Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 01/09/2009, Docket: RP09-147-000, Status: Effective

Second Revised Sheet No. 212I Second Revised Sheet No. 212I

Superseding: First Revised Sheet No. 212I

GENERAL TERMS AND CONDITIONS

(Continued)

41. OPERATIONAL FLOW ORDERS (OFOs)

41.1 Implementation of OFOs:

(a) COMPANY shall attempt to minimize the use of OFOs and the declaration of critical

periods and, when possible, to direct an OFO to the specific party(s) creating the

operating condition and to the specific location of the system where the operating

condition exists. Whenever COMPANY notifies affected parties that an OFO or

critical period exists on its pipeline system under one of the provisions

referenced below, such notice shall describe the condition and the specific

responses required from the affected parties. COMPANY will release an OFO as soon

as system conditions make such release feasible and COMPANY will not wait until the

start of a gas day if release of the OFO is possible on an intraday basis. Each

potential OFO condition set forth below contains the amount of notice COMPANY is

required to give prior to implementing the OFO, if applicable, and Section 18 of

these General Terms and Conditions states the notification method applicable.

COMPANY will not assess any penalties under the provisions set forth below on an

intraday basis, even if the applicable notice becomes effective during the gas day.

(b) The following provisions in COMPANY'S FERC Gas Tariff constitute

OFOs or critical periods on COMPANY'S system:

Notice Does a Penalty

Number Short Description Apply? Tariff Cite

______ ______________________ ____________ _____________________

2 Hourly Market Demand No, but flow Sec. 10.3 - GT&C

Exceeds Capacity control can

be installed

3 Daily Market Demand Yes Sec. 41.2 - GT&C

Exceeds Capacity

4 Daily Deliveries Create Yes Sec. 41.3(a), (c), (d) -

Imbalance That Threaten GT&C

Capacity

5 Daily Receipts Create Yes Sec. 41.3(a), (b), (d) -

Imbalance That Threaten GT&C

Capacity

6 Daily Shipper Imbalances Yes Sec. 41.4 - GT&C

Threaten System Integrity