Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 04/01/1999, Docket: RP98-363-000, Status: Effective

Second Revised Sheet No. 341 Second Revised Sheet No. 341 : Effective

Superseding: First Revised Sheet No. 341

FORM OF SERVICE AGREEMENT

UNDER RATE SCHEDULE IT

(Continued)

Company's obligation to accept gas at any Receipt Point is limited to the Maximum

Daily Receipt Quantity (MDRQ) for each Receipt Point specified in the General Terms

and Conditions hereto.

1.2 Subject to the terms and provisions of this Agreement, Rate Schedule IT 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 Rate Schedule IT, to

Shipper at the Delivery Point(s) nominated by Shipper and scheduled by Company under

this Agreement. Company's obligation

to redeliver gas at any Delivery Point is limited to the Maximum Daily Delivery

Quantity (MDDQ) for each Delivery Point specified in the General Terms and Conditions.

ARTICLE II

CONDITIONS OF SERVICE

2.1 It is recognized that the transportation service hereunder is provided on an

interruptible basis pursuant to, in accordance with and subject to the provisions of

Company's Rate Schedule IT, 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 Rate Schedule IT, the terms of Rate Schedule IT 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 IT 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 IT 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 IT.

2.3 Company makes no representation, assurance or warranty that capacity will be

available on Company's pipeline system at any time and Shipper agrees