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. First Rev. Sheet No. 718 First Sub. First Rev. Sheet No. 718 : Effective

Superseding: Original Sheet No. 718

RATE SCHEDULE X-66 (Continued)

to a maximum delivery rate of three thousand (3,000) MMBTU per day as measured

at the Transco Point of Delivery, 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, Transco agrees, subject to all provisions hereof, to receive

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

may be tendered and delivered for the account of Southern at the Southern

Points of Delivery up to a maximum delivery rate of three thousand (3,000)

MMBTU per day as measured at the Southern Points of Delivery, or such greater

or lesser rate as Transco may accept at the time and from time to time

depending upon the operating conditions of its pipeline facilities and its own

capacity requirements.

3. 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 the MMBTU exchange gas, less (i) a

percentage of the MMBTU redelivery quantity in the amount hereinafter set forth

(which deductible percentage shall be utilized by Southern, at no cost to

Southern, to offset compressor fuel, unaccounted for losses, etc.) attributable

to the transportation service provided hereunder for Transco, and (ii)

Transco's pro rata share of any gas which may be vented or lost for any reason

other than negligence on the part of Southern from that portion of Southern's

facilities being utilized for transportation of gas hereunder at the time of

any such loss therefrom. The aforementioned deductible percentage to be so

deducted and utilized by Southern in item (i) shall be two and eighty four one

hundredths (2.84) percent of the MMBTU redelivery 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/

4. The MMBTU delivery quantity, the MMBTU exchange gas 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 exchange gas and the MMBTU redelivery

quantity for each such period of time.

5. Notwithstanding the provisions of Section 1 of Article II hereof any

imbalance in accrued 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.

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