Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 05/27/1994, Docket: RS92- 10-012, Status: Effective

First Revised Sheet No. 212 First Revised Sheet No. 212 : Effective

Superseding: First Substitute Original Sheet No. 212

GENERAL TERMS AND CONDITIONS

(Continued)

The demand portion of any balance will be allocated or refunded on the

basis of each customer's proportionate share of sales contract demands

for Rate Schedule OCD as of October 31, 1993, and imputed contract

demands for one-part cusomters as of October 31, 1993, to be determined

by dividing each such customer's imputed contract demands for the

twelve (12) month period prior to implementation of restructuring

on November 1, 1993, by 12. The commodity portion of any balance

will be allocated or refunded on the basis of each customer's

proportionate share of total sales during the twelve-month

period prior to implementation of restructuring. Customers have the

same payment options as in Section 35.3 for payment of said direct bill,

if applicable. After the end of this nine-month period, COMPANY shall file

a report (including work papers) with the Commission detailing the final

balance at the end of the nine-month close-out period.

35.5 Refunds and/or Billings Subsequent to Close-Out Period:

After the initial allocation of Account No. 191 costs set forth in

Section 35.2 and 35.4, COMPANY will record in a refund subaccount all

refunds, revenue credits, credit billing adjustments, and related interest

which may be reflected in Account No. 191. COMPANY will then file on an

annual basis to refund any credit balance with interest to its

customers on the same basis as set forth in Section 35.4 above.