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.03 Original Sheet No. 212I.03 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

41. OPERATIONAL FLOW ORDERS (OFOs)

41.2(b)(continued)

Points or groups of Delivery Points within the various

geographic areas of Company's System. Normal Mode shall be

implemented when system conditions do not warrant a

correction in flow, and when no known threat to system

conditions exists. A Level 1 OFO shall be implemented when

system conditions warrant a correction in flow because a

threat to system conditions exists such that daily

entitlements may be impaired. A Level 2 OFO shall be

implemented when system conditions warrant a prompt

correction in flow because an imminent threat to system

conditions exists such that daily entitlements may be

impaired. A Level 3 OFO shall be implemented when system

conditions warrant an immediate correction to flow because

an event has occurred or is occurring that jeopardizes

system conditions such that daily entitlements may be

impaired. Under a Level 3 OFO, an event that jeopardizes

system conditions shall be considered to be either (i) any

mechanical or pipeline failure on the System upstream of a

Delivery Point; or (ii) when a Level 2 OFO has been in a

place and System conditions continue to deteriorate.

(c) When giving a notice pursuant to Section 41.2 (a) that the

quantity of gas taken in excess of the quantity of gas

allocated for delivery at a specific Delivery Point or

group of Delivery Points will be subject to Section

41.2(d), COMPANY shall recognize the right of a SHIPPER

which owns and operates a system having multiple Delivery

Points with COMPANY to take all or any portion of its Daily

Entitlement at any Delivery Point or group of Delivery

Points listed on the Exhibit B to its Service Agreement with

COMPANY (up to the maximum meter capacity of the existing

facilities and the capacity of the pipeline and laterals

upstream of the meter).

(d) All gas taken by a SHIPPER after receipt of a notice given

pursuant to Section 41.2(a) under a Level 1 OFO, to the

extent that the volume of gas exceeds by both 190 dth/day

and 105 percent either (i) its Daily Entitlement for all of

its Delivery Points, as established either by an allocation

order or orders given by the COMPANY pursuant to Section

16.2 above and/or through COMPANY'S confirmation of

SHIPPER'S nominations in accordance with the provisions of

Section 12 of these General Terms and Conditions, or