Southern Natural Gas Company

Seventh Revised Volume No. 1

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

Original Sheet No. 426 Original Sheet No. 426 : Effective

Service Agreement No.____________

FORM OF SERVICE AGREEMENT

Under Rate Schedule PAL

Park and Loan Service

(Continued)

3.1 (Continued)

Any discounted rate granted by COMPANY hereunder shall be a

rate between the applicable minimum and maximum rate.

3.2 INCIDENTAL CHARGES - Shipper agrees to reimburse Company for any

filing or similar fees, which have not been previously paid by

Shipper, which Company incurs in rendering service hereunder.

3.3 CHANGES IN RATES AND CHARGES - Shipper agrees that Company shall

have the unilateral right to file with the appropriate regulatory

authority and make changes effective in (a) the rates and charges

applicable to service pursuant to Company's Rate Schedule PAL,

(b) the rate schedule pursuant to which service hereunder is

rendered, or (c) any provision of the General Terms and

Conditions applicable to such rate schedule. Company agrees that

Shipper may protest or contest the aforementioned filings, or may

seek authorization from duly constituted regulatory authorities

for such adjustment of Company's existing FERC Gas Tariff as may

be found necessary to assure Company just and reasonable rates.

ARTICLE IV

BILLINGS AND PAYMENTS

Company shall bill and Shipper shall pay all rates and charges in

accordance with Section 15 of the General Terms and Conditions of Company's

FERC Gas Tariff.