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Original Sheet No.112 Original Sheet No.112 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

11.7 Billing

(a) Pipeline will bill the Shipper releasing capacity the amount it is

obligated to pay Pipeline for (1) Reservation Rate, (2) usage charge(s) and

(3) surcharges, imbalances and/or other volumetric costs attributable to any

capacity retained by such Releasing Shipper and Pipeline shall credit the

invoice of the Releasing Shipper an amount equal to such charges attributable

to capacity rights released by such Shipper, (hereinafter called "Credit

Back"); provided, however, Pipeline shall have the right to reverse such

Credit Back and to charge applicable carrying charges to the Releasing Shipper

in the event Pipeline is not paid such charges for the released capacity.

Pipeline shall notify a Releasing Shipper 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. The Releasing Shipper shall be liable to Pipeline for

all charges incurred by such Replacement or Prearranged Shipper under the new

Service Agreement addendum, but not for any charges incurred for any

additional transportation or other services not included within the released

capacity.