Southern Natural Gas Company

Original Volume No. 2

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

First Sub. Thirteenth Rev. Sheet No. 599 First Sub. Thirteenth Rev. Sheet No. 599 : Effective

Superseding: Twelfth Revised Sheet No. 599

RATE SCHEDULE X-59 (Continued)

change the Transportation Quantity and/or the quantity to be received at each

Delivery Point during any day upon four hours' prior notice to Peoples.

ARTICLE IV

(Transportation Charges)

Section A. Peoples shall pay Southern the following transportation rates

for gas delivered to Southern by Peoples for transportation hereunder: 1/

(a) 21.1› per MMBTU for all gas received by Southern for transportation

at the Pugh Point and the Rose Hill Point; 1/

(b) 21.1› per MMBTU for all gas received by Southern for transportation

at the Romere Pass Point less the 1% of such gas retained as the

quantity deemed used for company use and lost or unaccounted for gas

and less any shrinkage, fuel, or losses resulting from or consumed in

the processing of gas hereunder for the account of Peoples. 1/

Section B. The charges applicable hereunder from time to time shall be

subject to adjustment pursuant to any order issued by the Federal Energy

Regulatory Commission (FERC), or any other governmental agency having

jurisdiction, in any rate proceeding initiated by, or applicable to, Southern.

Peoples agrees that Southern shall, at all times during the term hereof and

without further agreement by Peoples, have the right to effect changes in the

charges applicable hereunder by seeking authorization from duly constituted

regulatory authorities for any such adjustments as may be needed to assure

Southern that it will receive just and reasonable compensation for the

transportation services performed hereunder for Peoples. Nothing herein

contained shall prejudice the rights of Peoples to contest at any time changes

to the charges set forth above with regard to the services rendered hereunder

by Southern.

Section C. Peoples agrees to reimburse Southern for all taxes which may

be levied upon and/or paid by Southern with respect to the transportation

service performed hereunder.

ARTICLE V

(Term)

Section A. This Agreement shall be effective as of the date first

hereinabove written and, subject to the terms and conditions hereof, shall

remain in full force and effect through October 31, 1984; and unless cancelled

by either Party on October 31, 1984, by thirty (30) days' advance written

notice to the other Party, this Agreement shall remain in effect for successive

ninety (90) day periods, subject to cancellation on ninety

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.