Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Seventh Revised Sheet No. 169 Seventh Revised Sheet No. 169

Superseding: Sixth Revised Sheet No. 169

GENERAL TERMS AND CONDITIONS

(Continued)

Section 22.3(b)(4) (continued)

subject to a right of recall, the capacity then released by the RELEASING SHIPPER, and

any subsequent Secondary Release of the capacity thereafter, shall also be subject to

the right of recall.

(c) Prearranged Release of Firm Capacity:

A RELEASING SHIPPER who wishes to release its firm capacity to a prearranged bidder on a

temporary basis may do so without posting an offer for its firm capacity, unless it elects to

post its offer for competitive bidding, if the proposed capacity release is:

(i) for a term of thirty one (31) days or less,

(ii) for a term of more than one (1) year for which SHIPPER has obtained a

Prearranged SHIPPER and the Prearranged SHIPPER is paying the maximum rate

and all other terms and conditions of the release are met,

(iii) to an asset manager as defined in Section 284.8(h)(3) of the Commission's

regulations, or

(iv) to a marketer participating in a state-regulated retail access program as

defined in Section 284.8(h)(4) of the Commission's regulations.

If such prearranged bid qualifies under (i)-(iv) above, the release shall not be subject to

the competitive bidding requirements of Section 22.6 below, but shall be subject to all other

provisions of this Section 22.

Unless capacity is released pursuant to either an asset management arrangement or state-

regulated retail access program, a firm shipper may not roll over, extend, or in any way

continue the release to the same replacement shipper using the 31 days or less bidding

exemption until 28 days after the first release period has ended. The 28-day hiatus does not

apply to any re-release to the same replacement shipper that is posted for bidding or that

qualifies for any of the other exemptions from bidding set forth herein.

The minimum term for a release of capacity for a period of thirty-one (31) days or less shall

be one (1) contract day and the term must be for a consecutive number of days.

The timetables set forth in Appendix H hereto shall not apply to the non-posted releases set

forth above, except for those releases of 31 days or less which the RELEASING SHIPPER elects

to post for competitive bidding. Under any type of non-posted release, the RELEASING SHIPPER

AND ACQUIRING SHIPPER shall notify COMPANY electronically on SoNet of the terms of the release

at least 1 hour prior to the applicable nomination deadline in which the release will go into

effect so that the ACQUIRING SHIPPER may have the ability to nominate on the next available

nomination cycle. In the event the ACQUIRING SHIPPER's first nomination opportunity on the

release is on an intraday cycle, the maximum quantity of gas ACQUIRING SHIPPER may nominate

shall be prorated based on the number of hours remaining in the day at the effective time of

the nomination cycle. It is provided, however, that the offer and bid for a prearranged

release of capacity on a permanent basis shall be entered into SoNet by 5:00 p.m. two business

days prior to the nomination deadline for the effective date of the release. The ACQUIRING

SHIPPER must also be prequalified pursuant to the requirements of Section 22.6(e) below.

COMPANY shall post on SoNet the terms of a prearranged release entered into under this Section

22.3(c) as soon as possible, but no later than forty-eight (48) hours after the effective date

of such released transaction.