Southern Natural Gas Company

Seventh Revised Volume No. 1

Effective Date: 05/01/1996, Docket: RP89-224-016, Status: Effective

First Revised Sheet No. 315 First Revised Sheet No. 315 : Effective

Superseding: Original Sheet No. 315

FORM OF SERVICE AGREEMENT

UNDER RATE SCHEDULE FT

(Continued)

it is delivered to the U.S. Mail, for delivery by certified mail,

return receipt requested.

8.7 (If requested by Shipper) If Shipper experiences the loss of any load

after November 1, 1993, by direct connection of such load to the Company's

system, Shipper may reduce its Transportation Demand under this Service

Agreement or any other Service Agreement for firm transportation service

between Shipper and Company by giving Company 30 days prior written notice

of such reduction within six (6) months of the date Company initiates direct

services to the industrial customer; provided, however, that any such

reduction shall be applied first to the Transportation Demand under the

Service Agreement with the shortest remaining contract term.

In order to qualify for a reduction in its Transportation Demand, Shipper

must certify and provide supporting data that:

(i) The load was actually being served by Shipper with

gas transported by Company prior to November 1, 1993.

(ii) If the load lost by Shipper was served under a

firm contract, the daily contract quantity shall be

provided.

(iii) If the load lost by Shipper was served under

an interruptible contract, the average daily volumes

during the latest twelve months of service shall be

provided.

Shipper may reduce its aggregate Transportation Demand under all its Service

Service Agreements by an amount up to the daily contract quantity in the

case of the loss of a firm customer and/or up to the average daily deliveries

deliveries during the latest twelve month period in the case of the loss of an

interruptible customer. Such reduction shall become effective thirty days

after the date of Shipper's notice that it desires to reduce its Transportation

Demand.