Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 11/01/1993, Docket: RS92- 10-003, Status: Effective

Original Sheet No. 75 Original Sheet No. 75 : Effective



Contract Storage Service



(b) Services under this Rate Schedule will be made available on a first-come,

first-served basis based on the order of priority established in

COMPANY'S log of storage service requests (Log). For the purposes of

establishing priority of requests, requests shall be deemed to have been

made and will be entered into the Log as of the date SHIPPER complies

with Section 7(a). Except for those completed requests received by

COMPANY during the window period for initial allocations of storage

established in Docket No. RS92-10, completed requests will be entered into

the Log as of the date and time each request is received by COMPANY'S

Transportation Services Department. In the event SHIPPER makes

substantive revision(s) to the information after the initial request and

before execution of a Service Agreement, the request will be deemed to be

received as of the date of the last revision. Notwithstanding the foregoing

to the contrary, if on any day COMPANY receives more than one request

for firm storage capacity and any such request is for less than the maximum

applicable rate, COMPANY shall award its available capacity to the best

bid received that day as determined pursuant to the best bid criteria of

Section 20 of the General Terms and Conditions; provided that nothing

contained herein shall obligate COMPANY to provide firm storage service

at less than the maximum applicable rate.


(c) Subject to the provisions of Sections 7(d) and 7(e) below, within five (5)

business days after its receipt of all of the information required in Section

7(a) above, COMPANY shall prepare and tender to SHIPPER for

execution a Service Agreement for this Rate Schedule in the pro forma

format included in COMPANY'S FERC Gas Tariff. If SHIPPER does not

execute the Service Agreement and return it to COMPANY within thirty

(30) days after the date tendered, SHIPPER'S request for service under

this Rate Schedule shall be deemed null and void, and any existing Service

Agreement which was to be replaced by the unexecuted Service Agreement

shall continue in full force and effect as written. COMPANY will maintain

SHIPPER'S inactive request in its files. SHIPPER may reactivate said

request which has lost its initial priority by notifying COMPANY, and

COMPANY shall assign SHIPPER'S request a new priority in the Log