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Original Sheet No.108 Original Sheet No.108 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

(2) If Pipeline waives any credit requirements for a Prearranged Shipper or

a Replacement Shipper, Pipeline shall limit the liability of the Releasing

Shipper to the extent of such credit waiver. To the extent Pipeline does not

require continuing assurances for Prearranged Shippers or Replacement Shippers

pursuant to of creditworthiness under Section 2.5 of the GT&Cs any less than

it does the Releasing Shipper, the Releasing Shipper continues to be liable.

(3) In the event there is a permanent release of Shipper's capacity,

Pipeline will agree to discharge the Releasing Shipper of liability, on a

prospective basis, in whole or in part, provided the Replacement Shipper meets

the credit requirements under GT&Cs Section 2.

(4) Right to Recall. Any Releasing Shipper retaining the right of recall

may exercise such right of recall by providing notification via the Pipeline's

Internet Web Site to Pipeline and Replacement Shipper, provided such recall

(i) conforms to the recall terms of such Releasing Shipper's Notice; and (ii)

does not constitute a waiver or modification of Section 5 of Pipeline's GT&Cs.

Any Releasing Shipper may exercise a right of recall, subject to the

provisions herein, in the event a Replacement or Prearranged Shipper fails to

pay part or all of the amount of any invoice for service provided when such

amount is due in accordance with Section 19 of the GT&Cs.