Southern Natural Gas Company

Seventh Revised Volume No. 1

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

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

Superseding: Original Sheet No. 212A

GENERAL TERMS AND CONDITIONS

(Continued)

36. DIRECT DELIVERY CONNECTIONS

(a) As used herein, the term direct delivery connection shall refer to

interconnection, measurement, and appurtenant facilities necessary to deliver

gas directly to an end-user.

(b) A SHIPPER may request a new direct delivery connection by submitting to

the attention of the COMPANY'S Transportation Services Department, Post

Office Box 2563, Birmingham, Alabama 35202, a written request to

COMPANY in the format set out in Appendix A to these General Terms and

Conditions. If SHIPPER is currently receiving natural gas services from the

local distributor serving the area, or if the direct delivery connection is within

the authorized service area of a local distribution company, SHIPPER shall

provide a copy of its request for a direct delivery connection to such local

distribution company. SHIPPER shall notify COMPANY of the date

SHIPPER has complied with this notice requirement, and COMPANY shall

not make the filing required by Section 157.211(a)(2) of the Commission's

Regulations until thirty (30) days after the date SHIPPER notified such local

distribution company of its request for a direct delivery connection.

connection is operationally and economically feasible.

(d) A direct delivery connection is operationally feasible if, with such connecting

facilities, COMPANY has the existing pipeline capacity to perform the

requested service through the proposed direct connection and such service will

not impair the COMPANY'S ability to provide service to its existing firm

customers.

(e) (1) A direct delivery connection is economically feasible if the proposed

transportation service to be provided through the new direct delivery

connection will produce a net revenue gain, as more particularly described

inSection 6 of Rate Schedule FT, or is revenue positive or revenue neutral

to COMPANY, as described in subsections (2) or (3) below.