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 .
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A SONAT COMPANY