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TSP/TSP Name:  6900518-SOUTHERN NATURAL GAS CO. Critical: Y
Notice Type Desc (1):  OPERATIONAL FLOW ORDER Notice Type Desc (2):  OFO
Notice Eff Date/Time:  04/06/2017 10:15:43AM Notice End Date/Time:  12/31/2049 9:00:00AM
Post Date:  4/6/2017 10:15:43 AM Notice ID: 701021
Reqrd Rsp:  1 Notice Stat Desc:  INITIATE Prior Notice: 
Subject:  Operational Flow Order Type 6 Notice
Notice Text:

April 06, 2017

TO: All Southern Natural Gas Shippers & Poolers

SUBJECT: Operational Flow Order Type 6 Notice

Based on the current milder weather forecast, current limited injection capabilities due to the planned storage shut-in test at Muldon that is ongoing and projected demand on Southern's system, we are implementing an OFO Type 6 for long imbalances on Southern's contiguous pipeline system effective for the start of the gas day, Saturday, April 08, 2017, and until further notice. In order to maintain the operational integrity of Southern's system, it is essential that Shippers and Poolers remain in balance (including their available no-notice injection entitlements).

The OFO Type 6 order will subject each Shipper/Pooler to the following tiered imbalance penalties:

Daily Imbalance Penalty
(Percent of Allocated Deliveries ) ( Per Dth )

0 - 2% or < 200 dth No Penalty
> 2 - 5% $1.00
> 5 - 8% $ 5.00
> 8% $15.00

Since the projected operational conditions are affected by receipts exceeding deliveries, the penalty will apply only to each Shipper/Pooler that has a net long imbalance (i.e., the party's total allocated receipts exceed total allocated deliveries including available no-notice storage injections).

If you have any questions regarding the OFO, please call your Account Manager or Scheduling Representative.