Scg Pipeline Inc.

Original Volume No. 1

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

Original Sheet No.149 Original Sheet No.149 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

22.5 Procedure for Filing. At least thirty (30) days prior to the effective

date of a change in the FRP hereunder, Pipeline shall file annually the FRQ

report containing: (1) the revised FRP for the calendar year beginning in

November, (2) a workpaper supporting the revised fuel requirements, (3) the

calculation of the FRQ deferral allocation, (4) workpapers showing the monthly

accrual of the FRQ deferred balance for the period of August 1 through July 31

of each year, (5) the computation of each shipper's surcharge or refund for

the FRQ Deferred Account balance as of July 31 of each year plus carrying

charges, and (6) the calculation of the monthly carrying charges through

November 1 of each year. Pipeline may file interim proposals between annual

filings subject to approval by the Commission.

22.6 The fuel costs recovered pursuant to the System Balancing

Cost Reconciliation Mechanism set forth in the GT&Cs Section 12.8 will not be

included in the Fuel Retainage Quantity and will not be collected as part of

the FRP.

23. PERIODIC RATE ADJUSTMENTS AND SURCHARGES

Pipeline and Shipper recognize that Pipeline will from time to time experience

changes in costs related to providing service under this Tariff, including,

but not limited to, changes in the cost of labor, benefits, materials and

supplies, taxes, gross receipt taxes, required rate of return, costs

associated with the resolution of past disputes or outstanding uncertainties

concerning amounts owed by Pipeline or Shipper or attributable to Pipeline or

Shipper, and costs generated by decisions of the Commission, the courts or by

an arbitration panel or other body having jurisdiction over the Pipeline.

Pipeline hereby notifies Shippers that it may be appropriate, equitable and

consistent with cost responsibility to allocate such costs among Shippers

based on or taking into account past period factors, such as contract demand

levels, purchases or other factors related to a prior period of time.

Pipeline hereby notifies Shippers that Pipeline shall have the right from time

to time unilaterally to make rate change filings which may include such costs

and utilize an allocation methodology based in whole or in part on factors

related to past periods. Shipper shall have the right to intervene and

protest any such filing.