with a Service Agreement with the COMPANY under the

following rate schedules may release firm capacity pursuant to this Section 22,

provided that SHIPPER pays a monthly reservation charge under the terms

of such Service Agreement:

(a) Rate Schedule FT;

(b) Rate Schedule CSS; and

(c) Rate Schedule FT-NN.

To be eligible to acquire service under Rate Schedule FT-NN, on a no-notice basis,

a SHIPPER must have a Service Agreement under Rate Schedule CSS. Otherwise, a

release of firm transportation capacity under an FT-NN Service Agreement will

operate to release firm capacity on a nominated Rate Schedule FT basis.

22.3 Types of Releases:

(a) Permanent Release: A RELEASING SHIPPER may release all or part

of its firm capacity under a Service Agreement with the