Scg Pipeline Inc.

Original Volume No. 1

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

Original Sheet No.106 Original Sheet No.106 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

(c) Any Replacement Shipper may make an upward revision to or withdraw its

bid during the Bid Period through the Pipeline's Internet Web Site; provided,

Pipeline will allow any Prearranged Shipper to match, in accordance with

Section 11.3(a)(2), the Best Bid after the close of the Bid Period; however,

if Replacement Shipper submits more than one bid for the same capacity, the

lower bid will automatically expire. Replacement Shipper or its affiliate

shall not have the opportunity to use its ability to withdraw its bid in order

to submit a lower bid.

(d) The Best Bid shall be (1) determined in accordance with the bid

evaluation method specified by the Shipper pursuant to Sections 11.2(j) and

11.2(k); or (2) in the event the Releasing Shipper elects not to submit a bid

evaluation method, the Best Bid shall be the bid which generates the highest

present value. Present value shall be determined based on a 10% discount rate.

Pipeline shall reject any bid which does not match the other minimum

specifications set forth in the Releasing Shipper's Notice. In the event both

a contingent bid and a non-contingent bid generate the same present value,

Pipeline shall reject the contingent bid. If multiple bids meet the minimum

conditions stated in the Releasing Shipper's Notice, Pipeline shall award the

capacity, best bid first, until all offered capacity has been awarded.