Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 04/01/2001, Docket: RP01-242-000, Status: Effective

Original Sheet No. 425 Original Sheet No. 425 : Effective

Service Agreement No.____________

FORM OF SERVICE AGREEMENT

Under Rate Schedule PAL

Park and Loan Service

(Continued)

1.2 LOANS - Subject to the terms and conditions of this agreement

(including Exhibit A hereto) and of Company's Rate Schedule PAL,

Company shall make available to Shipper at the specified PT on an

interruptible basis a quantity of gas to be loaned to Shipper for

a time period up to the maximum term specified in Exhibit A

hereto. Shipper shall return the loaned quantities of gas to

Company at the PT where Shipper received the loaned gas.

1.3 Service rendered hereunder shall be interruptible, which shall be

subject to limitation or interruption at Company's reasonable

discretion. In the event Company is unable to provide the level

of Park or Loan Service requested by all Shippers under Rate

Schedule PAL, then Company shall allocate available Park or Loan

Service among such Shippers in accordance with Section 5.1 of

Company's Rate Schedule PAL.

1.4 COMPANY and SHIPPER shall execute a new Exhibit A for each park

or loan service agreed to hereunder. Each Exhibit A shall set

forth a deal number for each transaction, which SHIPPER shall use

when nominating its service thereunder.

ARTICLE II

TERM OF AGREEMENT

2.1 Subject to the provisions hereof, this Agreement shall become

effective as of the date first hereinabove written 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.

2.2 Company shall have the right to discontinue service under this

Agreement in accordance with Section 15.3 of the General Terms

and Conditions hereto.