Scg Pipeline Inc.

Original Volume No. 1

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

Original Sheet No.66 Original Sheet No.66 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

be relevant by Pipeline. The NPV shall also include only revenues generated

by the reservation rate, or other form of revenue guarantee, as proposed by

the bidder(s). For purposes of its NPV evaluation, Pipeline will consider the

aggregate NPV of two or more bids for minimum bid packages, provided that the

combined quantity of capacity under those packages do not exceed the maximum

capacity available for subscription.

4.4 Rejected Bids. Pipeline reserves the right to reject any bid lower than

the minimum acceptable bid for the capacity that is subject to the open

season. Pipeline may set a reserve price which will be the minimum rate for

the minimum acceptable bid; provided, however, if Pipeline elects to do so it

will: (i) set such reserve price prior to the time of posting; and (ii)

present such reserve price to a trustee to be held in escrow confidentially

until the conclusion of the bidding process so as to demonstrate that such

reserve price was established at the time of posting.

Irrespective of whether a bid has the highest NPV of the bids received,

Pipeline may reject bids for service that: (i) may detrimentally impact the

operational integrity of Pipeline’s system; (ii) do not satisfy all the terms

of the specified posting; (iii) contain terms and conditions other than those

set forth in this Tariff; (iv) do not satisfy the Pipeline’s creditworthiness

criteria; (v) contain contingencies that cannot be removed within a time frame

acceptable to Pipeline; or (vi) result in incremental costs.

4.5 Binding Nature of Bids. All bids received during the open season remain

binding on all bidders through the end of the open season unless withdrawn by

the bidder through the same medium on which its bid was submitted; provided,

however, that a bidder may withdraw its previous bid and submit a bid with a

higher NPV during the open season, but neither bidder (nor an affiliate of

bidder) may submit a bid with a lower NPV. At the end of the open season, all

bids either withdrawn by the bidder or not accepted by Pipeline shall become

null and void.