Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 01/01/2002, Docket: RP02- 88-000, Status: Effective

Fourth Revised Sheet No. 80 Fourth Revised Sheet No. 80 : Effective

Superseding: Third Revised Sheet No. 80


Contract Storage Service


Section 9(d) (continued)



(d) SHIPPER shall not be charged a Transportation Charge for the volume of gas

delivered to Tennessee at the Bear Creek Storage Field from a Storage account

pursuant to this Section 9; provided, however, that SHIPPER shall pay all

volumetric surcharges assessed under Section 3 of Rate Schedules FT, FT-NN

or IT on gas withdrawn from a Storage account for subsequent delivery,

including but not limited to the ACA charge. To the extent COMPANY charged SHIPPER the GRI

volumetric surcharge on gas injected into Storage which is subsequently delivered to

Tennessee at Bear Creek Storage Field, COMPANY shall credit said sucharge

to SHIPPER'S bill.


(e) Nothing contained herein changes SHIPPER'S obligation to pay the Injection

Charge, Withdrawal Charge and associated fuel under this Rate Schedule.




Should SHIPPER request the installation or modification of the facilities

necessary to perform the firm storage service requested hereunder and agree to

reimburse COMPANY for the cost thereof, and should COMPANY agree to

install said facilities or to modify its existing facilities pursuant to SHIPPER'S

request, it is agreed that COMPANY will construct and install, or cause to be

constructed and installed, said facilities, or will modify, or cause to be modified,

its existing facilities, and will own and operate such facilities and all related

appurtenant facilities. In the event SHIPPER does not agree to pay the costs of

installing or modifying said facilities, COMPANY may agree to construct or

modify such facilities so long as such facilities are constructed or modified on a

nondiscriminatory basis for similarly situated SHIPPERS. Whether said facilities

will provide a benefit to all SHIPPERS using COMPANY'S Storage facilities such

that it is appropriate to include the cost of said facilities in COMPANY'S general

system rates will be determined in the rate proceeding in which COMPANY

proposes to include such costs in its general system rates. It is understood and

agreed that title to and ownership of said facilities shall remain in COMPANY,

and COMPANY shall operate such facilities as part of its natural gas system.