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. Thirteenth Rev. Sheet No. 537 First Sub. Thirteenth Rev. Sheet No. 537 : Effective

Superseding: Twelfth Revised Sheet No. 537





(Transportation Service Charges, Taxes)


1. Commencing with the effective date hereof and unless and until

changed as hereinafter provided in this Article VI, Texaco agrees to pay to

Southern each month for the service and transportation provided hereunder, the

sum equal to the greater of twenty-eight and four-tenths cents (28.4›) for each

Mcf (at 14.73 psia) of gas redelivered to Texaco at the Point of Redelivery or

$500 per month during the term of this Agreement to cover maintenance and

administrative costs and overheads and other costs associated with the service

described herein. 1/

2. The transportation rate set forth in Paragraph 1 shall be subject to

increase or decrease pursuant to any Order issued by the Federal Energy

Regulatory Commission (the FERC), or any other governmental agency having

jurisdiction, in any rate proceeding initiated by, or applicable to, Southern.

Texaco agrees that Southern shall, at all times during the term hereof, have

the right to effect changes in such charges by seeking authorization from duly

constituted regulatory authorities for any such adjustments as may be needed to

assure Southern that it will receive just and reasonable compensation for the

services performed hereunder for Texaco. Nothing herein contained shall

prejudice the rights of Texaco to contest at any time changes to the charges

set forth above with regard to the services rendered hereunder by Southern.

3. In addition to the amounts otherwise due pursuant to this Article

VI., Texaco shall pay or reimburse Southern for the full amount of any present

or future tax or assessment levied upon Southern directly upon the receipt,

transportation and redelivery of gas for Texaco or the gross receipts derived

therefrom excluding, however, corporate taxes based on net income or net worth,

ad valorem taxes now or hereafter levied upon the physical facilities of

Southern utilized to receive, transport and redeliver gas for Texaco as herein

provided, or taxes similar to the above. As a condition to the reimbursement,

Southern agrees that before the payment of any tax or assessment for which

reimbursement is sought, Southern will give Texaco timely notice thereof and

cooperate with Texaco should Texaco elect to defend (as Texaco's cost and

expense) against such tax assessment.



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.