Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Third Revised Sheet No. 171 Third Revised Sheet No. 171

Superseding: Second Revised Sheet No. 171

GENERAL TERMS AND CONDITIONS

(Continued)

incurred by the RELEASING SHIPPER under its firm Service Agree-

ment with respect to any remaining capacity thereunder.

22.5 Billing and Payment:

An ACQUIRING SHIPPER shall be billed by the COMPANY and shall

make payments to the COMPANY in accordance with the terms of its

executed Service Agreement. On the RELEASING SHIPPER'S bill for a

month in which it released capacity hereunder on a temporary basis,

COMPANY shall credit all reservation charge revenues billed by COMPANY

to the ACQUIRING SHIPPER for the released capacity; provided, however,

that in the event the ACQUIRING SHIPPER fails to pay COMPANY for any

part of the amount credited to the RELEASING SHIPPER'S bill,

COMPANY reserves the right, after it exhausts any credit it has on file for

the ACQUIRING SHIPPER, to reverse the credit on the RELEASING

SHIPPER'S bill in a later month up to the unpaid amount plus interest

thereon. COMPANY shall provide RELEASING SHIPPER with e-mail notification within a

reasonable time if COMPANY sends any of the following formal notices to ACQUIRING

SHIPPER:

(1) Notice regarding the ACQUIRING SHIPPER's past due, deficiency, or default

notice status pursuant to Section 15 hereof;

(2) Notice regarding ACQUIRING SHIPPER's suspension of service notice;

(3) Notice regarding ACQUIRING SHIPPER's contract termination notice due to

default or credit-related issues; and

(4) Notice that the ACQUIRING SHIPPER is no longer creditworthy and has not

provided credit alternative(s) pursuant to Section 2.1(d) hereof.

If the ACQUIRING SHIPPER fails to pay its reservation charges

pursuant to the provisions of Section 15 of these General Terms and

Conditions, the RELEASING SHIPPER shall have the right to recall its

capacity by notifying the ACQUIRING SHIPPER and COMPANY of such

recall pursuant to the provisions of Section 22.3(b)(3) above. All reservation

charge credits to the RELEASING SHIPPER'S bill shall be final and

nonreversible upon COMPANY'S receipt of payment therefor from the

ACQUIRING SHIPPER. COMPANY shall not be required to credit all

reservation charge revenues billed to the ACQUIRING SHIPPER to the

extent a RELEASING SHIPPER'S firm Service Agreement under which it

pays a discount or negotiated rate provides otherwise.

The ACQUIRING SHIPPER shall be obligated to pay the COMPANY the Transportation Charge

or Injection and Withdrawal Charges, plus all associated volumetric surcharges and

fuel, applicable to the volumes the COMPANY transports or injects/withdraws under the

ACQUIRING SHIPPER'S firm Service Agreement specified in the award. The COMPANY will

retain the Transportation Charge, Injection Charge, Withdrawal Charge, associated

volumetric surcharges