Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 11/01/1993, Docket: RS92- 10-003, Status: Effective

Original Sheet No. 190 Original Sheet No. 190 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

from, or the payment of amounts due for, the monthly resolution of

transportation imbalances under Section 14.1 hereof) in connection with any

service so arranged. Such service as agent shall be available only on condition

and to the extent that COMPANY and SHIPPER have agreed, each acting

in its sole discretion, to such service and have executed a written Agency

Agreement that contains the terms, conditions and fees applicable to such

service and specifies the acts with respect to which COMPANY is to act as

agent for SHIPPER. It is provided, however, that any such Agency

Agreement shall provide that any services arranged and any acts performed

by COMPANY under such Agency Agreement shall be done expressly on

behalf of SHIPPER, and that SHIPPER shall remain primarily responsible for

the payment to COMPANY or other provider of the fees and charges for the

services arranged and the acts performed on behalf of SHIPPER. It is

provided further that if the agency services referred to in this Section 24 are

provided in connection with sales service by COMPANY under Rate Schedule

MSS of its FERC Gas Tariff, then the agency services shall be provided by

COMPANY'S sales employees who shall provide such agency services in

accordance with the "Standards of conduct for unbundled sales service" in 18

C.F.R. Section 284.286.

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

Schedule in its FERC Gas Tariff, a third party may agree to act as agent for

a 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 from, or the payment of amounts due for, the monthly

resolution of transportation imbalances under Section 14.1 hereof) in connec-

tion with any service so arranged. In this event, SHIPPER shall provide

COMPANY with a written Request that COMPANY accept the third party

as agent for SHIPPER. The Request shall state specifically the scope and

term of the agency, shall state that the COMPANY is authorized to accept

the actions of the agent within the scope of its authority to the same extent

as it would accept the actions of SHIPPER, shall provide that SHIPPER shall

indemnify COMPANY and