Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Second Revised Sheet No. 172 Second Revised Sheet No. 172

Superseding: First Revised Sheet No. 172

GENERAL TERMS AND CONDITIONS

(Continued)

Section 22.5 (continued)

and fuel it receives from the ACQUIRING SHIPPER. If any of the rates billed to

and paid by the ACQUIRING SHIPPER under its Service Agreement exceed the rate

which the Commission determines to be just and reasonable and COMPANY is

ordered to make refunds, the ACQUIRING SHIPPER shall be eligible to receive

refunds to the extent of any payments it made in excess of the rates the

Commission subsequently determined to be just and reasonable. For releases that

become effective on or after July 30, 2008, the rate paid by the ACQUIRING

SHIPPER in any capacity release transaction with a term of one (1) year or less

which is not subject to the maximum rate cap will be deemed to be a final rate

and is not subject to refund.

22.6 Offer and Bid Procedures:

(a) Offer/Bid Schedule: The minimum days and times by which both

offers and bids for releases of capacity must be electronically

transmitted to the COMPANY in accordance with the procedures set

forth in Section 22.6(c) and Section 22.6(f) below, as well as other

minimum deadlines required by COMPANY for successful completion

of the bid/offer cycle, are set forth in Appendix H to these General

Terms and Conditions. The timetables in Appendix H set forth the

deadlines for standard offers to release capacity, i.e. those which

contain no special terms and conditions. Offers which contain special

terms and conditions, including, but not limited to contingencies or

best bid criteria and tie breakers other than those set forth in

Sections 22.6(h) and (i) hereof, are deemed to be non-standard

offers and shall require additional evaluation time. It shall be

the responsibility of the RELEASING SHIPPER to post its

Offer in sufficient time to allow the release to occur on the date

offered given the schedule to be applied and any extensions of that

schedule allowed by the RELEASING SHIPPER in its Offer.

The RELEASING SHIPPER may post its Offer earlier than the day

set forth in the applicable timetable in Appendix H hereto, thereby

extending the bid period for such Offer. If it posts its Offer early, the

RELEASING SHIPPER may alter the bid deadline and the deadline for

removing contingencies by changing them to an earlier date

so long as the interval between each deadline is no shorter than

the intervals set forth in the applicable timetable in Appendix H

hereto. If the RELEASING SHIPPER allows contingent