Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 09/01/2005, Docket: RP05-390-000, Status: Effective

Sixth Revised Sheet No. 167 Sixth Revised Sheet No. 167 : Effective

Superseding: Fifth Revised Sheet No. 167

GENERAL TERMS AND CONDITIONS

(Continued)

Section 22.3(b)(3) (continued)

Service Agreement with the COMPANY nor with the provisions

of the COMPANY'S FERC Gas Tariff. Furthermore, the recall

conditions specified by the RELEASING SHIPPER must be

nondiscriminatory and identifiable events.

A RELEASING SHIPPER exercising its right to recall its firm

capacity, may recall its capacity, i.e. reactivate its capacity, by giving notice

to COMPANY through SoNet Premier, however the service flexibility available to either the

RELEASING SHIPPER or ACQUIRING SHIPPER(s) for the subject capacity should not be less as

a result of such recall.

A RELEASING SHIPPER may, to the extent permitted as a condition of the

capacity release, recall released capacity (scheduled or unscheduled) at

the Daily Nomination cycle, the Evening Nomination cycle, and at the

Intraday-1 and Intraday-2 Nomination cycles by providing notice to

COMPANY, and the first ACQUIRING SHIPPER, by the following times for

each cycle: 8 a.m. CCT for the Daily Nomination cycle on the day that

Daily Nominations are due as set forth above in Section 12.1(c); 3:00

p.m. CCT as an early evening notification for the Evening Nomination

cycle on the day that Evening Nominations are due; 5:00 p.m. CCT for the

Evening Nomination cycle on the day that Evening Nominations are due; 7

a.m. CCT for the Intraday-1 Nomination cycle on the day that the

Intraday-1 Nominations are due, and 2:30 p.m. for the Intraday-2

nomination cycle on the day that the Intraday-2 Nominations are due.

Notification to ACQUIRING SHIPPERS will be provided by COMPANY pursuant

to Section 18.3(b) above within one hour of receipt of any recall

notifications received between 7:00 a.m. and 5:00 p.m. For all recall

notifications received between 5:00 p.m. and 7:00 a.m., notifications to

ACQUIRING SHIPPERS will be provided by COMPANY no later than 8:00 a.m.

CCT. The recall notice shall specify the recall nomination period for

the specified effective gas day as well as any other information needed

to uniquely identify the capacity being recalled. This notice should

indicate whether penalties will apply for the gas day for which

quantities are reduced due to a capacity recall. In the event the

scheduled quantities from the prior scheduling cycle are not available

by the next cycle's recall deadline, the recall notification times shall

be extended for a proportionate period of time. The ACQUIRING SHIPPER

shall provide to COMPANY no more than two internet e-mail addresses to

be used for recall notification. The obligation of COMPANY to provide

an ACQUIRING SHIPPER notification of a recall is waived until at least

one functional e-mail address has been provided to COMPANY by ACQUIRING

SHIPPER as set forth above in Section 18.4.

The RELEASING SHIPER should provide in its notification to COMPANY the

quantity in terms of adjusted total released capacity entitlements based upon

the Elapsed Prorata Capacity (EPC). The EPC shall mean that portion of the

capacity that would have theoretically been available for use prior to the

effective time of the intraday recall based upon a cumulative hourly use of

the capacity. In the event of an intra-day capacity recall, COMPANY should

determine the allocation capacity between the RELEASING SHIPPER and the

ACQUIRING SHIPPER(s) based upon the EPC. COMPANY is not obligated to deliver

in excess of the total daily Transportation Demand of the release. The

amount of capacity allocated to the ACQUIRING SHIPPER(s) should equal the

original released capacity less the recalled capacity that is adjusted based

upon the EPC.