Document:

exv4waw1

 

EXHIBIT 4.A.1

[Conformed Copy]

SOUTHERN NATURAL GAS COMPANY

TO

THE CHASE MANHATTAN BANK

AS TRUSTEE

 

FIRST SUPPLEMENTAL INDENTURE

DATED AS OF SEPTEMBER 30, 1997

TO THE INDENTURE

DATED AS OF JUNE 1, 1987

 

 

 

               FIRST SUPPLEMENT INDENTURE, dated as of September 30,
1997, between Southern Natural Company, a corporation duly organized and
existing under the laws of the State of Delaware (the “Company”), and THE CHASE
MANHATTAN BANK, a New York corporation (the “Trustee”), as Trustee.

          WHEREAS, the Company has heretofore executed and delivered to
the Trustee an Indenture, dated as of June 1, 1987 (the
“Indenture”), providing for the issuance from time to time of the Company’s unsecured debentures, notes
and other evidences of indebtedness (herein and therein called the “Securities”), to be issued in one or more series as in the Indenture provided;

          WHEREAS, Section 12.01 of the Indenture provides, among other
things, that the Company, when authorized by a resolution of its Board of
Directors, and the Trustee, at any time and from time to time, may without the
consent of any Holders enter into an indenture supplemental to the Indenture (a)
for the purpose of changing or eliminating any provision of the Indenture,
provided that such change or elimination shall become effective only when there
is no Security Outstanding of any series created prior to the execution of such
supplemental indenture which is entitled to the benefit of such provisions, and
(b) to cure any ambiguity, to correct or supplement any provision therein , or
to make any other provisions with respect to matters of questions arising under
the Indenture which shall not adversely affect in any material respect the
interests of any Holders of the Securities;

          WHEREAS, the Company pursuant to the foregoing authority,
proposes in and by this First Supplemental Indenture to amend the Indenture in
certain respects with respect to the Securities of any series created on or
after the date hereof; and

          WHEREAS, all things necessary to make this First Supplemental
Indenture a valid agreement of the Company, in accordance with its
terms, have been done.

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AGREEMENT

          NOW, THEREFORE, the Company and the Trustee hereby agree as
follows:

     1. The definition of “Depository” is hereby added to Section
1.01 of the Indenture to read in its entirety as follows:

“Depositary’ means, with respect to the Securities of any
series issuable or issued in whole or in part in the form of
one or more permanent global Securities, the Depository Trust
Company or such other Person designated as Depositary by the
Company pursuant to Section 3.01, which must be a clearing
agency registered under the Securities Exchange Act of 1934,
as such Person, ‘Depositary’ as used with respect to the
Securities of any such series shall mean the Depositary with
respect to the Securities of that series.”

          2. A new Section 2.03 is hereby inserted into the Indenture to
read in its entirety as follows:

          “SECTION 2.03. Securities in Permanent Global Form.

     If the Company shall establish pursuant to Section
3.01 that the Securities of a series are to be issued in whole
or in part in permanent global form, then notwithstanding
Section 3.01(8) and the provisions of Section 3.02, any such
Security shall represent such of the Outstanding Securities of
such series as shall be specified therein and may provide that
it shall represent the aggregate amount of Outstanding
Securities from time to time endorsed thereon and that the
aggregate amount of Outstanding Securities represented thereby
may from time to time be reduced to reflect exchanges. Any
endorsement of a Security in permanent global form to reflect
the amount, or any increase or decrease in the amount, of
Outstanding Securities represented thereby shall be made by
the Trustee or the Security registrar in such manner and upon
instructions given by such Person or Persons as shall be
specified in such Security in permanent global form or in the
order to be delivered to the Trustee pursuant to Section 3.03
or Section 3.06. Subject to the provisions of Section 3.03
and, if applicable, Section 3.06, the Trustee or the Security
registrar shall deliver and redeliver any Security in
permanent global form in the manner and upon instructions
given by the Person or Persons specified in such Security or
in the applicable order of the Company. If an order of the
Company pursuant to Section 3.0e or 3.06 has been, or
simultaneously is, delivered, any instructions by the Company
with respect to endorsement or delivery or redelivery of a
global Security shall be in writing but need not be
accompanied by an Officers’ Certificate or an Opinion of
Counsel, provided that the permanent global Security to be
endorsed, delivered or redelivered has previously been covered
by an Opinion of Counsel.

     The provisions of the last sentence of Section 3.03
shall only apply to any Security represented by a Security in
permanent global form if such Security was never issued and
sold by the Company and the Company delivers to the Trustee or
the Security registrar the Security in permanent global form
with written instructions (which need not be accompanied by an
Officers’ Certificate or an Opinion of Counsel) with regard to
the reduction in the principal amount of

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Securities represented thereby, together with the written
statement contemplated by the last sentence of Section 3.03.

     Except as provided in the Indenture and in any
permanent global Security, owners of beneficial interests in
any permanent global Security will not be entitled to have
Securities registered in their names, will not receive or be
entitled to physical delivery of Securities in definitive
registered form and will not be considered the Holders thereof
for any purpose under the Indenture. None of the Company, the
Trustee, any Paying Agent nor any Securities registrar shall
have any responsibility or liability for any aspect of records
relating to or payments made on account of beneficial
ownership interests in any permanent global Security, or for
maintaining, supervising r reviewing any records relating to
such beneficial ownership interests.”

     3. Section 3.01 of the Indenture is hereby amended by:

     (i) deleting the second paragraph thereof and adding the
following paragraph in lieu thereof:

     “The Securities may be issued in one or more series.
There shall be established in or pursuant to a resolution of
the Board of Directors and set forth, or determined in the
manner provided, in an Officer’s Certificate, or established
in one or more indentures supplemental hereto, prior to the
issuance of Securities of any series,”,

     (ii) adding the following to the end of the
parenthetical phrase in clause (2):

          “and except for any Securities which, pursuant to Section 3.03
of the Indenture, shall have not been issued and sold by the Company
and are therefore deemed never to have been authenticated and delivered hereunder”;

     (iii) adding the following to the beginning of clause
(4):

“the Person to whom any interest on any Security of
the series shall be payable if other than as set
forth in Section 3.08,”;

(iv) renumbering clause (15) as clause (16);

(v) adding the following as clause (15);

     “(15) whether the Securities of the series
are to be issuable in whole or in part in permanent
global form, without coupons, and, if so, (i) the
circumstances under which beneficial owners of
interests in such permanent global Security or
Securities may exchange such interests for Securities
of such series and of like interest rate and maturity
and principal amount in definitive registered form
and authorized denominations, if other than as set
forth in Section 3.05, and (ii) the Depositary with
respect Securities; and

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     (vi) deleting the last paragraph thereof and adding
the following paragraph in lieu thereof:

     “All Securities of any one series shall be
substantially identical except as to denomination and
except as may otherwise be provided in or pursuant to
the resolution of the Board of Directors referred to
above and set forth in the Officers’ Certificate
referred to above or in any such indenture
supplemental hereto.”

     4. Section 3.02 of the Indenture is hereby amended to
read in its entirety as follows:

“The Securities of each series shall be issuable in
registered form without coupons and, except for any
Security issuable in permanent global form, in such
denominations as shall be specified in accordance
with Section 3.01. In the absence of such provisions
with respect to the Securities of any series, the
Securities of such series shall be issuable in
denominations of $1,000 and any integral multiple
thereof.”

5. Section 3.05 of the Indenture is hereby amended by
adding the following paragraph to the end of the last
paragraph:

     “Notwithstanding the foregoing, except as
otherwise specified as contemplated by Section 3.01,
any permanent global Security shall be exchangeable
pursuant to this Section only as provided in this
paragraph. The beneficial owners of interests in a
permanent global Security are entitled to the
exchange of such interests for Securities of such
series and of like interest rate and maturity and
principal amount in definitive registered from and
authorized denomination, as specified in accordance
with Section 3.01, if (a) the Depositary notifies the
Company that it is unwilling or unable to continue as
Depositary for such permanent global Security or if
at any time the Depositary ceases to be a clearing
agency registered under the Securities Exchange Act
of 1934, as amended, (b) if the Company in its sole
discretion determines that such permanent global
Security shall be exchangeable for definitive
registered Securities and executes and delivers to
the Security registrar an order of the Company
providing that such permanent global Security shall
be so exchangeable, or (c) any event shall have
occurred and be continuing which, after notice or
lapse of time, or both, would become an Event of
Default with respect to the securities of the series
of which such permanent global Security is a part.
Without unnecessary delay but in any event not later
than the earliest date on which such interests may be
so exchanged, the Company shall deliver to the
Trustee or the Security registrar definitive
registered Securities, executed by the Company, of
that series in aggregate principal amount equal to
the principal amount of such permanent global
Security to be exchanged. On or may be so exchanged,
in accordance with instructions given by the Company
to the Trustee, the Security registrar and the
Depositary (which instructions shall be in writing
but need not be accompanied by an Opinion of
Counsel), such permanent global Security to be exchanged. On or after the earliest date

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on which such interests may be so exchanged, in
accordance with instructions shall be in writing but
need not be accompanied by an Opinion of Counsel),
such permanent global Security shall be surrendered
from time to time by the Depositary or such other
depositary as shall be specified in the order of the
Company with respect thereto to the Trustee, as the
Company’s agent for such purpose, or to the Security
registrar, to be exchanged, in whole or in part, for
definitive Securities of the same series, without
charge, and the Trustee shall authenticate and
deliver in accordance with such instructions, in
exchange for each portion of such permanent global
Security, a like aggregate principal amount of
definitive registered Securities of the same series
of authorized denominations and of like tenor as the
portion of such permanent global Security to be
exchanged; provided, however, that no such exchanges
may occur during a period beginning at the opening of
business 15 days before any selection of Securities
of that series for redemption and ending on the
relevant Redemption Date. If a Security is issued in
exchange for any portion of a permanent global
Security after the close of business at the office or
agency where such exchange occurs on (i) any regular
record date in respect of such Security and before
the opening of business at such office or agency on
the relevant interest payment date or (ii) any
special record date and before the opening of
business at such office or agency on the related
proposed date for payment of interest or defaulted
interest, as the case may be, such interest payment
date or proposed date for payment, as the case ma be,
in respect of such Security issued in exchange, but
will be payable on such interest payment date or
proposed date for payment, as the case may be, only
to the Person to whom interest or defaulted interest
in respect of such permanent global Security is
payable in accordance with the provisions of this

Indenture.

     7. Section 3.09 of the Indenture is hereby amended by
deleting the second sentence thereof and adding the following

sentence in lieu thereof:

     “The Company may at any time deliver to the Trustee
for cancellation any Securities previously authenticated and
delivered hereunder which the Company may have acquired in any
manner whatsoever and may deliver to the Trustee (or to any
other Person for delivery to the Trustee) for cancellation any
Securities previously authenticated hereunder which the
Company has not issued and sold, and all Securities so
delivered shall be promptly cancelled by the Trustee.”

     8. Section 4.03 of the Indenture is herby amended by
adding the following sentence at the end thereof:

“If a Security in permanent global form is so
surrendered, the Company shall execute, and the
Trustee shall authenticate and deliver to the
Depositary for such Security in permanent global
form, without service charge, a new Security in
permanent global form, in a denomination equal to and
in exchange for the unredeemed portion of the
principal of the Security in permanent global form so
surrendered.”

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     9. All provisions of this First Supplemental
Indenture shall be deemed to be incorporated in, and made a
part of, the Indenture; and the Indenture, as supplemented by
this First Supplemental Indenture, shall be read, taken and
construed as one and the same instrument.

     10. The Trustee accepts the trusts created by the
Indenture, as supplemented by this First Supplemental
Indenture, and agrees to perform the same upon the terms and
conditions in the Indenture, as supplemented by this First
Supplemental Indenture.

     11. The recitals contained in the Indenture and the
Securities, except the Trustee’s certificates of
authentication, shall be taken as statements of the Company,
and the Trustee assumes no responsibility for their
correctness. The Trustee makes no representations as to the
validity or sufficiency of the Indenture or the Securities.

     12. All capitalized terms used and not defined herein
shall have the respective meanings assigned to them in the

Indenture.

     13. This First Supplemental Indenture shall be
governed by and construed in accordance with the laws of the

jurisdiction which govern the Indenture and its construction.

     14. This First Supplemental Indenture may be executed
in any number of counterparts, each of which when so executed
shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument.

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     IN WITNESS WHEREOF, the parties hereto have caused
this First Supplemental Indenture to be duly executed, and
their respective seals to be hereunto affixed and attested,
all as of the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	SOUTHERN NATURAL GAS COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Norman G. Holm
 

	 	 
	 

	 	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	[CORPORATE SEAL]	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ R. Daniel Hendrickson	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Title: Secretary	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	THE CHASE MANHATTAN BANK	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Anne G. Brenner
 

Title: Vice President
	 	 
	 
	 	 	 	 	 	 	 	 
	[CORPORATE SEAL]	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Illegible	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Title: Senior Trust Officer	 	 	 	 	 	 

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STATE OF ALABAMA                 }

                                            } Section:

COUNTY OF JEFFERSON                  }

          On the 30 day of September, 1997, before me personally came
Norman G. Holmes, to me known, who, being duly sworn, did depose and say that he
is Vice President of Southern Natural Gas Company, one of the corporations
described in and which executed the foregoing instrument; that he knows the seal
of said corporation; that the seal affixed to said instrument is such corporate
seal; that it was so affixed to said instrument is such corporate seal; that it
was so affixed by authority of the Board of Directors of said corporation, and
that the signed his name thereto by like authority.

	 	 	 	 	 
	 

	 	           /s/ Illegible
 

My Commission Expires May 1, 2001
	 	 

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STATE OF NEW YORK                  }

                                            } Section:

COUNTY OF NEW YORK                  }

          On the 30th day of September, 1997, before me personally came
Anne G. Brenner, to me known, who, being duly sworn, did depose and say that he
is Vice President of The Chase Manhattan Bank, one of the corporations described
in and which executed the foregoing instrument; that he knows the seal of said
corporation; that the seal affixed to said instrument is such corporate seal;
that it was so affixed to said instrument is such corporate seal; that it was so
affixed by authority of the Board of Directors of said corporation, and that the
signed his name thereto by like authority.

	 	 	 
	 

	 	/s/ Annabelle DeLuca
	 

	 	 
	 

	 	     AnnaBelle DeLuca
	 

	 	Notary Public, State of New York
	 

	 	     No. 01DE5013759
	 

	 	     Qualified in Kings County
	 

	 	      Certificate Filed in New York County
	 

	 	      Commission Expires July 15, 1999

9exv4waw2

 

EXHIBIT 4.A.2

SOUTHERN NATURAL GAS COMPANY

ISSUER

AND

THE CHASE MANHATTAN BANK

TRUSTEE

 

SECOND SUPPLEMENTAL INDENTURE

DATED AS OF FEBRUARY 13, 2001

TO

INDENTURE DATED AS OF JUNE 1, 1987

 

7.35% NOTES DUE FEBRUARY 15, 2031

 

 

  SECOND SUPPLEMENTAL INDENTURE, DATED AS OF FEBRUARY 13, 2001 (HEREIN CALLED
THE “SECOND SUPPLEMENTAL INDENTURE”), BETWEEN SOUTHERN NATURAL GAS COMPANY, A
DELAWARE CORPORATION (HEREIN CALLED THE “COMPANY”), HAVING ITS PRINCIPAL OFFICE
AT 1001 LOUISIANA STREET, HOUSTON, TEXAS 77002 AND THE CHASE MANHATTAN BANK, A
BANKING CORPORATION DULY ORGANIZED AND EXISTING UNDER THE LAWS OF THE STATE OF
NEW YORK, AS TRUSTEE UNDER THE INDENTURE REFERRED TO BELOW (HEREIN CALLED THE
“TRUSTEE”).

RECITALS OF THE COMPANY

     WHEREAS, the Company has heretofore executed and delivered to the
Trustee (as successor to Manufacturers Hanover Trust Company) the Indenture,
dated as of June 1, 1987 (such Indenture as amended through the date hereof
being herein called the “Original Indenture”), providing for the issuance from
time to time of one or more series of the Company’s unsecured debentures, notes
or other evidences of indebtedness (herein called the “Securities”), the terms
of which are to be determined as set forth in Section 3.01 of the Original

Indenture; and

WHEREAS, Section 12.01 of the Original Indenture provides, among other things,
that the Company and the Trustee may enter into indentures supplemental to the
Original Indenture for, among other things, the purpose of establishing the form
or terms of Securities of any series as permitted by Sections 2.01 and 3.01 of
the Original Indenture; and

     WHEREAS, the Company desires to create a series of the Securities in
an aggregate principal amount of $300,000,000, which series shall be designated
the 7.35% Notes Due February 15, 2031 (the “Notes”), and all action on the part
of the Company necessary to authorize the issuance of the Notes under the
Original Indenture and this Second Supplemental Indenture has been duly taken;
and

     WHEREAS, all acts and things necessary to make the Notes, when
executed by the Company and completed, authenticated and delivered by the
Trustee as provided in the Original Indenture and this Second Supplemental
Indenture, the valid and binding obligations of the Company and to constitute
these presents a valid and binding supplemental indenture and agreement
according to its terms, have been done and performed;

NOW, THEREFORE, THIS SECOND SUPPLEMENTAL INDENTURE WITNESSETH:

     That in consideration of the premises and the issuance of the Notes,
the Company covenants and agrees with the Trustee, for the equal and

proportionate benefit of all Holders of the Notes, as follows:

ARTICLE I

TERMS AND ISSUANCE OF 7.35% SENIOR NOTES DUE 2031

     Section 1.01 Issue of Notes. A series of Securities which shall be
designated the “7.35% Notes Due February 15, 2031” shall be executed,
authenticated and delivered in accordance with the provisions of, and shall in
all respects be subject to, the terms, conditions and covenants of the Original
Indenture, including without limitation the terms set forth in this Second
Supplemental Indenture (including the form of Notes referred to in Section 1.02
hereof). The aggregate principal amount of Notes which may be authenticated and
delivered under the Original Indenture shall be $300,000,000, provided, however,
that this series of Notes may be reopened, without the consent of the holders
thereof, for increases in the aggregate principal amount of the Notes and
issuance of additional Notes or for the establishment of additional terms with
respect to the Notes. The entire amount of Notes may forthwith be executed by
the Company and delivered to the

1

 

Trustee and shall be authenticated by the Trustee and delivered to or upon the
order of the Company pursuant to Section 3.03 of the Indenture.

     Section 1.02 Forms of Notes and Authentication Certificate. The Notes
initially shall be issuable in the form of one or more Global Securities,
registered in the name of the Depositary or its nominee. The Depository Trust
Company shall be the Depositary for such Global Securities. The forms and terms
of the Notes and the Trustee’s certificate of authentication shall be
substantially as set forth on Exhibit A hereto.

ARTICLE II

MISCELLANEOUS

     Section 2.01 Execution as Supplemental Indenture. This Second
Supplemental Indenture is executed and shall be construed as an indenture
supplemental to the Original Indenture and, as provided in the Original
Indenture, this Second Supplemental Indenture forms a part thereof. Except as
herein expressly otherwise defined, the use of the terms and expressions herein
is in accordance with the definitions, uses and constructions contained in the
Original Indenture.

     Section 2.02 Responsibility for Recitals, Etc. The recitals herein and
in the Notes (except in the Trustee’s certificate of authentication) shall be
taken as the statements of the Company, and the Trustee assumes no
responsibility for the correctness thereof. The Trustee makes no representations
as to the validity or sufficiency of this Second Supplemental Indenture or of
the Notes. The Trustee shall not be accountable for the use or application by
the Company of the Notes or of the proceeds thereof.

     Section 2.03 Provisions Binding on Company’s Successors. All the
covenants, stipulations, promises and agreements in this Second Supplemental
Indenture contained by the Company shall bind its successors and assigns whether
so expressed or not.

     Section 2.04 New York Contract. THIS SECOND SUPPLEMENTAL INDENTURE AND
EACH NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.

     Section 2.05 Execution and Counterpart. This Second Supplemental
Indenture may be executed with counterpart signature pages or in any number of
counterparts, each of which shall be an original but such counterparts shall
together constitute but one and the same instrument.

     Section 2.06 Capitalized Terms. Capitalized terms not otherwise
defined in this Second Supplemental Indenture shall have the
respective meanings assigned to them in the Original Indenture.

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     IN WITNESS WHEREOF, said SOUTHERN NATURAL GAS COMPANY has caused this
Second Supplemental Indenture to be executed in its corporate name by its
Chairman of the Board or its President or one of its Vice Presidents, and said
THE CHASE MANHATTAN BANK has caused this Second Supplemental Indenture to be
executed in its corporate name by one of its authorized representatives as of
February 13, 2001.

	 	 	 	 	 	 	 
	 	 	SOUTHERN NATURAL GAS COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ JEFFREY I. BEASON
 

Name: Jeffrey I. Beason
	 	 
	 

	 	 	 	Title: Senior Vice President	 	 
	 

	 	 	 	     and Controller	 	 
	 
	 	 	 	 	 	 
	 	 	THE CHASE MANHATTAN BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Patti Maner	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Representative	 	 

3

 

EXHIBIT A

[THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE TRANSFERRED TO, OR REGISTERED OR
EXCHANGED FOR SECURITIES REGISTERED IN THE NAME OF, ANY PERSON OTHER THAN THE
DEPOSITARY OR A NOMINEE THEREOF AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. EVERY SECURITY
AUTHENTICATED AND DELIVERED UPON REGISTRATION OF, TRANSFER OF, OR IN EXCHANGE
FOR OR IN LIEU OF, THIS SECURITY SHALL BE A GLOBAL SECURITY SUBJECT TO THE
FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION, TO THE COMPANY OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN AS MUCH AS
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]*

SOUTHERN NATURAL GAS COMPANY

7.35% NOTE DUE FEBRUARY 15, 2031

NO.

     U.S.$300,000,000

CUSIP No. 843452AY9

  SOUTHERN NATURAL GAS COMPANY, a corporation duly incorporated and existing
under the laws of Delaware (herein called the “Company,” which term includes any
successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to CEDE & CO., or registered assigns, the
principal sum of THREE HUNDRED MILLION United States Dollars on February 15,
2031, and to pay interest thereon from February 13, 2001, or from the most
recent Interest Payment Date to which interest has been paid or duly provided
for, semi-annually on February 15 and August 15 in each year, commencing August
15, 2001, at the rate of 7.35% per annum, until the principal hereof is paid or
made available for payment. The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in such Indenture,
be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the

 

			
	*	 	Insert in Global Securities only.

A-1 

 

Regular Record Date for such interest, which shall be the February 1 or August 1
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date. Any such interest not so punctually paid or duly provided
for shall forthwith cease to be payable to the Holder on such Regular Record
Date and shall either be paid to the Person in whose name this Security (or one
or more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by
the Trustee, notice of which shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid at
such time in any other lawful manner not inconsistent with the requirements of
any securities exchange on which the Securities of this series may be listed,
and upon such notice as may be required by such exchange, all as more fully
provided in such Indenture.

[Payment of the principal of and premium, if any, and interest on this Security
will be made by transfer of immediately available funds to a bank account in New
York, New York designated by the Holder in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of
public and private debts.]*

[Payment of the principal of (and premium, if any) and interest on this Security
will be made at the office or agency of the Company maintained for that purpose
in the Borough of Manhattan, The City of New York, in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public and private debts, or at such other offices or agencies as the
Company may designate; provided, however, that payment of interest may be made
at the option of the Company by check mailed to the addresses of the Persons
entitled thereto as such addresses shall appear in the Security Register.]**

Reference is hereby made to the further provisions of this Security set forth on
the reverse hereof, which further provisions shall for all purposes have the
same effect as if set forth at this place.

Unless the certificate of authentication hereon has been executed by the Trustee
referred to on the reverse hereof by manual signature, this Security shall not
be entitled to any benefit under the Indenture or be valid or obligatory for any
purpose.

 

			
	*	 	Insert in Global Securities only.
	 
	**	 	Insert in Definitive Securities only.

A-2 

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

	 	 	 
	Dated:

	 	SOUTHERN NATURAL GAS COMPANY
	 
	 	 
	 

	 	By:
	 

	 	Name:
	 

	 	Title:

This is one of the Securities of the series designated therein referred to in
the within-mentioned Indenture.

	 	 	 	 	 
	 	 	THE CHASE MANHATTAN BANK,

                    AS TRUSTEE
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	Authorized Representative

A-3 

 

SOUTHERN NATURAL GAS COMPANY

7.35% NOTE DUE FEBRUARY 15, 2031

     This Security is one of a duly authorized issue of Securities of the
Company (the “Securities”), issued and to be issued in one or more series under
an Indenture dated as of June 1, 1987, as amended (the “Indenture”), between the
Company and The Chase Manhattan Bank (as successor to Manufacturers Hanover
Trust Company), as Trustee (the “Trustee,” which term includes any successor
trustee under the Indenture), to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights,
limitations of rights, obligations, duties and immunities thereunder of the
Company, the Trustee and the Holders of the Securities and of the terms upon
which the Securities are, and are to be, authenticated and delivered. As
provided in the Indenture, the Securities may be issued in one or more series,
which different series may be issued in various aggregate principal amounts, may
mature at different times, may bear interest, if any, at different rates, may be
subject to different redemption provisions, if any, may be subject to different
sinking, purchase or analogous funds, if any, may be subject to different
covenants and Events of Default and may otherwise vary as in the Indenture
provided or permitted. This Security is one of a series of Securities designated
on the face hereof limited in aggregate principal amount to U.S. $300,000,000.

     The Securities of this series are redeemable, upon not less than 30 nor
more than 60 days’ notice by mail, as a whole or in part, at the option of the
Company at any time at a Redemption Price equal to the greater of (i) 100% of
the principal amount thereof and (ii) an amount equal to, as determined by an
Independent Investment Banker, the sum of the present values of the remaining
scheduled payments of principal and interest thereon discounted to the date of
redemption on a semi-annual basis (assuming a 360-day year consisting of twelve
30-day months) at the Adjusted Treasury Rate, plus, in each case, accrued and
unpaid interest thereon to the date of redemption, but interest installments
whose Stated Maturity is on or prior to such date of redemption will be payable
to the Holders of such Securities, or one or more Predecessor Securities, of
record at the close of business on the relevant Record Dates referred to on the
face hereof, all as provided in the Indenture.

     “Adjusted Treasury Rate” means, with respect to any Redemption Date,
the rate per annum equal to the semi-annual equivalent yield to maturity of the
Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for such Redemption Date, plus 0.20%.

     “Comparable Treasury Issue” means the United States Treasury security
selected by an Independent Investment Banker that (i) has a maturity comparable
to the remaining term of the Securities of this series to be redeemed and (ii)
would be used, at the time of selection and in accordance with customary
financial practice, to price new issues of corporate debt securities of
comparable maturity to the remaining term of such Securities.

“Comparable Treasury Price” means, with respect to any Redemption Date, (i) the
average of the bid and asked prices for the Comparable Treasury Issue (expressed
in each case as a percentage of its principal amount) on the third Business Day
preceding such Redemption Date, as set forth in the daily statistical release
(or any successor release) published by the Federal Reserve Bank of New York and
designated “Composite 3:30 p.m. Quotations for U.S. “Government Securities,” or
(ii) if such release (or any successor release) is not published or does not
contain such prices on such Business Day, (A) the average of the Reference
Treasury Dealer Quotations for such Redemption Date, after excluding the highest
and lowest such Reference Treasury Dealer

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Quotations, or (B) if the Trustee obtains fewer than three such Reference
Treasury Dealer Quotations, the average of all such Reference Treasury Dealer
Quotations.

     “Independent Investment Banker” means one of the Reference Treasury
Dealers appointed by the Trustee after consultation with the Company.

     “Reference Treasury Dealer” means each of Credit Suisse First Boston
and Salomon Smith Barney and their respective successors; provided, however,
that if any of the foregoing shall not be a primary U.S. Government securities
dealer in New York City (a “Primary Treasury Dealer”), the Company shall
substitute therefor another Primary Treasury Dealer.

     “Reference Treasury Dealer Quotations” means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined by
the Trustee, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m. on the
third Business Day preceding such Redemption Date.

     Notwithstanding Section 4.01 of the Indenture, the notice of redemption
with respect to the foregoing redemption need not set forth the Redemption Price
but only the manner of calculation thereof. Promptly after the calculation
thereof, the Company shall give the Trustee written notice of the Redemption
Price for the foregoing redemption.

     In the event of redemption of this Security in part only, a new
Security or Securities of this series and of like tenor for the unredeemed
portion hereof will be issued in the name of the Holder hereof upon the
cancellation hereof.

     If an Event of Default with respect to the Securities of this series
shall occur and be continuing, the principal of the Securities of this series
may be declared due and payable in the manner and with the effect provided in
the Indenture.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in aggregate principal amount of the
Outstanding Securities of all series to be affected (voting as one class). The
Indenture also contains provisions permitting the Holders of a majority in
aggregate principal amount of the Outstanding Securities of all affected series
(voting as one class), on behalf of the Holders of all Securities of such
series, to waive compliance by the Company with certain provisions of the
Indenture. The Indenture permits, with certain exceptions as therein provided,
the Holders of a majority in aggregate principal amount of Securities of any
series then Outstanding to waive past defaults under the Indenture with respect
to such series and their consequences. Any such consent or waiver by the Holder
of this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration
of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.

     As provided in and subject to the provisions of the Indenture, the
Holder of this Security shall not have the right to institute any proceeding
with respect to the Indenture or for the appointment of a receiver or trustee or
for any other remedy thereunder, unless such Holder shall have previously given
the Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount
of the Securities

A-5 

 

of this series at the time Outstanding shall have made written request to the
Trustee to institute proceedings in respect of such Event of Default as Trustee
and offered the Trustee reasonable indemnity and the Trustee shall not have
received from the Holders of a majority in principal amount of the Securities of
this series at the time Outstanding a direction inconsistent with such request,
and shall have failed to institute any such proceeding, for 60 days after
receipt of such notice, request and offer of indemnity. The foregoing shall not
apply to any suit instituted by the Holder of this Security for the enforcement
of any payment of principal hereof or interest hereon on or after the respective
due dates expressed herein.

     No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of, premium, if any, and
interest on this Security at the times, place(s) and rate, and in the coin or
currency, herein prescribed.

     [This Global Security or portion hereof may not be exchanged for
Definitive Securities except in the limited circumstances provided in the

Indenture.

     The holders of beneficial interests in this Global Security will not be
entitled to receive physical delivery of Definitive Securities except as
described in the Indenture and will not be considered the Holders hereof for any
purpose under the Indenture.]*

     [As provided in the Indenture and subject to certain limitations set
forth, the transfer of this Security is registerable in the Security Register,
upon surrender of this Security for registration of transfer at the office or
agency of the Company in the Borough of Manhattan, The City of New York or at
such other offices or agencies as the Company may designate, duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities of
this series and of like tenor, of authorized denominations and for a like
aggregate principal amount, will be issued to the designated transferee or
transferees.]**

     The Securities of this series are issuable only in registered form,
without coupons, in denominations of U.S. $1,000 and any integral multiple
thereof. As provided in the Indenture and subject to certain limitations therein
set forth, the Securities of this series are exchangeable for a like aggregate
principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

 

			
	*	 	Insert in Global Securities only.
	 
	**	 	Insert in Definitive Securities only.

A-6 

 

     No service charge shall be made for any such registration of transfer
or exchange, but the Company may require payment of a sum sufficient to cover
any transfer tax or other similar governmental charge payable in connection
therewith.

     Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for all
purposes, whether or not this Security be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

     No recourse under or upon any obligation, covenant or agreement of or
contained in the Indenture or of or contained in any Security, or for any claim
based thereon or otherwise in respect thereof, or in any Security, or because of
the creation of any indebtedness represented thereby, shall be had against any
incorporator, stockholder, officer or director, as such, past, present or
future, of the Company or of any successor Person, either directly or through
the Company or any successor Person, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment, penalty or
otherwise; it being expressly understood that all such liability is hereby
expressly waived and released by the acceptance hereof and as a condition of,
and as part of the consideration for, the Securities and the execution of the
Indenture.

     The Indenture provides that the Company (a) will be discharged from any
and all obligations in respect of the Securities (except for certain obligations
described in the Indenture), or (b) need not comply with certain restrictive
covenants of the Indenture, in each case if the Company deposits, in trust, with
the Trustee money or U.S. Government Obligations (or a combination thereof)
which through the payment of interest thereon and principal thereof in
accordance with their terms will provide money, in an amount sufficient to pay
all the principal of and interest of the Securities, but such money need not be
segregated from other funds except to the extent required by law.

     THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK.

     All terms used in this Security which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.

A-7 

 

     [FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto

 

(Please Print or Typewrite Name and Address of Assignee)

the within instrument of SOUTHERN NATURAL GAS COMPANY and does hereby
irrevocably constitute and appoint                                         Attorney to transfer
said instrument on the books of the within-named Company, with full power of
substitution in the premises. Please Insert Social Security or Other Identifying
Number of Assignee:

                                                                 
                                                            

Dated:
                                                                 
                                                            

                                                                   
                 (Signature)

NOTICE: The signature to this assignment must correspond with the name as
written upon the face of the within instrument in every particular, without
alteration or enlargement or any change whatever.]**

 

			
	**	 	Insert in Definitive Securities only.

A-8

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