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Substitute Original Sheet No. 91 Substitute Original Sheet No. 91 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

(d) If an Alert Mode Notice indicates that an

OFO may be imminent, Pipeline will advise

what action is requested and what future

actions may be mandated if voluntary steps

are not taken. Under such circumstances,

Shippers are asked to comply as quickly as

possible with the Alert Mode Notice to

reduce the need for further action by

Pipeline. Shippers should be prepared to

act on short notice. The Alert Mode

Notice may be directed to all Shippers or

to specific Shippers on a not unduly

discriminatory basis. By issuing an Alert

Mode Notice, Pipeline shall not be

precluded from issuing further OFO notices

if circumstances ultimately require. The

Alert Mode Notice is intended to provide

Shippers the opportunity for voluntary

compliance, rather than requiring

mandatory action under the OFO provisions

of the Pipeline's Tariff. If voluntary

compliance does not resolve the

circumstances causing the Alert Mode

Notice, Pipeline has the discretion to

implement a Critical Mode Notice on those

Shipper(s) or to curtail Shipper(s)

causing or contributing to the condition.

9.3 OFO Penalties. To the extent Pipeline issues

an OFO (other than an Alert Mode Notice) and

Shipper(s) does not comply with such order,

Pipeline will assess and Shipper will be

obligated to pay Pipeline a fee of $20.00 per

Dt. Such fee will be assessed on each Dt of gas

received into or delivered out of Pipeline's

system when such receipts and/or deliveries are

not in compliance with any OFO in effect. If

the OFO penalty is imposed, no curtailment

penalty, no unauthorized daily overdelivery

penalty under GT&Cs Section 7.7, no

unauthorized daily underdelivery penalty under

GT&Cs Section 7.8, and no scheduling penalty

under GT&Cs Section 7.9, will also be imposed

for the same infraction. Also, multiple OFO

penalties will not be assessed for the same

infraction. All OFO penalties collected by

Pipeline shall be accounted for as part of

Pipeline's penalty revenue sharing pursuant to

GT&Cs Section 25. The payment of a penalty

under this Section 9 shall under no

circumstances be considered as giving the

Shipper the right to violate OFOs nor shall

such payment be considered as a substitute for

any other remedy available to Pipeline or any

other Shipper against the offending Shipper for

failure to comply with an OFO.