Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 09/01/1994, Docket: RP94-353-000, Status: Effective

Original Sheet No. 403A Original Sheet No. 403A : Effective

PRO FORMA

PIPELINE BALANCING AGREEMENT

This AGREEMENT is made and entered into this 1st day of ________________,

199__, between Southern Natural Gas Company ("Southern") and

_______________________________________ ("Pipeline Operator"), collectively referred to

as "Parties."

WHEREAS, the facilities operated by Southern and Pipeline Operator interconnect

at the "Interconnection Point" specified on Exhibit A attached hereto; and

WHEREAS, Southern and Pipeline Operator have entered into one or more

transportation agreements with various third party shippers whereby Southern receives

and/or delivers gas at the Interconnection Point on behalf of such shippers and Pipeline

Operator delivers and/or receives gas on behalf of such shippers at the Interconnection

Point; and

WHEREAS, from time to time, gas quantities actually received and delivered at the

Interconnection Point by each Party may be greater than or less than the confirmed

nominated quantities scheduled for receipt and delivery at the Interconnection Point,

resulting in over or under-deliveries relative to such scheduled quantities; and

WHEREAS, Southern and Pipeline Operator desire to allocate volumes transported

by each Party to or from the Interconnection Point on behalf of their shippers based upon

scheduled nominations and to allocate any difference between such scheduled daily

nominations and actual daily receipts or deliveries at the Interconnection Point ("Pipeline

Imbalance") to this Agreement; and

WHEREAS, Southern and Pipeline Operator desire to correct any Pipeline

Imbalances pursuant to the procedures set forth herein; and

WHEREAS, Southern and Pipeline Operator desire to implement operating rules

designed to encourage conduct that maintains a system balance on Southern and Pipeline

Operator's systems and to facilitate the movement of gas for transportation by shippers.