Scg Pipeline Inc.

Original Volume No. 1

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

Original Sheet No.143 Original Sheet No.143 : Superseded

20. TERMINATION FOR DEFAULT

20.1 If either Pipeline or Shipper shall fail to perform any of the covenants

or obligations imposed upon it or them under and by virtue of a Service

Agreement hereunder, then in such event the other party may at its option

terminate such agreement by proceeding as follows: The party not in default

shall cause a written notice to be served on the party in default stating

specifically the cause for terminating the agreement and declaring it to be

the intention of the party giving the notice to terminate the same; thereupon

the party in default shall have twenty (20) days after the service of the

aforesaid notice in which to remedy or remove the cause or causes stated in

the notice for terminating the agreement, and if within said period of thirty

(30) days the party in default does so remove and remedy said cause or causes

and fully indemnify the party not in default for any and all consequences of

such breach, by a good and sufficient indemnify bond or otherwise, then such

notice shall be withdrawn and the agreement shall continue in full force and

effect. In case the party in default does not so remedy and remove the cause

or causes or does not so indemnify the party giving the notice for any and all

consequences of such breach, within 10 days after the end of such twenty (20)

day period, then Pipeline will suspend service. After any necessary

authorization by regulatory bodies having jurisdiction, the agreement shall

become null and void from and after the expiration of said period, provided

that notice of termination has not been withdrawn prior thereto. Any

cancellation of such agreement pursuant to the provision of this paragraph

shall be without prejudice to the right of Pipeline to collect any amounts

then due to it for service prior to the time of cancellation and shall be

without prejudice to the right of Shipper to receive any service for which it

has paid but has not received, although entitled thereto, prior to the time of

cancellation, and without waiver of any remedy to which the party not in

default may be entitled for violations of such agreement. Failure to perform

an act that is excused due to, inter alia, force majeure, does not constitute

an event of default hereunder.