Scg Pipeline Inc.

Original Volume No. 1

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

Original Sheet No.79 Original Sheet No.79 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

To facilitate such determination of variances on a timely basis,

Pipeline and the OBA Party will agree in the OBA on necessary measurement and

accounting procedures. Pipeline shall post on its Internet Web Site those

Receipt Points and Delivery Points at which an OBA is in effect. When

Pipeline enters into an OBA with a regulated interstate or intrastate

pipeline, Pipeline may waive the daily nomination and scheduling provisions in

Sections 5 and 6, herein, to maintain operational flexibility and integrity.

(b) Pipeline shall have no obligation to negotiate and execute OBAs with any

OBA Party that:

(1) is not creditworthy as determined pursuant to GT&Cs Section 2; for

purposes of such provision, references to Shipper shall refer to the OBA

Party;

(2) does not maintain dispatching operations which are staffed on a

continuous around-the-clock basis every day of the year;

(3) would cause the level of regulation which Pipeline is subject to prior

to the execution of the applicable OBA to increase; or

(4) does not commit to timely determination of variances based on reasonable

available measurement technology; or

(5) has not demonstrated operational consistency commensurate with the OBA

relationship over a minimum period of three years.

rights to take action as may be required to adjust receipts and deliveries

under any service agreement to reflect actual experience or to alleviate

conditions which threaten the integrity of Pipeline’s system, including

maintenance or service of higher priority Shippers and/or services.