Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 09/22/2004, Docket: RP04-494-000, Status: Effective

First Revised Sheet No. 425A First Revised Sheet No. 425A : Effective

Superseding: Original Sheet No. 425A

Service Agreement No.__________

FORM OF SERVICE AGREEMENT

Under Rate Schedule PAL

Park and Loan Service

(Continued)

ARTICLE III

RATE SCHEDULE AND PRICE

3.1 RATES - Shipper shall pay Company for service hereunder in

accordance with Company's Rate Schedule PAL and the applicable

provisions of the General Terms and Conditions of Company's FERC

Gas Tariff as filed with the Federal Energy Regulatory

Commission, and as the same may be legally amended or

superseded from time to time. Such Rate Schedule and General

Terms and Conditions are by this reference made a part hereof.

Except as provided to the contrary in any written or electronic

agreement(s) between Company and Shipper in effect during the

term of this Agreement, Shipper shall pay Company the applicable

maximum rate(s) and all other applicable charges and

surcharges specified in the Summary of Rates in Company's FERC

Gas Tariff and in this Rate Schedule. Company may agree from time

to time to discount the rates charged Shipper for services

provided hereunder or Company may agree to a negotiated rate.

Such discounted or negotiated charges shall be set forth on

Exhibit A hereto and shall take precedence over the charges set

forth in Rate Schedule PAL during the period in which they are in

effect.