Scg Pipeline Inc.

Original Volume No. 1

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

Original Sheet No.130 Original Sheet No.130 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

14.5 If the gas tendered for Shipper's account to Pipeline shall fail at any

time to conform to any of the specifications set forth in this Section 14, the

tariff of the upstream pipeline, or in Pipeline's reasonable judgment, may

cause harm to its facilities or diminish the quality of gas in the system,

then Pipeline shall have the right, after either written, oral or telephonic

notice to Shipper, to refuse to accept all or any portion of such quality

deficient gas. In the event Pipeline refuses to accept gas tendered by

Shipper because such gas does not conform to the specifications set forth

herein, Shipper shall not be relieved of its obligation to pay any Reservation

Rate provided for in Shipper's Service Agreement. If the gas tendered by

Pipeline for Shipper's account shall fail at any time to conform to any of the

specifications set forth in this Section 14 or the tariff of the upstream

pipeline then Shipper shall notify Pipeline of such deficiency and may, at its

option, refuse to accept delivery pending correction by Pipeline.

14.6 Notwithstanding the requirements set forth in this Section 14 Pipeline

may allow Shipper to tender for service or cause to be tendered, pursuant to

an executed Service Agreement under Pipeline's rate schedules, gas which does

not when injected into Pipeline's system meet the quality specifications set

forth in this Section 14; provided that Pipeline's acceptance of such gas

shall not adversely impact Pipeline's system facilities or operations.

Pipeline shall implement this Section 14.6 on a non-discriminatory basis.

14.7 Pipeline shall have the unqualified right to commingle gas transported

hereunder with gas from other sources, and to treat and handle all such gas as

its own. It is recognized that gas delivered may not be the same molecules as

those received at the Receipt Point. The quantities of gas delivered

hereunder at the Delivery Points shall be thermally equivalent to the

quantities of gas received at the Receipt Points for transportation less the

Fuel Retainage Quantity.