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. Second Rev. Sheet No. 518 First Sub. Second Rev. Sheet No. 518 : Effective

Superseding: First Revised Sheet No. 518

RATE SCHEDULE X-54 (continued)

TRANSPORTATION AGREEMENT

materials). The title to all such facilities, surface rights, equipment and/or

materials shall remain in Southern. 1/

4. The receipt, transportation and redelivery of gas hereunder shall

commence on a date, herein referred to as "effective date", which is mutually

agreeable to Arkla and Southern subsequent to receipt and acceptance of all

necessary regulatory authorizations and the proper installation of any

facilities and appurtenances required hereunder.

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 Arkla at

the Point of Delivery up to a maximum delivery rate of twenty thousand (20,000)

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 Arkla at the Point(s) 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, unnaccounted

for losses, etc.), attributable to the transportation service provided

hereunder for Arkla; (ii) Arkla's prorata share of any gas which may be vented

or lost for any reason 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 Arkla hereunder. The

aformentioned deductible percentage to be so deducted and utilized by Southern

in item (i) shall be three and one-half percent (3.5%) of the MMBtu delivery

quantity, unless and until changed by written notice from Southern due to

changes in the operation of Southern's pipeline facilities through which

Arkla's gas will be transported hereunder. 2/

3. Consistent with the provisions of ARTICLE XII hereof, AER shall

nominate gas for transportation hereunder by notifying Southern of the quantity

of gas it has available at the Delivery Point and of the quantity of gas it

desires to have redelivered at each Redelivery Point, not less than twelve (12)

hours prior to the beginning of any

1/ Per amendment dated August 15, 1985.

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