Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Third Revised Sheet No. 346 Third Revised Sheet No. 346 : Effective

Superseding: Second Revised Sheet No. 346

FORM OF SERVICE AGREEMENT

UNDER RATE SCHEDULE IT

(Continued)

and other authorized charges assessed under Rate Schedule IT and the General

Terms and Conditions. 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 IT or the parties may agree to a Negotiated Rate for such services in

accordance with the provisions of Rate Schedule IT. 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 Schedule IT during the period in which they

are in effect.

6.2 The rates and charges provided for under Rate Schedule IT 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 this Agreement, as well as

all or any part of Rate Schedule IT, 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. 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.

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 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