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. 385 Third Revised Sheet No. 385 : Effective

Superseding: Second Revised Sheet No. 385

FORM OF SERVICE AGREEMENT

UNDER RATE SCHEDULE ISS

(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 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

REMUNERATION

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

for the storage services rendered hereunder. Company may agree to from time to

time to discount the rate charged Shipper for services provided hereunder in

accordance with the provisions of Rate Schedule ISS or the parties may agree to a

Negotiated Rate for such services in accordance with the provisions of Rate

Schedule ISS. Said discount charge or Negotiated Rates shall be set forth on

Exhibit C or Exhibit D, respectively, hereto and shall take precedence over the

charges set forth in Rate Schedule ISS during the period in which they are in

effect.

5.2 The rates and charges provided for under Rate Schedule ISS 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