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Original Sheet No.117 Original Sheet No.117 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

such agreement(s) during the Month, then Pipeline shall also calculate an

"Estimated Imbalance Percentage" for that Month as follows for purposes of

determining the maximum percentage at which Shipper's Net Monthly Imbalance

shall be resolved below. The Estimated Imbalance Percentage shall be equal to

the sum of the estimated imbalances (over-deliveries and under-deliveries) in

effect for each of Shipper's above-referenced Service Agreements at the end of

the Month, as posted on the Pipeline's Internet Web Site, ("Estimated Monthly

Imbalance") divided by the lesser of: (i) the quantity of gas deemed to be

received or (ii) the quantity of gas deemed to be delivered under all such

agreements during the Month. If Shipper has elected to be allocated the

variances in deliveries at specified Delivery Points under the Swing PDA, then

such Shipper's Estimated Monthly Imbalance Percentage shall be determined by

dividing its Estimated Monthly Imbalance by the sum of: (i) the lesser of the

quantity of gas deemed to be received or delivered under all of said Shipper's

agreements during the Month, and (ii) the quantity of gas deemed to be

delivered under third-party Shippers' transportation agreements at the

Delivery Points where Shipper has elected to be allocated the variances in

deliveries during the Month. It is provided, however, that the denominator

used in the calculation of Shipper's Net Imbalance Percentage and its

Estimated Monthly Imbalance Percentage shall exclude, if applicable, any

quantities allocated from Shipper's Pooling Service Agreement to the same

Shipper's transportation agreements.