Scg Pipeline Inc.

Original Volume No. 1

Effective Date: 11/01/2003, Docket: RP03-611-001, Status: Effective

Substitute Original Sheet No. 124 Substitute Original Sheet No. 124 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

12.9 The monthly cash out provisions set forth

herein apply to the extent that an imbalance is

not caused by events of force majeure, as

defined in Section 21 of the GT&Cs.

12.10 Daily Imbalance Penalty and Calculations.

Pipeline shall post on its Internet Web Site,

on a timely basis, the daily imbalance status

of each Shipper, as well as the imbalance of

the system as a whole. If a daily imbalance

threatens the operational integrity of

Pipeline's system thus warranting the issuance

of an OFO, Pipeline shall post a Critical Mode

notice. During an OFO if a Shipper's daily

imbalance is greater than a 2% variance between

the actual receipts and actual deliveries on

Pipeline's system, Shipper shall pay $20.00 for

every Dth above the 2% variance. Shipper shall

not be obligated to also pay the $20.00 penalty

set forth in GT&Cs Section 9.3, or the

unauthorized daily overrun penalty under GT&Cs

Section 7.7, or the unauthorized daily

underdelivery penalty under GT&Cs Section 7.8,

or the scheduling penalty under GT&Cs Section

7.9, if the Section 12.10 penalties are imposed

for the same infraction.

13. POOLING SERVICE

13.1 Pipeline will provide Pooling Service on a non-discriminatory

basis to any Shipper who complies with the requirements described

herein. Shippers may request Pooling Service by completing a

Transportation Request Form and submitting the credit information

described in Section 2.5 of the GT&Cs. Upon receipt of all of the

required information and determination of creditworthiness,

Pipeline shall prepare and tender to the requesting party a Pooling

Service Agreement. The Pooling Service Agreement must be executed

before Shipper can nominate gas into or out of the pool. The

Pooling Service Agreement shall terminate automatically if no

nominations are made within thirty (30) days after Shipper executes

the Agreement. Pooling Service must commence within ninety (90)

days of the date of the original Service Request.