Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 04/01/1999, Docket: RP98-363-000, Status: Effective

Second Revised Sheet No. 185 Second Revised Sheet No. 185 : Effective

Superseding: First Revised Sheet No. 185

GENERAL TERMS AND CONDITIONS

(Continued)

Section 22.6(h) (continued)

The best bid as determined herein or pursuant to the objective criteria

posted by the RELEASING SHIPPER shall be subject to the rights of

a Prearranged Bidder to match the bid in accordance with Section

22.6(d) above. In the event two or more bids are equivalent, they will

be subject to the outcome of the tie breaker stipulated in the

RELEASING SHIPPER'S Offer as explained in Section 22.6(i) below.

In its Offer the RELEASING SHIPPER may specify any best bid

criteria and tie breaker that complies with Sections 22.6(c)(16) and

(17) herein. However, if the RELEASING SHIPPER chooses the

COMPANY'S best bid criteria set forth above or one of the following

pre-programmed criteria and one of the tie breakers listed in Section

22.6(i), the Offer will be eligible for the accelerated schedules set forth

in the timetables in Appendix H to these General Terms and

Conditions:

(1) Highest rate;

(2) Price times volume (regardless of term);

(3) Price times volume times term (net revenue); or

(4) Present value

If the best bid does not utilize all of the capacity being offered for

release and the RELEASING SHIPPER provided in its Offer that it would

accept multiple qualifying bids, then COMPANY will award the capacity

in the order of best bids until it has awarded all of the offered capacity

possible.

(i) Tie Breaker: If there is a tie for the best bid, and there is no

Prearranged Bidder who has agreed to match the best bid, the winning

bid shall be determined by applying the tie breaker stipulated in the

RELEASING SHIPPER'S Offer. The RELEASING SHIPPER may

specify one of the following tie breakers or a different tie breaker so

long as it is objective, nondiscriminatory and can be applied by

COMPANY. If the RELEASING SHIPPER fails to specify a tie

breaker, COMPANY shall apply the following tie breakers in the order

shown, if necessary:

(1) the bid submitted first in time as established by the COMPANY'S electronic

date and time stamp;