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Original Sheet No.110 Original Sheet No.110 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

(7) Pipeline shall have no liability to any party in relying on the recall

and reput instructions and conditions specified by the Releasing Shipper,

except to the extent that such party establishes that Pipeline incorrectly

applied such instructions as a result of the negligent action or willful

misconduct of Pipeline.

(8) Any Releasing Shipper will have the right to withdraw its Notice any

time prior to the close of the Bid Period associated with such Releasing

Shipper's Notice where unanticipated circumstances justify the withdrawal and

no bids meeting the minimum conditions of Releasing Shipper's Notice have been

made. The Releasing Shipper's Notice will be legally binding on the Releasing

Shipper until the written or electronic notice of withdrawal is received by

Pipeline.

(c) Obligations of Replacement or Prearranged Shippers.

(1) The Replacement or Prearranged Shipper must satisfy all other Pipeline

tariff provisions governing Shipper eligibility and must execute all required

agreements and acknowledgments before it may contract with Pipeline for the

released capacity. Any bid submitted will legally bind the Replacement or

Prearranged Shipper to the terms of the bid if Pipeline chooses such bid as

the Best Bid until written or electronic notice of withdrawal is received by

Pipeline. Once the Replacement or Prearranged Shipper executes a Service

Agreement with Pipeline, the Replacement or Prearranged Shipper becomes an

existing Shipper like any other Shipper and is subject to the applicable

provisions of Pipeline's FERC Gas Tariff, including but not limited to

Pipeline's billing and payment and operational provisions.