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. 325 Original Sheet No. 325 : Effective







effective, Acquiring Shipper may bid from time to time on proposed capacity

releases under Rate Schedule FT or FT-NN pursuant to the procedures set forth

in Section 22 of Company's General Terms and Conditions. If at any time a bid

submitted by Acquiring Shipper is deemed to be the best bid by Company with

respect to a given offer to release firm transportation capacity, Company will

promptly finalize by means of SoNet the appropriate Addendum to this

Agreement, in the format attached hereto. Upon finalization of such Addendum,

Acquiring Shipper and Company agree that Acquiring Shipper shall be considered

for all purposes as a Shipper with respect to the released service.


1.2 Upon the finalization of an Addendum, subject to the terms, conditions and

limitations hereof and of Company's Rate Schedule FT, Company agrees to

provide the released firm transportation service for Acquiring Shipper under Rate

Schedule FT, the General Terms and Conditions thereto and this Agreement.


1.3 Acquiring Shipper hereby agrees to promptly provide any information necessary

for Company to reevaluate Company's credit appraisal under Section 22.6(e) of

Company's General Terms and Conditions and to advise Company of any material

change in the information previously provided by the Acquiring Shipper to



1.4 Subject to the terms and provisions of this Agreement and Company's Rate

Schedule FT and the General Terms and Conditions applicable thereto, Acquiring

Shipper agrees to deliver, or cause to be delivered, to Company at the Receipt

Points described in the Addenda and Exhibit A-1 to this Agreement, and

Company agrees to accept at such points for transportation under this Agreement,

the aggregate quantity of gas in effect on any day under the Addenda. Company's

obligation to accept gas on a firm basis at any Receipt Point on a given day is

limited to the Receipt Points set out on the Addenda in effect on that day.


1.5 Subject to the terms and provisions of this Agreement, Rate Schedule FT and the

General Terms and Conditions thereto, Company shall deliver a thermally

equivalent quantity of gas, less the applicable fuel charge as set forth in Rate