Southern Natural Gas Company

Original Volume No. 2

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Effective Date: 02/03/1991, Docket: RP90-139-004, Status: Effective

First Sub. Sixteenth Rev. Sheet No. 369 First Sub. Sixteenth Rev. Sheet No. 369 : Effective

Superseding: Fifteenth Revised Sheet No. 369

RATE SCHEDULE X-41 (Continued)




Section A. Transco agrees to pay Southern during each month a

transportation charge of 30.8› per Mcf at 14.73 psia of gas redelivered at the

Redelivery Point. 1/


Section B. Transco agrees that Southern shall, without further agreement

by Transco, have the right to change this transportation charge and to file

notices of such change with the Federal Energy Regulatory Commission

(Commission) pursuant to Section 4 of the Natural Gas Act from time to time

whenever, in Southern's judgment, such change is necessary to assure it of

just and reasonable rates under the provisions of the Natural Gas Act.

Nothing herein contained shall prejudice the rights of Transco to contest

in good faith subsequent changes to the transportation charge set forth above

with regard to the services rendered hereunder by Southern.


Section C. On or before the 25th day of each calendar month, Transco

shall make payment to Southern for the transportation service provided during

the preceding calendar month.


Section D. Should Transco fail to pay any amount due by the last day of

the month following the month in which the transportation service was rendered,

interest on the unpaid amount shall accrue at the rate equal to the prime rate

then being charged by The Chase Manhattan Bank, N.A., from the date when due

until paid. If any such failure continues for 60 days, Southern may suspend

deliveries of gas, but the exercise of such right shall be in addition to any

other remedy available to Southern.





This Agreement shall become effective on the date hereof and it shall

continue and remain in effect for a period of five (5) years from the date of

first deliveries hereunder; after the primary term this Agreement shall remain

in effect from year to year, subject to cancellation of six (6) months' advance

written notice by either party. Deliveries of gas shall commence hereunder

upon receipt and acceptance by Southern of the necessary Commission certificate

of public convenience and necessity.


1/ Revised Charge: Winter 27.7› Summer 16.7›

Plus the ACA unit charge and the volumetric Take-or-Pay surcharge which are

set forth in Sections 21 and 22, respectively, of Southern's FERC Gas

Tariff, Sixth Revised Volume Number 1.