Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Original Sheet No. 212I.02 Original Sheet No. 212I.02 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

41. OPERATIONAL FLOW ORDERS (OFOs)

41.2 (a) (continued)

An operational flow order under this Section 41.2 will not

go into effect, however, until a notice is given as

follows: (i) For Level 1 OFO notices: at least 24 hours

prior to the beginning of the gas day in which the notice

goes into effect; (ii) For Level 2 OFO notices: at least 20

hours prior to the beginning of the gas day in which the

notice goes into effect; (iii) for Level 3 OFO notices: at

least 4 hours prior to the effective time of the notice if

a Level 1 or Level 2 OFO is already in effect as provided

above. If a Level 1 or Level 2 OFO is not already in

effect, then COMPANY must give SHIPPERS at least 20 hours

notice prior to the effective time of the notice to

implement a Level 3 OFO. Such notice shall specify the

beginning time of the operational flow order and such

operational flow order shall remain in effect until

cancelled by COMPANY. In the notice COMPANY shall specify

the reason for the operational order and the expected

conditions that would cause release of the order.

(b) In order to determine an event which may give rise to an

operational flow order under this Section, COMPANY shall

evaluate the current status of the system, including, but

not limited to, the line inventory, line pressures,

equipment availability and outages, the level of inventory

at the storage fields, the current imbalance status of the

system, including no-notice nominations, the month to date

imbalance status of the system, and the direction of change

for any of these criteria. COMPANY shall then evaluate the

forecasted demand and available capacity on the system

based on these factors and the weather forecast for areas

across the system and any other factors which could

influence the level of usage or flow on the system, such as

potential loss of supply, economic conditions relating to

gas or oil prices and the status of competing pipelines.

Based on an evaluation of current and forecasted system

conditions, COMPANY shall post by 1:00 p.m. (CCT) each gas

day the operating condition for the current gas day and the

projected operating conditions, the likelihood of

implementing an OFO under this section, and, if a

likelihood exists, the criteria that will be monitored for

the succeeding four gas days. Such operating conditions

will be posted to be Normal, Level 1, Level 2, or Level 3.

The operating conditions may be different for Delivery