Scg Pipeline Inc.

Original Volume No. 1

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

Original Sheet No.105 Original Sheet No.105 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

11.4 Posting Requirements for Capacity Releases Not Subject to

Bidding. For proposed capacity releases of a duration of thirty-one (31) Gas

Days or less for which the Releasing Shipper has obtained a Prearranged

Shipper and the Releasing Shipper elects not to post such capacity releases

pursuant to Section 11.3(a)(1). Such information will be posted on the

Pipeline's Internet Web Site as required by Section 11.3(a)(1). Contractual

arrangements for releases not subject to bidding shall be processed in the

same time period as those releases subject to bidding.

11.5 Allocation of Released Capacity.

(a) Pipeline shall select the Best Bid as defined in Section 11.5(d) from

among the bids received. However, if more than one bidder submits the Best

Bid, the first bidder in time, inclusive of the Prearranged Shipper, shall be

selected and posted as the Best Bid, unless the Releasing Shipper specifies

another tie-breaking methodology in the Releasing Shipper's Notice; provided,

however, that a Shipper exercising its right of first refusal is awarded

capacity in the event of tie bids; provided, further, that Pipeline may reject

any bid by a Shipper exercising its right of first refusal that is less than

the maximum rate.

(b) In the event a contingent bid is submitted pursuant to Section 11.2(l),

the Replacement or Prearranged Shipper submitting the contingent bid shall

have one hour from 2:00 p.m. CCT to 3:00 p.m. CCT on the day the Bid Period

ends to eliminate the contingency or withdraw its bid. If the Replacement or

Prearranged Shipper fails to notify Pipeline that the contingency is not

eliminated within such time, such contingent bid shall be deemed rejected by

Pipeline for failure to eliminate the contingency in accordance with the

releasing Shipper's Notice.