Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Fourth Revised Sheet No. 168 Fourth Revised Sheet No. 168 : Effective

Superseding: Substitute Third Revised Sheet No. 168

GENERAL TERMS AND CONDITIONS

(Continued)

Section 22.3(b)(3) (continued)

A RELEASING SHIPPER shall be responsible for notifying, or

causing to be notified, the first ACQUIRING SHIPPER at the same

time it provides notice to COMPANY as set forth above under the

form of notification agreed upon by RELEASING SHIPPER and

ACQUIRING SHIPPER in a manner that will permit affected parties

sufficient time to place nominations or take other corrective

actions to avoid penalties. Affected ACQUIRING SHIPPER should

manage internal distribution of notifications of recall received

from COMPANY. The COMPANY has the right to rely on a RELEASING

SHIPPER'S notice and a RELEASING SHIPPER shall defend and

indemnify the COMPANY against any claims, losses, liabilities or

expenses resulting from claims by the ACQUIRING SHIPPER that it

was not notified or that firm capacity was not recalled in

accordance with the recall rights specified by the RELEASING

SHIPPER in its Offer.

If time remains in the term for which the firm capacity was

temporarily released, the capacity shall revert back to the last

ACQUIRING SHIPPER upon notice given by the RELEASING

SHIPPER in the same manner and time as set forth above for

exercising a recall of FT or FT-NN capacity prior to the

contract day on which the capacity is to again be released. If

following the recall, no time remains in the term for which the

capacity was temporarily released, the capacity rights shall re-

main with the RELEASING SHIPPER for either its continued

utilization or for release again pursuant to this Section 22.

When capacity is recalled, it may not be reput for the same gas

day. The deadline for notifying Company of a reput is 8:00 a.m.

on the day that nominations are due for the Daily Nomination

Cycle set forth above in Section 12.1(c).

(4) Secondary Release of Firm Capacity: An ACQUIRING

SHIPPER who has acquired firm capacity hereunder on a

temporary basis may subsequently release the capacity it has

acquired, as set forth on the Addenda to its Capacity Release

Service Agreement(s), in accordance with the terms of this

Section 22 ("Secondary Release"), thereby becoming a

RELEASING SHIPPER; provided that the Offer does not restrict such

Secondary Releases. A Secondary Release of capacity

cannot operate to release greater capacity rights than the

capacity acquired by the RELEASING SHIPPER. Further-

more, to the extent that a RELEASING SHIPPER acquired

firm capacity