Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 03/01/2005, Docket: RP04-523-000, Status: Effective

Second Revised Sheet No. 198 Second Revised Sheet No. 198 : Effective

Superseding: First Revised Sheet No. 198

GENERAL TERMS AND CONDITIONS

(Continued)

(f) Any tariff filing made by COMPANY pursuant to this section shall be

made at least forty-five (45) days prior to the date on which any

change in its existing rates is to become effective. Simultaneously with

the above filing, the COMPANY shall furnish the Commission,

jurisdictional customers, and interested State Commissions a report

containing detailed computations which clearly show the derivation of

the rate adjustment. Each rate adjustment shall become effective on

the effective date without suspension provided that any rate increase

shall be subject to reduction and refund of any portion found after

hearing to be unjustified by a final and nonappealable Commission Or-

der.

(g) In addition to the report provided for in Section 30.2(f), COMPANY

shall submit a statement as to the anticipated scope and objective of

the research and development expenditure and the relationship of such

objective to the jurisdictional service for which the tracking is to apply.

(h) COMPANY shall not be required to reduce its rates under this

subsection by an increment exceeding the aggregate increase allowed

hereunder.

(i) COMPANY shall not make any adjustment to the rates set forth on

the currently effective Sheet Nos. 14-18, 22, 26-30 and 34 pursuant to the provi-

sions of this Section 30 which reflects its participation in Gas Research

Institute's research and development programs.