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Original Sheet No.74 Original Sheet No.74 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

5.5 Upstream Confirmation Reductions. In the event that an upstream

operating entity’s confirmation, pursuant to Sections 4, 5.1 and/or 5.2

herein, reduces the scheduled quantities and such reductions are made in

aggregate for the Receipt Point, Pipeline shall reduce such quantities in a

corresponding amount on Pipeline's system based upon Shipper's ranking. To

the extent reductions in the confirmation process are applicable to a contract

(or to transactions within a contract that are charged the same percentage of

the maximum rate), Pipeline will use Shipper’s provided schedule ranks (in

accordance with NAESB defined data sets), or pro-rata if no ranks are provided

by Shipper, to effectuate such reductions to the scheduled quantities.

Pipeline shall not allow reductions below the elapsed pro-rata scheduled

quantity without the express consent of the affected party(s).

Elapsed-prorated-scheduled quantity means that portion of the scheduled

quantity that would have theoretically flowed up to the effective time of the

Intraday Nomination being confirmed, based upon a cumulative uniform hourly

quantity for each nomination period affected. Elapsed-pro-rata scheduled

quantity will apply to all nomination decreases submitted in the Intraday

Nomination cycles.

5.6 Segmentation. Shipper may segment its capacity by nominating receipts

or deliveries of gas on a primary point basis, subject to Sections 5, 6 and 11

of the GT&Cs. Shipper may segment its capacity by nominating receipt or

deliveries of gas at any available point on Pipeline’s system on a secondary

firm basis, subject to Sections 5, 6 and 11 of the GT&Cs. Deliveries will be

scheduled on a primary firm basis if utilizing Primary Receipt and/or Delivery

Points within Shipper’s capacity path and on a secondary firm basis if

utilizing Secondary Receipt and/or Delivery Points within Shipper’s capacity

path. Segmentation of capacity will be permitted to the extent the segmented

capacity would not impair Pipeline’s ability to render