Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 08/01/1994, Docket: MT94- 6-000, Status: Effective

First Revised Sheet No. 183 First Revised Sheet No. 183 : Effective

Superseding: Original Sheet No. 183

GENERAL TERMS AND CONDITIONS

(Continued)

requirements under Section 250.16 to include the following:

(1) the specific affiliation of the bidder/ACQUIRING

SHIPPER with COMPANY.

A bidder may withdraw its bid on an Offer at any time prior to the end

of the bid period, but any subsequent bids submitted by the bidder on

that Offer during the bid period must be equal to or higher than the

bidder's previous bid(s).

(g) The COMPANY'S Initial Review: Upon receipt of all bids, the

COMPANY shall engage in an initial review to determine whether a

bid will be deemed eligible for consideration as the best bid. Any bid

deemed ineligible pursuant to this Section 22.6(g) shall be eliminated

from consideration. A bid shall be deemed ineligible if:

(1) the bid (or bidder) does not comply with all of the terms and

conditions and deadlines of this Section 22; or

(2) the bid submitted exceeds the bidder's preapproved credit term

or limits; or