Scg Pipeline Inc.

Original Volume No. 1

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

Original Sheet No.63 Original Sheet No.63 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

4. ALLOCATION OF FIRM CAPACITY ENTITLEMENTS AND RIGHTS OF FIRST REFUSAL

4.1 Open Season for Generally Available Capacity

(a) Pipeline will allocate firm pipeline capacity in accordance with this

Section 4. To the extent Pipeline has available unsubscribed capacity for

which there are no pending requests, Pipeline reserves the right, but shall

not be obligated, to reserve such capacity for open seasons to be held within

the next six (6) months.

(b) Subject to 4.1(a), whenever capacity for a period

greater than 92 days becomes available for subscription, Pipeline will post

notices on its Internet Web Site stating that Pipeline will receive bids for

the capacity in accordance with this Section 4. In addition, Pipeline may

post notices on its Internet Web Site for the subscription of capacity

available for a period of 92 days or less, which shall also be subject to the

terms of this Section 4.

All postings for an open season will contain:

(1) the type of service that is available,

(2) the dates and duration that the service will be available,

(3) the receipt and delivery points of the available capacity and available

capacity at each such point,

(4) any minimum terms and conditions,

(5) any other information that Pipeline determines to be relevant,

(6) the first and last day of the open season.

4.2 Extension of Long Term Service Agreement and Right of First Refusal.

Before the expiration of the term of a Service Agreement and before Pipeline

posts the availability of capacity pursuant to the Right of First Refusal

provisions, if applicable, Pipeline and Shipper may mutually agree to an

extension of the term of the Service Agreement (the exact length and rate of

which is to be negotiated on a case-by-case basis, in a not unduly

discriminatory manner).