Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 09/01/2009, Docket: RP09-427-000, Status: Suspended

Original Sheet No. 212L Original Sheet No. 212L

GENERAL TERMS AND CONDITIONS

(Continued)

43. Hurricane Surcharge (continued)

43.4 Calculation of Hurricane Surcharge

The surcharge shall be calculated at the end of each annual period by dividing (1) the amount

in the Hurricane Surcharge Account as of the prior August 31 by (2) COMPANY's actual

transportation billing determinants, unadjusted for discounts, but not to include

transportation to and from off-system Receipt and Delivery Points or transportation to a

SHIPPER's CSS, ISS, or on-system processing plant, or a PAL Point of Transaction, or from a

directly connected third party storage account, or from the ANR Pipeline Company Shadyside

Interconnection with COMPANY for transportation packages at capacity previously converted from

COMPANY's Rate Schedule STS, for the most recent 12 months period ending August 31. The

Annual Period shall encompass expenditures from September 1 of a calendar year through August

31 of the following calendar year. The first Annual Period shall commence on September 1,

2009 and end on August 31, 2010.

43.5 Annual FERC Filing:

COMPANY shall file with FERC annually on September 30 a limited NGA Section 4 filing to be

effective November 1 of that calendar year through October 31 of the following calendar year.

The initial Annual FERC Filing shall be made on September 30, 2010. Each Annual FERC Filing

shall include work papers which: (1) list the actual Eligible Cost incurred during the prior

Annual Period including a written description of any Eligible Cost greater than $50,000; (2)

list any insurance or third party proceeds received during the prior Annual Period; and (3)

show the derivation of the Hurricane Surcharge. If the balance in the Hurricane Surcharge

Account at the end of the prior Annual Period is less than $500,000 then the Hurricane

Surcharge shall be set at $0/Dth until the effective date of the next Annual FERC Filing.

43.6 Miscellaneous

Upon the effective date of a subsequent change in COMPANY's rates under a General NGA Section

4 or 5 proceeding, the cumulative Eligible Cost component of the Capital Subaccount component

of the Hurricane Surcharge Account shall be reset to $0 and such cost shall be eligible for

recovery in COMPANY's base tariff rates.