Scg Pipeline Inc.

Original Volume No. 1

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Effective Date: 11/01/2003, Docket: RP03-611-001, Status: Effective

Substitute Original Sheet No. 85 Substitute Original Sheet No. 85 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

The payment of a penalty for such daily

unauthorized underdelivered gas hereunder shall

under no circumstances be considered as giving

Shipper the right to not transport its

scheduled gas or be considered as a substitute

for any other remedy available to Pipeline

against the offending Shipper for failure to

stay within Shipper's applicable MDDO.

7.9 Scheduling Penalty. Shipper shall pay a

scheduling penalty for each Dt delivered at

Shipper's Delivery Point in excess of 102% of

scheduled quantities. The scheduling penalty

shall be the IT rate published on Sheet No. 7

multiplied by each Dt delivered at Shipper's

Delivery Point in excess of 102% of the

scheduled quantities. Shipper shall pay the

scheduling penalty in addition to any other

applicable charges and penalties.

7.10 Disposition of Penalties. All overrun and underdelivery

penalties collected by Pipeline during a calendar year, less the

amount collected for such overrun gas under Pipeline's Rate

Schedule IT rate per Dt multiplied by the total volume of overruns,

shall be directly refunded annually to each Non-Offending Shipper,

as set forth in GT&Cs Section 25 for the Month(s) in which such

penalties were incurred. Such refunds shall be distributed

pursuant to Section 25 of the GT&Cs.

8. MAXIMUM DAILY DELIVERY QUANTITY, INSTALLATION OF

FLOW CONTROL EQUIPMENT, AND HOURLY FLOW RATE