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. First Rev. Sheet No. 902 First Sub. First Rev. Sheet No. 902 : Effective

Superseding: Original Sheet No. 902


RATE SCHEDULE X-76 (continued)


Section B. In accordance with the provisions hereinabove set forth,

Southern shall be entitled to retain at no cost to Southern a percentage of the

quantity of gas delivered by ARCO and accepted by Southern hereunder at the

Delivery Point as gas which shall be deemed to have been used as compressor

fuel and company-use gas in the performance of the services provided for

hereunder. The percentage of the quantity of gas delivered hereunder to be

retained for such fuel and company-use purposes shall initially be one

percent (1%).


It is understood and agreed, however, that Southern shall have the

right, without any further agreement by ARCO, to adjust the percentage of gas

retained for fuel and company-use purposes, from time to time, to reflect the

actual operating experience of Southern and/or any change to the methodology

used by Southern to calculate the amount of fuel and company-use gas utilized

on its system, provided, however, that in no event shall the quantity of gas

retained as fuel and company-use gas exceed two (2) percent without ARCO's

prior written approval. Upon written request, Southern shall furnish to ARCO

information to support any such adjustment to the percentage of compressor fuel

and company-use gas retained hereunder. 1/


Section C. In addition to the limitations set forth in Section A of this

ARTICLE II, it is recognized that the services performed hereunder sh all be on

an interruptible basis, and all transportation services shall be conditioned

upon the availability of capacity sufficient for Southern to perform the

services without detriment or disadvantage to Southern's obligations to its

customers who are dependent on its general system supply, and shall be further

subject, in Southern's sole discretion acting in good faith, to the

availability of excess capacity in Southern's pipeline facilities and to the

operating conditions and system requirements of Southern.


Section D. In the event that ARCO has, from time to time, requirements

for quantities of gas in excess of 3,000 MMBtu per day at the Chandeleur Sound

EOR Project and has excess quantities of gas available for delivery to Southern

at the Delivery Point, ARCO may request Southern to transport the excess gas,

and Southern may accept or refuse delivery of all or any part of such gas. In

the event Southern agrees to accept delivery of any such excess gas, that gas

will be transported on the same basis as the Transportation Quantity and in

accordance with and subject to all the terms and conditions hereof.


Section E. It is recognized that because of dispatching and other

variations, certain minor imbalances may occur in the transportation services

rendered hereunder between the quantity of gas delivered by ARCO hereunder for

transportation and the quantity of gas redelivered by Southern. Such

imbalances shall be corrected, insofar as practicable, during the following

month or as soon as possible thereafter. All gas delivered or redelivered

hereunder on each day shall be delivered at rates as constant as

practicable throughout such day. It is understood and agreed that there will

be complete


1/ Revised fuel used and unaccounted for charge: 1.5%.