Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 09/22/2004, Docket: RP04-494-000, Status: Effective

Second Revised Sheet No. 179 Second Revised Sheet No. 179 : Effective

Superseding: First Revised Sheet No. 179

GENERAL TERMS AND CONDITIONS

(Continued)

7(d) of Rate Schedule CSS, as applicable. If a party does not

qualify as a prequalified bidder pursuant to this Section 22.6(e),

the party cannot bid on a RELEASING SHIPPER'S Offer.

(2) Prior to submitting a bid on a Permanent Release of capacity

offered by a RELEASING SHIPPER, the bidder must submit

to COMPANY on SoNet a valid Transportation Request Form

or Storage Service Request Form, as applicable, in the form set

forth in Appendix A or Appendix B hereto, for the released

capacity on which the bidder intends to submit a bid.

(3) Prior to submitting a bid on a Temporary or Permanent Release of

capacity offered by a RELEASING SHIPPER, the bidder must request

and execute a Firm Transportation or Storage Service Agreement

in the form set forth in this Tariff based on whether the release

is for firm storage capacity or firm transportation capacity (FT

and FT-NN). A potential bidder shall request a

Service Agreement by submitting to COMPANY on SoNet Premier a

valid Request Form, in the format set forth in Appendix A or B, as

applicable, to these General Terms and Conditions. The parties

shall execute the Service Agreement electronically

through SoNet Premier, followed by written execution as

soon as possible thereafter. The terms of each winning bid

shall be posted on SoNet Premier and emailed to the ACQUIRING

SHIPPER if the release is temporary or as an amendment to the Service

Agreement if the release is permanent.

Notwithstanding the other provisions of this Section 22 to the

contrary, in the event a Temporary Release of capacity under

Rate Schedules FT-NN and/or CSS is offered pursuant to the

provisions of Section 4(e) of Rate Schedule FT-NN, the bidders

must comply with the