Scg Pipeline Inc.

Original Volume No. 1

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

Original Sheet No.83 Original Sheet No.83 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

7.5 Allowable Daily Dispatching Variations. The allowable daily dispatching

variation shall be established daily by Pipeline and posted on its Internet

Web Site each Gas Day for which an OFO is in effect. The available daily

dispatching variation shall not be less than, the greater of: one and one half

percent (1.5%) of Shipper’s MDTQ, 100 Dt or two (2%) percent of the sum of the

Maximum Daily Delivery Obligation (“MDDO”) at the respective Delivery Points

under the Pipeline’s Rate Schedule FT and the scheduled daily delivery each

day under Pipeline’s Rate Schedule IT when interruptible capacity on

Pipeline’s system is allocated or when such service is limited pursuant to the

provisions of Sections 9 and 10 of the GT&Cs. A Shipper’s MDDO shall be the

scheduled quantities. The allowable daily dispatching variation shall be

applicable to unauthorized daily overruns and unauthorized daily

underdeliveries.

7.6 Delivery Point Unauthorized Daily Overrun. Any quantity of gas taken by

a Shipper from Pipeline on any day an OFO is in effect in excess of the sum of

the applicable, allowable daily dispatching variation for the Shipper’s MDTQ

or the Pipeline’s MDDO shall constitute unauthorized daily overrun quantities.

Pipeline shall notify Shippers via its Internet Web Site that gas taken in

excess of Pipeline’s MDDO shall be subject to the GT&C Section 7.7

“Unauthorized Daily Overrun Penalties”.

7.7 Unauthorized Daily Overrun Penalties. Shipper shall pay a penalty for

unauthorized daily overruns occurring at the time an OFO is issued. The OFO

penalty under this section shall be calculated as follows: If Shipper takes on

any day unauthorized overrun quantities in excess of the allowable daily

dispatch variations set forth in Section 7.5 above, Shipper shall pay the cost

of such overrun gas plus a penalty of $5.00 per Dt for unauthorized overrun

quantities in excess of 2% up to 5% of that allowable variation for the

particular day; $15.00 per Dt for unauthorized overrun quantities in excess of

5% up to 8% of that allowable variation for the particular day,