Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Substitute Fourth Revised Sheet No. 178 Substitute Fourth Revised Sheet No. 178

Superseding: Fourth Revised Sheet No. 178

GENERAL TERMS AND CONDITIONS

(Continued)

offered capacity at the maximum reservation charge applicable to the RELEASING

SHIPPER'S service or at a higher reservation charge applicable to releases that

become effective on or after July 30, 2008 when the term proposed is for one (1)

year or less and the release takes effect on or before one (1) year from the date

on which the COMPANY was notified of such release, for the full volume, capacity

and term offered by the RELEASING SHIPPER, and the Prearranged Bidder satisfies

all of the requirements of Section 22.6(e)-(g) below, the Prearranged Bid will be

deemed the "best bid". The COMPANY shall thereafter post on SoNet, as set forth

in Section 22.3(c) above, the identity of the Prearranged Bidder, and the terms

upon which the capacity was released. In all other situations, but except in

those situations where Releasing Shipper is not required to post the Offer as set

forth above in Section 22.3(c), the Prearranged Bid shall constitute the minimum

bid price for all other bidders, and shall be posted on the RELEASING SHIPPER'S

Offer as such. If the COMPANY does not receive any better bid by the date on

which all bids are due, the Prearranged Bid shall be deemed the best bid. If the

COMPANY does receive a better bid by the date on which all bids are due, the

Prearranged Bidder shall have the right to match the terms of the better bid by

the deadline established in Section 22.6(a) above. If the Prearranged Bidder

matches the better bid, the Prearranged Bidder shall be deemed to have made the

best bid.

(e) Prequalified Bidder Requirements:

(1) All parties desiring to bid on firm capacity offered by a

RELEASING SHIPPER must be prequalified by COMPANY

as creditworthy in order to be eligible to submit a bid on an

Offer of released capacity. Unless the COMPANY agrees it

has already determined the bidder to be creditworthy or to have

suitable credit on file with COMPANY, the potential bidder

must submit to COMPANY the information set forth in Section

2.1(a)(ix) hereof to enable COMPANY to determine the

party's creditworthiness. A bidder's creditworthiness shall be

assessed on the same basis as a SHIPPER'S creditworthiness

under the terms of the Tariff applicable to the capacity being

offered. If the potential bidder fails to demonstrate

creditworthiness, the bidder may still be prequalified if it

provides one of the credit alternatives set forth in Section 2.1(d)

hereof or Section