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. 668 First Sub. Second Rev. Sheet No. 668 : Effective

Superseding: First Revised Sheet No. 668

RATE SCHEDULE X-63 (Continued)

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 for Transco; (ii) Transco'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) fuel,

shrinkage and other uses or losses of gas resulting from the processing of gas

transported for Transco hereunder. The aforementioned deductible percentage to

be so deducted and utilized by Southern in item (i) shall be one percent (1.0%)

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.

Prior to the commencement of deliveries hereunder and thereafter prior to each

change in delivery rate, Transco shall notify, or cause to be notified,

Southern's dispatcher of the MMBTU delivery quantity scheduled for delivery

hereunder. Southern's dispatcher shall likewise give prior notice to Transco's

dispatcher of the anticipated MMBTU redelivery quantity hereunder.

4. Any imbalance in accumulated delivery accounts hereunder shall be

remedied with immediate dispatch by necessary and prompt adjustments in the

MMBTU redelivery quantity of gas delivered or to be delivered to Transco at the

Point of Redelivery hereunder.

5. Notwithstanding any provision herein to the contrary, it is

specifically agreed that if at any time and from time to time during the term

hereof, Southern is unable, for any reason, to receive for transportation

hereunder, all or any portion of the MMBTU delivery quantity of gas which

Transco tenders or causes to be tendered in accordance with the provisions

hereof, Transco shall have the right, during such periods of Southern's said

inability, to deliver such gas which Southern is so unable to receive, to

others for transportation and/or disposition other than hereunder.

IV. CONTROL AND LIABILITY

1. As between the parties hereto, Transco shall be deemed to be in

exclusive control and possession of the gas and responsible for any damage or

injury caused thereby until the same shall have been delivered to Southern at

the Point of Delivery, after which delivery Southern shall be deemed to be in

exclusive control and possession thereof and responsible for any damage or

injury caused thereby until such gas is redelivered to Transco at the Point of

Redelivery. After redelivery of the gas at the

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