Southern Natural Gas Company

Seventh Revised Volume No. 1

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Effective Date: 09/22/2004, Docket: RP04-494-000, Status: Effective

Fifth Revised Sheet No. 186 Fifth Revised Sheet No. 186 : Effective

Superseding: Fourth Revised Sheet No. 186




(2) the bid generating the greatest present value of revenues over

the shortest term;


(j) Determination of Unsubscribed Firm Capacity: If COMPANY finds, after the determination of the

best bid for each Offer posted to be effective on the same release date, that there are more

best bids for firm capacity at a Delivery Point than the available unsubscribed firm capacity

at said point, the capacity shall be awarded by the COMPANY based on the order in which the

Offers were posted. If there is insufficient unsubscribed firm capacity to award a winning

bidder its requested Delivery Point(s), it shall be awarded the firm Delivery Point(s) set

forth in the Offer as its Exhibit B Delivery Point(s) unless the Exhibit B Delivery Point(s)

are in a restricted upstream Bid Zone as set forth in the Offer. In that event, the winning

bidder will be awarded a firm Exhibit B Delivery Point in the segmented portion of capacity to

be released. Each ACQUIRING SHIPPER and RELEASING SHIPPER may utilize all Delivery Points on

COMPANY'S pipeline system on a preferred interruptible (Exhibit B-1) basis, in accordance with

Section 6.2 above, within the zone of their respective segmented portions of capacity. COMPANY

shall provide on SoNet for use during the bid process a list of all Delivery Points within the

segmented portion of capacity being offered for release and the best available information

regarding their associated unsubscribed firm capacities.


(k) Notification: Upon completion of the best bid determination, the party submitting the best

bid, i.e. the ACQUIRING SHIPPER, shall be notified by the COMPANY through SoNet. The COMPANY

shall further notify all bidders through SoNet that a best bid has been accepted. If the

capacity was released on a permanent basis, an amended firm Service Agreement(s) between the

COMPANY and the ACQUIRING SHIPPER, incorporating the terms of the accepted bid, shall be

tendered and executed electronically on SoNet by the applicable execution deadline set forth in

Section 22.6(a) above.