Scg Pipeline Inc.

Original Volume No. 1

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

Original Sheet No.141 Original Sheet No.141 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

If the normal payment date is a Saturday, Sunday or holiday, then payment is

due the following Business Day.

The Party making payment should submit supporting documentation; party

receiving payment should apply payment per supporting documentation provided

by the paying party; and if payment differs from invoiced amount, remittance

detail should be provided with the payment. The statement of account should

report outstanding balances by invoice.

19.5 Failure to Pay. Should Shipper fail to pay all of the amount of any

bill as herein provided when such amount is due, interest on the unpaid

portion of such amount shall accrue at the rate equal to the rate set forth in

Section 154.501 of the Commission’s Rules and Regulations from the due date

until the date of payment. If such failure to pay continues for thirty (30)

days after payment is due, Pipeline, in addition to any other remedy it may

have hereunder, may notify a Shipper in writing of its nonpayment, allowing

Shipper thirty days to make payment of any unpaid amount and to provide

assurances satisfactory to Pipeline that such non-payment will not recur.

Pipeline will not suspend service under this Section 19.5 until ten (10) days

after the end of such thirty-day period, and then only upon written notice to

Shipper and the Commission.

If Shipper in good faith disputes the amount of any such bill or any part

thereof, Shipper shall provide written notice of its dispute including

documentation identifying basis of dispute and shall either: (1) pay to

Pipeline the full amount of such bill, subject to refund as described in

Section 19.6 below, or (2) pay to Pipeline such amount as it concedes to be

correct, and at any time thereafter within 30 days of a demand made by

Pipeline, shall furnish good and sufficient surety bond from a surety on the

U.S. Treasury approved list guaranteeing payment to Pipeline of the amount

finally determined to be due. In the event Shipper pays such bill by wire

transfer of funds, then Shipper shall provide Pipeline with the remittance

detail in writing within two business days of payment. If, under option (2) as

set forth in the immediately preceding