Scg Pipeline Inc.

Original Volume No. 1

Effective Date: 11/01/2003, Docket: RP03-611-000, Status: Effective

Original Sheet No.62 Original Sheet No.62 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

under long-term contracts, cost of the facilities, operation and

maintenance, applicable taxes, administrative and general expenses

attributable to the facilities, the system net revenues Pipeline estimates

will be generated subsequent to such construction, depreciation, return on

investment and the availability of capital funds on terms and conditions

acceptable to Pipeline. In estimating the system net revenues to be

generated, Pipeline will evaluate the revenue generated from long-term firm

transportation contracts and other system benefits.

3.3 Any monetary reimbursement due Pipeline by Shipper pursuant to this

Section 3 shall be due and payable to Pipeline within ten (10) Days of receipt

by Shipper of Pipeline's invoices for same; provided, however, subject to

Pipeline's written consent such monetary reimbursement, plus carrying charges

thereon, may be amortized over a mutually agreeable period not to exceed the

primary contract term of the Service Agreement between Pipeline and Shipper.

3.4 Nothing in this statement of policy shall require Pipeline to file an

application to build or modify facilities or to render service. Further,

nothing in this policy statement shall prevent Pipeline from contesting an

application for service or a request to compel the rendition of service filed

at the Commission. Pipeline reserves the right to seek a waiver of the

policies set forth in this Section 3 for good cause shown during any

proceeding before any duly constituted regulatory authority.

3.5 Nothing in this Tariff shall require Pipeline to file an application for

a certificate of public convenience and necessity with the Commission.

Further, nothing in this Tariff prevents Pipeline from contesting an

application for service filed with the Commission.