Southern Natural Gas Company

Original Volume No. 2

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

First Sub. First Rev. Sheet No. 580 First Sub. First Rev. Sheet No. 580 : Effective

Superseding: Original Sheet No. 580

RATE SCHEDULE X-58 (Continued)

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 Transco at the Point of Delivery up to a maximum delivery rate of three

thousand (3,000) MMBtu per day as measured at the Point of Measurement, 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 Transco 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, losses, etc.), attributable to the transportation

service provided hereunder for Transco, and (ii) Transco's prorata share

of any gas which may be vented or lost for any reason other than gross

negligence on the part of Southern 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 Transco hereunder downstream from the point of

measurement. The aforementioned 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 Transco'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. Transco 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 may be

mutually agreed upon. Southern's dispatcher shall likewise notify

Transco's dispatcher of the anticipated MMBtu redelivery quantity for each

such period of time.

1/ Revised fuel used and unaccounted for charge: 2.6%