Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 09/01/2003, Docket: RP00-476-004, Status: Effective

Original Sheet No. 212I.01 Original Sheet No. 212I.01 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

41. OPERATIONAL FLOW ORDERS (OFOs)

41.2 Daily Market Demand Exceeds Capacity:

(a) Whenever COMPANY determines in its reasonable judgment that

system operations must be maintained within SHIPPERS' Daily

Entitlements, consistent with the criteria set forth in

Section 41.2(b) below, COMPANY shall notify SHIPPER that

gas taken in excess of either (i) its Daily Entitlement for

all of its Delivery Points, or (ii) the quantity of gas

allocated for delivery to SHIPPER at a specific Delivery

Point or group of Delivery Points at which it is a SHIPPER

or a nomination agent or an operator will be subject to

this Section 41.2. All SHIPPERS shall comply at any time of

day with a notice to limit the taking of gas to the maximum

quantity of gas permitted to be taken pursuant to the

several provisions of this Section 41.2. The notices under

this section shall be designated as being under one of

three operating conditions: Level 1, Level 2 or Level 3 as

further described below. When COMPANY implements an

operational flow order under this Section or when COMPANY

changes the level of the operating condition from Level 1

to Normal, Level 1 to Level 2, Level 2 to Level 1 or Level

2 to Normal, COMPANY shall provide notice to its SHIPPERS

by e-mail pursuant to Section 18 of these General Terms and

Conditions and by posting such changes on its SoNet Premier

website. Notices to change to or from a Level 3 OFO shall

be delivered to SHIPPER by telephone. Notices shall be

given as soon as practicable but no shorter than the notice

periods set forth below. The notice will clearly specify

the Delivery Point or group of Delivery Points affected by

the OFO; and, except as provided under Section 41.2(c)

below, any Delivery Points to be grouped will be grouped

based on the current operating conditions on the System at

the time the notice is issued.