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Original Sheet No.111 Original Sheet No.111 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

(2) In addition, the Replacement or Prearranged Shipper as an existing

Shipper may subsequently release its capacity pursuant to this Section as a

secondary release and thereby become a Releasing Shipper. Secondary release

shall be subject to the right of recall if the initial Releasing Shipper

retained the right of recall.

(3) Pipeline must permit Replacement or Prearranged Shipper to submit a

nomination at the earliest nomination opportunity after the acquisition of

capacity. If the Pipeline requires the Replacement Shipper to enter into a

Service Agreement, the contract must be issued within one hour after the

Pipeline has been notified of the release, but the requirement for contracting

must not inhibit the ability of the Replacement Shipper to submit a nomination

at the earliest available nomination opportunity. In the event Shipper has

not executed a Service Agreement prior to making its nomination, Shipper will

be deemed to have executed Pipeline’s pro forma FT Service Agreement.

Pipeline must be informed of a prearranged non-biddable capacity release

transaction at least one hour prior to the nomination cycle in order for the

Replacement Shipper to nominate at that opportunity.