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. 862 First Sub. First Rev. Sheet No. 862 : Effective

Superseding: Original Sheet No. 862

RATE SCHEDULE X-74 (continued)

GAS TRANSPORTATION AGREEMENT

(h) Redelivery Quantity - The daily quantity of gas delivered and accepted

hereunder at the Delivery Point less a percentage of such quantity,

the exact percentage being determined in accordance with Section B of

Article II hereof, as gas which shall be deemed to have been used as

compressor fuel, company-use gas and unaccounted for gas losses; less

any and all shrinkage, fuel or loss resulting from or consumed in the

processing of the gas transported hereunder for the account of Gulf,

and less Gulf's pro rata share of gas lost or vented during

transportation for any reason except gross negligence or willful

misconduct on the part of Southern.

(i) Delivery Point - The existing point of interconnection between the

facilities of Gulf and the inlet of the measurement facilities of

Southern located on the production platform operated by Gulf in Main

Pass Area Block 77, Offshore Louisiana.

(j) Redelivery Point - The existing point of interconnection between

the outlet of Gulf's Venice Processing Plant in Plaquemines Parish,

Louisiana, and the measurement facilities of Southern.

ARTICLE II

(Scope)

Section A. Subject to the provisions hereof, Gulf shall cause the

Transportation Quantity to be delivered to Southern at the Delivery Point and

Southern shall redeliver, or cause to be redelivered, the Redelivery Quantity

to the account of Gulf at the Redelivery Point; provided, however, that it is

expressly understood and agreed by the parties that Southern can only effect

and shall be obligated only to effect deliveries to Gulf at the Redelivery

Point by displacement by Gulf reducing quantities of gas otherwise deliverable

to Southern at that point. Once gas is accepted for delivery hereunder,

Southern's transportation obligation shall be fulfilled when the quantity of

gas to be redelivered hereunder is made available at the Redelivery Point.

Section B. 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 Gulf and accepted by Southern hereunder at the

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

fuel, company-use gas and unaccounted-for 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, company-use and unaccounted

for purposes shall initially be one percent (1%). 1/

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

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

retained for

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