Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Ninth Revised Sheet No. 187 Ninth Revised Sheet No. 187 : Effective

Superseding: Eighth Revised Sheet No. 187

GENERAL TERMS AND CONDITIONS

(Continued)

Section 22.6(k) (continued)

If the capacity was released on a temporary basis, COMPANY shall

email information on the Capacity Release Transaction to the

ACQUIRING SHIPPER. COMPANY shall post on SoNet the details of the

winning bid and the ACQUIRING SHIPPER'S name as soon as possible

after the released capacity is awarded. Such notice shall stay on

SoNet for at least thirty (30) days.

(l) If the ACQUIRING SHIPPER acquires firm transportation capacity

to a firm Delivery Point in an upstream zone or pursuant to an offer

that restricted the Bid Zone, the RELEASING SHIPPER of such

capacity may continue to nominate gas for transportation within its

remaining capacity segment. In that event, to the extent a firm Exhibit A

Receipt Point is included as part of the Offer, the ACQUIRING SHIPPER will

be awarded a firm Exhibit A Receipt Point in the segmented portion of

capacity to be released, but will be not be awarded any Exhibit A Receipt

Points that are in the segmented portion of capacity retained by the

RELEASING SHIPPER. Each ACQUIRING SHIPPER and RELEASING SHIPPER may utilize all

Receipt Points on COMPANY'S pipeline system on a preferred

interruptible (Exhibit A-1) basis in accordance with Section 6.1 above within

the zone of their respective portions of the segmented capacity.

COMPANY shall provide on SoNet for use during the bid process a

list of all Receipt Points within the segment being offered for

release and the best available information regarding their associated

unsubscribed firm capacities.

(m) If no bids are submitted by the date upon which all bids are due, the

RELEASING SHIPPER'S Offer shall be removed from SoNet. Furthermore,

all RELEASING SHIPPERS and ACQUIRING SHIPPERS must comply with the

deadlines set forth in Section 22.6(a) above in order to avoid

cancellation of their offers or bids by COMPANY.

22.7 Offers to Purchase Firm Capacity:

COMPANY agrees to post on SoNet at a party's request offers to purchase

firm capacity on a permanent or temporary basis pursuant to the provisions

of Section 27 of these General Terms and Conditions. Each offer will remain

on SoNet for five (5) business days before it is removed, unless the

requesting party notifies COMPANY prior to the expiration of any five-day

period that it wishes to extend the posting for an additional five (5)

business days.