Scg Pipeline Inc.

Original Volume No. 1

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

Original Sheet No.98 Original Sheet No.98 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

10.8 Shipper shall indemnify Pipeline against and hold Pipeline harmless from

any and all damages, claims, suits, actions or proceedings whatsoever

threatened or initiated as a result of any curtailment or interruption invoked

by Pipeline; which shall include any curtailment or interruptions described in

any part of Section 10; except if such damages, claims, suits, actions or

proceedings are due to Pipeline's gross negligence, undue discrimination or

willful misconduct.

10.9

(a) In the event Pipeline fails to deliver on any one day at least 98% of

the quantity of gas scheduled which Pipeline is obligated to deliver on a firm

basis at such Delivery Points on such day up to the MDTQ, the Reservation Rate

of an affected Shipper shall be decreased by an amount equal to the

Reservation Rate on a 100% daily load factor basis multiplied by the quantity

of gas not delivered up to the lesser of the total quantity of gas scheduled

and not delivered, or the MDTQ. The 100% daily load factor Reservation Rate

shall be discounted in the case of an executed service agreement containing a

discounted Reservation Rate in the same proportion such Reservation Rate is

discounted from the maximum Reservation Rate. Provided however, the

Reservation Rate of the affected Shipper shall be decreased on a 100% daily

load factor basis for the quantity of gas scheduled to be delivered on a firm

basis, which Pipeline does not deliver due to Pipeline’s mismanagement,

negligence or willful misconduct.

(b) Pipeline shall not be obligated to adjust the Reservation Charge

pursuant to Section 10.9(a) above, when Pipeline’s failure to deliver on any

one day at least 98% of the quantity of gas requested by Shipper to be

delivered at Point(s) of Delivery which Pipeline is obligated to deliver on a

firm basis at such Point(s) of Delivery on such day up to the MDTQ:

(1) is the result of the conduct of Shipper or the downstream operator of the

facilities at the Point of Delivery;

(2) is the result of Pipeline having an OFO in effect on such day;

(3) is the result, during the period from May 1 through November 1 of any

year, of Pipeline performing routine operational maintenance and repair;