Southern Natural Gas Company

Seventh Revised Volume No. 1

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

First Revised Sheet No. 345 First Revised Sheet No. 345 : Effective

Superseding: Original Sheet No. 345

FORM OF SERVICE AGREEMENT

UNDER RATE SCHEDULE IT

(Continued)

ARTICLE IV

TERM

4.1 Subject to the provisions hereof, this Agreement shall become effective as of the date

first hereinabove written and shall be in full force and effect for a primary term of

______________ and shall continue and remain in force and effect for successive

terms of _______ each thereafter unless and until cancelled by either party giving

_____________ written notice to the other party prior to the end of the primary term

or any _______________ extension thereof, provided however, this agreement will

automatically terminate if no nominations are requested during a period of 12 consecutive

months.

ARTICLE V

CONDITIONS PRECEDENT

5.1 Unless otherwise agreed to by the parties, the terms of Rate Schedule IT, and the

General Terms and Conditions thereto, shall apply to the acquisition or construction

of any facilities necessary to effectuate this Agreement. Other provisions of this

Agreement notwithstanding, Company shall be under no obligation to commence

service hereunder unless and until (1) all facilities, of whatever nature, as are

required to permit the receipt, measurement, transportation, and delivery of natural

gas hereunder have been authorized, installed, and are in operating condition, and

(2) Company, in its reasonable discretion, has determined that such service would

constitute transportation of natural gas authorized under all applicable regulatory

authorizations and the Commission's Regulations.

ARTICLE VI

REMUNERATION

6.1 Shipper shall pay Company monthly for the transportation services rendered

hereunder the charges specified in Rate Schedule IT, including any penalty