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. Tenth Rev. Sheet No. 865 First Sub. Tenth Rev. Sheet No. 865 : Effective

Superseding: First Rev. Tenth Rev. Sheet. No. 865

RATE SCHEDULE X-74 (Continued)

the charges for the service and transportation provided hereunder a rate of

twenty-eight and three-tenths cents (28.3›) for each MMBTU of gas delivered

hereunder by Southern at the Redelivery Point. 1/

Section B. The charges hereinabove provided shall be subject to increase

or decrease pursuant to any order issued by the Federal Energy Regulatory

Commission (Commission), or any other governmental agency having jurisdiction,

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

that Southern shall, at all times during the term hereof, have the right to

effect changes, from time to time, in such charges 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 services performed hereunder for Gulf.

Section C. In addition to the transportation rate hereinabove set forth,

Gulf shall pay to Southern for each Mcf of gas transported and redelivered

hereunder a Gas Research Institute (GRI) surcharge in the amount of 1.25› per

Mcf or such other GRI funding unit or surcharge as the Commission or other

governmental authority may from time to time by order of general or specific

applicability or otherwise prescribe or approve. 2/

Section D. In addition to the amounts which may otherwise be charged

under this ARTICLE V, Gulf shall pay or reimburse Southern for the full amount

of any present or future tax or assessment levied upon Southern with respect to

the receipt, transportation and redelivery of gas for Gulf hereunder to the

extent such taxes are not included in the calculation of the rates then being

collected hereunder as provided for in this ARTICLE V; excluding, however, ad

valorem or similar taxes now or hereafter levied upon the physical facilities

of Southern utilized to receive, transport and redeliver gas for Gulf as:

herein provided.

Section E. Gulf will reimburse Southern for any and all filing or other

fees required in connection with this transportation that Southern is obligated

to pay to the Commission or to any other governmental authority having

jurisdiction over this transportation.

ARTICLE VI

(Statements)

Section A. On or before the fifteenth (15th) day of each calendar month

Southern shall mail to Gulf an invoice for the amount due for the,

transportation services rendered for the preceding calendar month. Subject to

the provisions of ARTICLE IX, on or before the twenty-fifth (25th) day of each

calendar month Southern shall mail to Gulf a monthly statement of the daily

volumes and the Btu content of the gas received for the

1/ Revised Charge: Winter 27.7› Summer 16.7›

Plus the ACA unit charge, and the volumetric Take-or-Pay surcharge, as

set forth in Sections 21, and 22, respectively, of Southern's FERC Gas

Tariff, Sixth Revised Volume No. 1.

2/ The current GRI surcharge for Rate Schedule IT, as set forth in

Section 19 of Southern's FERC Gas Tariff, Sixth Revised Volume No. 1.