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. 294 Third Revised Sheet No. 294 : Effective

Superseding: Second Revised Sheet No. 294

FORM OF FIRM TRANPORTATION

SERVICE AGREEMENT

(Continued)

and other authorized charges assessed under the applicable FT or FT-NN Rate Schedule

and the General Terms and Conditions. For service requested from Company under Rate

Schedule FT or FT-NN, Company shall notify Shipper as soon as practicable of the

date services will commence hereunder, and if said date is not the first day of the

month, the Reservation Charge for the first month of service hereunder shall be

adjusted to reflect only the actual number of days during said month that

transportation service is available. Company may agree from time to time to

discount the rates charged Shipper for services provided hereunder in accordance

with the provisions of Rate Schedule FT and/or FT-NN, as applicable. Said discounted

charges shall be set forth on Exhibit E hereto or the parties may agree to a Negotiated Rate

for such services in accordance with the provisions of Rate Schedule FT or FT-NN. Said

discounted or Negotiated Rates shall be set forth on Exhibit E or Exhibit F, respectively,

hereto and shall take precedence over the charges set forth in Rate Schedules FT or FT-NN

during the period in which they are in effect.

6.2 The rates and charges provided for under Rate Schedule FT shall be subject to

increase or decrease pursuant to any order issued by the Commission in any

proceeding initiated by Company or applicable to the services performed hereunder.

Shipper agrees that Company shall, without any further agreement by Shipper, have

the right to change from time to time, all or any part of its Proforma Service Agreement, as

well as all or any part of Rate Schedule FT or FT-NN, as applicable, or the General Terms

and Conditions thereto, including without limitation the right to change the rates and

charges in effect hereunder, pursuant to Section 4(d) of the Natural Gas Act as may be

deemed necessary by Company, in its reasonable judgment, to assure just and reasonable

service and rates under the Natural Gas Act. It is recognized, however, that once a

Capacity Release Transaction has been awarded, Company cannot increase the Reservation

Charge to be paid by Shipper under that Capacity Release Transaction, unless in its bid the

Acquiring Shipper has agreed to pay a percentage of the maximum tariff rate in effect and

the maximum tariff rate increases during the term of the Capacity Release Transaction.

Nothing contained herein shall prejudice the rights of Shipper to contest at any time the

changes made pursuant to this Section 6.2, including the right to contest the transportation

rates or charges for

the services provided under this Agreement, from time to time, in any subsequent

rate proceedings by Company under Section 4 of the Natural Gas Act or to file a

complaint under Section 5 of the Natural Gas Act with respect to such transportation

rates or charges, the Rate Schedules, or the General Terms and Conditions thereto.

ARTICLE VII

SPECIAL PROVISIONS

7.1 If Shipper is a seller of gas under more than one Service Agreement and requests

that Company allow it to aggregate nominations for certain Receipt Points for such

Agreements, Company will allow such an arrangement under the terms and

conditions set forth in this Article VII. To be eligible to aggregate gas, Shipper

must comply with the provisions of Section 2.2 of the General Terms and Conditions and

the terms and conditions of the Supply