Scg Pipeline Inc.

Original Volume No. 1

Effective Date: 11/01/2003, Docket: RP03-611-000, Status: Effective

Original Sheet No.119 Original Sheet No.119 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

For purposes of determining the tier at which an imbalance will be cashed out,

the price will apply only to quantities within a tier. For example, if there

is a 6% imbalance, quantities that comprise the first 2% of the imbalance are

priced at 100% of the Index Price, quantities comprising 3% of the imbalance

are priced at 100% of the Applicable Price, and quantities comprising the

remaining 1% of the imbalance are priced at 115% of the Applicable Price.

(b)(2)Subject to the provisions of GT&Cs Sections 12.3 and 12.4, if Shipper’s

Net Monthly Imbalance is less than or equal to 1,000 Dt, Shipper shall pay

Pipeline for Shipper Net Monthly Imbalance at the Index Price.

(c)(1)Subject to the provisions of GT&Cs Sections 12.3 and 12.4, if Shipper

has accrued a Net Monthly Imbalance such that the total quantities of gas

received by Pipeline for Shipper's account during the Month are greater than

the total quantities of gas delivered by Pipeline for Shipper's account during

the Month ("Positive Imbalance") and such Net Monthly Imbalance is greater

than 1,000 Dt, Pipeline shall pay Shipper for its Net Monthly Imbalance at the

following prices specified for each stated percentage that