Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 09/22/2004, Docket: RP04-494-000, Status: Effective

Third Revised Sheet No. 245 Third Revised Sheet No. 245 : Effective

Superseding: Second Revised Sheet No. 245

GENERAL TERMS AND CONDITIONS

APPENDIX D

(Continued)

ARTICLE V

TERM

5.1 Subject to the provisions hereof, this Agreement shall become effective as of the

date first written above, and shall remain in full force and effect for a primary

term through the end of the month and shall continue and remain in force and effect

for successive terms of one month each thereafter unless and until canceled by either

party giving written notice at least five (5) days prior to the end of the primary

term or any monthly extension thereof, provided however, this agreement will

automatically terminate if no nominations are requested during a period of 12

consecutive months. The provisions for correcting imbalances or paying

penalties which accrue prior to the termination date of this Agreement shall

survive the termination of this Agreement.