Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 06/01/2007, Docket: RP07-419-000, Status: Effective

Third Revised Sheet No. 102 Third Revised Sheet No. 102 : Effective

Superseding: Second Revised Sheet No. 102




(v) All requests received during an open season remain binding on the

requesting SHIPPER through the end of the open season unless withdrawn

by the requesting SHIPPER; provided, however, a requesting SHIPPER

may withdraw its previous request and submit a request with a

higher net present value during the open season, but neither the

requesting SHIPPER nor an affiliate thereof may submit a request

with a lower net present value during the open season. At the end

of the open season, all requests either withdrawn or not accepted

shall be deemed null and void. COMPANY will evaluate the bids and

notify the winning bidder within ten (10) business days of the close of

the open season. If the SHIPPER awarded the capacity does not execute

a Service Agreement within the time set forth below in Section 2.1(c),

then COMPANY may elect to offer the capacity to other SHIPPERS as

provided above. If there is no other acceptable bid, the SHIPPER

awarded the capacity shall be obligated to pay COMPANY the applicable

Reservation Charge for the capacity requested in the bid based on the

terms of the bid through the end of the term specified in the bid or

until such time that COMPANY can successfully award the capacity to an

acceptable replacement bidder. COMPANY shall post the winning bid and

the method of evaluating the winning bid on SoNet Premier within

twenty-four (24) hours after the award has been made.


(vi) To the extent COMPANY has available unsubscribed capacity, COMPANY

shall have the right, but not the obligation, to reserve that

capacity when it becomes available for any expansion projects

provided that the open season for the expansion is conducted by the

later of one (1) year from the date COMPANY posts such capacity as

being reserved or one (1) year from the date such reserved capacity

actually becomes available for use. COMPANY will post on SoNet

Premier its intention to reserve any capacity for an expansion;

and, once it posts its intention to reserve such capacity COMPANY

shall not award such capacity independent from such expansion unless

and until it posts a notice on SoNet Premier rescinding its decision

to reserve the capacity. COMPANY may, however, market any capacity

reserved under this paragraph on an interim basis for the period

prior to the in service date of the expansion. For such interim-term

agreements, COMPANY reserves the right to limit Shipper's extension

rights under its service agreement with COMPANY or ROFR rights under

Article 20 to these General Terms and Conditions up to the proposed in-

service date of the expansion project. COMPANY will indicate in any

open season posting for the interim capacity any limitations on ROFR

or extension rights that will apply to such interim service