Southern Natural Gas Company

Original Volume No. 2

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

First Sub. Second Rev. Sheet No. 468 First Sub. Second Rev. Sheet No. 468 : Effective

Superseding: First Revised Sheet No. 468

Rate Schedule X-50 (Continued)

ARTICLE III

(Quantities of Gas)

1. Commencing on the effective date and continuing throughout the term of

this Agreement, Southern agrees, subject to all provisions hereof, to receive

such daily quantity of gas, hereinafter referred to as "MMBTU delivery

quantity", as may be tendered and delivered by or for the account of United at

the Point of Delivery up to a maximum delivery rate of ninety thousand (90,000)

MMBTU per day, or, at such greater or lesser rate as Southern may accept at the

time and from time to time depending upon the operating conditions of its

pipeline facilities and its own capacity requirements.

2. Commencing on the effective date and continuing throughout the term of

this Agreement, Southern agrees, subject to all provisions hereof, to transport

and redeliver to United at the Point of Redelivery hereunder, a daily quantity

of gas, hereinafter referred to as "MMBTU redelivery quantity", which shall be

equal to the MMBTU delivery quantity, less (i) a percentage thereof in the

amount hereinafter set forth (which deductible percentage shall be utilized by

Southern, at no cost to Southern, to offset compressor fuel and unaccounted for

losses) attributable to the transportation service provided hereunder to United

(ii) United's pro rata share of any gas which may be vented or lost for any

reason other than Southern's gross negligence from that portion of Southern's

facilities being utilized hereunder at the time of any such loss therefrom; and

(iii) all shrinkage resulting from the extraction of liquefiable hydrocarbons

and fuel consumed in the processing of gas transported for United hereunder.

The aforementioned deductible percentage to be so deducted and utilized by

Southern in item (i) shall be one percent (1%) of the MMBTU delivery quantity

for that quantity redelivered to United at St. Mary Parish, Louisiana and three

and one-half percent (3.5%) of the MMBTU delivery quantity for that quantity

redelivered to United at Perryville, Ouachita Parish, Louisiana and/or

Kosciusko, Attalla County, Mississippi, unless and until changed by written

notice from Southern due to changes in the operation of Southern's pipeline

facilities through which United's gas will be transported hereunder. 1/

3. The MMBTU delivery quantity and the MMBTU redelivery quantity shall be

delivered at uniform hourly and daily rates of flow as nearly as practicable.

United shall notify, or cause to be notified, Southern's dispatcher of the

MMBTU delivery quantity scheduled for delivery hereunder at the beginning of

each day or at such other time or interval as the dispatchers may agree upon.

Southern's dispatcher shall likewise notify United's dispatcher of the

anticipated MMBTU redelivery quantity for each such period of time.

4. Any imbalance in accumulated delivery accounts hereunder shall be

remedied with immediate dispatch by necessary and prompt adjustments in

1/ Revised fuel used and unaccounted for charge: 1.5%.