Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Substitute Fifth Revised Sheet No. 184 Substitute Fifth Revised Sheet No. 184

Superseding: Fifth Revised Sheet No. 184

GENERAL TERMS AND CONDITIONS

(Continued)

(3) the bid is for capacity at Delivery and Receipt Points other than

those points specified in the Offer where the Offer has restricted

bidder's rights to change Delivery or Receipt Points; or for

capacity at Receipt or Delivery Points not within the capacity path

of the Delivery Points offered by the RELEASING SHIPPER when the

release is subject to recall; or for capacity outside of the Bid

Zone being released; or

(4) the bid does not meet the minimum terms of the RELEASING

SHIPPER'S Offer; or

(5) the bidder has not removed the contingency by the deadline

set forth in the Offer.

(h) The Best Bid Determination:

All bids deemed to be eligible following the COMPANY'S initial

review pursuant to Section 22.6(g) above shall be reviewed in

determining the best bid. The best bid shall be determined by

COMPANY pursuant to the objective criteria for determining the

best bid set forth in the RELEASING SHIPPER'S Offer. If the

Offer does not specify best-bid criteria, the eligible bids

will be evaluated by COMPANY by multiplying the price bid times

the volume bid. In addition, if the RELEASING SHIPPER'S offer

for a permanent release allows consideration to be paid to the

ACQUIRING SHIPPER, then any such consideration included in the

ACQUIRING SHIPPER'S bid shall be subtracted from its bid solely

for purposes of calculating the best bid. Bids for a term of

more than one (1) month that vary in price or term shall be

discounted to present value based on currently effective

Commission interest rates or such other published, objective

financial measure as posted by COMPANY in advance of the

offer/bid cycle. This formula will generate a revenue number

for comparison of the bids and the bid producing the most

revenue shall be determined to be the best bid. For releases

that become effective on or after July 30, 2008, potential

ACQUIRING or Prearranged SHIPPERS may submit bids in excess of

the maximum tariff rate for the applicable service agreement if

the term of the proposed releases is one (1) year or less and

such release is to take effect on or before one (1) year from

the date on which COMPANY is notified of such release. Such

rate will be utilized in the determination of the best bid.