Southern Natural Gas Company Post Office Box 2563 Birmingham AL 35202 2563 205 325 7410 SOUTHERN NATURAL GAS December 16, 1997 Mr. Stephen J. Gunther Atlanta Gas Light Company Post Office Box 4569 Atlanta, Georgia 30302-4569 Dear Mr. Gunther: Atlanta Gas Light Company ("Atlanta") and Southern Natural Gas Company ("Southern") are parties to a firm transportation agreement dated November 1, 1994 (#904480) for 5,173 Mcf/day ("FT Agreement"), a firm transportation no-notice agreement dated November 1, 1994 (#904481) for 6,764 Mcf/day ("FT-NN Agreement"), and a contract storage service agreement dated November 1, 1994 (#S20140) for 334,997 Mcf ("CSS Agreement"), as amended by Amendatory Agreement dated March 1, 1995 (collectively, the "Agreements"). Pursuant to Section 4.1 of each agreement, the agreement is effective through February 28, 1998, and may be extended for successive terms of one year each year thereafter if the parties mutually agree in writing to each yearly extension at least 60 days prior to the end of the primary term or any subsequent yearly extension. Southern herewith states its election to extend the Agreements for an additional term of one year, commencing on March 1, 1998, and terminating on February 28, 1999. If Atlanta is in agreement, please so indicate by signing both originals and returning one original to Southern. Very truly yours, Larry E. Powell Senior Vice President-Pipeline Customer Services Accepted and agreed to this 23rd Accepted and agreed to this 16th day of December, 1997. day of December, 1997. ATLANTA GAS LIGHT COMPANY SOUTHERN NATURAL GAS COMPANY By: /s/ Stephen J. Gunther By: /s/ Larry E. Powell . --------------------------- ---------------------------- Its: As Agent for Atlanta Gas Light Co. Its: Sr. Vice President . ----------------------------------- --------------------------------- A SONAT COMPANY