Establishing Service

Thank you for your interest in Southern Natural Gas Company. The following describes the information and forms that Southern Natural Gas needs from you in order to sign you on as our customer. We look forward to working with you.

Please complete all the requisite forms listed below and fax them to Leslie Hancock at 205-326-2038. If you have further questions or need clarifications, please feel free to call Leslie at 205-325-3864 or any of our Account Managers . If you are a producer who is interested in connecting to our pipeline, please contact Henry Poellnitz at 205-325-7665.

Our Services

Southern Natural Gas Company (Southern) joined El Paso Corporation as a result of El Paso's successful merger with Sonat in 1999. Southern is headquartered in Birmingham, Alabama, and has an interstate pipeline system that delivers natural gas to markets in Louisiana, Mississippi, Alabama, Georgia, Tennessee, South Carolina, and Florida through 8,200 miles of pipeline at a nominal daily capacity of 3.4 Bcf (billion cubic feet). Southern operates two gas storage fields in Muldon, MS and Bear Creek, LA. Southern is also the owner of Southern LNG, which has its own Tariff.

Southern has four rate zones. The areas of Zone coverage are described below:

If you would like a map of SNG's System, please submit the System Map Request Form .

Information on the locations of Receipt and Delivery Points on Southern's pipeline is available under Informational Postings.

A brief review of the services offered by Southern follows. See Rates for detailed rate information.

FT - Firm Transportation

• FT Service must be nominated and confirmed
• Firm capacity from Exhibit A receipt points to Exhibit B delivery points
• Preferred interruptible capacity from Exhibit A-1 receipt points to Exhibit B-1 delivery points

FT-NN - Firm Transportation - No-Notice

• Firm capacity from storage to Exhibit B delivery points
• Preferred interruptible service from Exhibit A-1 receipt points to Exhibit B-1 delivery points
• No-Notice (no nomination) service uses shipper's CSS account to handle imbalances at no-notice delivery points
• Handles difference between scheduled and allocated quantities at delivery point

IT - Interruptible Transportation

• IT service must be nominated and confirmed
• Automatically receive access to all receipt points
• Delivery points can be requested from any zone
• IT service is best efforts and can only be provided when capacity is available

CSS - Contract Storage Service

• Firm rights to storage space with proportional injection and withdrawal rights based on inventory level
• CSS shipper must make transportation arrangements to move gas to/from storage using FT, FT-NN or IT
• Most often used to provide no-notice service for FT-NN shippers
• May also be used on nominated basis

ISS - Interruptible Storage Service

• ISS shippers must nominate to move gas to/from storage under FT, FT-NN or IT
• ISS service must be nominated and confirmed
• ISS service is best efforts and can only be provided when capacity is available

C/R - Capacity Release

• All C/R posting and bidding is done on SoNet Premier
• Any reservation charge service is eligible for release
• Releasing shipper posts offer, which defines conditions of release
• Interested parties submit bids on SoNet Premier
• To bid, an acquiring shipper must have a master FT agreement
• Bids sent electronically are binding
• Winning bidders acquire and nominate capacity on master FT agreement

Supply Pool Balancing

• Used to sell gas supply from aggregated receipt points
• Must be nominated and confirmed
• 2 levels of Pools - Tier 1 and Tier 2
• Can be generic or zone specific
• Scheduled deliveries from Pools are deemed allocated
• Firm A points can be assigned to a Pool
• Deliveries from Tier 1 pools to Tier 2 pools are treated as interruptible

Park and Loan
Southern offers Park and Loan services, as explained below, to assist customers in managing imbalances.

Park Transaction
If a customer enters into a Park arrangement with Southern, the customer will be able to nominate physical receipts into Southern's system for parking at a logical point of transaction (PT) in that receipt zone without shipping the gas to a market. Southern will hold the gas in its system for an agreed upon time until the gas is returned to the customer at the same PT for transportation to the customer's market. During the duration of the Park, a daily parking charge will be assessed. Transportation charges and fuel retention will be charged when the parked gas is transported to a market.

Loan Transaction
If a customer enters into a Loan arrangement with Southern, the customer will be able to nominate receipts at the PT in the agreed upon receipt zone for transportation to a market. Southern will loan the gas for an agreed upon time until it is paid back to Southern by the customer at the same PT. During the duration of the Loan, a daily loan charge will be assessed. Transportation charges and fuel retention will be charged based on the zone matrix for PT zone of receipt to the zone of physical delivery when the loaned gas is initially transported. For more information on this service, please contact Jana Sobel at 205-325-3565.

Technical Services Program
Southern also maintains a Technical Services Program for its customers. The goal of this program is to help Southern's customers increase or retain existing gas sales over a broad range of industrial, commercial, and residential applications. This service is provided by utilizing our experienced and knowledgeable technical staff, by contracting the services of engineering firms to perform initial feasibility studies, and by using the resources of several gas industry associations of which we are members. For more information on this program, please contact Rick Fletcher at 205-325-7398 or Joe Gordon at 205-325-7323.

Southern LNG Services
Southern LNG (SLNG) provides firm and interruptible Terminal Service under Rate Schedules LNG-1 and LNG-2 of the SLNG Tariff. Terminal Service consists of the receipt, storage, vaporization and delivery of LNG. Southern LNG's facilities have a storage capacity of 4 bcf equivalent of LNG. SLNG's Tariff is available on SLNG's Informational Postings . If you are interested in more information on Southern LNG's services, please contact Walter Coe at 205-325-3708.

Forms Required for New Service

1. SNG and Customer Contact Information Form (three pages) will give us the corporate details about your Company and your Company's contacts for business communications as well as OFO emergency notices. Please note that we need three OFO Contacts per Company. Page 3 contains Southern Natural's Contact information for your use.
2. A very important part of our requirement to sign your company as a customer is the establishment of credit. Mail the Credit Application to our Houston headquarters.
3. The SoNet Premier Form of Agreement requires SNG to provide access for a customer's employees and/or agents to Premier, SNG's Electronic Bulletin Board, once the customer agrees to the confidentiality terms.
4. A fully completed SoNet Premier Access Request Form (Exhibit A) is needed for each customer representative to gain access to Premier.
5. The SNG Transportation Request Form is self-explanatory. This form will begin the process to sign you on as a customer of Southern.
6. If, however, you require Southern's Pooling or Storage services, please access our Supply Pool Request Form and/or the Storage Service Request Form.
7. If you are interested in requesting firm and/or interruptible terminal service with Southern LNG, please fill out the Southern LNG Service Request Form.
8. If you would like to appoint an agent and request SNG to recognize such appointment, please fill out the Agency Request Form.

Southern Contacts and Their Roles

Southern's customer needs are effectively met by its Customer Services Department . The department consists of Account Managers, Schedulers, Accountants, and the Solutions Team. Southern's Account Managers are the first point of contact for the customer and are always available to take care of and solve the customer's needs and problems. The Schedulers schedule the gas for transportation based on four scheduling cycles. The Accountants handle the billing. The Solutions Team addresses any business-related enhancements and other issues associated with Southern's EBB service (SoNet Premier). SoNet Premier is an EBB service offered by Southern that allows the customers to nominate their gas, review their status, and check/download reports that deal with their accounts. The contents of Premier are constantly under review to make this EBB more customer-friendly and also to meet the mandates of FERC rules and regulations.