Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 01/01/2001, Docket: RP00-514-000, Status: Effective

Fifth Revised Sheet No. 181 Fifth Revised Sheet No. 181 : Effective

Superseding: Fourth Revised Sheet No. 181

GENERAL TERMS AND CONDITIONS

(Continued)

Section 22.6(f) (continued)

Offer states that bids on a volumetric rate basis are acceptable.

Subject to the RELEASING SHIPPER restricting the Bid Zone for a

particular Delivery Point, all bids on Temporary Releases of

capacity must be for the specified Delivery (and Receipt) Points

offered; provided, however, if the Offer is not subject to recall

and the Offer has not restricted a bidder's rights to change Exhibit A

Receipt Points and/or Exhibit B Delivery Points, then bidder may

request a change in either Exhibit A Receipt Point or Exhibit B

Delivery Point pursuant to Section 6.3 or 6.4, respectively, subject

to the availability of capacity within the zone(s) of the capacity being

requested, once the capacity has been awarded. In the event the Acquiring

Shipper is awarded any changes to the Exhibit A Receipt Point or

Exhibit B Delivery Point as provided above, then such changes will

remain on the Service Agreement even after the released capacity

reverts to the Releasing Shipper at the end of the release and the

Releasing Shipper will only be entitled to the Exhibit A Receipt Point and

Exhibit B Delivery Point it held under the Service Agreement prior to the

release if capacity is available under the provisions of Section 6.3 or 6.4

above or if the Receipt Point and/or Delivery Point changed by the Acquiring

Shipper was in the capacity path of the Exhibit A Receipt Point and/or the Exhibit B

Delivery Point the Releasing Shipper held prior to the release. If the offer of

capacity is subject to recall, then bidders may select a Receipt Point or

Delivery Point in the same zone or downstream zones in the case of Receipt

Points or upstream zones in the case of Delivery Points, which COMPANY determines

to be in the capacity path of the Receipt Point(s) or Delivery Point(s) offered,

subject to the availability of capacity. If the RELEASING SHIPPER restricts

the Bid Zone for a particular Delivery Point in a Temporary Release, then all

bidders must select a Delivery Point in the Bid Zone which COMPANY determines

is in the capacity path of the Delivery Point on the Offer, subject to the

availability of capacity. If the Offer restricts the Acquiring Shipper's rights

to change Exhibit A Receipt Points and Exhibit B Delivery Points, the Acquiring

Shipper may only select a change in the Exhibit A Receipt Points and Exhibit B

Delivery Points which COMPANY determines to be in the capacity path of the

Exhibit A Receipt Point or Exhibit B Delivery Point offered under the released

capacity. The Delivery Points and Receipt Points, if applicable, awarded to

the ACQUIRING SHIPPER under this Section 22 shall constitute the only Exhibit A

Receipt Points and Exhibit B Delivery Points to which the ACQUIRING SHIPPER

is entitled under the Service Agreement entered into with COMPANY pursuant to

these provisions. The ACQUIRING SHIPPER'S Service Agreement shall be eligible

for alternate Receipt Points and alternate Delivery Points, however, for

all zones of COMPANY'S pipeline system in accordance with Sections 6.1 and 6.2

of the General Terms and Conditions.