Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Third Revised Sheet No. 361 Third Revised Sheet No. 361 : Effective

Superseding: Second Revised Sheet No. 361

 

 

 

FORM OF SERVICE AGREEMENT

UNDER RATE SCHEDULE CSS

(Continued)

 

 

ARTICLE IV

TERM

 

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

date first written above and shall be in full force and effect for the primary term(s)

set forth on Exhibit A hereto, if applicable, and shall continue and remain in force

and effect for successive evergreen terms specified on Exhibit A hereto unless canceled

by either party giving the required amount of written notice specified on Exhibit A

to the other party prior to the end of the primary term(s) or any extension thereof.

 

4.2 In the event Shipper has not contracted for a Maximum Storage Quantity under this

Agreement directly with Company, as set forth on Exhibit A hereto, then the term of

this Agreement shall be effective as of the date first hereinabove written and shall

remain in full force and effect for a primary term through the end of the month and

month to month thereafter unless canceled by either party giving at least five (5)

days 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. It is

provided, however that this Agreement shall not terminate prior to the expiration

of the effective date of any Capacity Release Transaction.

 

 

ARTICLE V

REMUNERATION

 

5.1 Shipper shall pay Company monthly the charges specified in Rate Schedule CSS for the

storage services rendered hereunder or under each effective Capacity Release Transaction,

as applicable. For service requested from Company under Rate Schedule CSS, Company shall

notify Shipper as soon as practicable of the date service will commence hereunder, and if

said date is not the first day of the month, the Deliverability Charge and Capacity

Charge for the first month of service hereunder shall be adjusted to reflect only

the actual number of days during said month that storage service is available. Company

may agree from time to time to discount the rates charged Shipper for services

provided hereunder in accordance with the