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. Eleventh Rev. Sheet No. 554 First Sub. Eleventh Rev. Sheet No. 554 : Effective

Superseding: Tenth Revised Sheet No. 554

RATE SCHEDULE X-56 (Continued)


pursuant to the terms and provisions of the Carthage Transportation Agreement.

3. The gas to be redelivered by Southern to United at the Gwinville Point

of Exchange shall be delivered at pressures sufficient to enter United's

pipeline facilities at said point against the pressures existing therein from

time to time.

4. It is understood and agreed that Southern or United shall have the

right but not obligation to install, maintain and operate compression

facilities to effect delivery and redelivery of gas hereunder.




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

as hereinafter provided in this Article VI, United agrees to pay to Southern

for the transportation service performed hereunder a monthly Demand Charge

equal to the MMBTU Delivery Quantity times $1.07. 1/

2. In addition to the Demand Charge specified above, United agrees to pay

Southern a Commodity Charge of six and nine-tenths (6.9) cents for each MMBTU

received by Southern from United during any day which is in excess of the MMBTU

Delivery Quantity. If Southern for any reason, other than failure of United to

tender and deliver gas, fails or is unable to receive at the Point of Receipt

on any one or more days the MMBTU Delivery Quantity, the monthly Demand Charge

shall be reduced by the Commodity Charge for each MMBTU which Southern failed

to take on such day or days.

3. The Demand Charge and/or the Commodity Charge applicable hereunder

from time to time 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. United agrees that Southern shall, at all

times during the term hereof, have the right to effect changes in the Demand

Charge and/or the Commodity Charge applicable hereunder 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 transportation services performed hereunder for

United. Nothing herein contained shall prejudice the rights of United to

contest at any time changes to the charges set forth above with regard to the

services rendered hereunder by Southern.

4. In addition to the amounts due pursuant to this Article VI, United

shall pay or reimburse Southern for the full amount of any present or future

tax or assessment levied upon Southern with respect to the receipt,




1/ 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.