Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Original Sheet No. 403H Original Sheet No. 403H : Effective

PRO FORMA

PIPELINE BALANCING AGREEMENT

(Continued)

will reflect any transportation charges owed by Pipeline Operator under Section

2.2(b) above or credits owed by Southern to Pipeline Operator to correct previous

transportation charges. No adjustments of actual metered quantities shall be made

after two (2) years from the month in which they were measured unless otherwise

agreed to by the Parties.

ARTICLE III

TERM

3.1 Duration of Agreement - Subject to the other termination rights provided herein, this

Agreement shall be in full force and effect from the date hereof for a primary term

through ______________, and shall continue thereafter on a month-to-month basis

unless cancelled by either Party upon at least forty-eight (48) hours prior written

notice to the other Party prior to the end of the primary term or any month

thereafter with any such termination to be effective at the end of a calendar month.

3.2 Continuing Obligations - Following the termination of this Agreement, any remaining

Monthly Pipeline Imbalance accrued during the term of the Agreement shall be

corrected by the imbalance resolution procedures set forth in Section 2.2 above.

ARTICLE IV

MISCELLANEOUS

4.1 Warranties - Pipeline Operator warrants (i) that it has the right to allocate all

receipts and/or deliveries at the Interconnection Point(s) in accordance with this

Agreement, and (ii) that it will indemnify and save Southern harmless from suits,

actions, debts, accounts, damages, costs, losses and expenses arising from or out of

adverse claims of any or all persons to said gas or to royalties, overriding royalties,

taxes, or other charges thereon or with regard to the allocation of gas on Pipeline

Operator's system hereunder. Southern warrants (i) that it has the right to allocate

all deliveries and/or receipts at the Interconnection Point(s) in accordance with this

Agreement, and (ii) that it