Scg Pipeline Inc.

Original Volume No. 1

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

Original Sheet No.60 Original Sheet No.60 : Superseded






(a) an advance deposit;


(b) a standby irrevocable letter of credit issued by a bank to Pipeline’s



(c) security interest in collateral found to be satisfactory to Pipeline; or


(d) a guarantee, acceptable to Pipeline, by another person or entity which

satisfies credit appraisal criteria set forth in Section 2.5.


If Shipper obtains credit approval by providing an advance deposit or other

credit instrument and then subsequently satisfies the credit criteria,

Pipeline shall return to Shipper any such advance deposit with interest. The

advance deposit, standby irrevocable letter of credit, security interest or

guarantee should at all times equal the amount equal to three Months of

reservation charges at the maximum applicable unit rate hereunder. Shipper

shall continue to provide such advance deposit or credit instrument for a

period of three Months following the termination of service, unless Shipper

pays all of the amounts of any invoices for service as reasonably determined

by Pipeline prior to that time.


Termination or suspension of service and a Service Agreement does not affect

the validity or requirement of a letter of credit or guarantee in effect at

the time service is terminated or suspended.


If Shipper’s or guarantor’s credit standing ceases to meet Pipeline's credit

requirements during the period of service, then Pipeline has the right to

require security or a deposit as specified herein. If security or a deposit

is not tendered in a timely period as reasonably determined by Pipeline, then

Pipeline is not required to continue service. If Shipper is unable to

maintain credit approval, the executed Service Agreement shall terminate as of

the first day of the Month following written notice to Shipper. Pipeline

retains the right to pursue additional remedies, enforce any rights and affect

any collection due to Pipeline.