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Original Sheet No.61 Original Sheet No.61 : Superseded









3.1 Shippers may request that Pipeline construct interconnect facilities to

deliver gas to one or more Shippers. Pipeline will assess each request for

interconnect facilities in a manner that is not unduly discriminatory.

Pipeline is not required to build facilities upon Shipper request or otherwise

if, as determined by Pipeline in its reasonable judgment, such facilities are

not operationally feasible (construction and operation of the facilities would

create a significant operational problem for Pipeline, would adversely impact

Pipeline's existing services or would otherwise adversely impact Pipeline's

system), or would result in a violation of environmental or safety laws or

right-of-way agreements. In the event Pipeline decides to construct such

facilities, Shipper shall reimburse Pipeline for all reasonable costs incurred

to design, construct, own, operate and maintain the interconnect facilities.

Such costs shall include: (a) the costs of such facilities installed by

Pipeline to receive, measure, transport or deliver natural gas for Shipper's

account, (b) any and all filings and approval fees and (c) all applicable

taxes (including income taxes required in connection with such construction)

that Pipeline is obligated to pay to any governmental authority having

jurisdiction. Pipeline and Shipper shall negotiate a mutually agreeable cost

recovery mechanism.


3.2 Pipeline may waive from time to time, at its discretion, all or a

portion of the monetary reimbursement requirement set forth in Section 3.1 if

it determines that construction of the facilities would be economic, based on

Shipper contracts for firm transportation service through the proposed

facilities and other matters, as described below. All requests for waiver

shall be handled by Pipeline in a manner which is not unduly discriminatory.

For purposes of determining whether a project is economic, Pipeline will

evaluate projects on the basis of various economic criteria, which may

include, without limitation, the estimated firm transportation demand