Scg Pipeline Inc.

Original Volume No. 1

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

Original Sheet No.64 Original Sheet No.64 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

Right of First Refusal: If Pipeline provides written notice to Shipper to

terminate any firm Service Agreement with a primary term of twelve consecutive

months or more at the maximum tariff rate, Shipper will have a right of first

refusal to retain such firm capacity by complying with the bidding procedures

in this Section 4 of the GT&Cs. If Shipper or a competing bidder does not

retain or acquire such firm capacity during the right of first refusal bidding

process, such firm capacity will be allocated under GT&Cs Section 4.1(b). A

right of first refusal does not attach to: (i) a Shipper under a firm Service

Agreement which provides written notice to Pipeline to terminate such firm

Service Agreement; (ii) any Short Term Service Agreement; (iii) an

interruptible Service Agreement; or (iv) Service Agreement with a negotiated

rate pursuant to GT&Cs Section 27. Pipeline shall post on its Internet Web

Site notice of expiration of Long Term Service Agreements 3O months prior to

expiration of the Service Agreement. Provided however, if the term of the

Service Agreement is less than 30 months, the Pipeline shall post notice of

termination upon execution of the Service Agreement. Unless Shipper then

within six months gives written notice to Pipeline to terminate the Service

Agreement or to request a lesser extension term, the Service Agreement will

automatically extend upon the expiration of the primary term for a term of

five years. If a Shipper gives written notice to extend its Long Term Service

Agreement, or any portion of its contract quantity thereunder, for less than

the 5-year automatic extension period, then Pipeline, at its option and in a

manner, which is not unduly discriminatory, may accept Shipper’s requested

extension period. Alternatively, Pipeline will make the capacity under such

agreement available in accordance with the right of first refusal open season

procedures of this Section 4.

(a) Pipeline shall post the capacity for bidding on its Internet Web Site no

later than 180 days prior to the expiration of the current Service Agreement.

Pipeline shall provide 30 days prior written notice to Shipper of the date the

capacity will be posted. The capacity will remain posted on the Pipeline's

Internet Web Site for a minimum of 20 days with such posting containing the

information set forth in Section 4.1(b).