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. 427 Original Sheet No. 427 : Effective

Service Agreement No.____________

FORM OF SERVICE AGREEMENT

Under Rate Schedule PAL

Park and Loan Service

(Continued)

ARTICLE V

GENERAL TERMS AND CONDITIONS

This Agreement shall be subject to the effective provisions of Company's

Rate Schedule PAL and to the General Terms and Conditions incorporated

therein, as the same may be changed or superseded from time to time in

accordance with the rules and regulations of the FERC.

ARTICLE VI

REGULATION

This Agreement shall be subject to all applicable and lawful

governmental statutes, orders, rules and regulations and is contingent upon

the receipt and continuation of all necessary regulatory approvals or

authorizations upon terms acceptable to Company. This Agreement shall be void

and of no force and effect if any necessary regulatory approval is not so

obtained or continued. All Parties hereto shall cooperate to obtain or

continue all necessary approvals or authorizations, but no Party shall be

liable to any other Party for failure to obtain or continue such approvals or

authorizations.

ARTICLE VII

RESPONSIBILITY DURING PAL

Except as herein specified, the responsibility for gas for the duration

of the park or loan service shall be as stated in the General Terms and

Conditions of Company's FERC Gas Tariff Volume No. 1.