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. 783 First Sub. First Rev. Sheet No. 783 : Effective

Superseding: Original Sheet No. 783

RATE SCHEDULE X-70 (continued)

TRANSPORTATION AGREEMENT

Section C. In the event that Tenneco has, from time to time, quantities

of gas available for delivery to Southern under the terms and conditions of

this Agreement in excess of 1,600 MMBtu per day at the Delivery Point, Tenneco

may request Southern to transport such excess gas, and Southern may accept or

refuse delivery of all or any part of such gas. In the event Southern agrees

to accept delivery of quantities of gas in excess of 1,600 MMBtu per day, that

gas will be transported on the same basis as the Transportation Quantity and in

accordance with and subject to all the terms and conditions hereof.

Section D. It is recognized that because of dispatching and other

variations, certain imbalances may occur in the transportation services

rendered hereunder between the quantity of gas delivered by Tenneco, or for

Tenneco's account, for transportation and the quantity of gas redelivered by

Southern. Such imbalances shall be corrected,insofar as practicable, during

the following month or as soon as possible thereafter. All gas delivered or

redelivered hereunder on each day shall be delivered at as constant rates

as practicable throughout such day. It is understood and agreed that there

will be complete balancing upon or following termination of this Agreement, and

that the balancing provisions of this Section D shall survive the termination

of the other portions of this Agreement until such time as such balancing is

attained.

Section E. In accordance with the provisions hereinabove set forth,

Southern shall be entitled to retain at no cost to Southern a percentage of the

quantity of gas delivered by Tenneco and accepted by Southern hereunder at the

Delivery Point as gas which shall be deemed to have been used as compressor

fuel and company-use gas in the performance of the services provided for

hereunder. The percentage of the quantity of gas delivered hereunder to be

retained for such fuel and company-use purposes shall initially be one (1)

percent of the Transportation Quantity. 1/

It is understood and agreed, however, that Southern shall have the right,

without any further agreement by Tenneco, to adjust the percentage of gas

retained by Southern for fuel and company-use purposes, from time to time, to

reflect the actual operating experience of Southern and/or any change to the

methodology used by Southern to calculate the amount of fuel and company-use

gas utilized in its system. Southern shall notify Tenneco of any such

adjustment, and upon written request, Southern shall furnish to Tenneco

information to support any such adjustment to the percentage of fuel and

company-use gas retained hereunder.

ARTICLE III

Responsibility

Section A. As between the parties hereto, Tenneco shall be deemed to be

in exclusive control and possession of the Transportation Quantity until such

gas has been

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