Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Second Revised Sheet No. 289 Second Revised Sheet No. 289 : Effective

Superseding: First Revised Sheet No. 289

FORM OF FIRM TRANSPORTATION

SERVICE AGREEMENT

(Continued)

Company's obligation to accept gas on a firm basis at any Receipt Point is limited to

the Receipt Points set out on Exhibit A and to the Maximum Daily Receipt Quantity

(MDRQ) stated for each such Receipt Point. The sum of the MDRQ's for the Receipt Points

on Exhibit A shall not exceed the Transportation Demand.

1.2 Subject to the terms and provisions of this Agreement, Rate Schedule FT and/or FT-NN,

as applicable, and the General Terms and Conditions thereto, Company shall deliver a

thermally equivalent quantity of gas, less the applicable fuel charge as set forth in

the applicable FT or FT-NN Rate Schedule, to Shipper at the Delivery Point(s)

described in Exhibit B and Exhibit B-1 hereto. Company's obligation to redeliver gas

at any Delivery Point on a firm basis is limited to the Delivery Points specified on

Exhibit B and to the Maximum Daily Delivery Quantity (MDDQ) stated for each such

Delivery Point and in no event shall Shipper be entitled to deliveries in excess of

the MDDQ such that if Shipper elects to take gas at an Exhibit B-1 Delivery Point

then the MDDQ at its Exhibit B Delivery Points will be reduced proportionately. The

sum of the MDDQ's for the Delivery Points on Exhibit B shall equal the

Transportation Demand.

1.3 In the event Shipper is the successful bidder on released firm transportation capacity

under Section 22 of Company's General Terms and Conditions, Company will promptly email to

Shipper the terms of the Capacity Release Transaction. Upon the issuance of the email,

subject to the terms, conditions and limitations hereof and of Company's Rate Schedules FT

and FT-NN, Company agrees to provide the released firm transportation service to Shipper

under Rate Schedule FT or FT-NN, the General Terms and Conditions thereto, and this

Agreement.

ARTICLE II

CONDITIONS OF SERVICE

2.1 It is recognized that the transportation service hereunder is provided on a firm basis

pursuant to, in accordance with and subject to the provisions of Company's Rate Schedule

FT and/or FT-NN, and the General Terms and Conditions thereto, which are contained

in Company's FERC Gas Tariff, as in effect from time to time, and which are hereby

incorporated by reference. In the event of any conflict between this Agreement and

the terms of the applicable Rate Schedule, the terms of the Rate Schedule shall govern

as to the point of conflict. Any limitation of transportation service hereunder shall

be in accordance with the priorities set out in Rate Schedule FT and/or FT-NN, as

applicable, and the General Terms and Conditions thereto.

2.2 This Agreement shall be subject to all provisions of the General Terms and Conditions

applicable to Company's Rate Schedule FT and/or FT-NN as such conditions may be revised

from time to time. Unless Shipper requests otherwise, Company shall provide to Shipper

the filings Company makes at the Federal Energy Regulatory Commission ("Commission")

of such provisions of the General Terms and Conditions or other matters relating to

Rate Schedule FT or FT-NN.