Scg Pipeline Inc.

Original Volume No. 1

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

Original Sheet No.99 Original Sheet No.99 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

(4) is the result of Pipeline performing at any time repair and maintenance

of its facilities to comply with applicable regulatory requirements, or

(5) occurs either (1) within ten (10) days following a force majeure event as

contemplated by GT&Cs Section 21, or (2) prior to the date Pipeline has or

should have, in the exercise of due diligence, overcome the force majeure

event, whichever occurs first provided, however, (c)and (d) are also subject

to the notice and due diligence requirements of GT&Cs Section 21 (Force

Majeure).

11. CAPACITY RELEASE

This Section 11 sets forth a firm capacity release mechanism subject to the

provisions of Subpart G of Part 284 of the Commission’s Regulations, pursuant

to which existing Shippers can voluntarily release and assign all or part of

their firm service rights to (1) a shipper(s) that has executed a capacity

release umbrella agreement and has acquired all or part of the firm service

rights of a firm shipper through the Pipeline’s capacity release procedures

(Replacement Shipper), or (2) a Replacement Shipper(s) that has executed a

capacity release umbrella agreement and is specifically designated by the

shipper releasing capacity to obtain its released capacity (Prearranged

Shipper). Shippers may release and assign their firm capacity on Pipeline

under any firm, open access Service Agreement only under this Section 11 of

Pipeline's GT&Cs (Releasing Shipper). Pipeline will use an open bidding format

and will post each Releasing Shipper's offer to release capacity (herein

called Releasing Shipper's Notice) and all the bids against that Releasing

Shipper's Notice, provided that bidders' names shall not be posted except for

the names of the Successful Bidders. Bids are to be based on the Reservation

Rate only, provided the Reservation Rate may be converted into a volumetric

charge. The maximum rate for such volumetric releases shall be no greater

than the 100% load factor equivalent of Pipeline’s maximum Reservation Rate

currently applicable to the service released as set forth Tariff Sheet No. 7.

For purposes of this Section 11, a Shipper is entitled to specify a rate for

capacity to be released equal to the maximum Reservation Rate, plus all

applicable surcharges.