Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 11/01/1993, Docket: RP92-134-014, Status: Effective

First Revised Sheet No. 189 First Revised Sheet No. 189 : Effective

Superseding: Original Sheet No. 189

GENERAL TERMS AND CONDITIONS

(Continued)

Section 23.2(3) (continued)

COMPANY shall not be required to credit Net IT Revenues under

Section 23.2(1) until the rates underlying the credits are no longer

subject to refund. COMPANY shall have the right to retain (i) all

revenues deducted in Section 23.2(1)(a)-(d) above and in Section

23.2(2)(a)-(d) above, and (ii) the respective percentages of the Net IT

Revenues and Net Transportation Revenues set forth above.

23.3 Credit Mechanism for Interruptible Storage Revenues

At the end of the twelfth full calendar month after this provision is placed

into effect, and at the end of each twelve (12) months thereafter, COMPANY

shall determine the net storage revenue generated under all ISS Service

Agreements during said 12-month period by deducting from the total amount

of ISS revenues collected during said period the variable costs of providing

ISS service. The ISS revenues remaining after deducting the variable costs

shall be referred to hereinafter as the "Net ISS Revenues". COMPANY shall

then credit one hundred (100) percent of the Net ISS Revenues to the SHIP-

PERS under Rate Schedule CSS based on the ratio that each SHIPPER'S

revenues generated from its nondiscounted Deliverability Charge and Capacity

Charge bear to the total revenues generated from all nondiscounted

Deliverability Charges and Capacity Charges billed during the 12-month

period. Credits under this section shall be calculated within sixty (60) days

after the end of each twelve-month period. Each SHIPPER whose firm

storage service is eligible for a credit under this provision shall receive a

credit on its bill for the month of service following the date that the credit is

calculated pursuant to this provision. COMPANY shall have the right to

retain all revenues collected to recover variable costs.

24. AGENCY SERVICE

24.1 In connection with a service rendered by COMPANY pursuant to any Rate

Schedule in its FERC Gas Tariff, COMPANY may agree to act as agent for

its SHIPPER to arrange for any service (under any such Rate Schedule or

otherwise) and to perform any acts (including but not limited to the receipt

and payment of invoices, the giving of notices, the designation of delivery and

receipt points, the scheduling of volumes for transportation and storage, and

the receipt of proceeds