Southern Natural Gas Company

Original Volume No. 2

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Effective Date: 02/03/1991, Docket: RP90-139-004, Status: Effective

First Sub. Twelfth Rev. Sheet No. 403 First Sub. Twelfth Rev. Sheet No. 403 : Effective

Superseding: Eleventh Revised Sheet No. 403

RATE SCHEDULE X-44

Statement on Determination of Rate Effective

June 1, 1980 for Transportation of Gas by

Southern Natural Gas Company for United Gas

Pipe Line Company from Eugene Island Block 57

to Eugene Island Block 32, Offshore Louisiana.

Article V of Southern's Rate Schedule X-44 provides that United shall be

charged a monthly demand charge based on the following calculation:

A x B x C x U = Annual Charge = Monthly

U + S 12 Charge

where: A = Gross capital investment in facilities extending from point of

receipt to delivery point

B = Southern's investment as percentage of A

C = Percentage of Cost of Service Factor for Investment Cost

U = United's Percentage Ownership Share of the Gas from the Block

57 Field

S = Southern's Percentage Ownership Share of the Gas from the Block

57 Field

In accordance with the above calculation, the Monthly Charge is $10,112.