Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 07/30/2008, Docket: RP09-288-001, Status: Effective

Substitute Fifth Revised Sheet No. 176 Substitute Fifth Revised Sheet No. 176

Superseding: Fifth Revised Sheet No. 176

GENERAL TERMS AND CONDITIONS

(Continued)

Section 22.6(c)(8) (continued)

(8) if capacity is to be released under Rate Schedule FT or Rate Schedule FT-NN,

(a) the Delivery Points at which the capacity is to be released

and relevant Delivery Point Codes;

(b) if the release is a Temporary Release and the RELEASING SHIPPER

indicates that it wishes to restrict bids on specified delivery

point capacity to an upstream or downstream segment so that the

RELEASING SHIPPER may retain the remaining capacity segment for

its use, then RELEASING SHIPPER must identify the zone(s) of the

segment which are being offered ("Bid Zone"); provided that the volume

of the capacity released in any zone cannot exceed the Releasing

Shipper's original Transportation Demand in that zone;

(c) any Receipt Points at which capacity is offered and relevant

Receipt Point Codes;

(d) if the release is not subject to recall, whether the Acquiring

Shipper is restricted from changing the primary Receipt Points

and Delivery Points on the capacity being released to points

outside the capacity path.

(9) if capacity is to be released under Rate Schedule CSS, the

injection and withdrawal rights offered with the amount of firm

storage capacity to be released, up to the RELEASING

SHIPPER'S current MDIQ or MDWQ;

(10) if capacity is to be released under Rate Schedule CSS, whether

the RELEASING SHIPPER chooses to (i) agree to the

restriction on injection under Section 22.6(b)(2) hereof, or (ii)

sell to the ACQUIRING SHIPPER the gas that it fails to

withdraw or sell to another CSS SHIPPER from the capacity

being released by the effective date of the release and, if so, the

sales price it will accept for such gas;

(11) whether the offer is subject to a Prearranged Bid and, if so, the

name of and DUNS number for the Prearranged Bidder;

(12) any minimum reservation charge (inclusive of reservation surcharges) or

percentage thereof at which the bids must begin, or whether the bids on the

reservation charge (inclusive of reservation surcharges) should be submitted

on a volumetric rate basis; or, for releases that become effective on or

after July 30, 2008, any minimum reservation charge requirement (inclusive

of reservation surcharges) and, if applicable, any maximum reservation

charge requirement (inclusive of reservation surcharges) which is in excess

of the maximum tariff rate for the applicable service when the term of the

proposed release is one (1) year or less and when the release date is to

take effect on or before one (1) year from the date on which the COMPANY is

notified of such release;

(13) if bids on a volumetric rate basis are acceptable, whether the

volume bid is a minimum daily throughput commitment for

billing purposes, i.e. the ACQUIRING SHIPPER'S monthly bill

and the RELEASING SHIPPER'S monthly credit will be no

less than the volume bid multiplied by the volumetric rate bid

multiplied by the number of days in the month that the release

was in effect;