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. Eighth Rev. Sheet No. 904 First Sub. Eighth Rev. Sheet No. 904 : Effective

Superseding: First Rev. Eighth Rev. Sheet No. 904

RATE SCHEDULE X-76 (Continued)

hereunder. Southern may change the Transportation Quantity during any day of

transportation upon four (4) hours' prior notice to ARCO.

ARTICLE V

(Remuneration)

Section A. Commencing with the effective date hereof and unless and until

changed as hereinafter provided in this ARTICLE V, ARCO agrees to pay to

Southern as the charges for the service and transportation provided hereunder a

rate of twenty-eight and nine-tenths cents (28.9›) 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. ARCO 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 ARCO.

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

under this ARTICLE V, ARCO 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 ARCO 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, any

general franchise taxes imposed on corporations by reason of their corporate

existence or their right to do business within the state of Louisiana, income

taxes and ad valorem or similar taxes now or hereafter levied upon the physical

facilities of Southern utilized to receive, transport and redeliver gas for

ARCO as herein provided.

ARTICLE VI

(Statements)

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

Southern shall mail to ARCO a monthly statement of the volumes and Btu content

of the gas received for the account of ARCO at the Delivery Point for

transportation hereunder and the volumes and Btu content of the gas redelivered

at the Redelivery Point.

Section B. ARCO shall make payment to Southern or to Southern's account

for the services performed during the preceding calendar month by First Class,

U.S. Mail at

1/ Revised Charge: Winter 27.7› Summer 16.7›

Plus the current GRI surcharge for Rate Schedule IT, ACA unit charge,

and the volumetric Take-or-Pay surcharge, as set forth in Sections 19,

21, and 22, respectively, of Southern's FERC Gas Tariff, Sixth Revised

Volume Number 1.