Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 04/01/1994, Docket: RP94-148-000, Status: Effective

First Revised Sheet No. 313 First Revised Sheet No. 313 : Effective

Superseding: Original Sheet No. 313

FORM OF SERVICE AGREEMENT

UNDER RATE SCHEDULE FT-NN

(Continued)

Pool Balancing Agreement executed by Shipper and Company pursuant thereto.

7.2 If Shipper is a purchaser of gas from a seller that is selling from an aggregate of

Receipt Points, and Shipper wishes to nominate to receive gas from such seller's

aggregate supplies of gas, Company will allow such a nomination, provided that

the seller (i) has entered into a Supply Pool Balancing Agreement with Company

and (ii) submits a corresponding nomination to deliver gas to Shipper from its

aggregate supply pool.

ARTICLE VIII

MISCELLANEOUS

8.1 This Agreement constitutes the entire Agreement between the parties and no waiver

by Company or Shipper of any default of either party under this Agreement shall

operate as a waiver of any subsequent default whether of a like or different

character.

8.2 The laws of the State of Alabama shall govern the validity, construction,

interpretation, and effect of this Agreement.

8.3 No modification of or supplement to the terms and provisions hereof shall be or

become effective except by execution of a supplementary written agreement between

the parties except that in accordance with the provisions of Rate Schedule FT-NN,

and the General Terms and Conditions thereto, Receipt Points may be added to or

deleted from Exhibit A and the Maximum Daily Receipt Quantity for any Receipt

Point on Exhibit A may be changed upon execution by Company and Shipper of a

Revised Exhibit A to reflect said change(s), and Delivery Points may be added to or

deleted from Exhibit B and the Maximum Daily Delivery Quantity for any Delivery

Point may be changed upon execution by Company and Shipper of a Revised Exhibit

B to reflect said change(s); provided, however, that any such change to Exhibit A or

Exhibit B must include corresponding changes to the existing Maximum Daily

Receipt Quantities or Maximum Daily Delivery Quantities, respectively, such that the

sum of the changed Maximum Daily Receipt Quantities shall not exceed the

Transportation Demand and the sum of the Maximum Daily Delivery Quantities

equals the Transportation Demand.