Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 09/01/2003, Docket: RP00-476-005, Status: Effective

Substitute Original Sheet No. 212I.04 Substitute Original Sheet No. 212I.04 : Effective

Superseding: Original Sheet No. 212I.04

GENERAL TERMS AND CONDITIONS

(Continued)

41. OPERATIONAL FLOW ORDERS (OFOs)

41.2(d)(continued)

(ii) the quantity of gas allocated for delivery to SHIPPER at a

specific Delivery Point or group of Delivery Points pursuant to

such procedures, shall be deemed to be Unauthorized Overrun Gas,

and COMPANY shall bill and SHIPPER shall pay for such

Unauthorized Overrun Gas, in addition to the applicable

transportation charge, a penalty of $10.00 per Dth. All gas

taken by a SHIPPER after receipt of a notice given pursuant to

Section 41.2(a) under a Level 2 OFO, to the extent that the

volume of gas exceeds by both 75 dth/day and 102 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 (ii) the quantity of gas allocated for delivery to SHIPPER at

a specific Delivery Point or group of Delivery Points pursuant

to such procedures, shall be deemed to be Unauthorized Overrun

Gas, and COMPANY shall bill and SHIPPER shall pay for such

Unauthorized Overrun Gas, in addition to the applicable

transportation charge, a penalty of $15.00 per Dth. All gas

taken by a SHIPPER after receipt of a notice given pursuant to

Section 41.2(a) under a Level 3 OFO, to the extent that the