Southern Natural Gas Company

Original Volume No. 2

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

First Sub. Sixteenth Rev. Sheet No. 458 First Sub. Sixteenth Rev. Sheet No. 458 : Effective

Superseding: Fifteenth Revised Sheet No. 458

RATE SCHEDULE X-49 (Continued)

Section B. On or before the 15th day of each calendar month, Southern

shall deliver to Transco a statement setting out the amounts due for the

transportation service and the operation of the measurement facilities provided

during the prior month and reflecting the volumes of gas and other pertinent

information.

Section C. On or before the 25th day of each calendar month, Transco

shall make payment to Southern for the above services provided during the

preceding calendar month.

Section D. Should Transco fail to pay any amount due by the last day of

the month following the month in which the above services were provided,

interest on the unpaid amount shall accrue at the rate equal to the prime rate

then being charged by The Chase Manhattan Bank, N.A., from the date when due

until paid. If any such failure continues for 60 days, Southern may suspend

deliveries of gas, but the exercise of such right shall be in addition to any

other remedy available to Southern.

Section E. Transco shall have the right, at reasonable hours, to examine

the charts, books and records of Southern, to the extent necessary to verify

the accuracy of any statement furnished by Southern pursuant to Section A of

this Article V. If such examination reveals an inaccuracy, the necessary

adjustments shall be promptly made.

ARTICLE VI

(Remuneration)

Section A. Transco agrees to pay Southern each month a transportation

charge of thirty-five cents (35›) per Mcf at 14.73 psia of gas redelivered at

the Redelivery Point. 1/

Section B. Transco agrees that Southern shall without further agreement

by Transco, have the right to change this transportation charge and to file

notices of such change with the Federal Energy Regulatory Commission

(Commission) pursuant to Section 4 of the Natural Gas Act from time to time

whenever, in Southern's judgment, such change is necessary to assure it of

just and reasonable rates under the provisions of the Natural Gas Act.

Nothing herein contained shall prejudice the rights of Transco to contest

in good faith subsequent changes to the transportation charge set forth above

with regard to the services rendered hereunder by Southern.

1/ Revised Charge: Winter 27.7› Summer 16.7›

Plus the ACA unit charge and the volumetric Take-or-Pay surcharge which

are set forth in Sections 21 and 22, respectively, of Southern's FERC Gas

Tariff, Sixth Revised Volume Number 1.