Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 06/01/1997, Docket: RP97-137-002, Status: Effective

Second Revised Sheet No. 173 Second Revised Sheet No. 173 : Effective

Superseding: First Revised Sheet No. 173

GENERAL TERMS AND CONDITIONS

(Continued)

Section 22.6(a) (continued)

bids to be submitted, each bidder submitting a valid, contingent bid

must notify COMPANY by the deadline set forth in the applicable

Appendix H timetable, unless the RELEASING SHIPPER specified

another deadline pursuant to the foregoing procedures, that the

contingency has been removed and that the bid is to remain eligible

for processing. It is provided, however, that the bidder does not have

to notify COMPANY of the removal of the type of contingency set

forth in Section 22.6(f)(11) since such contingency will be resolved

during COMPANY'S determination of the best bids.

(b) Offer of Firm Capacity: Pursuant to the applicable schedule

established in Section 22.6(a) above, a SHIPPER desiring to release

firm capacity shall post on SoNet, on the standard form provided by

COMPANY on SoNet, an offer of firm capacity (herein called

"Offer"), except as provided otherwise in Section 22.3(c) above. The

COMPANY shall date and time stamp all offers as they are received

and shall post such Offer if it is complete unless the RELEASING

SHIPPER specifies a delayed time and date for its Offer to be

posted. In such event, COMPANY shall post the Offer at the time

specified by the RELEASING SHIPPER, provided that such time

does not conflict with the deadlines set forth in Appendix H hereto.

The RELEASING SHIPPER agrees that its posted Offer specifically

is subject to the following conditions:

(1) In the event two or more RELEASING SHIPPERS wish to

combine Offers of capacity into one Offer, the capacity must be

located in the same rate zone and released for the same term,

and each RELEASING SHIPPER must appoint in writing or

through SoNet to COMPANY, prior to the posting of such an

Offer, the same agent for purposes of submitting a joint Offer.

(2) A RELEASING SHIPPER offering to release firm capacity

under Rate Schedule CSS may not inject gas into that portion

of its storage capacity which it has offered to release unless and

until it is determined that the RELEASING SHIPPER will

retain such capacity. In lieu of being subject to this restriction,

the RELEASING SHIPPER may condition its release of firm

storage capacity on the bidder agreeing to purchase the quantity

of gas, if any, that the RELEASING