Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 01/01/2001, Docket: RP00-514-000, Status: Effective

Third Revised Sheet No. 381 Third Revised Sheet No. 381 : Effective

Superseding: Second Revised Sheet No. 381

FORM OF SERVICE AGREEMENT

UNDER RATE SCHEDULE ISS

(Continued)

1.2 Subject to the terms and provisions of this Agreement, Company's Rate Schedule ISS

and General Terms and Conditions thereto, Company shall redeliver a thermally

equivalent quantity of gas, less the applicable fuel charge as set forth in

Rate Schedule ISS, to Shipper or a third party designated by Shipper at the Storage

Point described in Rate Schedule ISS and shall deduct such redelivery and fuel

from Shipper's Storage Inventory hereunder.

ARTICLE II

CONDITIONS OF SERVICE

2.1 It is recognized that the storage service hereunder is provided on an interruptible

basis pursuant to, in accordance with and subject to the provisions of Company's

Rate Schedule ISS, 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 ISS, the terms of Rate Schedule ISS shall

govern as to the point of conflict. Any limitation of storage service hereunder

shall be in accordance with the priorities set out in Rate Schedule ISS. Company

makes no representation, assurance or warranty that capacity will be available for

service hereunder and Shipper agrees that Company shall bear no responsibility

or liability to any person if capacity does not exist on any day to provide service

hereunder.

2.2 This Agreement shall be subject to all provisions of the General Terms and

Conditions specifically applicable to Company's Rate Schedule ISS 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 Commission

of such provisions of the General Terms and Conditions or other matters relating

to Rate Schedule ISS.