public - south carolina

VIA ELECTRONIC FILING

The Honorable Jocelyn G. Boyd Chief Clerk/Administrator

November 30, 2017

Public Service Commission of South Carolina 101 Executive Center Drive Columbia, South Carolina 29210

K. Chad Burgess

Director & Deputy General Counsel

[email protected]

RE: Natural Gas Agreements between South Carolina Electric & Gas Company and Sonoco Products Company Docket No. 2006-281-G

Dear Ms. Boyd:

Pursuant to 10 S.C. Code Ann. Regs. 103-403, South Carolina Electric & Gas Company ("SCE&G") hereby files and seeks approval of the enclosed Agreement for Transportation Service with Firm Gas Standby and Service Agreement along with a Transportation Agreement (together, the "Contract") between SCE&G and Sonoco Products Company ("Sonoco").

In seeking approval of the Contract, SCE&G, pursuant to 10 S.C. Code Ann. Regs. 103-401.3, also respectfully requests that the Public Service Commission of South Carolina ("Commission") waive the requirement that the Contract be filed with the South Carolina Office of Regulatory Staff ("ORS") and the Commission within seven days of execution. SCE&G and Sonoco executed the Contract on November 20, 2017, and due to the Thanksgiving holiday along with SCE&G's desire to discuss the contract with ORS in advance of filing the Contract, SCE&G was unable to meet the seven day deadline. SCE&G is unaware of any prejudice resulting from its November 30 filing and therefore, submits that its request to waive the seven day deadline is not contrary to the public interest.

By copy of this letter, we are providing ORS with a copy of the Contract.

(Continued ... )

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K. Chad BurgessDirector & Deputy General Counsel

chad.bur ess scone.co

November 30, 2017

VIA ELECTRONIC FILING

The Honorable Jocelyn G. BoydChief Clerk/AdministratorPublic Service Commission of South Carolina101 Executive Center DriveColumbia, South Carolina 29210

RE: Natural Gas Agreements between South Carolina Electric & GasCompany and Sonoco Products CompanyDocket No. 2006-281-G

Dear Ms. Boyd:

Pursuant to 10 S.C, Code Ann. Regs. 103-403, South Carolina Electric & GasCompany ("SCE&G") hereby i'iles and seeks approval of the enclosed Agreement forTransportation Service with Fum Gas Standby and Service Agreement along with aTransportation Agreement (together, the "Contract") between SCE&G and SonocoProducts Company ("Sonocon).

In seeking approval of the Contract, SCE&G, pursuant to 10 S.C. Code Ann.Regs. 103-401.3, also respectfully requests that the Public Service Commission ofSouth Carolina (uCommission") waive the requirement that the Contract be filed withthe South Carolina Office of Regulatory Staff ("ORSn) and the Commission withinseven days of execution. SCE&G and Sonoco executed the Contract on November 20,2017, and due to the Thanksgiving holiday along with SCE&G's desire to discuss thecontract with ORS in advance of filing the Contract, SCE&G was unable to meet theseven day deadline. SCE&G is unaware of any prejudice resulting from its November30 filing and therefore, submits that its request to waive the seven day deadline isnot contrary to the public interest.

By copy of this letter, we are providing ORS wit,h a copy of the Contract.

(Continued... )

3 0 , 2 0 1 7

P a e 2

If you have any questions, please advise.

KCB/kms Enclosure

cc: Jeffrey M. Nelson, Esquire Dawn Hipp

K. Chad Burgess

(both via electronic mail and U .S. First Class Mail w/ enclosure)

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The Honorable Jocelyn G. Boyd, EsquireNovember 30, 2017Pa e2

If you have any questions, please advise.

Very truly your

KCB/%msEnclosure

K. Chad Burgess

cc: Jeffrey M. Nelson, EsquireDawn Hipp

(both via electronic mail and U.S. First Class Mail w/ enclosure)

F O R T R A N S P O R T A T I O N S E R V I C E

W I T H F I R M GAS S T A N D B Y

T h i s A g r e e m e n t m a d e and e n t e r e d into this JO~ay of I\)()() e,,Ji~r , 2017, by and between SOUTH CAROLINA ELECTRIC & GAS COMPANY, its successors and assigns, hereinafter called "Seller" and SONOCO PRODUCTS COMP ANY, its successors and assigns, hereinafter called "Buyer".

WITNESSETH

WHEREAS, Seller owns and operates a natural gas system in the State of South Carolina which supplies natural gas for certain industrial operations under specific contracts with industrial customers, and

WHEREAS, Seller supplies natural gas to Buyer under the terms of Service and Transportation Agreements between Buyer and Seller, dated July 12, 2012, which are hereby being mutually terminated at 10:00 AM. Eastern Time on December 1, 2017, and

WHEREAS, Buyer has requested that Seller transport ce1iain volumes of natural gas belonging to Buyer through Seller's facilities and deliver said volumes of gas to Buyer to displace purchases of Firm gas from Seller's system supply, and

WHEREAS, Buyer has requested that Seller provide Firm natural gas from Seller's system supply when not providing transp01iation services for Buyer, and

WHEREAS, Buyer has agreed to purchase natural gas from Seller according to the terms and conditions of this Agreement to the extent Buyer has a requirement for fuel in Priority-of-Service Catego1y 3B as set f01ih in Article III, Paragraph 1, of the General Terms and Conditions to Industrial Service Agreements hereto attached, for Buyer's facility located at 1 N 2nd Street, Hartsville, South Carolina.

NOW THEREFORE, in consideration of the covenants and agreements hereinafter set forth, to be kept and performed by the parties hereto, it is mutually agreed as follows:

1. SCOPE OF DELIVERY

(A) FIRM GAS, PRIORITY-OF-SERVICE CATEGORY 3B Seller acknowledges that Buyer may utilize a source of gas other than system supply gas from Seller's sources. Buyer's gas may be transported to Buyer by Seller under the Transp01iation services provision of this Agreement. Natural gas is provided hereunder to satisfy Buyer's requirements when Seller is not providing transportation services.

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AGREEMENT FOR TRANSPORTATION SERVICEWITH FIRM GAS STANDBY

This Agreementmade and enteredinto thiszitO dayof fJIJCIJt&/ 2017,byand4JL

between SOUTH CAROLINA ELECTRIC 8: GAS COMPANY, its successors and assigns,hereinafter called "Seller" and SONOCO PRODUCTS COMPANY, its successors and assigns,hereinafter. called "Buyer".

WITNESSETH

WHEREAS, Seller owns and operates a natural gas systein in the State of'outh Cal'olinawhich supplies natural gas for certain industrial operations under specific contracts with industrialcustomers, and

WHEREAS, Seller supplies natural gas to Buyer under the terms of Service andTransportation Agreements between Buyer and Seller, dated July 12, 2012, which are hereby beingmutually terminated at 10:00 A.M. Eastern Time on December I, 2017, and

WHEREAS, Buyer has requested that Seller transport certain volumes of natural gasbelonging to Buyer tlirough Seller's facilities and deliver said voluines of gas to Buyer to displacepurchases of Firm gas from Seller's system supply, and

WHEREAS, Buyer has requested that Seller provide Firm natural gas from Seller's systemsupply when not providing transportation services for Buyer, and

WHEREAS, Buyer has agreed to purchase natural gas fiom Seller according to the terms andconditions of this Agreement to the extent Buyer has a requirement for fuel in Priority-of-ServiceCategory 3B as set forth in Article III, Paragraph I, of the General Terms and Conditions toIndustrial Service Agreements hereto attached, for Buyer's facility located at I N 2"4 Street,Hartsville, South Carolina,

NOW THEREFORE, in consideration of the covenants and agreements hereinafter set forth,to be kept and performed by the parties hereto, it is mutually agreed as follows:


(A) FIRM GAS PRIORITY-OF-SERVICE CATEGORY 3BSeller acknowledges that Buyer may utilize a source of gas other than systemsupply gas from Seller's sources. Buyer's gas may be transported to Buyer bySeller under the Transportation services provision of this Agreemcnt, Naturalgas is provided hereunder to satisfy Buyer's requirements when Seller is notproviding transportation services.

S e l l e r , a n d S e l l e r a g r e e s to s e l l to B u y e r , up to . t h e

M a x i m u m D a i l y Q u a n t i t y o f n a t u r a l gas w h i c h s h a l l n o t b e s u b j e c t to

i n t e n u p t i o n o r c u r t a i l m e n t e x c e p t f o r c o n d i t i o n s as s e t f o i t h i n A r t i c l e IV,

P a r a g r a p h 3, o f t h e G e n e r a l T e r m s and C o n d i t i o n s h e r e t o a t t a c h e d . T h e

M a x i m u m D a i l y Q u a n t i t y o f F i r m Gas s h a l l b e 1,800 d e k a t h e r m s p e r day. A n y

gas t a k e n b y B u y e r a b o v e t h e M a x i m u m D a i l y Q u a n t i t y , a f t e r n o t i c e f r o m S e l l e r

o f c m t a i l m e n t t o t h e M a x i m u m D a i l y Q u a n t i t y , w i t h o u t S e l l e r ' s a d v a n c e

a p p r o v a l , s h a l l be U n a u t h o r i z e d O v e r r u n Gas and s h a l l s u b j e c t B u y e r t o t h e

p e n a l t y r a t e p e r d e k a t h e r m s e t fo1th i n A r t i c l e IV, P a r a g r a p h 5, o f t h e G e n e r a l

T e r m s and C o n d i t i o n s to I n d u s t r i a l S e r v i c e A g r e e m e n t s h e r e t o a t t a c h e d . D e l i v

e r i e s o f F i r m Gas u n d e r t h i s p a r a g r a p h o f t h e A g r e e m e n t s h a l l be u t i l i z e d b y

B u y e r o n l y i n P r i o r i t y - o f - S e r v i c e C a t e g m y 3B as s e t f o i t h i n A l t i c l e III,

P a r a g r a p h 1, o f t h e G e n e r a l T e r m s a n d C o n d i t i o n s h e r e t o a t t a c h e d . B u y e r s h a l l

p u r c h a s e all g a s t e n d e r e d by S e l l e r up t o t h e M a x i m u m D a i l y Q u a n t i t y w h e n e v e r

and to t h e e x t e n t B u y e r has a r e q u i r e m e n t for f u e l i n t h e P r i o r i t y - o f - S e r v i c e

C a t e g o r y s e t f o r t h h e r e i n .

(B) A D J U S T M E N T T O M D Q s

S e l l e r s h a l l a d j u s t B u y e r ' s M a x i m u m D a i l y Q u a n t i t y o n a n a n n u a l basis. T h e

a n n u a l a d j u s t m e n t s h a l l b e t h e g r e a t e r o f t h e B u y e r ' s a c t u a l F i r m M a x i m u m

D a i l y Q u a n t i t y o v e r t h e m o n t h s D e c e m b e r t h r o u g h F e b r u a i y o r 5 0 0

d e k a t h e r m s .

2. H O U R L Y D E L I V E R I E S

S e l l e r s h a l l n o t b e o b l i g a t e d t o m a k e h o u r l y d e l i v e r i e s o f gas p u r s u a n t t o P f i l a g r a p h 1 above at an hourly rate exceeding 75 dekatherms per hour. Seller reserves the right to regulate the flow of gas delivered hereunder by means of automatic or manually operated flow control valves so as to limit the hourly flow of gas within the specified quantity.

3. POINT OF DELIVERY

The Point of Delive1y for all gas delivered hereunder shall be at the outlet side of Seller's measuring and regulating equipment. The measuring equipment shall be installed on the Buyer's prope1ty at a location mutually agreed upon by Seller and Buyer. All gas shall be delivered at this location and it shall be the Buyer's responsibility to extend all fuel lines from this location to the point or points of usage.

4. DELIVERY PRESSURE

Seller agrees to use due care and diligence to furnish gas hereunder at such uniform pressure as Seller may elect up to, but not exceeding 175 pounds per squfile inch gauge, and not less than 130 pounds per squai·e inch gauge, at the "Point of Delivery". Buyer

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Buyer agrees to purchase I'rom Seller, and Sefler agrees to sell to Buyer, up to theMaximum Daily Quantity of natural gas which shall not be subject tointerruption or curtailment except for conditions as set forth in Article IV,Paragraph 3, of the General Terms and Conditions hereto attached. TheMaximum Daily Quantity of Firm Gas shall be I 800 dekathcrms pcr day. Anygas taken by Buyer above the Maximum Daily Quantity, after notice from Sellerof curtailment to the Maxhmmi Daily Quantity, without Seller's advanceapproval, shall be Unauthorized Overrmi Gas and shall subject Buyer to thepenalty rate pet dekatherm set forth in Article IV, Paragraph 5, of the GeneralTertns and Conditions to Industrial Service Agreements hereto attached. Deliv-eries of Finn Gas under this paragraph of the Agreement shall be utilized byBuyer only in Priority-of-Senice Categoiy 3B as set forth in Article 111,

Paragraph I, of the General Terms and Conditions hereto attached. Buyer shallpurchase all gas tendered by Seller up to the Maximum Daily Quantity wheneverand to the extent Buyer has a requirement for fuel in the Priority-of-ScniceCategory set forth herein.

(B) ADJUSTMENT TO MD s

Seller shall adjust Buyer's Maximmn Daily Quantity on an annual basis. Theannual adjustment shall be the greater of the Buyer's actual Firm MaximumDaily Quantity over the months December ttuough February or 500dekatherms.

2. HOURLY DELIVERIES

Seflcr shall not be obligated to make hourly deliveries of gas pursuant to Paragraph I

above at an hourly rate exceeding 75 dekathenns per hour. Seller resetves the right toregulate the flow of gas delivered hereunder by means of automatic or manuallyoperated flow control valves so as to limit the hourly flow of gas within the specifiedquantity.


The Point of Delivery for all gas delivered hereunder shall be at the outlet side ofSeller's measuring and regulating equipment. The measuring equipment shall beinstalled on the Buyer's property at a location mutually agreed upon by Seller andBuyer. All gas shall be delivered at this location and it shall be the Buyer'responsibility to extend all fuel lines from this location to the point or points of usage.

4, DELIVERY PRESSURE

Seller agrees to use due care and diligeuce to furnish gas hereunder at such uniformpressure as Seller may elect up to, but not exceeding 175 pounds per square inch gauge,and not less than 130 pounds per square inch gauge, at the "Point of Deliveiy". Buyer

S e l l e r ' s e q u i p m e n t o r o t h e r w i s e , o c c u r o n B u y e r ' s s i d e o f t h e

11

D e l i v e 1 y P o i n t " .

5. T R A N S P O R T A T I O N S E R V I C E

(a) S C O P E O F S E R V I C E

S e l l e r a g r e e s t o a c c e p t d e l i v e r i e s o f n a t u r a l g a s b e l o n g i n g t o B u y e r a t S e l l e r ' s

d e l i v e r y p o i n t f r o m t h e u p s t r e a m p i p e l i n e a n d t o t r a n s p o r t B u y e r ' s g a s a n d

r e d e l i v e r to B u y e r . S e r v i c e p r o v i d e d h e r e u n d e r is i n l i e u o f n a t u r a l g a s p r o v i d e d

f r o m s y s t e m s u p p l y . B u y e r a g r e e s t h a t t h e t r a n s p o t i a t i o n s e r v i c e is p r o v i d e d o n

a n i n t e r r u p t i b l e b a s i s . I n t e r r u p t i o n s s h a l l b e a t t h e s o l e d i s c r e t i o n o f S e l l e r o r

w h e n e v e r s e r v i c e i s i n t e r r u p t e d b y a n y u p s t r e a m p i p e l i n e .

( b ) N O M I N A T I O N P R O C E D U R E S

S e l l e r a g r e e s t o a c c e p t a n d t r a n s p o 1 i u p to 1 , 8 0 0 d e k a t h e r m s , e x c l u d i n g

s h r i n k a g e v o l u m e s , o f n a t u r a l g a s o n a d a i l y b a s i s . B u y e r w i l l n o t i f y S e l l e r a t

l e a s t f i v e ( 5 ) d a y s p r i o r t o t h e e n d o f t h e m o n t h t h e v o l u m e s o f g a s , i n

d e k a t h e r m s , t o b e t r a n s p o r t e d o n a d a i l y b a s i s d u r i n g t h e n e x t c a l e n d a r m o n t h .

B u y e r h a s t h e r i g h t t o c h a n g e t h e v o l u m e t o b e t r a n s p 0 1 i e d d u r i n g t h e m o n t h o n a

d a i l y b a s i s . I t i s B u y e r ' s r e s p o n s i b i l i t y t o n o t i f y p r o d u c e r s a n d c o n n e c t i n g

p i p e l i n e s r e g a r d i n g a n y c h a n g e i n t r a n s p o 1 i a t i o n v o l u m e s . S e l l e r w i l l a c c e p t

c h a n g e s in daily volumes dispatched from an upstream pipeline; however, Seller reserves the right to limit or restrict the volumes accepted and transported at any time whenever, in Seller's sole opinion, operating conditions warrant a limitation or restriction on the acceptance or delivery of transpo1iation gas. Limitations or restrictions may be because of, but not limited to, the utilization of deliverability capacity of Seller for Seller's system supply requirements.

(c) TRANSPORTATION RATE

Each month, beginning December 1, 2017, the rate for daily volumes transported for and delivered to Buyer shall be fifty cents ($0.50) per dekatherm.

(d) SHRINKAGE

Seller will retain 3% of all volumes delivered to Seller on Buyer's behalf for shrinkage and line losses. The volumes retained by Seller will not create or contribute to an imbalance. Seller reserves the right to adjust the shrinkage factor, up or down, to account for actual line losses. Seller agrees to give Buyer thitiy (30) days written notice of any adjustment.

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shall be responsible for the installation and operation of adequate safety equipmentdownstream of the Point of Delivery so as to relieve or control pressure variationswithin the limits described above that may, for any reason through malfunction ofSeller's equipment or otherwise, occiu on Buyer's side of the "Deliveiy Point".

TRANSPORTATION SERVICE

(a) SCOPE OF SERVICE

Seller agrees to accept deliveries of natural gas belonging to Buyer at Seller'delivery point fiom the upstream pipeline and to transport Buyer's gas andredeliver to Buyer. Setvice provided hereunder is in lieu of natural gas providedfrom system supply. Buyer agrees that the transportation service is provided onan interruptible basis. Interruptions shall be at the sole discretion of Seller orwhenever service is interrupted by any upstream pipeline.

(b) NOMINATION PROCEDURES

Seller agrees to accept and transport up to I 800 dekatheims, excludingshrinkage volumes, of natural gas on a daily basis. Buyer will notify Seller atleast five (5) days prior to the end of the month the volumes of gas, indekatherms, to be transported on a daily basis during the next calendar month.Buyer has the right to change the volume to be transported during the month on adaily basis. It is Buyer's responsibility to notify producers and connectingpipelines regarding any change in transportation volumes. Seller will acceptchanges in daily volumes dispatched from an upstream pipeline; however, Sellerreserves the right to limit or restidct the volumes accepted and transported at anytime whenever, in Seller's sole opinion, operating conditions warrant a limitationor restriction on the acceptance or delivery of transportation gas, Liinitations orrestrictions may be because of, but not limited to, the utilization of deliverabilitycapacity of Seller for Seller's system supply requirements.

(c) TRANSPORTATION RATE

Each month, beginning December I, 2017, the rate for daily volumes transportedfor and delivered to Buyer shall be fifty cents ($0.50) per dekatherm.

(d) SHRINKAGE

Seller will retain 3% of all volumes delivered to Seller on Buyer's behalf forshrinkage and line losses. The volumes retained by Seller will not create orcontribute to an imbalance. Seller reserves the right to adjust the shrinkagefactor, up or down, to account for actual line losses. Seller agrees to give Buyerthirty (30) days written notice of any adjustment.

S e r v i c e , o r c m i a i l m e n t o r d i s c o n t i n u a n c e t h e r e o f .

If the net imbalance is such that the Buyer has received more gas than was delivered to the Seller during the period under review, Buyer shall be billed for such as standby service referenced in Rate 35, attached as Exhibit A. If the net imbalance is such that the Buyer has received less gas than was delivered to the Seller, the Seller will buy excess gas at Seller's lowest delivered purchase price in that month from any of Seller's suppliers.

Daily volumes transported by Seller shall not exceed the Contract Maximum Daily Quantity specified in Paragraph 1, SCOPE OF DELIVERY. In the event a daily volume is delivered to Seller which exceeds the Contract Maximum Daily Quantity, the excess daily volumes will be purchased by Seller at Seller's lowest delivered price from any of Seller's suppliers.

(f) POSSESSION OF GAS

After Buyer delivers gas or causes gas to be delivered to Seller at the point(s) of receipt hereunder, Seller shall be deemed to be in control and possession of the gas until it is redelivered to Buyer at the point of delivery. Buyer shall have no responsibility with respect to any gas deliverable by Seller or on account of anything which may be done, happen or arise, with respect to such gas until Seller delivers such gas to Buyer or for the account of Buyer. Seller shall have no responsibility with respect to such gas before Buyer delivers such gas to Seller or after Seller redelivers such gas to Buyer or on account of anything which may be done, happen or arise with respect to such gas before such delivery or after such redelivery.

(g) WARRANTY OF TITLE TO GAS

The Buyer warrants for itself, its successors and assigns, that it will at the time of delivery to Seller for transportation have good and merchantable title to all gas so delivered free and clear of all liens, encumbrances and claims whatsoever. Buyer will indemnify Seller and save it harmless from all suits, actions, debts, accounts, damages, costs, losses and expenses arising from or out of adverse claims of any or all persons to said gas, including claims for any royalties, taxes, license fees or charges applicable to such gas or to the delivery thereof to Seller for transp01iation.

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BALANCING

The volume of gas received on a daily basis for Buyer's account may not equalthe volume, less shrinkage, delivered to the Buyer. The result will be deemed animbalance. Buyer's account will be reviewed at the end of each month, or ontermination of Transportation Service, or curtailment or discontimiance thereof.If the nct imbalance is such that the Buyer has received more gas than wasdelivered to the Seller during the period under review, Buyer shall be billed forsuch as standby service referenced in Rate 35, attached as Exhibit A. If the netimbalance is such that the Buyer has received less gas than was delivered to theSeller, the Seller will buy excess gas at Seller's lowest delivered purchase pricein that month fiom any of Seller's suppliers.

Daily volumes transported by Seller shall not exceed the Contract MaximumDaily Quantity specified in Paragraph 1, SCOPE OF DELIVERY. In the event adaily volume is delivered to Seller which exceeds the Contract Maximum DailyQuantity, the excess daily volumes will be purchased by Seller at Seller's lowestdelivered price from any of Seller's suppliers,

POSSESSION OF GAS

After Buyer delivers gas or causes gas to be delivered to Seller at the point(s) ofreceipt hereunder, Seller shall be deemed to be in control and possession of thegas until it is redelivered to 13uyer at the point of deliveiy. Buyer shall have noresponsibility with respect to any gas deliverable by Seller or on account ofanything which may be done, happen or arise, with respect to such gas untilSeller delivers such gas to Buyer or for the account of Buyer. Seller shall haveno responsibility with respect to such gas before Buyer delivers such gas toSeller or after Seller redelivers such gas to Buyer or on account of anythingwhich may be done, happen or arise with respect to such gas before such deliveiyor after such redeliveiy.

WARRANTY OF TITLE TO GAS

The Buyer warrants for itself, its successors and assigns, that it will at the time ofdelivery to Seller for transportation have good and merchantable title to all gasso delivered fice and clear of all liens, encumbrauces and claims whatsoever.Buyer will indemnify Seller and save it harmless fiom all suits, actions, debts,accounts, damages, costs, losses and expenses arising from or out of adverseclaims of any or all persons to said gas, including claims for any royalties, taxes,license fees or charges applicable to such gas or to the deliveiy thereof to Sellerfor transportation.

P R I O R I T Y AND ALLOCATION OF T R A N S P O R T A T I O N S E R V I C E

It is acknowledged by Buyer that other end-users of natural gas may from time to time contract with Seller for the transportation of natural gas owned by them. In the event that available capacity or operating conditions exist which limit the acceptance by Seller of natural gas to an amount that is less than the aggregate volume of all such natural gas tendered for transp01iation and redelivery by any or all end-users that have contracted with Seller for transp01iation service, the following priorities and allocations shall apply:

(1) All natural gas purchased by Seller for its system supply or otherwise owned by Seller shall have the highest priority of acceptance into Seller's system and the highest priority of delivery throughout Seller's system.

(2) The priority of acceptance of natural gas owned by end-users, whoever they may be from time to time, and tendered to Seller's system for redelivery thereof shall be based upon the category of service, pursuant to the General Terms and Conditions to Industrial Service Agreements attached hereto, for which Seller has agreed to provide standby service associated with a Transportation Agreement with any such end-user. Higher priorities of standby service pursuant to individual agreements between Seller and end-users shall determine the priority of acceptability and redeliverability of natural gas tendered to Seller for transportation in accordance with the priority categories in the Cutiailment Plan. If any Transpo11ation Agreement between Seller and an end-user does not contain a provision for standby service and a specified category of service with respect to said standby service provision, then the acceptability and redeliverability of any natural gas tendered by such end-user to Seller shall have the lowest priority of acceptability and redeliverability.

(3) In the event that the total volume of natural gas tendered to Seller for acceptance and redelivery relative to a single catego1y of standby service is greater than the capacity determined by Seller to be available for acceptance and redelivery of natural gas in said catego1y of standby service, then acceptance and redelivery of such tendered gas shall be allocated pro rata based upon the contract volumes in all agreements for transp01iation service containing said categ01y of standby service on the Seller's system.

( 4) The determination of the existence of limitations on capacity or operating conditions which limit the acceptability oi· deliverability of natmal gas tendered to Seller for transportation shall be at the sole discretion and judgment of Seller.

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(h) PRIORITY AND ALLOCATION OF TRANSPORTATION SERVICE

It is acknowledged by Buyer that other end-users of natural gas may from time totime contract with Seller for the transportation of natural gas owned by them. Inthe event that available capacity or operating conditions exist which limit theacceptance by Seller of natural gas to an amount that is less than the aggregatevolume of all such natural gas tendered for transportation and redelivery by anyor all end-users that have contracted with Seller for transportation service, thefollowing priorities and allocations shall apply:

(1) All natural gas purchased by Seller for its system supply or otherwiseowned by Seller shall have the highest priority of acceptance into Seller'system and the highest priority of delivery throughout Seller's system.

(2) The priority of acceptance of natural gas owned by end-users, whoeverthey may be from time to time, and tendered to Seller's system forredelivery thereof shall be based upon the category of service, pursuant tothe General Terms and Conditions to Industrial Service Agreementsattached hereto, for which Seller has agreed to provide standby serviceassociated with a Transpoi1ation Agreement with any such end-user.Higher priorities of standby service pursuant to individual agreementsbetween Seller and end-users shall deterniine the priority of acceptabilityand redeliverability of natural gas tendered to Seller for transportation inaccordance with the priority categories in the Curtailment Plan. If anyTransportation Agreement between Seller and an end-user does notcontain a provision for standby service and a specified category of seivicewith respect to said standby service provision, then the acceptability andredeliverability of any natural gas tendered by such end-user to Seller shallhave the lowest priority of acceptability and redeliverability,

(3) In the event that the total volume of natural gas tendered to Seller foracceptance and redelivery relative to a single categoiy of standby service isgreater than the capacity determined by Seller to be available foracceptance and redelivery of natural gas in said categoiy of standbyservice, then acceptance and redelivery of such tendered gas shall beallocated pro rata based upon the contract volumes in all agreements fortransportation service containing said categoiy of standby service on theSeller's system.

(4) The determination of the existence of limitations on capacity or operatingconditions which limit the acceptability or deliverability of natural gastendered to Seller for transportation shall bc at the sole discretion andjudgment of Seller.

S P E C I A L P R O V I S I O N S

(1) The Buyer bears sole responsibility for costs incurred to deliver transportation gas to Seller.

(2) Buyer shall be required to reimburse Seller for any out-of-pocket expenses incurred in connection with the initiation and rendering of service under this Transportation Agreement.

(3) Seller retains sole discretion as to whether or not a particular Buyer or particular Buyers shall receive service pursuant to Transportation Agreements.

(4) It is contemplated that service pursuant to this Transp01iation Agreement shall be provided within the existing limitations of Seller's system, and Seller shall not be required to expand or alter the said system.

(5) Transportation service may be curtailed or discontinued at the sole option of Seller after not less than two (2) hours advance notice by telephone or otherwise. However, the Buyer shall continue to hold title to any gas (less shrinkage) received by Seller and not delivered prior to such curtailment or discontinuance. Seller will notify Buyer when conditions permit Seller to resume transportation service.

6. INITIAL SERVICE

Buyer agrees to begin purchasing natural gas under the terms and conditions of this Agreement at 10:00 A.M. Eastern Time on December 1, 2017, or as soon thereafter as Buyer changes plant operations to accept 1,800 dekatherms FIRM service on a daily basis with the remaining volumes INTERRUPTIBLE service. Buyer agrees that these changes will be made prior to March 1, 2018, at which time the Service and Transportation Agreements between Buyer and Seller dated July 12, 2012, shall terminate.

7. TERM OF AGREEMENT

This Agreement shall become effective on December 1, 201 7, and shall continue in full force and effect through November 30, 2022, and from month to month thereafter unless either paiiy shall give written notice of intention to terminate at least thirty (30) days prior to the expiration of the original term or any one month extension thereof.

8. RATE

In consideration of Buyer's requirements for Firm Natural Gas service for Priority-

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(i) SPFCIAL PROVISIONS

(1) The Buyer bears sole responsibility for costs incurred to delivertransportation gas to Seller.

(2) Buyer shall be required to reimburse Seller for any out-of-pocket expensesincurred in connection with the initiation and rendering of service underthis Transportation Agreement.

(3) Seller retains sole discretion as to whether or not a particular Buyer orparticular Buyers shall receive service pursuant to TransportationAgreements.

(4) It is contemplated that service pursuant to this Transportation Agreetnentshall be provided within the existing limitations of Seller's system, andSeller shall not be required to expand or alter the said system.

(5) Transportation service may be curtailed or discontinued at the sole optionof Seller aIIer not less than two (2) hours advance notice by telephone orotherwise. However, the Buyer shall continue to hold title to any gas (lessshrinkage) received by Seller and not delivered prior to such curtailment ordisconti utance. Seller will notify Buyer when conditions permit Seller toresume transportation service,

6. INITIAL SERVICE

Buyer agrees to begin purchasing natural gas under the terms and conditions of thisAgreement at 10:00 A.M. Eastern Time on December 1, 2017, or as soon thereafter asBuyer changes plant operations to accept 1,800 dekatherms FIRM service on a dailybasis with the remaining volumes INTERRUPTIBLE service. Buyer agrees that thesechanges will be made prior to March I, 2018, at which time the Service andTransportation Agreements between Buyer and Seller dated July 12, 2012, shallterminate.


This Agreement shall become effective on December 1, 2017, and shall continue infull force and effect through November 30, 2022, and from month to month thereafterunless either party shall give written notice of intention to terminate at least thirty (30)days prior to the expiration of thc original term or any one month extension thereof.

8. RATE

In consideration of Buyer's requirements for Firm Natural Gas setvice for Priority-

S e l l e r t h e c h a r g e s s e t f m i h b e l o w :

G a s v o l u m e s w i l l b e c o r r e c t e d for B T U c o n t e n t , p r e s s u r e , t e m p e r a t u r e ,

s u p e r c o m p r e s s i b i l i t y , s p e c i f i c gravity, and o t h e r f a c t o r s w h e r e a p p l i c a b l e .

( A ) F I R M N A T U R A L G A S , P R I O R I T Y - O F - S E R V I C E C A T E G O R Y 3B

(1) D e m a n d C h a r g e - T h e m o n t h l y d e m a n d c h a r g e for F i r m N a t u r a l Gas

s e r v i c e s h a l l be c a l c u l a t e d by m u l t i p l y i n g t h e M a x i m u m D a i l y Q u a n t i t y

( M D Q ) o f 1 , 8 0 0 d e k a t h e r m s by t h e d e m a n d c h a r g e r a t e o f $8 . 00 p e r

d e k a t h e r m .

(2) S t a n d b y D e m a n d C h a r g e - T h e m o n t h l y s t a n d b y c h a r g e for F i r m N a t m a l

Gas s e r v i c e is e f f e c t i v e i n the w i n t e r m o n t h s o f N o v e m b e r tlu·ough A p r i l ,

only, and s h a l l be c a l c u l a t e d b y m u l t i p l y i n g t h e M a x i m u m D a i l y Q u a n t i t y

( M D Q ) o f 1,800 d e k a t h e r m s b y t h e d e m a n d c h a r g e r a t e o f $ 6 . 0 0 p e r

d e k a t h e r m .

(3) C o m m o d i t y C h a r g e - E a c h m o n t h , t h e c o m m o d i t y c h a r g e for d a i l y

v o l u m e s o f F i r m N a t u r a l Gas s e r v i c e d e l i v e r e d by S e l l e r f r o m S e l l e r ' s

s y s t e m s u p p l y to B u y e r in P r i o r i t y - o f - S e r v i c e C a t e g m y 3B s h a l l b e fifty

c e n t s ( $ 0 . 5 0 ) p e r d e k a t h e r m p l u s S e l l e r ' s C o m m o d i t y C o s t o f Gas.

S e l l e r ' s C o m m o d i t y C o s t o f Gas s h a l l b e t h e c o m m o d i t y p r i c e a t t h e

N Y M E X c l o s i n g date p l u s any a p p l i c a b l e slu-inkage a n d t r a n s p o 1 i a t i o n

c h a r g e s o n u p s t r e a m p i p e l i n e s .

(B) C O M P E T I T I V E F U E L R A T E ( G A S - T O - G A S )

(1) Seller acknowledges that Buyer also has the capability to use transported gas to satisfy Buyer's requirements in Priority-of-Service Categmy 3B. Buyer and Seller hereby agree that Seller has the oppmiunity to bid a price to Buyer to displace Buyer's transpo1ied gas in accordance with the procedures of this Paragraph 7(B).

(2) Seller agrees to provide Buyer with notice, verbally, or in writing, before the end of each calendar month of the price at which Seller is able to sell gas to Buyer for the next ensuing calendar month to displace transpmiation gas.

(3) Buyer agrees to respond to Seller, verbally by telephone, or in writing, prior to the beginning of the next ensuing calendar month, that Buyer accepts or rejects Seller's offer.

(4) In the event Buyer accepts Seller's offer, Buyer may not discontinue the purchase of natural gas for Buyer's fuel requirements hereunder.

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of-Service Category 3B, Buyer agrees to pay Seller the cltargcs set forth below:

Gas volumes will be corrected for BTU content, pressure, temperature,supercompmssibility, specific gravity, and other factors where applicable.

(A) FIRM NATURAL GAS PRIORITY-OF-SERVICE CATFGORY 3B

i1) D~nd Ch - Th»»thiy d d h g f Fi N tu I 0service shall be calculated by multiplying the Maximum Daily Quantity(MDQ) of I 800 dekatherms by the demand charge rate of $8.00 perdekathenn.

(2) Standb Demand Char e - The monthly standby charge for Firm NaturalGas service is effective in the winter months of November through April,only, and shall be calculated by multiplying the Maximum Daily Quantity(MDQ) of I 800 dekatherms by the demand charge rate of $6.00 perdekatherm.

(3) Commodit Char e - Each month, the commodity charge for dailyvolumes of Firm Natural Gas service delivered by Seller from Seller'system supply to Buyer in Priority-of-Service Category 3B shall be fiftycents ($0.50) per dekatherm plus Seller's Commodity Cost of Gas.Seller's Commodity Cost of Gas shall be the commodity price at theNYMEX closing date plus any applicable shrinkage and transportationcharges on upstream pipe) ines,

(B) COMPETITIVE FUEL RATE GAS-TO-GAS

(I) Seller acknowledges that Buyer also has the capability to use transported gasto satisfy Buyer's requirements in Priority-of-Service Category 3B, Buyerand Seller hereby agree that Seller has the opportunity to bid a price to Buyerto displace Buyer's transported gas in accordance with the procedures of thisParagraph 7(B).

(2) Seller agrees to provide Buyer with notice, verbally, or in writing, before theend of each calendar month of the price at which Seller is able to sell gas toBuyer for the next ensuing calendar month to displace transportation gas.

(3) Buyer agrees to respond to Seller, verbally by telephone, or in writing, priorto the beginning of the next ensuing calendar month, that Buyer accepts orrejects Seller's offer.

(4) In the event Buyer accepts Seller's offer, Buyer may not discontinue thepurchase of natural gas for Buyer's fuel requirements hereunder.

S e l l e r ' s o f f e r , a n d e l e c t s to t r a n s p 0 1 i B u y e r ' s o w n

g a s , t h e n B u y e r s h a l l h a v e no o b l i g a t i o n to p u r c h a s e a n y g a s f r o m S e l l e r ' s

s y s t e m s u p p l y .

( 6) I n no e v e n t w i l l t h e c o s t o f n a t u r a l g a s as d e t e r m i n e d b y t h i s p a r a g r a p h ,

e x c e e d t h e s t a n d b y c o m m o d i t y c h a r g e r e f e r e n c e d i n R a t e 3 5 , a t t a c h e d as

E x h i b i t A.

9. B I L L I N G V O L U M E S

F o r t h e p u r p o s e o f b i l l i n g , t h e p a i i i e s a g r e e t h a t t h e f i r s t g a s d e l i v e r e d t h r o u g h t h e P o i n t

o f D e l i v e r y s h a l l b e t h e v o l u m e s t r a n s p o r t e d f o r B u y e r o n a d a i l y b a s i s p u r s u a n t to t h e

t r a n s p 0 1 i a t i o n s e r v i c e s p e c i f i e d i n P a r a g r a p h 5 h e r e i n . A l l v o l u m e s i n e x c e s s o f t h e

t r a n s p o r t e d v o l u m e s w i l l b e c o n s i d e r e d as h a v i n g b e e n d e l i v e r e d f r o m S e l l e r ' s s y s t e m

s u p p l y p u r s u a n t to t h e s t a n d b y p r o v i s i o n s o f t h i s A g r e e m e n t .

10. C R E D I T W O R T H I N E S S

S e l l e r , i n o r d e r to s a t i s f y i t s e l f o f t h e a b i l i t y o f t h e B u y e r to m e e t i t s o b l i g a t i o n s u n d e r

t h e c o n t r a c t , m a y c o n d u c t p e r i o d i c r e a s o n a b l e c r e d i t r e v i e w s i n a c c o r d a n c e w i t h

s t a n d a r d c o m m e r c i a l p r a c t i c e s . B u y e r a g r e e s t o a s s i s t i n t h e s e r e v i e w s b y p r o v i d i n g

f i n a n c i a l i n f o r m a t i o n a n d a t t h e r e q u e s t o f t h e S e l l e r , w i l l m a i n t a i n s u c h c r e d i t s u p p 0 1 i

o r s u r e t y i n c l u d i n g , b u t n o t l i m i t e d to, a n u n c o n d i t i o n a l a n d i r r e v o c a b l e l e t t e r o f c r e d i t

to p r o v i d e a d e q u a t e s e c u r i t y for p r o t e c t i o n a g a i n s t t h e r i s k o f n o n p a y m e n t .

11. A S S I G N M E N T

C u s t o m e r s h a l l n o t a s s i g n t h i s A g r e e m e n t o r i t s r i g h t s h e r e u n d e r w i t h o u t t h e p r i o r

w r i t t e n c o n s e n t o f t h e C o m p a n y , w h i c h c o n s e n t m a y b e w i t h h e l d i n t h e e x e r c i s e o f i t s

s o l e d i s c r e t i o n .

12. G E N E R A L T E R M S A N D C O N D I T I O N S

T h e G e n e r a l T e r m s a n d C o n d i t i o n s to I n d u s t r i a l S e r v i c e A g r e e m e n t s a t t a c h e d h e r e t o

a n d d u l y e x e c u t e d by b o t h p a t t i e s , are h e r e b y i n c o r p o r a t e d i n a n d m a d e a p a i i o f t h i s

S e r v i c e A g r e e m e n t . S h o u l d t h e r e b e a n y c o n f l i c t b e t w e e n a n y p o r t i o n o f t h e G e n e r a l

T e r m s a n d C o n d i t i o n s t o I n d u s t r i a l S e r v i c e A g r e e m e n t s a n d t h i s A g r e e m e n t , t h e pa1iies

a g r e e t h a t t h e A g r e e m e n t s h a l l p r e v a i l .

13. N O T I C E S

A l l c o r r e s p o n d e n c e r e q u i r e d o f B u y e r a n d S e l l e r u n d e r t h i s A g r e e m e n t is to b e

a d d r e s s e d a s f o l l o w s :

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(5) hi the event Buyer rejects Seller's offer, and elects to transport Buyer's owngas, then Buyer shall have no obligation to purchase any gas fi'om Seller'system supply,

(6) In no event will the cost of natural gas as determined by this paragraph,exceed the standby conunodity charge referenced in Rate 35, attached asExhibit A.

9. BILLING VOLUMES

For the purpose of billing, the parties agree that the first gas delivered through the Pointof Delivery shall be the volumes transported for Buyer on a daily basis pursuant to thetransportation service specified in Paragraph 5 herein. All volumes in excess of thetransported volumes will be considered as having been delivered from Seller's systemsupply pursuant to the standby provisions of this Agreement.

10. CREDITWORTHINESS

Seller, in order to satisfy itself of the ability of the Buyer to meet its obligations underthe contract, may conduct periodic reasonable credit reviews in accordance withstandard commercial practices. Buyer agrees to assist in these reviews by providingfinancial information and at the request of the Seller, will maintain such credit supportor surety including, but not limited to, an iinconditional and irrevocable letter of credit.to provide adequate security for protection against the risk of nonpayment.

11, ASSIGNMENT

Customer shall not assign this Agreement or its rights hereunder without the priorwritten consent of the Company, which consent may be witlihcld in the exercise of itssole discretion.

12. GENERAL TERMS AND CONDITIONS

The General Terms and Conditions to Industrial Service Agreements attached heretoand duly executed by both parties, are hereby incotporated in and made a part of thisService Agreement. Should there be any conflict between any portion of the GeneralTerms and Conditions to Industrial Service Agreements and tins Agreement, the partiesagree that the Agreement shall prevail.

13, NOTICES

All correspondence required of Buyer and Seller under this Agreement is to beaddressed as follows:

Seller:

To Buyer:

S o u t h C a r o l i n a E l e c t r i c & Gas Company Large Customer Group, Mail Code B-102 Cayce, SC 29033

Sonoco Products Company Attn: Lisa Beasley P. 0. Box 160 Hartsville, SC 29551

IN WITNESS WHEREOF, this Agreement has been executed on the date first above written by· the patties hereto by their officers or other representatives.

SOUTH CAROLINA ELECTRIC & GAS SONOCO PRODUCTS COMPANY COMPANY Buyer Seller

-c-.10 d-@~ £L~b'~ 'BY William G. Watkins

Manager - Large Customer Accounts & Services Title r ' I Title

Date I 1 /( /;::t/17

~ 7 , Date

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To Seller: South Carolina Electric & Gas CompanyLarge Customer Group, Mail Code B-102Cayce, SC 29033

To Buyer: Sonoco Products CompanyAttn: Lisa BeasleyP. O. Box 160Hartsville, SC 29551

IN WITNESS WHEREOF, this Agreement has been executed on the date first above writtenby the patties hereto by their otficers or other representatives.

SONOCO PRODUCTS COMPANYBuyer

SOUTH CAROLINA ELECTRIC & GASCOMPANYSeller

Title

Dateli IZ /

By William G. Watkins

Mana er — Lar e Customer Accounts & ServicesTitle

)/ goyDate

x

I

S O U T H C A R O L I N A E L E C T R I C & G A S C O M P A N Y

G A S

R A T E 3 5

A V A I L A B I L I T Y

T R A N S P O R T A T I O N A N D S T A N D B Y S E R V I C E

(Page 1 o f 2)

T r a n s p o r t a t i o n service is a v a i l a b l e to any c u s t o m e r who has firm r e q u i r e m e n t s o f 50 D e k a t h e r m s M a x i m u m d a i l y Quantity (MDQ)

or g r e a t e r and, w h o owns and d e l i v e r s g a s to the Company at an a c c e p t a b l e p o i n t o f connection , for d e l i v e r y by the Company to

the c u s t o m e r ' s regular point o f s e r v i c e .

S e r v i c e will be supplied a t the b e s t e f f o r t s o f t h e Company and may be r e s t r i c t e d from time to time d u e to operating limitations on

the C o m p a n y ' s system or from third party r e s t r i c t i o n s . In the event o f s u c h limitations, the t r a n s p o r t a t i o n service is subordinate to

s e r v i c e u n d e r all o t h e r rate s c h e d u l e s and may be curtailed or interrupted, normally upon n o t less than two hours advance notice,

or, w h e n necessitated by c o n d i t i o n s affecting the Company's gas system, upon less than two h o u r s a d v a n c e n o t i c e .

R A T E P E R M O N T H

T r a n s p o r t a t i o n S e r v i c e

M o n t h l y Demand Charge:

First 50 D e k a t h e r m s @ $ 5 9 1 . 0 0

_E_ x _ce_s_s_o_v_e_r _ _ _ 5 _ 0 _ D _ e k _ a _ t h _ e _ r _ m _ s _ , @ " " - - - - - - - - - - - - - - - - - ' $ _ 7 _ . 9 _ 7 _ p e r Dekatherm

_C_o_m_m_o_d_it~y_C_h_a_,rg~e_@~--------------------"$_1._5_7_59_0_per delivered Dekatherm

DETERMINATION OF BILLING DEMAND

(a) Billing Months of November-April: The monthly billing demand shall be the greatest of: (1) The actual MDQ; (2) The contract MDQ; or (3) 50 Dekatherms.

(b) Billing Months of May-October: The monthly billing demand shall be the greatest of: (1) The actual MDQ; (2) 50% of the contract MDQ; or (3) 50% of the highest MDQ occurring during any of the preceding billing months of November-April; or (4) 50 Dekatherms.

Standby Service

In addition to the demand charges for transportation service the following charges will apply for gas supplied by the Company.

(a) Billing Months of November-April:

(b)

The monthly billing demand shall be the greatest of: (1) The actual MDQ; (2) The contract MDQ; or (3) 50 Dekatherms.

_D_e_m_a_n_d_C_h_a_rg~e~@~---------------------$_6_._oo_per Dekatherm _C_o_m_m_o_d_it~y_C_h_a_rg~e~@~ ___________________ $ _ _ 7._0_0_27_per Dekatherm

Billing Months of May-October:

Demand Charge @ None _C_o_m_m_o_d_it~y_C_h_a--'rg~e~@~ ___________________ $ __ 7._0_0_27_per Dekatherm

MINIMUM CHARGE

The monthly minimum charge shall be the demand charges as determined above.

ADJUSTMENT FOR RECOVERY OF GAS COSTS

The commodity charges above include gas costs of $5.4395 per dekatherm. These charges are subject to adjustment by order of the Public Service Commission of South Carolina.

DELIVERED GAS QUANTITY

When separate metering is not feasible, the Company shall assume for billing purposes, unless otherwise agreed to, that such metered volumes reflect deliveries under this rate schedule prior to gas received under any other rate schedule.

The quantity of transportation gas received into the Company's system for the customer's account to be delivered to the customer by the Company shall be reduced by 3% in measurement for line loss and unaccounted for gas.

Effective For Bills Rendered On and After the 1st Billing Cycle of October 2017

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Exhibit ASOUTH CAROLINA ELECTRIC & GAS COMPANY GAS

RATE 35 TRANSPORTATION AND STANDBY SERVICE(Page 1 of 2)

AVAILABILITY

Transportation service is available to any customer who has firm requirements of 50 Dekatherms Maximum daily Qusntily (MDQ)or greater end, who owns and delivers gas lo the Company at sn acceptable point of connecdon, for delivery by the Company tothe cuslomer's regular point of service.

Service wilt be supplied ai the best efforts of ihe Company and may be restricted from lime to time due to operating limitations onthe Company's system or from third party restrictions. In the event of such limitations, the lransportation service is subordinate toservice under all other rale schedules and may be curtailed or interrupted, normally upon not less than two hours advance notice,or, when necessitated by condigons affecting the Company's gas system, upon less than two hours advance notice.

Transportation Service

Monthly Demand Charge:

Flrsl 50 Dekalherms

Excess over 50 Dekatherms

Commodi Char e

RATE PER MONTH

$ 591.00

$7.97 per Dekatherm

$1.57590 per delivered Oekalherm

DETERMINATION OF BILLING DEMAND

(a)

(b)

Billing Months of November.April:The monthly billing demand shall be ihe greatest of: (1) The actual MDQ; (2) The conlract MOQ; or (3) 50Oekatherms.

Biglng Months of May-OctobenThe manthly billing demand Shall be the grealeat Of. (1) The aCtual MDQ; (2) 50% Of the COntraCt MDQ; Or (3) 50)v Of

the highest MDQ occurring during any of the preceding billing monihs of November-April; or (4) 50 Dekatherms.

Standby Service

In addition to Ihe demand charges for Iransponalion service the following charges will apply for gas supplied by the Company.

(a) Billing Months of November-Aprg:The monthly billing demand shall be Ihe greatest of: (1) The actual MDQ; (2) The contract MDQ; or (3) 50Oekalherms.

Demand Cha e

Commodity Char e

(b) Bgling Months of May-October:

Demand ChargeCommodi Char e

$5.00 per Dekalherm

$ 7.0027 per Dekatherm

None$ 7.0027 per Dekatherm

MINIMUM CHARGE

The monthly minimum charge shall be the demand charges as determined above.


The commodity charges above Indude gas costs of $5.4395 per dekalherm. These charges are subject to adjustment by order ofIhe Public Service Commission of South Carolina.


When separate metering is not feasible, the Company shall assume for billing purposes, unless otherwise agreed to, that suchmetered volumes reflect delivedies under this rate schedule pdior lo gas received under eny other rate schedule.

The quantity of transportation gas received into the Company's system for the customer's account lo be delivered to the cuslomerby the Company shall be reduced by 3% in measuremenl for line loss and unaccounted for gas.

Effeclive For Bills Rendered On and After the 1st Billing Cycle of October 2017

& G A S C O M P A N Y

G A S

R A T E 3 5

T R A N S P O R T A T I O N A N D S T A N D B Y S E R V I C E

(Page 2 o f 2)

D E L I V E R E D G A S Q U A N T I T Y

The volume o f gas received on a daily basis for customer's a c c o u n t may not equal the volume, less shrinkage, delivered to the

customer. The result will be deemed an imbalance. Customer's a c c o u n t will be reviewed a t the end o f each month , o r on termination

o f Transportation Service o r c u r t a i l m e n t or discontinuance thereof. I f the imbalance is such t h a t the customer has received more gas

than was delivered to the Company during the period under review, customer shall be billed for such as standby service. I f the

imbalance is such that the c u s t o m e r has received less gas than was delivered to the Company, the Company may exercise one o f

two options, in its sole discretion . The Company may: (1) d e l i v e r the e x cess gas to the c u s t o m e r , o v e r the ne x t calendar month

succeeding the review, a t such times as the Company shall determine in its sole discretion; o r (2) buy e x cess gas at Company's

lowest delivered purchase price in t h a t month from any o f Company's suppliers .

L I A B I L I T Y

The Company shall not be liable f o r c u r t a i l m e n t o f service u n d e r this rate schedule o r loss o f gas o f the c u s t o m e r as a result o f any

steps taken to comply with any law, regulation, or order o f any governmental agency with j u r i s d i c t i o n to regulate, allocate or control

gas supplies or the rendition o f service hereunder, and regardless o f any d e f e c t in such law, regulation, or order.

Gas shall be and remain the property o f the c u s t o m e r while being transported and delivered by the Company . The customer shall be

responsible for maintaining all insurance it deems necessary to protect its property interest in such gas before, during, and a f t e r

receipt by the Company .

The Company shall not be liable for any loss to the c u s t o m e r arising from or out o f service u n d e r this rate schedule, including l o s s o f

gas in the possession o f the Company or any other cause, e x c e p t gross or willful n e g l i g e n c e o f the Company's own employees o r

agents. The Company reserves the r i g h t to commingle gas o f the customer with other supplies .

S A L E S A N D F R A N C H I S E T A X

To the above will be added any a p p l i c a b l e sales ta x , franchise fee o r business license tax w h i c h may be assessed by any state o r

local governmental body .

P A Y M E N T T E R M S

All bills are net and payable when rendered.

T E R M O F C O N T R A C T

The customer shall execute an A g r e e m e n t o f Service with the Company which shall specify the maximum daily volume o f gas to be

transported , the period o f time that the Company will receive such gas, and all conditions u n d e r which d e l i v e r y to the Company will be

accepted and delivery to the c u s t o m e r will be made . The customer m u s t provide the Company with all necessary documentation o f

ownership and authorization required by any regulatory body with jurisdiction.

G E N E R A L T E R M S A N D C O N D I T I O N S

The Company's General Terms and Conditions are incorporated by reference and a part o f this rate schedule.

A N N U A L N O M I N A T I O N

Customers must elect . to receive a) Transportation Service only, b) Transportation Service with S t a n d b y Service, or c) Standby S e r v i c e

only for each applicable period . Such elections must be made to the Company in writing by O c t o b e r 15th o f each y e a r to be e f f e c t i v e

for each month during the period N o v e m b e r 1 s t to October 31st following. New customers u n d e r this t a r i f f s h a l l elect volumes at the

time their service contract becomes effective. I f no p r i o r election has been made then the c u s t o m e r will receive Standby Service only.

If any customer fails to make a timely election, then the prior period election will carry over f o r the following period. All elections shall

be binding for the duration o f the N o v e m b e r 1st to October 3 1 s t period and may not be revoked, suspended or modified by the

Customer.

E f f e c t i v e F o r Bills R e n d e r e d On a n d A f t e r the 1 s t B i l l i n g C y c l e o f O c t o b e r 2 0 1 7

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SOUTH CAROLINA ELECTRIC & GAS CONIPANY GAS

RATE 35 TRANSPORTATION AND STANDBY SERVICE(Page 2 of 2)


The volume of gas received on a daily basis for customer's account may not equal the volume, tees shrinkage, delivered to lhecustomer. The resug will be deemed an imbalance. Customers account will be reviewed al Ihe end of each month, or on terminationof Transportation Service or curtailment or discontinuance Ihereof. If the Imbalance is such that the cuslomw has received more gasthan was delivered to lhe Company during ihe period under review, customer shall be billed for such as standby service, It theimbalance is such Ihat lhe customer has received less gas than was delivered to Ihe Company, Ihe Company may exercise one oftwo opliuns, in its sole discretion. The Company may: (1) deliver Ihe excess gas to Ihe customer, over Ihe nexl calendar monthsucceeding the review, st such Umes as the Company shall determine in its sole discretion; or (2) buy excess gas at Company'slowest delivered purchase price in thai month from any of Company's suppliers,

LIABILITY

The Company shell not be liable for curtailment of service under this rate schedule or loss of gas of the customer as a result of anyslaps taken to comply with any law, regulation, or order of any governmental agency with jurisdiction to regulate, allocate or controlgas supplies or the rendition of service hereunder, and regardless of any defect in such law, regulation, or order..

Gas shall be and remain ihe properiy of ihe customer while being transported and delivered by ihe Company. The customer shall beresponsible for maintaining all insurance It deems necessary lo protect its properly interest ln such gas betore, during, and aflerreceipt by the Company.

The Company shall nol be liable for any loss to ihe customer ansing from or out ol service under this rate schedule, including loss ofgas in the possession of the Company or any other cause, excepi gross or willful negligence of the Company's own employees oragents. The Company reserves the right lo commingle gas of Ihe customer with other supplies.

SALES AND FRANCHISE TAX

To Ihe above will be added any applicable sales lax, franchise fee or business license tax which may be assessed by any slate orlocal governmental body.


PAYMENT TERMS

TERM OF CONTRACT

The customer shalt execute an Agreement of Service with Ihe Company which shall specify Ihe maximum daily volume of gas to betransported, ths period of time that lhe Company wig receive such gas, and all conditions under which delivery to Ihe Company will beaccepted and delivery lo lhe customer will be made. The customer must provide lhe Company with all necessary documentation ofownership and authorization required by any regulatory body with jurisdiction.

GENERAL TERMS AND CONDITIONS

The Company's General Terms and Conditions are incorporated by reference and a part of Ibis rate schedule,

ANNUAL NOMINATION

Customers must elect lo receive a) Transportation Service only, b) Transportation Service with Standby Service, or c) Standby Serviceonly for each applicable period. Such alerritons must be made to the Company in writing by Oclober 15th ol each year to be eifaclivefor each month during the period November 1st lo October 31st following. New customers under this tarN shall elect volumes at thetime their service conlracl becomes effective. If no prior elecgon has been made then Ihe customer will receive Standby Service only.If any cusiomer fails lo make a timely election, then the prior period election will carry over for Ihe following period All elections shallbe binding for the duration of the November 1st to October 31st period and may not be revoked, suspended or modiTied by lheCustomer.

Effective For Bgls Rendered On and After the 1st Billing Cycle of October 201 7

& GAS COMPANY

GENERAL TERMS AND CONDITIONS TO INDUSTRIA~ SERVICE AGREEMENTS FOR GAS ORIGlNAL Article I

GENERAL These Terms and Conditions to Industrial Seivice Agreements are supplementary to the Rules and Regulations issued by the Public Seivice Commission of South Carolina and the General Terms and Conditions of South Carolina Electric & Gas Company as provided by the Public Seivice Commission of South Carolina. The provision of these Terms and Conditions apply to all persons, partnerships, corporations or others designated as industrial users who are lawfully receiving gas seivice from South Carolina Electric & Gas Company under rate schedules or seivice agreements filed with the Commission. To the extent these Terms and Conditions conflict with the General Terms and Conditions for natural gas seivice, the General Terms and Conditions for natural gas seivice control. South Carolina Electric & Gas Company is referred to herein as "Seller", and the user or prospective user is referred to as "Buyer". The Public Seivice Commission of South Carolina is referred to herein as "Commission".

Article II DEFINITIONS

Except where the context otherwise indicates another or different meaning or intent, the following terms are intended and used and shall be construed to have meaning as follows: 1. 'Day" shall mean a period of twenty-four (24) consecutive hours beginning at 10:00 A.M. Eastern Time or at such other hours as may be designated. 2. 'Month" shall mean the period between any two (2) regular readings of SeMs meters which shall be not less than twenty-eight (28) days or more than thirty-four (34) days. 3. "Year" shall mean a period of 365 days commencing with the day of first delivery of gas hereunder, and each 365 days thereafter except that in a year having a date of February 29th,

such year shall consist of 366 days. 4. 'Cubic foot of gas" shall mean the amount of gas necessary to fill a cubic foot of space when the gas is at a temperature of sixty degrees Fahrenheit (60°F) and under an absolute

pressure of fourteen and seventy-three hundredths pounds per square inch (14.73 psia). 5. "CCF" shall mean one hundred (100) cubic feet of gas. 6. 'MCF' shall mean one thousand (1000) cubic feet of gas. 7. "BTU" shall mean a British Thermal Unit and is the amount of heat required to raise the temperature of one (1) pound of water 1° Fahrenheit at 60° Fahrenheit. 8. 'MMBTU" shall mean one million British Thermal Units. 9. 'Therm' shall mean the quantity of heat energy which is 100,000 British Thermal Units. 10. "Dekatherm" (di) shall mean the quantity of heat energy which is 1,000,000 British Thermal Units. 11 . 'Natural Gas" or 'Gas" shall mean natural gas, processed or unprocessed, vaporized liquid natural gas, synthetic gas, propane-air mixture, landfill gas, other unconventional source of

methane gas or any mixture of these gases. 12. "Firm Seivice" shall mean seivice from rate schedules and/or contracts under which Seller is expressly obligated to deliver specific volumes within a given time period and which

anticipates no interruptions but which may permit unexpected interruptions in case the supply to higher priority customers is threatened. 13. ' Interruptible Seivice" shall mean seivice from rate schedules and contracts under which Company is not expressly obligated to deliver specific volumes within a given time period, and

which anticipates and permits interruption on short notice, or seivice under rate schedules or contracts which expressly or impliedly require installation of alternate fuel capability. 14. 'Commercial Seivice" shall mean seivice to Customers engaged primarily in the sale of goods or seivices including institutions and local, state and federal government agencies for

uses other than those involving manufacturing or electric power generation. 15. ' Industrial Seivices" shall mean seivice to customers engaged primarily in a process which creates or changes raw or unfinished materials into another form or product including the

generation of electric power. 16. 'Plant Protection Gas" shall mean the minimum volumes required to prevent physical harm to the plant facilities or danger to plant personnel when such protection cannot be afforded

through the use of an alternate fuel. This includes the protection of such material in process as would otherwise be destroyed, but shall not include deliveries required to maintain plant production. A determination will be made by the Seller of minimum volumes required. Such essential volumes will be dispatched accordingly.

17. 'Feedstock Gas" shall mean natural gas used as a raw material for its chemical properties in creating an end product. 18. 'Process Gas' shall mean gas used for which alternate fuels, other than another gaseous fuel, are not technically feasible such as in applications requiring precise temperature controls

and precise flame characteristics. 19. "Boiler Fuel" shall mean natural gas used as fuel for the generation of steam and in internal combustion turbine engines for the generations of electricity. 20. 'Alternate Fuel Capability'' shall mean a situation where an alternate fuel could have been utilized whether or not the facilities for such use have actually been installed; provided

however, where the use of natural gas is for plant protection, feedstock or process uses and the only alternate fuel is propane or other gaseous fuel, then the Buyer will be treated as if he had no alternate fuel capability if such fuel is unobtainable for seiving fuel needs.

21 . 'Gas Supply Deficiency'' shall mean any occurrence relating to Seller's gas supply which causes Seller to deliver less than the total requirements of its system, including failures of suppliers to deliver gas for any reason, requirement of gas for system storage, conseivation of gas for future delivery, or any other occurrence not enumerated herein which affects Seller's gas supply.

22. "Storage Injection Requirements" shall mean all volumes required by the Seller for injection into underground storage, including cushion gas, and for liquefaction, including fuel used for injection in liquefaction plants, or for such other storage projects that may be developed expressly for the protection of supply to high priority users.

23. 'Seller Use" shall mean fuel used for gas compression, LPG plants and LNG plants, other gas needed by Seller's facilities to furnish the requirements of Buyers, together with unaccounted for gas. This gas shall be considered included in Priority of Seivice Category 1. Other vital uses of Seller, such as flame stabilization requirements, will be met as long as such uses do not jeopardize seivice to its firm seivice Buyers.

24. 'Essential Human Needs' shall mean natural gas seivice, which, if denied, would cause shutdown of an operation resulting in the closing of an establishment essential to maintaining the health and safety of the general public.

25. 'The Point of Delivery" shall be at the outlet side of the Seller's measuring equipment and regulating equipment. 26. "Emergency Seivice' shall mean supplemental deliveries of natural gas that may be required to forestall irreparable injury to life or property including environmental emergencies.

Article Ill CURT AILMENT OF SERVICE

1. In the event of a Gas Supply Deficiency on the Seller's system, the Seller shall require curtailment of seivice to Buyer in accordance with the following procedure: a. The Seller shall order curtailment of sales made to Buyer's purchasing gas under the Seller's rate schedules or special contracts in descending order in accordance with priority of

seivice categories set forth below. Approved emergency gas is excepted from curtailment. 1. Residential and small commercial Buyers (less than 50 MCF on a peak day) and essential human needs customers where there is no installed or available alternate fuel capability. 2. Large commercial direct flame requirements (50 MCF or more on a peak day); firm industrial requirements for plant protection, feedstock and process needs; and storage injection requirements. 3A. Firm industrial requirements for uses other than boiler fuel which do not qualify for Category 2. 3B. Firm commercial and industrial boiler fuel requirements up to 1,000 MCF on a peak day. 3C. Interruptible requirements for human need types of facilities such as public buildings, hospitals and laundries. 3D. Interruptible requirements for direct flame applications which can utilize only another gaseous fuel as an alternate.

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SOUTH CAROLINA ELECTRIC 8 GAS COMPANYGENERAL TERMS AND CONDITIONS TO INDUSTRIAL SERVICE AGREEMENTS FOR GAS

Article I

GENERALThese Terms and Condigons lo Industrial Service Agreemenls are supplementary lo Ihe Rules and Regulations Issued by Ihe Pubgc Senrice Commission ol South Carogna and theGeneral Tenne and Conditions or South Carolina Eleckb 8 Gas Conrpany as provided by the Pubgc Senrice Commission of South Carolina.Tlm provision of these Terms and Conditions apply lo ag persons, parlnerships, corporations or others designated as industrial users who am lawlugy receiving gas service from SouthCarokna Eledric & Gas Company under mle schedules or service agreements filed with Ihe Commission. To Ihe extent these Terms and Conditions conglct with the General Tenne endCondiUons for natural gas service, Ihe General Terms and Conditions (or natural gas seniice control.South Caroms Ebctric 8 Gas Company is referred to herein as 'Seller', and Ihe user or prospective user is referred lo as 'Buyer'. The Public Senrice Commission ot South Camlina Is

refened lo herein as 'Commission".

Article II

DEFINITIONSExcept where Ihe context olhenvise indicates another or dilferenl meaning or Intent, the foUowing tenne are intended and used and shall be construed lo have meaning as follows:

1. 'Day'hall mean a pericd of twenty four(24) consecutive houm beginning al 10 00 A M. Eastern Time orat such other Ihours as may be designated.2, 'Monrr shall mean Ihe period between any two (2) regular readings of Seller's meters which shall be not less than twenty eight(28) days or more Ihan Ihirly four (34) days.3. 'Year'shag mean a period oi 385 days commenrring with Ihe day of firml delivery of gas hereunder, and each 365 days Ihereafter except Ihal in a year having a dale of February 29th,

such year shall consisl of 366 days.4. 'Cubic foot of gas'hall mean the amount of gas necessary lo kg a cubic loot of spaor when the gas Is ate lemperaiure el sixty degrees Fahrenheit (60'F) and under an absolute

pressure of fourieen end seventy-thme hundredlhs pounds per square Inch (14.73 psla).5. 'COP shall mean ore hundred (100) cubic feei of gas.6. 'MCF'shag mean one Ihousand (1000) cubic feet of gas.7. "BTU'hall mean a Brglsh ThermalUnit and is Ure amovnt of heat required lo raise Ute lemperature of ore (I) pound of water 1'ahrenheil al 60'ahrenheit.8. 'MMBTLF shall mean one mirion Brigsh Thermal Boils.

0, 'Therm'hall mean Ihe quaniky of heat energy which Is 100 000 BriUsh Thennel Unrls.

10. 'Dekalherm'(d0 shall mean Ihe quantity of heal energy which Is 1 000 000 BnTish Thermal Ungs.

11. 'Natural Gas'r Gas'hall mean natural gas, processed or unprocessed, vaporized Uquld natural gas, synlhegc gas, propaneerir mixture, landigl gas, other unconventional source olmethane gas or any mixture of Ihese gases.

12. 'Firm Service'hall mean senrice Irom rale schedules and/or contmds under which Seller is expremly obligated to deliver sperrifrc volumes within a give» tkne period and which

anlidps les no inlerru pitons bul whkh may permit unexpaded interruptions In case the supply lo higher prbrgy customers is Ihreatened,13. 'Inlenuptible Senrice'hall mean service fram rale schedules and conkacW under which Company Is nol expressly obligated lo deliver spedflc volumes within a given time period, and

which antldpsles and permits inlerrupUon on short nodce, or service under rate schedules or contracts which expressly or Impliedly require inslaUalion ot alternate fuel capability.

14. 'Cornmerrrial Service" shag mean service lo Customers engaged primarily In the sale of goads or services indudlng inslgulions and local, slate and federal government agendas for

uses other than Ihose involving manufacturing or electric power generation,15, 'Indusklal Smvices'hall mean service lo customers engaged primaril In a process which creates or changes raw or unlinished materials into another form or pmdurx Induding Ihe

generation of ehclric power.18. "Plant Protection Gas'hall mean Ihe minimum volumes required lo prevent physical harm lo Ihe plant facilities or danger lo plant pwsonnel when such protection cannot be afforded

thmugh the use of an alternate fuel, This Indudes the pmtecgon of such material in process as would otherwise be destroyed, but shall not indude deliverWs required lo maintain plantproduction. A determtnagon will be made by Ihe Selhr of minimum vokrmes required. Such essential volumes will be dispatched accordingly.

17. 'Feedslock Gas'hall mean natural gas used as a raw malarial for ils chemical pmperlies in creaUng an end produd,18. Process Gas'shag mean gas used Wr which agemale lusts, other Ihan another gaseous fuel, are not technlcagy feasibh such as in applications requiring pmcbe lemperature contmls

and precise flame characteristics.19. 'Boiler Fuel'shar mean natural gas used as fuel for the generaUon of steam and In internal combustion lurbine engines for Ihe generagons of electricity.

20. 'Agernate Fuel Capabggy'hall mean a siluagon where an egemate Wel could have been utgized whether or not Um fadlilies for such use have acluagy been inslaged; provided

hmvever, where Ihe use of natural gas is for pienl protecgon. feedslock or process uses and Ihe only alternate fuel b propane or other gaseous fuel, Ihen Ihe Buyer wgl be treated as if

he had no age male fuel capabgily 0 such fuel is unobtainable for serving fuel needs.21. 'Gas Supply Degdency'hall mean any occurrence relaUng lo Segers gas supply whbh causes Seller lo degver less than Ihe intel mquirements of Us system, Induding falkrres oi

suppliers fo deliver gas for any reason, requirement of gas Ior system storage, rxxnservaVon of gas for future delivery, or any other occunence not enumerated herein which affedsSeller's gss supply.

22. 'Storage InjecUon Requirementr'shag mean ag volumes required by the Seller for injecUon into undergmurd storage, induding cushion gas, and for Ilquefacdon, Including fuel used lor

Injection in Itquefacgon plants, or for such other storage pmjecls that may be developed expressly Ior the protection of supply to high priorgy users.23. Selbr Use" shall mean Wel used for gas compression, LPG plants and LNG plants, other gas needed by Segers ladlilies to furnish Ihe requirements of Buyers, togegrer wkh

unaccounted forges. This gas shall be considered induded In Prlorily of Service Category 1. ONer vital uses of Seger, such as game slabilizaUon requirements, will be met as lorg assuch uses do not jeopardize service to its lirm service Buyers.

24. 'Essential Human Needs'hall mean natural gas service, which, ii denied, would cause shutdown of an operagon resulUng in Iha dosing of an establishment essenral lo maintaining

the heagh and safely of the general publ'e,

25. 'The Point ot Degvery" shall be at Ihe ouget skle of Ihe Seller's measuring equipmenl and regulstirg equipmenL26. 'Emergency Senrice'hall mean supplemental deliveries of naWrat gas Ihat may be required to foreslag Irreparable injury lo Be or property induding environmental emergencies.

Article llj

CURTAILMENT OF SERVICE1. In the event of a Gas Supply Degciency an Ihe Seller's system, Ihe Seller shall require curtailment of service lo Buyer in accordance with Ihe folbwing procedure:

a. The Seller shall order curtailmenlofsales made lo Buyer's purchasing gas under the Segers rate schedules or special contracts in descending order In accordance with prlodly ol

service calegorks set forth below. Approved emeniency gas Is excepted from curlailmenL

1, Residential and small commerdal Buyers (less Ihan 50 McF on a peak day) and essenUal human needs customers where Ihere ls no Inslaged or available agemate fuel

capabigly,

2, Large commerdal direct flame requirements (50 MGF ar more on a peak day); linn industrial requirements for plani protection, feedslock and process needs; and storageinjecUon requirements.3A. Firm Industrial requirements for uses other than bailer fuel which do not qualrry for Category 2.

38. Firm commercial end industrial boiler fuel mquiremenls up lo 1,000 MCF on a peak day.3C. Inlerrupfible requiremenls Ior human need lypes of fadgtles such as public buildings, hospitals and laundries.

3D. Inlerruptible requirements for direct Usmc appres tions which can utilize only another gaseous fuel as an alternate.

j

requirements for direct flame applications which can utilize a fuel other than a gaseous fuel as an alternate.

3F. Interruptible requirements for boiler fuel use of less than 300 MCF on a peak day .

4. (LEFT BLANK INTENTIONALLY)


6 . Interruptible Boiler Fuel requirements of 300 MCF or more, but less than 1,500 MCF on a peak day, where alternate fuel capabilities can meet such requirements .

7 . Interruptible Boiler Fuel requirements of 1,500 MCF or more, but less than 3,000 MCF on a peak day, where alternate fuel capabilities can meet such requirements .

8 . Interruptible Boiler Fuel requirements of 3,000 MCF or more, but less than 10,000 MCF on a peak day, where alternate fuel capabilities can meet such requirements.

9. Interruptible Boiler Fuel requirements of 10.000 MCF or more on a peak day, where a _ ltemate fuel capabilities can meet such requirements .

10 . Natural gas requirements of customers, who have an alternate fuel as their primary energy source, but use natural gas as a standby fuel.

b. Curtailment will be in descending order beginning with Category 10 (i.e. Category 1 is the highest priority).

c . A determination of the category in which a Buyer is placed will be made each year based upon usage in the preceding twelve months ending August 31 and/or current contract as

of the same date . The placement of a Buyer in a category in accordance with the determination made herein will be effective November 1 of the current year, e x tending through

October 31 of the following year . A moving base period will be used each year with such base period to include the preceding twelve months ending August 31 of the current

year. Reclassifications in categories will be effective on November 1 of the current year. Where a reclassification is necessary, the effected Buyer will be notified of such

reclassification prtor to November 1 of the current year.

d. Where daily volumes are not available to make the determination of the 50 MCF/day required in the Curtailment Plan, then requirements shall be determined by taking those

Buyers having actual usage of 1000 MCF or more per month for any month during the previous twelve (12) month period ending August 31 . Such month's use will be divided by

the number of days during that specific billing cycle . By means of the average daily volume thus obtained, the Buyer will be placed in the appropriate category . Where daily

volumes for the peak month in the base pertod are available to make the required determination, then such volumes will be used .

e . Any new Buyer added during any base pertod will be placed in the appropriate category by the Seller in accordance with the best information available.

Article IV SCOPE OF AGREEMENT

1. Seller's natural gas operations are regulated by the Commissions and are subject to 'Rules and Regulations Governing Service Supplied by Gas Systems in South Carolina" as amended from time to time. Delivertes of gas hereunder are subject to total or partial curtailment or interruption by Seller pursuant to operating procedures as are now, or may hereafter be, prescrtbed by the Commission. Buyer hereby expressly acknowledges that Seller shall not be liable in damages for, or on account of, any curtailment or interruption of deliveries where such curtailment or interruption is the result of, or pursuant to, operating procedures by the Commission directing curtailment or interruption of service.

2. Buyer shall consult with and furnish to the Seller such information as the Seller may require to determine the availability of service at a particular location before proceeding with plans for any new or additional gas loads. No new or additional gas loads will be served if it is determined that such service will jeopardize service to existing customers by increasing the total system's firm load requirements above available supplies.

3. Delivertes of "Firm Gas" up to the Maximum Daily Quantity set forth in the Service Agreement, shall be firm and shall not be subject to curtailment or interruption by Seller except that caused by Force Majure, or operating conditions beyond Seller's control, or where such curtailment or interruption is the result of, or pursuant to, operating procedures prescribed by the Commission. Deliveries hereunder shall have priority over all delivertes made by Seller on an interruptible basis.

4. Deliveries of ' Interruptible Gas" shall be subject to curtailment or interruption by Seller at any time and from time to time when, in Seller's sole judgment, it does not have gas available, and Buyer hereby expressly acknowledges that Seller shall not be liable in damages for, or on account of, any curtailment or interruption of deliveries. Seller agrees to give Buyer not less than two (2) hours notice of curtailment or interruption in writing or orally in person or by telephone; provided, however, that if curtailment or interruption is occasioned by an event of Force Majeure effecting the Seller's system, Seller shall be obligated to give only such notice as is practicable in the circumstances. Seller agrees to communicate curtailment notices to one of the person designated from time to time by Buyer as authorized to receive such notices. If Buyer has not made such designation, or if Seller is unsuccessful in its efforts to promptly communicate with the persons so designated, then said notice shall be sufficient if given by Seller to any person who is on Buyer's premises or who answers Buyer's telephone. Whenever, and to the extent that the Seller is unable to deliver the gas requiremenls of the Buyer, the Buyer shall have lhe rtght to purchase gas or other fuel sufficient to make up such deficiency from such other source or sources as may at the time be available to Buyer.

5. Gas taken by a Buyer of 'Firm Gas' on any day, without Seller's advance approval, which exceeds Buyer's Maximum Daily Quantity shall be considered to be Unauthorized Overrun Gas. Seller shall bill, and Buyer shall pay, for such Unauthorized Overrun Gas at the following rates, in addition to all other charges payable to Seller hereunder: (a) For the first three percent (3%) of the Maximum Daily Quantity, the Unauthorized Overrun Gas shall be paid for at 1.25 times the Base Rate set forth in the Service Agreement, and (b) For the next two percent (2%) of the Maximum Daily Quantity, the Unauthortzed Overrun Gas shall be paid for at 3.0 times the Base Rate set forth in the Service Agreement, and (c) For additional volumes the Unauthorized Overrun Gas shall be paid for at 5.0 times the Base Rate set for in the Service Agreement. The payment of an Overrun Penalty shall not, under any circumstances, be considered as giving Buyer the rtght to take Unauthorized Overrun Gas, nor shall such payment be considered to exclude or limit any other remedies available to Seller or another Buyer against the offending Buyer for failure to comply with its obligations to stay within its Maximum Daily Quantity.

6. Any gas taken by an interruptible Buyer after the effective hour of an order calling for curtailment of all interruptible gas hereunder shall be billed pursuant to Article Vll(B)(D of the Company's then approved General Terms and Conditions for natural gas service.

7. The Public Service Commission of South Carolina has prescrtbed the following operating procedures in regard to the curtailment of interruptible service by Seller: Durtng the period when operating conditions require curtailments in any type of interruptible service, Seller shall curtail deliveries of gas without discrimination within end-use priority of service categories established by the Public Service Commission of South Carolina and pursuant of curtailment instructions received from its supplier or suppliers made in accordance with General Terms and Conditions to the Service Agreement between Seller and it supplier or suppliers and any subsequent modification or amendment thereof.

8. Buyer agrees that all gas delivered hereunder shall be used by the Buyer and that no portion thereof shall be resold.

Article V QUALITY

1. The gas delivered hereunder shall be natural gas or any mixture of natural and manufactured gas, including but not limited to, synthetic gas or liquified petroleum gas as provided for in Paragraph 3 hereof; provided, however, that moisture, impurities, helium, natural gasoline, butane, propane and other hydrocarbons except methane may be removed prtor to delivery to Buyer, Seller may subject or permit the subjection of the gas to compression, heating, cooling, cleaning, or other processes, which are not substantially detrimental to the merchantability of the gas.

2. The gas delivered hereunder shall have a total heating value of not less than 950, nor more than 1,400 BTU's per cubic foot of dry gas, and be reasonably free of moisture, objectionable liquids and solids so as to be utilized immediately upon delivery to Buyer, and shall contain not more than 200 grains of total sulphur, nor more than 15 grains of hydrogen sulphide per MCF. .

3. Seller may permit its suppliers or it may itself supply gas from any stand-by equipment installed by it or by its suppliers, provided that the gas so supplied shall be reasonably equivalent to the natural gas supplied hereunder, and adaptable for use by Buyer without the necessity of making other than minor adjustments to fuel burning equipment.

4. If the natural gas offered for delivery by Seller shall fail at any time to conform to any of the specifications set forth in the Article V, Quality, then Buyer agrees to notify Seller thereof and Buyer, thereupon, may at its option refuse to accept delivery pending correction by Seller. Upon Seller's failure to properly remedy any deficiency in quality as specified herein, then Buyer may accept delivery of such natural gas and make changes necessary to brtng such gas into conformity with such specifications and Buyer shall then deduct from future payments any reasonable expenses incurred by it in effecting such change as agreed to by both parties.

5. Odortzation of gas delivered hereunder is not required of Seller. However, nothing in these Terms and Conditions shall preclude Seller from odorizing such gas if Seller so desires or if Seller is required by federal or state regulatory agencies to perform such odorization.

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3E. Inlerruplible nrqulremsnls lor dlmm Uame sppkagons whwh can ullgze s fuel other Ihan a gaseous fuel as an agemale.3F, Inlerrupdble requirements for boger luel use of less Ihan 300 MCF on a peak day.4. (LEFT BLANK INTENTIONALLY)


6. Inta rruplibh Seger Fuel requiremenls of 300 MCF or mare, but less than 1 500 MCF an a peak day, where a kernels fuel capabgilies can meet such requirements.7. Inta rrup tibia Baker Fuel mquiremenls of 1 500 MCF or more, but less than 3 000 MCF on a peak day, where agemals fuel capabggies can mast such mqulremenls.8. Intanuplible Boyer Fuel requlrenwnls of 3 000 MCF or more, but less than 10 000 MCF on a peak day, whew alternate fuel capabilities can meet such requirements.g. Inlarrupsbls Boder Fuel requirements of 10.000 MCF or more on a peak day, where alternate fuel capabgglss can meal such requirements,10. Natural gas requirements of customers, who have an alternate luel as their primary energy source, but use natural gas as a standby fuel.

tx Curtailment wgl be In descending order beginning with Calegory 10 (iuw Calegory1 is Ihe hlgheslpriorit).c, A delermirlalion of ihe category in which a Buyer is placed will be made each year based upon usage in Ihe preceding hvslve months ending August 31 and/or currant corked as

of Ihs same dais. The phrxxnenl of a Buyer in a category in accordance wgh Ihe delerminadon made herein will be effective November I of Ihe current year, extending IhroughOrzober 31 of Ihe iogowing year. A moving base perkxl will be used each year with such bass period lo Indude Ihe preceding twelve months ending August 31 ol Ihe currentyear. Rectasstkcadons In categories will be effective an November I oi Ihs current year, Where a rertassiycatton is necessary, the egeded Buyer wgl be nogfr'ed of suchmrtassrkcaqon prior lo Novmnber 1 of Ihe current year.

d, Where daily volumes are not available lo make Ihe determination of Ihe 50 MCF/day required In Ihe Curtagmenl Plan, Ihsn requirements shall be determined by taldng IhoseBuyem having actual usage ol 1000 MCF or more per month lor any month during the previous twelve (12) month period ending August 31. Such month's use will be divided bythe number of days during that specigc billing eyrie. By means of the average dally volume Ihus obtained, Ihe Buyer will be placid In Ihe appropriate category. Where dailyvolumes lor lhe peak month In Ihe base period are avaitable lo make Ihe required determination, Ihen such volumes will be used.

e. Any new Buyer added during any base period wig be placed In the appropriate category by Ihe Seller In accordance wgh Ihe bestinfonnagon available.

Article IV

SCOPE OF AGREEMENTSage(a natural gas operations are regukrted by the Commissions end era subject to 'Rules and Reguladons Governing Service Suppged by Gas Systems In South Camgna's amendedfrom lime lo lime. Deliveries of gas hereunder are subjerrt lo lolal or partial curlailment or interruption by Seller pursuant to operating procedures as are now, or

may hereager be, prescribsd by ihe Commission. Buyer hereby expressly acknowledges Ihat Seger shah not be liable in damages for, or on acrxrunt of, any curtailment or Interruption oldeliveries where such curtailment or interruption is Ihe resug of, or pursuant lo, operating procedures by Ihe Commission direcUng curlegmenl or Interruption of service.

Buyer shall consug wiUi and furnish to Ihe Seller such Inlomialion as Ihe Seller may require lo delermlne Ihe availability of service al a particular locagon before proceeding wkh plans lor

any new or addlUonal gas loads. No new oreddigonal gas loads will bs served if it Is determined thai such service ivgl)sopardlze service to existing customers by increasing Ihe lolelsystem's firm load requirements above available s up pges.Deliverie of 'Firm Gas'p lo Ihe Maximum Daily Quantity sei forth in Ihe Service Agreement, shall be Urm and shall not bs sub)srri lo curtailment or Inlerrupgon by Seller except Ihaicaused by Force Majors, or operating condiTions beyond Segeys control, or wham such curtagmenl or intenupgon is the resug of or pursuant to, operating procedures prewxtbed by theCommission. Deliveries hereunder shall have

prior

U over ag deliveries made by Seller on an intenuptible basis.Delhmries ol 'Inlenuptibls Gas'hall be subject lo curlagmenl or Inlerrupgon by Seller al any Ume and from lime lo Ume when, In Segeys sole )udgmenL 5 doss nol have gas available,aml Buyer hereby expressly acknowhdges Ihat Seller shall rmt be liable in damages for, or on account of, eny curtailmenl or Inlenupiion of deliveries. Seller agrees to give Buyer nolless than two (2) hours notice of curtailmenl or Inlenupgon In writin or oragy in pemon oi by tewphone; pmvided, however, Ihal if curtailment or interruption Is occasioned by an event ofFarce Majeure egscgng Ihe Segeys system, Sugar shall be oblrgaled lo give only such notice as is gras(keble in Ihe circumstances. Seller agrees to communbale curtailment notices loone of Ihe person designated from lime lo lime by Buyer as aulhmized lo receive such noUces. It Buyer has nol made such designabon, or Il Seller is unsuccessful In ils egorts lo

prompUy communicate with the persons so designated, Ihen saki nogce shall tm sutfxxeni If given by Seller to any person who Is on Buyer's pmmtses or who answers Buys/s lelephone.Whenever, and lo Ihe extent Ihal Ihe Seller Is unable lo degver Ihe gas requimmenls of Ihe Buyer, Ihe Buyer shall have Ihe righ lo purchase gas or other leal sufficient to make up suihdefidency fram such other source or soumss ss may al Ihe lime bs available to Buyer.

Gas laken by a Buyer ol 'Firm Gas'n any day, wiUmut Segeys advance appnwal, which exceeds Buyer's Maximum Daily Quantity shall be considered lo be Unauthorized Overrun GasSeller shall bgl, end Buyer shall pay, lor such Unauthortzed Overrun Gas al Ihe fogowlng rates, in addigon lo ag other charges payabkr lo Selhr hereunder.

(a) For ihe fimi Ihree percent (3TL) of Ihe Maximum Daily Quantily, the Unauthorized Overrun Gas shall be paid for al 1 25 limes lhe Base Rale sel forth in Ihe Service Agreement, and

(b) For Ihs next two percent (21k) of Ihe Maximum Daily Quanlily, Ihe Unauthortzed Overrun Gas shall be paid for at 3.0 Umes Ihe Base Rale set forlh in the Senrice Agreemenl, and(c) For additional volumes Ihe Unauthorized Overrun Gas shall be paid for at 5.0 times Ihe Base Rale sel for in Ihe Senrice Agreemenl.The paymenl of an Overmn Penally shall nol, under any circumstances, be considered as giving Buyer Ihe right lo lake Unauthorized Overrun Ges, nor she U such paymenl be considered

to exclude or Umlt any other remedies avagable lo Seller or another Buyer against the offending Buyer for failure lo comply with ks obygations Io slay within ils Maximum Daily Quantity.

Any gas taken by an intenuptible Buyer after the erterxfve hour of sn order caging for curlagment of eg inlerrupUble gas hereunder shall be billed pursuant lo Ardrte VU(B)(f) of IheCompany's then appnwed General Terms and Conditions for natural gss service.

7. Ths Pubgc Servke CommlssWn ol South Carolina has prescribed Ihs fogowing operating procedures in regard lo Ihe curtailment of interrupUble service by SegerDuring Ihe perkxl when operagng condgions require curlar1menls in any type of Inlerruplible service, Seller shall curtail deliveries of gas without discriminatio within end-use priority ofservice categories established by Ihe Public Servke Commission of South Carolina and pursuant ot curtailment inslrucdons received from ils supplier or suppliers made in accordancewith General Terms and Conditions lo the Service Agreemenl between Selhr and it supplier or suppliers and any subsequent modification or amendmenl thereoi,Buyer agrees that ag gas delhrered hereunder shall be used by Ihe Buyer and that no porlkm thereof shall be resold.

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Article V

QUALITYThe gas delivered hereunder shall iw naWml gas or any mixture of natural and manufactured gas, induding but nol limited lo, syntheUc gas or Uqugied petroleum gas as provided for in

Paragraph 3 hweof, pmvtdsd, however, thai moisture, impurgies, helium, natural gasoline, butane, propane and other hydrocarbons except methane may be mmoved prior lo delivery lo

Buyer, Selwr may subject or permit the subjection of the gas to compmsslon, heating, cooling, cleaning, or other processes, which are nol subslanlbgy detrimental to Ihe marchanlabilily

of the gas.The gas delivered hereunder shall have a lotal heating value of nol tees than 950, nor mora Ihan1 400 BTU's per cubic fool of dry gas, and be reasonably free of moleWm, objedlorwbleUqulds and solids so as lo bs uligzed immediately uporl delivery to Buyer, and shall conlaln not mors than 200 grains of total sulphur, nor more than 15 grains of hydrogen sulphkfe perMCF.

Seller may permit its suppyera or il may Uself supply gas from any stand by equipment inslaged by it or by its suppliers, provided Ihal Ihe gas so supplied shall be reasonably equivalent tothe natural gas s up pged hereunder, and adaptable for use by Buyer wghoul Ihe necessity of maldng other than minor sd)ustmenls lo fuel burning equipmsnl.If Ihe natural gas ogered for delivery by Seller shall lai1 at any Ume to conform to any of the specgicagons set forth in Ihe Ardde V, Quality, Ihen Buyer egress to notify Seller Ihereot and

Buyer, thereupon, may aliis option mfuse lo accept delivery pending serration by Seller. Upon Segeys failure lo properly remedy any deliciency In qualily as specified herein, thenBuyer msy accept delivery of such natural ges and make changes necessary lo bring such gas Into conformity wgh such speciscaUons and Buyer shall then dedurrt from future

paymenls any reasonabb expenses Incurred by 5 In egecgng such change as sgmsd to by boih parties.Odorlzagon of gas deqvered hereunder ls rmt mqulred ol Seller. However, rmthing in lhasa Terms and Cortisone shall prectude Seller from odorizing such gas if Seller so desires or 5

Seller Is required by federal or slate regulatory agendas lo perform such odorization.

1. The volumes and total heating value of the gas delivered hereunder shall be determined as follows: (a) The Unit of Volume shall be a cubic foot of gas. (b) When orifice meters are used, volumes delivered shall be computed in accordance with the specifications, formulae and tables published April 1955, as Gas Measurement

Committee Report No. 3 of the American Gas Association, and any modifications and amendments thereto, and shall include the use of flange connections. (c) All volumes delivered shall be corrected to the pressure base of 14.73 psig and temperature base of 60° F. The average absolute atmospheric pressure shall be assumed to

be fourteen and seven tenths (14.7) pounds to the square inch, irrespective of actual elevation or location of the point of delivery above sea level or variations in such atmospheric pressure from time to time.

(d) The temperature of the gas shall be assumed to be 60 degrees Fahrenheit (60') unless Seller elects to install a recording thermometer or temperature correcting device. If a recording thermometer is installed, the arithmetical average of the 24 hour period will be used to determine the temperature correctly.

(e) The specific gravity of the gas shall be determined by a recording gravitometer of standard manufacture installed in a suitable location. Where a recording gravitometer is not used, the specific gravity of the gas shall be assumed to be the same as that of Seller's supplier(s).

(D The total heating value of the gas delivered hereunder may be determined by Seller by using a standard type of recording calorimeter, spectrometer, chromatograph, or other approved instrument which shall be so located, at a suitable point on Seller's line, in order that the BTU content of gas delivered hereunder may be properly obtained. Where required, daily reading from the record so obtained shall be corrected to the basis of measurement provided and from a saturated basis to the average moisture content of the gas delivered, the result being the BTU content of the gas delivered during the billing period. In the event that Seller does not install a recording instrument for such determination or its instrument is not operating properly, the total heating value shall be determined from a recording calorimeter or comparable instrument properly installed and operated by Seller's supplier of natural gas, provided, such values are applicable to the gas that may be delivered to the Buyer.

Article VII MEASURING EQUIPMENT

1. Seller will maintain and operate, at its own, expense and at the point of delivery of gas hereunder, a meter or meters and other necessary equipment by which the volume of gas delivered hereunder shall be measured. Such meters and equipment shall remain the property of the Seller.

2. Buyer agrees to furnish to Seller electricity for operating Seller's meters, at not cost to Seller. 3. Buyer hereby grants to Seller suitable rights-of-way and easements necessary or incidental for the installation, maintenance, operation and removal of pipeline and other facilities

together with rights of ingress thereto and egress there from at all times and hereby agrees to deliver to Seller, for the sum of one dollar ($1.00), an appropriate instrument or grant defining such rights and easements located on Buyer's plant site.

4. Buyer may install, maintain and operate such check measuring equipment, including a recording gravitometer and calorimeter as it shall desire, provided that such equipment shall be so installed so as not to interfere with the operation of Seller's measuring equipment at or near the point of deliver. However, all billings to the Buyer shall be based on the metering of the Seller, subject only to the provisions of Paragraph 8 of this Article.

5. Each party shall have the right to be present at the time of any installing, reading, cleaning, changing, repairing, inspecting, testing, calibrating, or adjusting done in connection with the other's measuring equipment used in measuring deliveries hereunder and each party shall advise the other of any intended major maintenance operation sufficiently in advance in order that the other party may conveniently have its representative present.

6. All installation of measuring equipment, applying to or effecting deliveries hereunder, shall be made in such manner as to permit an accurate determination of the quantity of gas delivered and ready verification of the accuracy of measurement. Orifice meter installations, if used, shall conform to the recommendation for design and installation contained in the Gas Measurement Committee Report No. 3 to the American Gas Association published April, 1955, and any modifications and amendments thereof and shall include the use of flange connections.

7. Measurement on Seller's meter or meters shall be conclusive of both parties except where the meter is defective or fails to register, or iffound in error, in either of which case Seller shall repair or replace the meter and the quantity of gas delivered while the meter was out of order or failed to register shall be estimated: (a) By using the registration of any check meter if installed and accurately registering, or, in the absence of (a): (b) By correcting the error if the percentage of error by calibration, test or mathematical calculation, or, in the absence of both (a) and (b) then: (c) By estimating the quantity of delivery from deliveries during periods under similar conditions when the meter was registering accurately; and an appropriate billing adjustment shall be made in accordance with the current Rules and Regulations governing gas systems issued by the Commission.

8. Seller will maintain its meters in good order and to this end will make periodic tests of its meters pursuant to the current Rules and Regulations governing gas systems issued by the Commission, or at such shorter intervals as seem to Seller desirable. If Buyer is dissatisfied with the accuracy at any time, it may call upon Seller to have the meter tested in accordance with all regulations relating to such tests and results of such tests as found in the current Rules and Regulations governing gas systems issued by the Commission.

9. Each party shall preserve all records for a period of at least two (2) years.

Article VIII BUYER'S FACILITIES

1. Buyer will maintain at its own expense facilities from the delivery point to the point of use and the burners and equipment for using gas, and Buyer will at all times keep gas-using equipment on said premises in a condition conforming with such reasonable rules and regulations as may be prescribed therefore by regulatory authority having jurisdiction thereover and with the requirements of any valid law thereto appertaining. In the event that rules are not prescribed by a regulatory authority, Buyer will abide by codes as used in the gas industry.

2. Seller shall not approve sale of gas on an interruptible basis to Buyer until and unless Seller is satisfied that Buyer has, or will, install adequate stand-by facilities to meet its full fuel requirements during periods of sustained interruptions.

3. Seller shall not approve sales of gas to Buyer unless Seller is satisfied that Buyer has not, or will not interconnect downstream fuel piping of natural gas for use in different priority-ofservice categories.

Article IX RA TE ADJUSTMENTS

1. Taxes applicable to the gas delivered to Buyer hereunder as are in effect on January 1st immediately preceding the effective date of these terms and conditions shall be added to Buyer's bill. The term "tax" as used herein shall mean any tax, license fee, or charge applicable to the gas delivered hereunder, imposed on Seller by any governmental authority on such gas. If the existing rate of any such tax in effect on January 1st, immediately preceding the effective date of these terms and conditions, be hereafter increased or decreased, or if any tax heretofore in effect or hereafter be imposed or repealed, the resulting increase or decrease in such taxes, computed on a cents per dekatherm basis, shall be reflected, as the case may be, on Buyer's bill.

2. Any applicable surcharge or special charges ordered by the Commission or any other duly constituted regulatory body shall be included in addition to the price of gas computed in accordance with the terms of the Service Agreement.

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1. The volumes

(a)(b)

(c)

(d)

(a)

Article V)

MEASUREMENTSand total hesUng value of Ihe gas delivered hereunder shall be determined ssfollows.'he

Unit of Volume shall be a cubic lool of gas,When critic meters are used, volumes delivered shall be mmpuled in acmrdance with the specifications, formulae and fables published April 1955, as Gas MeasurementCemmiUse Reporl No. 3 of ihe American Gas Association, and any modiTicalions snd amendmenls Iherelo, and shall Indude Ihe use o(gangs connections.AU volumes delivered shall be correcled to Ihe pressure base of 14,73 pslg and lamperalure base of 60', The average absolute atmospheric pressure shall be amumed lo

be fourteen and seven lenths (14.7) pounds to Ihe square inch, inespedive of actual elsvagon or location of lhe point of dsgvery above sea level or variagons In suchatmospheric pressure fram lime to lime.

The lcmperature of Ihe gas shall be assumed lo be 60 degrees Fahrenhell(60') unless Seller steels to install a reconling Iherrnomstar or lemperature mrreding devke. If arecording Ihermomsler is inslaged, Ihe arllhmelical average of Ihe 24 hour period will be used lo determine Ihe lsrnperalure correcgy.The spmific gravity of Ihe gas shall be de lermined by a remnling gravitomeler of stand ant manufacture inslagad in a suitable location. Where a remrding gmvitomsler is nolused, the speciT(c gravity of Ihe gas shall be assumed lo be Ihe same as that of Seger's supplier(s),The lola( healing value of Ihe gas delivered hereunder may be determined by Seller by using a slandard type of record(re calorimete spectrometer chroma log raph or other

approved Instrument which shall be so located, ate suitable point on Sells(s line, in order thai Ihe BTU content of gas delivemd hereunder may be properly obtained, Whererequired, daily reading lrom Ihe record so obtained shall be corrected to Ihe basis of measuremsnt pmvlded snd from a saturaled basis to the average moisture mntenl ofIhe gas del'wered, Ihe resug being Ihe BTU mnlsnt of Ihe gas detivered during Ihe billing pedod. In Ihs event Ihal Seller does not Inslag a recording instrument lor suchdetermination or ie instrument is not operating properly, the total heating valuo shall be determined Irom a recording calorimeter or mmparable instrument properly installedand operated by Segers supplier of nalural gas, provided, such values are appgcabte lo Ihe gas Ihal may be delivered lo Ihe Buyer,

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7.

8.

9.

Article V(l

MEASURING EQUIPMENTSeller will maintain and operate, al its own, expense and al Ihe point of degvery of gas hereunder, a meter or meisrs and other necessary squipmenl by which fhe volume of gas delivered

hemunder shall be measured. Such metes and equipmenl shall remain Ihe properly of Ihe Seller.Buyer agrees to tumlsh lo Seger clair(city for operating Seger's meters, at not cost to Seller.Buyer hereby grants lo Selkr suitable righlsxrf-way and eassmenls necessary or incidental (or Ihe inslagstion, maintenance, operation and removal of pipeline and other kcililies

logsthsr wiUi righls of ingress Ihsrelo and egress Ihere from ai at limes and hereby agrees to deliver to Seller, for Ihe sum ofone doter (Sl.iXI), an appropriate instrument or granidegning such right and easemenls located on Buyer's plant sile.

Buyer may install, main(sin and operate such check measuring equipment, induding a recording gravilometer and cakrlmelsr as Il shall desire, provided Ihal such equipment shall be soinslaged so as not to interfere with Ihs operation of Ssgeys measuring equipment at or near Ihe point of deliver. However, ag biglngs lo Ihe Buyer shall be based an Ihe metering of IheSeller, subject only to the pmvisions of Paragraph 8 of this Art ide.Each parly shall have Ihe right lo be present at Ihe lime of any inslaging, reading, cleaning, changing, repairing, Inspecting, lasting, calibrating, or adjusting done in mnneclion with theother's measuring equipment used in measuring degveries hereunder and each party shall advise Ihe other oi any Intended major maintenance operation sufliciengy in advance in orderthat the other party may conveniengy have ils representative pressnLAU Installation of measuring equipment, applying lo or effecling deliveries hereunder, shall be made in such manner as lo permit an accurate dekrminalion of the quanlily of gas delivered

and ready venTicatlon of(he accuracy olmsasuremenL Orifice meter instagaUons, if used, shall conknn to Ihe remmmendagon for design and Inslaliagon contained in Ihe GasMeasurement Committee Repori No. 3 lo Ihe American Gas Assodalion published Apr6, 1955, and any modifications and amendments Ihereof and shall include Ihe use of gangsmnnections.Measurement on Segeys mater or meters shall be condusive of both parties except where Ihe rrwtsr is dekcgve or fails lo register, or lt found In error, In either of which case Seger shagrepair or replace Ihs meter and Ihe quantity of gas delivered while the melar was out of order or failed lo register shall be estimated: (a) By using Ihe regisiralion ol any check meisr if

inslaged and accurately registerin, or, in Ihe absence ol (a); (b) By mrrer(ing Ihe error If Ihe percentage of enor by calibralion, lest or mathematical calculation, or In Ihe absence of both

(a) and (b) Ihen: (c) By estimating Ihs quantity of delivery from deliveries during periods under similar conditions when Ihe melar was rag(ale ring accurately; and an appropriate billing

adjustment shag be made in accordance with Ihe cunenl Ruks and Regulations governing gas systems Issued by Ihe Commission.Seller will maintain Us meters In good order and to Ibis end will make periodic lasts of Us meters pursuant lo Ihe current Rules end Regula(iona governing gas systems Issued by Ihe

Commission, or at such shorter Intervals as seem lo Seller deslrabk. II Buyer is dissalisfied with Ihe accuracy st any lime, U may csg upon Seller to have Ihe meter lasted in accordancewith ag reguktions rskgre lo such tests and results of such tests as (ound in the current Rules and Regulations governing gas systems fssued by Ihe Commisslorl,

Each party shall preserve ail remrds (or a period of el leasl two (2) years.

Article Vill

BUYER'S FACILITIESBuyer will maintain aliis own expense facilities from Ihe delivery point to Ihe point of usa and Ihe burners snd equipmenl lor using gas, and Buyer will at all Umes keep gas-using

equlpmenl an said prsmfses in a mnditlon conforming with such reasonable rules and regulagons as may be prescribed Iherefore by regulatory authorit having jurisdiction thereoversnd with Ihe requiremenls ol any valid law Ihereto apperlaining. In Ihe evenl that rules are nol prescribed by a regulatory authorit, Buyer will abide by codes ss used in Ihs gasindushy.Seller shall nol appmvs sale of gas an an Inlanuplibk basis lo Buyer unlit and unless Seller is satisfied that Buyer has, or will, install adequate stand.by facilities lo meal its full fuel

requirements during periods of sustained interruptions.Seller shall not approve sales of gas lo Buyer unless Seller is salisfied Ihat Buyer has nol, or will nol Inlmmnnect downstream fuel piping of natural gas for use in different priority.of-

sewlce categories.

Article IX

RATEADJUSTMENTSt. Taxes applicabk to Ihe gas delivered lo Buyer hereunder as are in effect on January Bi immediately preosding Ihe eifecllvs date of these terms and condigons shall bs added lo

Buyers biiL The term 'lsx" as used herein shall mean any tax, license fee, or charge applicable lo Ihe gas delivered hereunder, Imposed on Seller by sny governmental authority onsuch gas. Ii Ihe existing rale of any such tax in effect on January 14, Immediately preceding the egecUve dale of (hase terms and conditions, be hereafter increased or decreased, or if

any tax herstofom In effect or hereailer be imposed or repealed, the resuging increase or decrease in such taxes, mmpulsd on a cents per dekalhermbasls, shall be re(krted, as the

case may bs, on Buyers bill.

2. Any appgmble surcharge or special charges ordered by the Commission or any other duly mnstilutsd regulatory body shall be induded in addition to Ihe price of gas computed in

accordance with Ihe terms of Ihe Service Agreemenl.

BILLING

1 . Bills computed from readings taken of Seller's meters shall be rendered and paid monthly with ten (10) days of the billing date . A month shall mean a period beginning on the first

recognized work day of the calendar month and ending on the first recognized work day of the next succeeding calendar month, or at such other equivalent period as Seller may

deem necessary . Should Buyer fail to pay any amount due to Seller when same is due, a late payment charge of one and one half percent (1 Y, %) will be added to any balance remaining twenty-five (25) days after the billing date. If such failure to pay continues, Seller may suspend deliveries of gas hereunder. The exercise of such right shall be in addition to any and all other remedies available to Seller. ·

2. If it shall be found that Buyer has been overcharged or undercharged in any form whatsoever under the provision hereunder, Seller shall take action to correct such billing pursuant to current Rules and Regulations governing gas systems issued by the Public Service Commission of South Carolina.

Article XI POSSESSION OF GAS AN INDEMNIFICATION

1. As between the parties hereto, Seller shall be deemed to be in control and possession of the gas deliverable hereunder until it shall have been delivered to Buyer at the Point of Delivery after which Buyer shall be deemed to be in control and possession thereof.

2. Buyer shall indemnify and hold harmless the Seller from any and all loss (including death), damage, or liability incurred by the Seller by reason of any act of the Buyer, its agents or employees, in the receiving, use or application of said gas on the Buyer's side of the Point of Delivery unless the same shall be due to the sole negligence of the Seller, its agents or employees. The Seller shall indemnify and hold harmless the Buyer from any and all loss (including death), damage or liability incurred by the Buyer by reason of any act of the Seller, its agents or employees, unless the same shall be due to the sole negligence of the Buyer, its agents or employees.

Article XII WARRANTY OF TITLE TO GAS

1. Seller warrants the title to all gas delivered hereunder and the right to sell the same and that such gas shall be free and clear from all liens and adverse claims.

Article XIII FORCE MAJEURE

1. In the event of either party hereto being rendered unable wholly or in part by force majeure to carry out its obligations under this contract, other than to make payments due hereunder, it is agreed that on such party giving notice and full particulars of such force majeure in writing or by telegraph to the other party as soon as possible after the occurrence of the cause relied on, then the obligations of the party giving such notice, so far as they are affected by such force majeure, shall be suspended during the continuous of any inability so caused but for no longer period and such cause shall as far as possible be remedied with all reasonable dispatch. The term "force majeure' as employed herein shall mean acts of God, strikes, lockouts, or other industrial disturbances, acts of public enemy, wars, blockades, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, storms, fioods, washouts, arrests, and restraints of government and people, civil disturbances, explosions, breakage or accidents to machinery or lines or pipe, freezing of wells or lines or pipe, partial or entire failure of source of supply, and any other causes whether of the kind herein enumerated or otherwise, not within the control of the party claiming suspension and which by the exercise of dir diligence such party is unable to prevent or overcome; such terms shall likewise include (a) in those instances where either party hereto is required to obtain servitudes, rights-of-way grants, permits, or licenses; and (b) in those instances where either party hereto is required to furnish materials and supplies to secure grants or permission from any governmental agency to enable such party to fulfill its obligations hereunder, the inability of such party to acquire at reasonable cost and after the exercise of reasonable diligence such materials and supplies, permits and permissions.

2. It is understood and agreed that the settlement of strikes or lockouts shall be entirely within the discretion of the party involved and that the above requirement that any force majeure shall be remedied will all reasonable dispatch shall not require the settlement of strikes or lockouts acceding to the demands of opposing party when such course is inadvisable in the discretion of such party.

Article XIV MISCELLANEOUS

1. If either party shall fail to perform any of the covenants or obligations imposed upon it under and by virtue of the Service Agreement of which these General Terms and Conditions are a part, (except where such failure shall be excused under any of the provisions of this Service Agreement), then in such event, the other party may, at its option, terminate this Service 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 this Service 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 thirty (30) days after the service of the aforesaid notice in which to remedy and remove said cause or causes and fully indemnify the party not in default for any and all consequences of such breach, then such notice shall be withdrawn and this Service Agreement shall continue in full force and effect. In case the party in default does not so remedy and remove the notice for any and all consequences of such breach, within said period of thirty (30) days, then this Service Agreement shall become null and void from and after the expiration of said period. Any cancellation of this Service Agreement pursuant to the provisions of this Article shall be without prejudice to the right of party not in default to collect any amounts then due it and without waiver of any other remedy to which the party not in default may be entitled for violation of this Service Agreement.

2. The Service Agreement, of which these General Terms and Conditions are a part thereof, shall be binding upon and inure to the benefit of the Seller and the Buyer and their successors and assigns.

3. Except as otherwise provided, any notice, request, demand, statement or bill, which either Buyer or Seller may desire to give to the other shall be in writing and shall be considered as fully delivered when mailed by prepaid registered mail addressed to said party at its last known post office address, or at such other addresses as either party may designate in writing. Routine communications, including monthly statements and payments, shall be considered as duly delivered when mailed by either registered or ordinary mail.

4. Buyers covenants and agrees to execute or file, or cooperate with Seller in the execution or filing of, any report, certificate or other document required by any governmental agency having jurisdiction over this contract or the parties hereto, or any other certificate or document requested by Seller necessary for Seller to obtain the benefit of any exemption from sales, use or other tax. Buyer shall indemnify Seller for any loss sustained by Seller as a result of Buyer's breach of this covenant.

5. The parties hereto in executing the Service Agreement and these General Terms and Conditions, acknowledge that these General Terms and Conditions are a part of the Service Agreement.

Seller:

By:

Title: Manager- Large Customer Accounts & Services

Date:

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Article X

BILLINGBills computed from readings laken of Segers nieters shall be rendered and paid monthly with len (I 0) days of Ihe billing date. A month shall mean a pared beginning on the first

recognized work day of the calendar month and ending on Ihe lirst recognized work day ol the next succeeding calendar month, or st such other equivalent period as Seller msydeem necessary. Should Buyer fail lo pay any amount due lo Seger when same Is due, a tale paymenl charge of one and one hall percent (I W M) will be added lo any balanceremaining twenty-five (25) days aller the billing date. If such failure to pay continues, Seller may suspend deliveries ol gas hereunder. The exercise of such right shall be In

addil'en lo any and ag other remedies available Io Seger.U it shall be found Ihal Buyer has been overchsnied or undercharged In any form whatsoever under Ihe pnwislon hereunder, Seller shall lake action lo correct such billing pursuantlo current Rules and Regulatlcns governing gas systems Issued by Ihe Pubgc Service Commission ol South Carolna.

Art)cle XI

POSSESSION OF GAS AN INDEMNIFICATIONAs between Ihe parges hereto, Seller shall be deemed lobe in control and possession of the gas deliverable hereunder until it shall have been delivered lo Buyer al the Point olDegvery after which Buyer shall be deemed lo be in control and possession Ihereof.Buyer shall Indemnify and hold harmless Ihe Seller from eny snd ag loss (Induding death), damage, or liability incurred by Iha Seller by reason of any ed of Ihe Buyer, ils agents oremployees, in Ihe mceiving, use or applicaUon of said gas on Ihs Buyers skis of Ihe Point of Delivery unless Uw same shall be due lo Ihe sole negligence ol Um Seller, gs agentsor employees. The Seller shag indemnify and hold harmless Ihe Buyer from any and ag loss (including death), damage or liability incurred by Ihe Buyer by reason of any act of theSeller, iis agents or employees, unless Ihe same shall be due to Ihe sole negggencs of Ihe Buyer, its agents or employees.

Article XII

WARRANTY OF TITLE TO GASSayer wenants Ihe tike lo ag gas delivered hereunder and Ihe right to sell the same and that such gas shag be Iree and clear Irom all liens and adverse raims.

I,

2.

3.

5.

Article XIII

FORCE MAJEUREIn the event of either party hereto being rendered unable wholly or In perl by force majeure lo carry out its obggalions under Ibis contract, other Ihan to make paymenis duehereunder it Is agreed thai on such party giving relics and fug particulars of such lorce majeure in writing or by telegraph to the other party as soon as possible ager Iheoccurrence of Ihe cause mlied on, Ihen Ihe obligations of the party gMng such notice, so far as they are agertsd by such force majeure, shall be suspended duriing Ihe continuousof any inability so caused but lor no longer period and such cause shall as far as possible be remedied with ag reasonable dispatch, The lerm "lorce maJeure's employed hereinshall mean acts of God, strikes, lockouls, or olher Induslrial disturbances, ads of public enemy, wars, blockades, insurrectlons, riots, epidemics, landsgdes, lightning, earthquakes.liras, storms, goods, washouls, arrests, and restraints of government and people, dvil disturbances, exploslons, breakage or acddents to machinery or lines or pipe, freezing ofwells or lines or pipe, partial or entire fazure of source of supply, and any other causes whether of the kind herein enumerated or otherwise, not within Ihe control of the partydaiming suspension and which by Ihe exerdse of dir dgigence such party Is unable lo prevent ar overrxrme; such teme shall likewise Include (a) In Ihose instances where eitherparty hereto is requirerl to obtain servitudes, righls-ofnvay grants, permits, or licenses; and (b) In ihose instances where either parly hereto is required lo krmish materials andsupplies to secure grants or permission from any governmental agency lo enable such party to fugig Its obligagons hereunder, the inability of such party lo arquire at reasonablecoal and after the exercise of reasonable diligence such materials and supplies, permits and permissions.0 Is undemtood and agreed that the seWemeni of strike or lockouls shall be entirely within Ihe discretion of the party InvoWed and thai Ihe above requirement Ihal any force

majeure shall be remedied will al reasonable dispatdt shall not require Ihe seWamenl ol skikes or lockouls acceding lo Ihe demands of apposing party when such course is

inadvisable In Ihe discretion of such party.

Article XIV

MISCELLANEOUSIf either party shall fail lo perform any ol Ihs covenants or obligations imposed upon II under and by virtu of Ihe Service Agreement of whWh Ihese General Terms and Conditionsare a perl, (except where such failure shall be excused under any of Ihe provisions of Ibis Service Agreemenl), then In such event, Ihe other party may, al ils option, terminals Ibis

Service Agreemenl by proceeding as fogowr. The party not in defaug shall cause a wriken nogce lo be served on Ihe party in default, stagng spertficagy Ihe cause lor terminatingIbis service Agreement and dedaring it lo be Ihe Intention of Ihe party giving Ihe rmlke to lerminate Ihe same; thereupon, Ihe party In defaug shall have thirty (30) days ager Ihe

service of Ihe aforesaid notice in whkh to remedy and remove said cause or causes end fully indemnify the parly rmt In defauK for any and ag consequenms of such breach, thensuch noUce shall be withdrawn and Ibis Service Agreemenl shag continue in full force and egect In case Ihe party In default does nol so remedy and remove Ihe notice for sny andag consequences of such breach, within said period of Ihlrty (30) days. Ihen Ibis Sewke Agraemenl shall become null and void from and after Ihe expiraUon of said period. Anycancega lion of this Service Agreement pumuanl to Ihe provisions of this ArUde shall be without prejudice lo Ihe right of party not in delaug lo collect any amounts Ihen due il andwithout waiver of any other remedy to whkh the party not in default may be enlit!ed for violation of Ibis Seniice Agreement.The Service Agreemenl. of which these General Terms end CondiUons area part thereof, shall be binding upon and inure lo Ihe benefit of the Seller and Ihe Buyer and Iheir

successors and assigns.Except as olhenvlse provkled, eny notice, request, demand, slalemenl or bill, which either Buyer or Seller msy desire lo give lo Ihe olher shall be In wrizng and shall be conskleredas fully delivered when mailed by prepaid registered mall addressed lo said party at ils taxi known post oflice address, oral such other addresses as either party may designate In

writing. RouUne mmmunlcalions, Induding monthly stalsmenls and payments, shall be consldemd as duly delivered when mailed by either registered or ordinary mail.

Buyers coverwnts and agrees lo execute or file, or coop ernie with Setter In Ihe execugon or filing of, any report, certilicate or other document required by any governmental agencyhaving jurisdiction aver Ibis centred or the parUes hereto, or any other ca relicale or document requested by Sayer necessary lor Seller to obtain Ihe benefit of any exempgon from

sales, use or other lsx. Buyer shall Indemnify Setter for any loss sustained by Seller as a result ot Buyers breach of Ibis covenant.

The parties hereto in executing Ihe Service Agreement and lhasa General Tenne and CondiUons, acknowledge thai these General Terms and Conditions are a part of Ihe Service

Agreement

Buyer: n r C'y Seller; South oil a Ele i and Gas Com an

By: igam . a n

Title: Title: Iriana er- Lar ecustomerAccountsegervlces

Dsie;

A G R E E M E N T

ORIGINAL

This Agreement made and entered into this ~day of ~JOJL.m h--eL , 2017, by and between SOUTH CAROLINA ELECTRIC & GAS COMPANY, its successors and assigns, hereinafter called "Seller" and SONOCO PRODUCTS COMP ANY, its successors and assigns, hereinafter called "Buyer".

WITNESS ETH

WHEREAS, Seller owns and operates a natural gas system in the State of South Carolina, which supplies natural gas for ce1iain industrial operations under specific contracts with industrial customers, and

WHEREAS, Seller supplies natural gas to Buyer under the terms of a Service Agreement between Buyer and Seller dated July 12, 2012, which is hereby being mutually terminated at 10:00 A.M. Eastern Time on December 1, 2017, and

WHEREAS, Buyer has agreed to purchase natural gas from Seller according to the terms and conditions of this Service Agreement when natural gas is tendered by Seller whenever and to the extent Buyer has a requirement for fuel in Priority-of-Service Categories 2, 3E & 8 as set fmih in Aliicle III, Paragraph 1, of the General Terms and Conditions to Industrial Service Agreements hereto attached, for Buyer's facility located at 1 N 2nd Street, Haiisville, South Carolina.

NOW THEREFORE, in consideration of the covenants and agreements hereinafter set fo1ih, to be kept and performed by the paiiies hereto, it is mutually agreed as follows:


(A) FIRM GAS, PRIORITY-OF-SERVICE CATEGORY 2 (POWER DEPARTMENT) Buyer agrees to purchase from Seller, and Seller agrees to sell to Buyer, up to the Maximum Daily Quantity of natural gas which shall not be subject to interruption or cmiailment except for conditions as set fmih in Aliicle IV, Paragraph 3, of the General Terms and Conditions hereto attached." The Maximum Daily Quantity of Firm Gas shall be 40 dekatherms per day. Any gas taken by Buyer above the Maximum Daily Quantity, after notice from Seller of cmiailment to the Maximum Daily Quantity, without Seller's advance approval, shall be Unauthorized Overrun Gas and shall subject Buyer to the penalty rate per dekatherm set fmih in Aliicle IV, Paragraph 5, of the General Terms and Conditions to Industrial Service Agreements hereto attached. Deliveries of Firm Gas under this paragraph of the Service Agreement shall be utilized by Buyer only in Priority-of-Service Category 2. as set fo1ih in Aliicle III, Paragraph 1, of the General Terms and Conditions hereto attached. Buyer shall purchase all gas tendered by Seller up to the Maximum Daily Quantity whenever and to the

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SERVICE AGREEMENTOR~SINAL

between SOUTH CAROLINA ELECTRIC k GAS COMPANY, its successors and assigns,hereinafter called "Seller" and SONOCO PRODUCTS COMPANY, its successors and assigns,hereinafter called &Buyer".

WITNESSETH

WHEREAS, Seller owns and operates a natural gas system in the State of South Carolina,which supplies nattfral gas for certain industrial operations under specific contracts with industrialcustomers, and

WHEREAS, Seller supplies natural gas to Buyer under the terms of a Service Agreementbetween Buyer and Seller dated July 12, 2012, which is hereby being mutually terminated at 10:00A,M. Eastern Time on December I, 2017, and

WHEREAS, Buyer has agreed to purchase natural gas &om Seller according to the terms andconditions of this Service Agreement when natural gas is tendered by Seller whenever and to the

t tgy 8 qi tf f II»PI ity-f'-8 I Ctg.i 23E&8 tfthiANil III,P gtph I, fth 4 IT dC diti t I»d tielg I Ag 8 thereto attached, for Buyer's facility located at 1 N 246 Street, Hartsville, South Carolina.

NOW THEREFORE, in consideration of the covenants and agreements hereinafter set forth,to be kept and performed by the parties hereto, it is mutually agreed as follows:

l. SCOPE OF DELIVERY

(A) FIRM GAS PRIORITY-OF-SERVICE CATEGORY 2POWER DEPARTMEN

Buyer agrees to purchase from Seller, and Seller agrees to sell to Buyer, up to theMaximum Daily Quantity of natural gas which shall not be subject tointerruption or curtailment except for conditions as set forth in Article IV,Paragraph 3, of the General Terms and Conditions hereto attached. TheMaximum Daily Quantity of Firm Gas shall be 40 dekatherms per day. Any gastaken by Buyer above the Maximum Daily Quantity, after notice from Seller ofcurtaiiinent to the Maximum Daily Quantity, without Seller's advance approval,shall be Unauthorized Ovenun Gas and shall subject Buyer to the penalty rateper dekatherm set forth in Article IV, Paragraph 5, of the General Terms andConditions to Industrial See ice Agreements hereto attached. Deliveries of FirmGas under this paragraph of the Service Agreement shall be utilized by Buyeronly in Priority-of-Service Category 2 as set forth in Article III, Paragraph 1, ofthe General Terms and Conditions hereto attached, Buyer shall purchase all gastendered by Seller up to the Maximum Daily Quantity whenever and to the

scEG06-009

extent Buyer has a requirement for fuel in the P r i o r i t y - o f - S e r v i c e Category set

f o i i h herein.

(B) I N T E R R U P T I B L E GAS, PRIORITY-OF-SERVICE C A T E G O R Y 3 E

(CHEMICAL R E C O V E R Y & THERMAL OXIDIZER) Buyer agrees to purchase from Seller, and Seller agrees to sell to Buyer, up to a Maximum Daily Quantity of 696 dekatherms of natural gas per day on an interrnptible basis, to be purchased and utilized by Buyer when and to the extent Seller has gas available, tenders such gas to Buyer and Buyer has a requirement for fuel. Seller makes no guarantee of deliveries hereunder. Intenuptible gas will be offered when, and to the extent, available in accordance with the operating procedures set foiih in Aliicle IV, Paragraph 4, of the General Terms and Conditions to Industrial Service Agreements hereto attached. Any gas taken by Buyer, including gas utilized as fuel for pilots, after any order of Seller calling for complete cmiailment of Buyer's intenuptible load, or any gas taken by Buyer in excess of a paiiial cmiailment order, shall be Unauthorized Overrun Gas and shall subject Buyer to the penalty rate per dekatherm set foiih in Aliicle IV, Paragraph 6, of the General Terms and Conditions to Industrial Service Agreements hereto attached. Deliveries of Interruptible Gas under this paragraph of the Service Agreement shall be utilized by Buyer only in Priorityof-Service Categmy 3E as set fmih in Alticle III, Pfil'agraph 1, of the General Terms and Conditions hereto attached.

(C) INTERRUPTIBLE GAS, PRIORITY-OF-SERVICE CATEGORY 8 (POWER DEPARTMENT) Buyer agrees to purchase from Seller, and Seller agrees to sell to Buyer, up to a Maximum Daily Quantity of 7 ,800 dekatherms of natural gas per day on an intelTuptible basis, to be purchased and utilized by Buyer when and to the extent Seller has gas available, tenders such gas to Buyer and Buyer has a requirement for fuel. Seller makes no guarantee of deliveries hereunder. Intenuptible gas will be offered when, and to the extent, available in accordance with the operating procedures set forth in Aliicle IV, Paragraph 4, of the General Terms and Conditions to Industrial Service Agreements hereto attached. Any gas taken by Buyer, including gas utilized as fuel for pilots, after any order of Seller calling for complete cmiailment of Buyer's intelTuptible load, or any gas taken by Buyer in excess of a paiiial curtailment order, shall be Unauthorized Ovenun Gas and shall subject Buyer to the penalty rate per dekatherm set forth in Article IV, Paragraph 6, of the General Terms and Conditions to Industrial Service Agreements hereto attached. Deliveries of Interruptible Gas under this paragraph of the Service Agreement shall be utilized by Buyer only in Priorityof-Service Category .8. as set forth in Aliicle III, Paragraph 1, of the General Terms and Conditions hereto attached.

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extent Buyer has a requirement for fuel in the Priority-of-Service Category setforth herein.

(B) INTERRUPTIBLE GAS PRIORITY-OF-SERVICE CATEGORY 3ECFIEMICAL RECOVERY & THERMAL OXIDIZER

Buyer agrees to purchase from Seller, and Seller agrees to sell to Buyer, up to aMaximum Daily Quantity of 696 dekatherms of natural gas per day on aninterruptible basis, to be purchased and utilized by Buyer when and to the extentSeller has gas available, tenders such gas to Buyer and Buyer has a requirementfor fuel. Seller makes no guarantee of deliveries heretutder. Intenuptible gaswill be offered when, and to the extent, available in accordance with theoperating procedures set forth in Article IV, Paragraph 4, of the General Termsand Conditions to Industrial Service Agreements hereto attached. Any gas takenby Buyer, including gas utilized as fuel for pilots, aftet any order of Seller callingfor complete ctntailment of Buyer's intenuptible load, or any gas taken by Buyerin excess of a partial curtailment order, shall be Unauthorized Overrun Gas andshall subject Buyer to the penalty rate pcr dcl&atherm set forth in Article IV,Paragraph 6, of the General Terms and Conditions to Industrial ServiceAgreemeuts hereto attached. Deliveries of Intermptible Gas under thisparagraph of the Service Agreement shall be utilized by Buyer only in Priority-of-Service Categ&ny 3E as set forth in Article III, Paragraph I, of the GeneralTerms and Conditions hereto attached.

(C) INTERRUPTIBLE GAS PRIORITY-OF-SERVICE CATEGORY 8

POWER DEPARTMENTBuyer agrees to purchase fiom Seller, and Seller agrees to sell to Buyer, up to aMaximum Daily Quantity of 7800 dekatherms of natural gas per day on aninterruptible basis, to be purchased and utilized by Buyer when and to the extentSeller has gas available, tenders such gas to Buyer and Buyer has a requirementfor fuel. Seller makes no guarantee of deliveries hereunder. Intenuptible gaswill be offered when, and to the extent, available in accordance with theoperating procedures set forth in Article IV, Paragraph 4, of the General Termsand Conditions to Industrial Service Agreements hereto attached. Any gas takenby Buyer, including gas utilized as fuel for pilots, ager any order of Seller callingfor complete curtailment of Buyer's interruptible load, or any gas taken by Buyerin excess of a partial curtailment order, shall be Unauthorized Overrun Gas andshall subject Buyer to the penalty rate per dekatherm set forth in Article IV,Paragraph 6, of the General Terms and Conditions to Industrial ServiceAgreements hereto attached. Deliveries of Interruptible Gas under thisparagraph of the Service Agreement shall be utilized by Buyer only in Priority-of-Service Categoty 8 as set forth in Article III, Paragraph I, of the GeneralTerms and Conditions hereto attached.

SCEG06-009

HOURLY DELIVERIES

(A) Seller s h a l l n o t be obligated to make hourly d e l i v e r i e s o f gas p u r s u a n t to

P a r a g r a p h l ( A ) above , at an hourly rate i n excess o f 1§. d e k a t h e r m s per hour.

Seller r e s e r v e s t h e r i g h t to regulate the flow o f gas d e l i v e r e d h e r e u n d e r by m e a n s

o f a u t o m a t i c o r manually operated flow control valves so as to l i m i t the hourly

flow o f gas w i t h i n the specified quantity.

(B) Seller s h a l l n o t be obligated to make hourly d e l i v e r i e s o f gas p u r s u a n t to

P a r a g r a p h l ( B ) a b o v e at an hourly rate in excess o f 29 d e k a t h e r m s per hour.

Seller r e s e r v e s the right to regulate t h e flow o f gas delivered h e r e u n d e r by means

o f a u t o m a t i c o r manually operated flow control valves so as to l i m i t the hourly

flow o f gas w i t h i n the specified quantity.

(C) Seller s h a l l n o t b e obligated to make hourly deliveries o f gas p u r s u a n t to

P a r a g r a p h 1 (C) above at an hourly rate in excess of 325 dekatherms per hour. Seller reserves the right to regulate the flow of gas delivered hereunder by means of automatic or manually operated flow control valves so as to limit the hourly flow of gas within the specified quantity.


The Point of Delivery for all gas delivered hereunder shall be at the outlet side of Seller's measuring and regulating equipment. The measuring equipment shall be installed on the Buyer's property at a location mutually agreed upon by Seller and Buyer. All gas shall be delivered at this location and it shall be the Buyer's responsibility to extend all fuel lines from this location to the point or points of usage.

4. DELIVERY PRESSURE

(A) Seller agrees to use due care and diligence to furnish gas hereunder at such uniform pressure, pursuant to Paragraph 1 (A) above, as Seller may elect up to, but not exceeding 75 pounds per square inch gauge, and not less than 40 pounds per square inch gauge, at the "Point of Delivery". Buyer shall be responsible for the installation and operation of adequate safety equipment downstream of the Point of Delivery so as to relieve or control pressure variations within the limits described above that may, for any reason through malfunction of Seller's equipment or othe1wise, occur on Buyer's side of the "Delivery Point".

(B) Seller agrees to use due care and diligence to furnish gas hereunder at such uniform pressure, pursuant to Paragraph 1 (B) above, as Seller may elect up to, but not exceeding 60 pounds per square inch gauge, and not less than 3 5 pounds per square inch gauge, at the "Point of Delivery". Buyer shall be responsible for the installation and operation of adequate safety equipment downstream of the

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2. HOURLY DELIVERIES

(A) Seller shall not be obligated to make hourly deliveries of gas pursuant toParagraph l(A) above, at an hourly rate in excess of 16 dekatherms per hour.Seller reserves the right to regulate the flow of gas delivered hereunder by meansof automatic or manually operated flow control valves so as to limit the hourlyflow of gas within the specified quantity.

(B) Seller shall not be obligated to make hourly deliveries of gas pursuant toParagraph 1(B) above at an hourly rate in excess of 29 dekatherms per hour.Seller reserves the right to regulate the flow of gas delivered hereunder by meansof automatic or manually operated flow control valves so as to limit the hourlyflow of gas within the specified quantity.

(C) Seller shall not be obligated to make hourly deliveries of gas pursuant toParagraph 1(C) above at an hourly rate in excess of 325 dekatheims per horn.Seller reserves the right to regulate the flow of gas delivered hereunder by meansof automatic or manually operated flow control valves so as to limit the hourlyflow of gas within the specified quantity.


The Point of Delivery for all gas delivered hereunder shall be at the outlet side ofSeller's measuring and regulating equipment. The measuring equipment shall beinstalled on the Buyer's propeity at a location mutually agreed upon by Seller andBuyer. All gas shall be delivered at this location and it shall be the Buyer'responsibility to extend all fuel lines from this location to the point or points of usage.

DELIVERY PRESSURE

(A) Seller agrees to use due care and diligence to furnish gas hereunder at suchuniform pressure, pursuant to Paragraph 1(A) above, as Seller may elect up to,but not exceeding 75 pounds per square inch gauge, and not less than 40 poundsper square inch gauge, at the "Point of Delivery". Buyer shall be responsible forthe installation and operation of adequate safety equipment downstream of thePoint of Delivery so as to relieve or control pressure variations within the limitsdescribed above that may, for any reason through malfunction of Seller'equipment or otherwise, occur on Buyer's side of the "Delivery Point".

(B) Seller agrees to use due care and diligence to furnish gas hereunder at suchuniform pressure, pursuant to Paragraph 1(B) above, as Seller may elect up to,but not exceeding 60 pounds per square inch gauge, and not less than 35 poundsper square inch gauge, at the "Point of Delivery", Buyer shall be responsible forthe installation and operation of adequate safety equipment downstream of the

SCEG06-009

o f Delive1y so as to r e l i e v e o r c o n t r o l p r e s s u r e v a r i a t i o n s w i t h i n the l i m i t s

d e s c r i b e d a b o v e t h a t may, for any r e a s o n t l u o u g h m a l f u n c t i o n o f S e l l e r ' s

e q u i p m e n t o r o t h e r w i s e , o c c u r o n B u y e r ' s s i d e o f t h e "Delive1y Point".

( C) S e l l e r a g r e e s to u s e due care a n d d i l i g e n c e to f u r n i s h gas h e r e u n d e r at s u c h

u n i f o r m p r e s s u r e , p u r s u a n t to P a r a g r a p h l ( C ) a b o v e , as S e l l e r m a y e l e c t up to,

b u t n o t e x c e e d i n g 175 p o u n d s p e r s q u a r e i n c h gauge, and n o t less t h a n 130

p o u n d s p e r s q u a r e i n c h gauge, at t h e " P o i n t o f Delive1y'

1

• B u y e r s h a l l be

r e s p o n s i b l e for t h e i n s t a l l a t i o n and o p e r a t i o n o f a d e q u a t e s a f e t y e q u i p m e n t

d o w n s t r e a m o f the P o i n t o f Delive1y so as to r e l i e v e or c o n t r o l p r e s s u r e

v a r i a t i o n s w i t h i n t h e l i m i t s d e s c r i b e d a b o v e t h a t may, for any r e a s o n t h r o u g h

m a l f u n c t i o n o f Seller's e q u i p m e n t or o t h e r w i s e , o c c u r o n Buyer's s i d e o f t h e

"Delive1y Point".

5. INITIAL S E R V I C E

B u y e r a g r e e s to b e g i n p u r c h a s i n g n a t u r a l gas u n d e r t h e t e r m s and c o n d i t i o n s o f this

A g r e e m e n t a t 1 0 : 0 0 A.M. E a s t e r n T i m e o n D e c e m b e r 1, 2 0 1 7 , o r as s o o n t h e r e a f t e r as

B u y e r c h a n g e s p l a n t o p e r a t i o n s to a c c e p t 1,800 d e k a t h e r m s F I R M s e r v i c e on a daily

basis w i t h t h e r e m a i n i n g v o l u m e s I N T E R R U P T I B L E s e r v i c e . B u y e r agrees t h a t t h e s e

changes w i l l be m a d e p r i o r to M a r c h 1, 2018, at w h i c h t i m e t h e S e r v i c e and

T r a n s p o r t a t i o n A g r e e m e n t s b e t w e e n B u y e r and S e l l e r d a t e d J u l y 12, 2 0 1 2 , shall

t e r m i n a t e .

6. T E R M OF A G R E E M E N T

This A g r e e m e n t s h a l l b e c o m e e f f e c t i v e o n D e c e m b e r 1, 2 0 1 7 , a n d s h a l l c o n t i n u e i n full

force and e f f e c t t h r o u g h N o v e m b e r 30, 2022, a n d f r o m m o n t h to m o n t h t h e r e a f t e r

unless e i t h e r p a r t y s h a l l give w r i t t e n n o t i c e o f i n t e n t i o n to t e r m i n a t e a t l e a s t thi1iy (30)

days p r i o r to t h e e x p i r a t i o n o f t h e o r i g i n a l t e r m or any one y e a r e x t e n s i o n thereof.

7. R A T E

B u y e r a g r e e s to p a y S e l l e r e a c h m o n t h for all gas d e l i v e r e d b y S e l l e r d u r i n g t h e m o n t h

at t h e B a s e R a t e o r t h e C o m p e t i t i v e F u e l Rate, w h i c h e v e r s h a l l be a p p l i c a b l e .

Gas v o l u m e s w i l l be c o r r e c t e d for B T U cont~nt, pressure, temperature, supercompressibility, specific gravity, and other factors where applicable.

(A) BASE RATE FIRM GAS, PRIORITY-OF-SERVICE CATEGORY 2

Each month, daily volumes of Firm Gas delivered by Seller to Buyer in Priorityof-Service Categ01y 2. shall be billed on Rate 33 attached as Exhibit A, as presently exists or as amended or superseded by the Public Service Commission of South Carolina.

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Point of Deliveiy so as to relieve or control pressure variations within the limitsdescribed above that may, for any reason tluough malfunction of Seller'equipment or otherwise, occur on Buyer's side of the "Delivery Point",

(C) Seller agrees to use due care and diligence to furnish gas hereunder at suchuniform pressure, pursuant to Paragraph 1(C) above, as Seller may elect up to,but not exceeding ~15 poimds per square inch gauge, and not less tlian 130pounds per square uich gauge, at the "Point of Deliveiy". Buyer shall beresponsible for the installation and operation of adequate safety equipmentdownstreain of the Point of Delivery so as to relieve or control pressurevariations within the limits described above that may, for any reason throughmaiftmction of Seller's equipment or otherwise, occur on Buyer's side of the"Deliveiy Point".

5. INITIAL SERVICE

Buyer agrees to begin purchasing natural gas under the terms and conditions of thisAgreement at 10:00 A.M. Eastern Time on December I, 2017, or as soon thereafter asBuyer changes plant operations to accept 1,800 del&atherms FIRM service on a dailybasis with the remaining volumes INTERRUPTIBLE service. Buyer agrees that thesechanges will be made prior to March I, 2018, at which time the Service andTransportation Agreements between Buyer and Seller dated July 12, 2012, shallterminate.


This Agreement shall become effective on December I, 2017, and shall continue in fullforce and effect tluough November 30, 2022, and &om month to month thereafterunless either party shall give written notice of intention to terminate at least thirty (30)days prior to the expiration of the oidginal term or any one year extension thereof.

7. RATE

Buyer agrees to pay Seller each month for all gas delivered by Seller during the monthat the Base Rate or the Competitive Fuel Rate, whichever shall be applicable.

Gas volumes will be coirected for 13TU content, pressure, temperature,supercompressibility, specific gravity, and other factors where applicable.

(A) BASE RATE FIRM GAS PRIORITY-OF-SERVICE CATEGORY 2

Each month, daily volumes of Firm Gas delivered by Seller to Buyer in Priority-of-Service Category 2 shall be billed on Rate 33 attached as Exlubit A, aspresently exists or as amended or superseded by the Public Seivice Commissionof South Carolina.

SCEG06-009

Gas A d j u s t m e n t " a p p l i c a b l e to R a t e 33 s h a l l b e d e t e r m i n e d

a c c o r d i n g to the m e t h o d s h o w n i n E x h i b i t B, a t t a c h e d h e r e t o , as may be

a m e n d e d , r e v i s e d , or s u p e r s e d e d by the P u b l i c S e r v i c e C o m m i s s i o n o f S o u t h

C a r o l i n a , a n d s h a l l a p p l y to all s e r v i c e s u p p l i e d u n d e r R a t e 33.

(B) B A S E R A T E I N T E R R U P T I B L E GAS, P R I O R I T Y - O F - S E R V I C E

C A T E G O R Y 3 E ( C H E M I C A L R E C O V E R Y & THERMAL OXIDIZER)

Each month, the Base Rate for daily volumes of Intenuptible Gas delivered by Seller to Buyer in Priority-of-Service Category 3E shall be seventy-eight cents ($0.78) per dekatherm plus Seller's "Cost of Gas" ,

Seller's "Cost of Gas" shall be determined according to the method shown in Exhibit C attached hereto, as may be amended or superseded by the Public Service Commission of South Carolina, and is incorporated in and made a part of this Service Agreement.

In addition to the Base Rate, the amount of any new or additional taxes imposed directly on the purchase or sale of gas delivered hereunder shall be added.

(C) BASE RATE INTERRUPTIBLE GAS, PRIORITY-OF-SERVICE CATEGORY 8 (POWER DEPARTMENT)

Each month, the Base Rate for daily volumes of Intenuptible Gas delivered by Seller to Buyer in Priority-of-Service Category .8. shall be sixty-six cents ($0.66) per dekatherm plus Seller's "Cost of Gas".

Seller's "Cost of Gas" shall be determined according to the method shown in Exhibit C attached hereto, as may be amended or superseded by the Public Service Commission of South Carolina, and is incorporated in and made a part of this Service Agreement.

In addition to the Base Rate, the amount of any new or additional taxes imposed directly on the purchase or sale of gas delivered hereunder shall be added.

(D) COMPETITIVE FUEL RATE

It is the intent of the Agreement that Buyer's cost of natural gas used in Priorityof-Service Categ01y 3E (CHEMICAL RECOVERY & THERMAL OXIDIZER) shall be competitive with the as-fired cost of alternate fuel that Buyer could actually utilize in lieu of natural gas.

For the purpose of the computation to obtain the as-fired cost of the alternate fuel, it is understood and agreed that:

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Seller's "Purchased Gas Adjustment" applicable to Rate 33 shall be determinedaccording to the method shown in Exhibit B, attached hereto, as may beamended, revised, or superseded by the Public Service Conunission of SouthCarolina, and shall apply to all service supplied under Rate 33.

BASE RATF. INTERRUPTIBLE GAS PRIORITY-OF-SERVICECATEGORY 3E CHEMICAL RECOVERY & THERMAL OXIDIZER

Each month, the Base Rate for daily voliunes of Inteizuptible Gas delivered bySeller to Buyer in Priority-of-Service Category 3E shall be seventy-eight cents($0.78) per dekatherm plus Seller's "Cost of Gas".

Seller's "Cost of Gas" shall be determined according to the method shown inExhibit C attached hereto, as may be amended or superseded by the PublicService Conunission of South Carolina, and is incorporated in and made a partof this Seivice Agreement.

hi addition to the Base Rate, the amount of any new or additional taxes imposeddirectly on the purchase or sale of gas delivered hereunder shall be added.

BASE RATE INTERRUPTIBLE GAS PRIORITY-OF-SERVICECATEGORY 8 POWER DEPARTMENT

Each month, the Base Rate for daily volumes of Interruptible Gas delivered bySeller to Buyer in Priority-of-Service Category 8 sliall be sixty-six cents ($0.66)per dekatherm plus Seller's "Cost of Gas".

Seller's "Cost of Gas" shall be determined according to the method shown inExhibit C attached hereto, as niay be iunended or superseded by the PublicService Commission of South Carolina, and is incorporated in and made a partof this Service Agreement.

In addition to the Base Rate, the amount of any new or additional taxes imposeddirectly on the purchase or sale of gas delivered hereunder shall be added.

COMPETITIVE FUEL RATE

It is the intent of the Agreement that Buyer's cost of natural gas used in Priority-of-Sen ice Categoiy 3E CHEMICAL RECOVERY & THERMAL OXIDIZERshall be competitive with the as-fired cost of alternate fuel that Buyer couldactually utilize in lieu of natural gas.

For the purpose of the computation to obtain the as-fired cost of the alternatefuel, it is understood and agreed that:

SCEG06-009

2. fuel oil.

(2) T h e c o s t o f t h e a l t e r n a t e fuel ( i d e n t i f i e d as " K " ) s h a l l i n c l u d e :

(a) C o s t p e r g a l l o n ,

(b) F r e i g h t t o B u y e r ' s f a c i l i t y , a n d

(c) O n e C e n t ( l . 0 ¢ ) p e r g a l l o n f o r h a n d l i n g c h a r g e s .

(3) N u m b e r 2. fuel o i l s h a l l b e c o n s i d e r e d as h a v i n g 1 3 5 , 8 0 0 B T U ' s p e r g a l l o n

o r 0 . 1 3 5 8 d e k a t h e r m s p e r g a l l o n , w h i c h is i d e n t i f i e d as "dt".

(4) T h e f o l l o w i n g f o r m u l a u t i l i z e s t h e a b o v e v a l u e s a n d s h a l l b e u s e d to

c a l c u l a t e t h e a s - f i r e d c o s t o f t h e a l t e r n a t e fuel ( i d e n t i f i e d as "C"):

C = K

d t

If, at any time during the term of the Service Agreement, Buyer can establish by reasonable evidence (i.e. a vendor's invoice, bona fide written quotation, equivalent proof or Buyer's written declaration) that Buyer's as-fired cost of the alternate fuel to replace natural gas is less than the cost of natural gas, then Buyer shall advise Seller in writing, by the twenty-fifth (25th) of the calendar month, that the cost of natural gas for the next ensuing billing period will exceed the asfired cost of the alternate fuel.

Seller will respond to Buyer, in writing, prior to the beginning of the next billing period that Seller will either:

(1) Lower the price of natural gas to the as-fired cost of the alternate fuel and deliver gas, or

(2) Notify Buyer of the price at which Seller will deliver gas in the event Seller elects not to lower the price to the as-fired cost of the alternate fuel.

In the event Seller elects to lower the price of gas to the as-fired cost of the alternate fuel, Buyer may not discontinue the purchase of natural gas hereunder. In the event Seller offers to deliver gas to Buyer at a price greater than the asfired cost of the alternate fuel, then Buyer may either accept delivery of natural gas at the price offered by Seller through a prompt verbal notice confirmed in writing or discontinue receiving gas for the next billing period. In no event will the cost of natural gas as determined by this paragraph exceed the cost as determined under the Base Rate of this Service Agreement.

During any period of suspended service, Buyer agrees to continue to invoke the Competitive Fuel Rate provision each month for consideration by Seller. Should

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(I) The Alternate Fuel is Number 2 fuel oiL

(2) The cost of the alternate fuel (identified as "K") shall include:

(a) Cost per gallon,(b) Freight to Buyer's facility, and

(c) One Cent (I.OII) per gallon for handling charges.

(3) Number 2 fuel oil shall be considered as having 135 800 BTU's per gallonor 0.1358 delcatheims per gallon, which is identified as "dt".

(4) The following formula utilizes the above values and shall be used tocalculate the as-fired cost of the alternate fuel (identified as "C"):

C=Kdt

If, at any time during the term of the Service Agreement, Buyer can establish byreasonable evidence (i.e. a vendor's invoice, bona fide written quotation,equivalent proof or Buyer's written declaration) that Buyer's as-fired cost of thealternate fuel to replace natural gas is less than the cost of natural gas, then Buyershall advise Seller in writing, by the twenty-fifth (25th) of the calendar month,that the cost of natural gas for the next ensuing billing period will exceed the as-fired cost of the alternate fuel.

Seller will respond to Buyer, in writing, prior to the beginning of the next billingperiod that Seller will either:

(I) Lower the price of natural gas to the as-fired cost of the alternate fuel anddeliver gas, or

(2) Notify Buyer of the price at which Seller will deliver gas in the eventSeller elects not to lower the price to the as-fired cost of the alternate fuel.

In the event Seller elects to lower the price of gas to the as-Ared cost of thealternate fuel, 13uyer may not discontinue the purchase of natural gas hereunder.In the event Seller offers to deliver gas to Buyer at a price greater than the as-fired cost of the alternate fuel, then Buyer may either accept delivery of naturalgas at the price offered by Seller through a prompt verbal notice confirmed inwriting or discontinue receiving gas for the next billing period. In no event willthe cost of natural gas as determined by this paragraph exceed the cost asdetermined under the Base Rate of this Service Agreement.

During any period of suspended service, Buyer agrees to continue to invoice theCompetitive Fuel Rate provision each month for consideration by Seller. Should

SCL'G06-009

S e l l e r s h a l l

p r i c e n a t u r a l g a s d e l i v e r e d t o B u y e r p u r s u a n t t o t h e B a s e R a t e o f t h i s S e r v i c e

A g r e e m e n t .

( E ) C O M P E T I T I V E F U E L RA TE

It is the intent of the Agreement that Buyer's cost of natural gas used in Priorityof-Service Category 8 (POWER DEPARTMENT) shall be competitive with the as-fired cost of alternate fuel that Buyer could actually utilize in lieu of natural gas.

For the purpose of the computation to obtain the as-fired cost of the alternate fuel, it is understood and agreed that:

(1) The Alternate Fuel is Number Q. fuel oil.

(2) The cost of the alternate fuel (identified as "K") shall include:

(a) Cost per gallon, (b) Freight to Buyer's facility, and (c) One Cent (1.0¢) per gallon for handling charges.

(3) Number 2. fuel oil shall be considered as having 150,000 BTU's per gallon or 0.1500 dekatherms per gallon, which is identified as "dt".

(4) The following formula utilizes the above values and shall be used to calculate the as-fired cost of the alternate fuel (identified as "C"):

C=K dt

If, at any time during the term of the Service Agreement, Buyer can establish by reasonable evidence (i.e. a vendor's invoice, bona fide written quotation, equivalent proof or Buyer's written declaration) that Buyer's as-fired cost of the alternate fuel to replace natural gas is less than the cost of natural gas, then Buyer shall advise Seller in writing, by the twenty-fifth (25th) of the calendar month, that the cost of natural gas for the next ensuing billing period will exceed the asfired cost of the alternate fuel.

Seller will respond to Buyer, in writing, prior to the beginning of the next billing period that Seller will either:

( 1) Lower the price of natural gas to the as-fired cost of the alternate fuel and deliver gas, or

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Buyer fail or refuse to invoke the Competitive Fuel Rate in writing, Seller shallprice natural gas delivered to Buyer pursuant to the Base Rate of this ServiceAgreement,

(E) COMPETITIVE FUEL RATE

It is the intent of the Agreement that Buyer's cost of natural gas used in Priority-of-Service Category 8 POWER DEPARTMEN shaH be competitive with theas-fired cost of alternate fuel that Buyer could actually utilize in lieu of naturalgas.

For the purpose of the computation to obtain the as-fired cost of the alternatefuel, it is understood and agreed that:

(I) The Alternate Fuel is Number 6 fuel oil.

(2) The cost of the alteniate fuel (identilied as "K") shall include:

(a) Cost per gallon,(b) Freight to Buyer's facility, and(c) One Cent (I.OII) per gallon for handling charges.

(3) Number 2 fuel oil shall be cousidered as having 150 000 BTU's per gallonor 0.1500 dekatherms per gallon, which is identified as "clt".

(4) The following formula utilizes the above values and shaH be used tocalculate the as-fired cost of the alternate fuel (identified as "C"):

C=Kdt

If, at any time during the term of the Service Agreement, Buyer can establish byreasonable evidence (i.e. a vendor's invoice, bona fide written quotation,equivalent proof or Buyer's written declaration) that Buyer's as-fired cost of thealternate fuel to replace natural gas is less than the cost of natural gas, then Buyershall advise Seller in writing, by the twenty-fifth (25th) of the calendar month,that the cost of natural gas for the next ensuing billing period will exceed the as-fired cost of the alternate fuel.

Seller will respond to Buyer, in writing, prior to the beginning of the next billingperiod that Seller will either:

(I) Lower the price of natural gas to the as-fired cost of the alternate fuel anddeliver gas, or

SCEG06-009

S e l l e r will d e l i v e r gas i n t h e e v e n t

S e l l e r e l e c t s n o t to l o w e r the p r i c e to t h e a s - f i r e d c o s t o f the a l t e r n a t e fuel.

I n the e v e n t S e l l e r e l e c t s to l o w e r t h e p r i c e o f gas to t h e a s - f i r e d c o s t o f t h e

a l t e r n a t e fuel, B u y e r m a y not d i s c o n t i n u e t h e p u r c h a s e o f n a t u r a l gas hereunder.

In the event Seller offers to deliver gas to Buyer at a price greater than the asfired cost of the alternate fuel, then Buy~r may either accept delive1y of natural gas at the price offered by Seller through a prompt verbal notice confirmed in writing or discontinue receiving gas for the next billing period. In no event will the cost of natural gas as determined by this paragraph exceed the cost as determined under the Base Rate of this Service Agreement.

During any period of suspended service, Buyer agrees to continue to invoke the Competitive Fuel Rate provision each month for consideration by Seller. Should Buyer fail or refuse to invoke the Competitive Fuel Rate in writing, Seller shall price natural gas delivered to Buyer pursuant to the Base Rate of this Service Agreement.

(F) COMPETITIVE FUEL RATE (GAS-TO-GAS)

(1) Seller acknowledges that Buyer also has the capability to use transported gas to satisfy Buyer's requirements in Priority-of-Service Categories 3E & 8. Buyer and Seller hereby agree that Seller has the opportunity to bid a price to Buyer to displace Buyer's transported gas in accordance with the procedures ofthis Paragraph 7(F).

(2) Seller agrees to provide Buyer with notice, verbally by telephone, or in writing, before the end of each calendar month of the price at which Seller is able to sell Inte1Tuptible gas to Buyer for the next ensuing calendar month to displace transpmiation gas.

(3) Buyer agrees to respond to Seller, verbally by telephone, or in writing, prior to the beginning of the next ensuing calendar month, that Buyer accepts or rejects Seller's offer.

(4) In the event Buyer accepts Seller's offer, Buyer may not discontinue the purchase of natural gas for Buyer's fuel requirements hereunder.

(5) In the event Buyer rejects Seller's offer, and elects to transport Buyer's own gas, then Buyer shall have no obligation to purchase any gas from Seller's system supply.

(6) In no event will the cost of natural gas as determined by this paragraph, exceed the cost as determined under the Base Rate of this Service Agreement.

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(2) Notify Buyer of the price at which Seller will deliver gas in the eventSeller elects not to lower the price to the as-fired cost of the alternate fuel,

In the event Seller elects to lower the price of gas to the as-fired cost of thcalternate fuel, Buyer may not discontinue the purchase of natural gas hereunder.In the event Seller offers to deliver gas to Buyer at a price greater than the as-fired cost of the alternate fuel, then Buyer may either accept delivery of naturalgas at the price offered by Seller through a prompt verbal notice confumed inwriting or discontinue receiving gas for the next billing period. In no event willthe cost of natural gas as determined by this paragraph exceed the cost asdeteimined under the Base Rate of this Service Agreement.

During any period of suspended service, l3uyer agrees to continue to invoke theCompetitive Fuel Rate provision each month for consideration by Seller. ShouldBuyer fail or refuse to invoke the Competitive Fuel Rate in writing, Seller shallprice natural gas delivered to Buyer pursuant to the Base Rate of this ServiceAgreement.

(F) COMPETITIVE FUEL RATE GAS-TO-GAS

(1) Seller acknowledges that Buyer also has the capability to use transported gasto satisfy Buyer's requirements in Priority-of-Service Categories 3E & 8.

Buyer and Seller hereby agree that Seller has the opportunity to bid a price toBuyer to displace Buyer's transposed gas in accordance with the proceduresof this Paragraph 7(F).

(2) Seller agrees to provide Buyer with notice, verbally by telephone, or inwriting, before the end of each calendar month of the price at which Seller isable to sell Interruptible gas to Buyer for the next ensuing calendar month todisplace transportation gas.

(3) Buyer agrees to respond to Seller, verbally by telephone, or in writing, priorto the beginning of the next ensuing calendar month, that Buyer accepts orrejects Seller's offer.

(4) In the event Buyer accepts Seller's offer, Buyer may not discontinue thcpurchase of natural gas for Buyer's fuel requirements hereunder.

(5) In the event Buyer rejects Seller's offer, and elects to transport Buyer's owngas, then Buyer shall have no obligation to purchase any gas from Seller'system supply.

(6) In no event will the cost of natural gas as determined by this paragraph,exceed the cost as determined under the Base Rate of this ServiceAgreement,

SCEG06-009

S T A N D B Y CHARGES

In c o n s i d e r a t i o n o f Buyer's r e q u i r e m e n t for standby , service for Buyer's requirements in

P r i o r i t y - o f - S e r v i c e Categories 3 E & 8, Buyer agrees to pay Seller the sum of two hundred and fifty dollars ($250.00) per month as a standby charge. This charge shall be in addition to any other monies charged for standby volumes delivered in Priorityof-Service Categories 3E & 8 from Seller's system supply.

9. BILLING VOLUMES

For the purpose of billing, the patties agree that the first gas delivered through the Point of Delivery shall be the volumes transp01ted for Buyer on a daily basis pursuant to the Transpo1tation Agreement between the patties. All volumes in excess of the transp01ted volumes will be considered as having been delivered pursuant to this Service Agreement.

10. MEASUREMENT FOR BILLING

For the purpose of billing, the patties agree that the first 1,800 dekatherms per day delivered by Seller to Buyer shall be considered as having been delivered pursuant to the Agreement For Transpo1tation Service With Firm Gas Standby and the remaining volumes delivered pursuant to Paragraph l(C) of this Service Agreement.


Seller, in order to satisfy itself of the ability of the Buyer to meet its obligations under the contract, may conduct periodic reasonable credit reviews in accordance with standard commercial practices. Buyer agrees to assist in these reviews by providing financial information and at the request of the Seller, will maintain such credit suppo1t or surety including, but not limited to, an unconditional and irrevocable letter of credit to provide adequate security for protection against the risk of nonpayment.

12. ASSIGNMENT

Customer shall not assign this Agreement or its rights hereunder without the prior written consent of the Company, which consent may be withheld in the exercise of its sole discretion.


The General Terms and Conditions to Industrial Service Agreements attached hereto and duly executed by both parties, are hereby incorporated in and made a pmt of this Service Agreement. Should there be any conflict between any p01tion of the General

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STANDBY CHARGES

In consideration of Buyer's requirement for standby service for Buyer's requirements inPriority-of-Service Categories 3E & 8, Buyer agrees to pay Seller the sum of twohundred and fifty dollars ($250.00) per month as a standby charge. This charge shallbe in addition to any other monies charged for standby volumes delivered in Priority-of-Service Categories 3E Ec 8 fiom Seller's system supply.

BILLING VOLUMES

For the purpose of billing, the patties agree that the first gas delivered tlu'ough thePoint of Delivery shall be the volumes transported for Buyer on a daily basis pursuantto the Transportation Agreement between the patties, All volumes in excess of thetransported volumes will be considered as having been delivered pursuant to thisService Agreement,

10. MEASUREMENT FOR BILLING

For the purpose of billing, the paities agree that the first I 800 dekatherms per daydelivered by Seller to Buyer shall be considered as having been delivered pursuant tothe Agreement For Transportation Service With Firm Gas Standby and the remainingvolumes delivered pursuant to Paragraph 1(C) of this Set vice Agreement.


Seller, in order to satisfy itself of the ability of the Buyer to meet its obligations underthe contract, may conduct periodic reasonable credit reviews in accordance withstandard conunercial practices. Buyer agrees to assist in these reviews by providingfinancial information and at the request of the Seller, will maintain such credit supportor surety including, but not limited to, an unconditional and irrevocable letter of creditto provide adequate security for protection against the risk ofnonpayment.

12, ASSIGNMENT

Customer shall not assign this Agreement or its rights hereunder without the priorwritten consent of the Company, which consent may be withheld in the exercise of itssole discretion,


The General 'ferms and Conditions to Industrial Service Agreements attached heretoand duly executed by both parties, are hereby incorporated in and made a patt of thisService Agreement. Should there be any conflict between any portion of the General

SCEG06-009

S e r v i c e A g r e e m e n t s a n d t h i s S e r v i c e A g r e e m e n t ,

t h e p m i i e s agree t h a t t h e S e r v i c e A g r e e m e n t shall p r e v a i l .

14. N O T I C E S

All c o r r e s p o n d e n c e r e q u i r e d o f B u y e r a n d S e l l e r u n d e r this S e r v i c e A g r e e m e n t is to b e

a d d r e s s e d as f o l l o w s :

To Seller:

To Buyer:


Sonoco Products Company Attn: Lisa Beasley P. 0. Box 160 Hartsville, SC 29551

IN WITNESS WHEREOF, this Service Agreement has been executed on the date first above written by the pmiies hereto by their officers or other representatives.

SONOCO PRODUCTS COMPANY

Title (

Date It /13 /17

I I

SOUTH CAROLINA ELECTRIC & GAS COMPANY

Se~

B'~ y I iam . atcms

Manager - Large Customer Accounts & Services Title

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Terms and Conditions to Industrial Service Agreements and this Service Agreement,the patties agree that the Service Agreement shall prevail.

14. NOTICES

All correspondence required of Buyer and Seller under this Service Agreement is to beaddressed as follows:

To Seller; South Carolina Electric & Gas CompanyLarge Customer Group, Mail Code 8-102Cayce, SC 29033

To Buyer: Sonoco Products CompanyAttn: Lisa BeasleyP. 0, Box 160Hartsville, SC 29551

IN WITNESS WHEREOI'", this Service Agreement has been executed on the date first abovewritten by the paities hereto by their officers or other representatives.

SONOCO PRODUCTS COMPANYBuyer

SOUTH CAROLINA ELECTRIC & GASCOMPANYSeller

Title

By William G. Watkins

Mana er — Lar e Customer Accounts & ServicesTitle

Date

10 SCEG06-009

ibi SOUTH CAROLINA ELECTRIC & GAS COMPANY GAS

RATE 33 MEDIUM GENERAL SERVICE

AVAILABILITY

Available only to those customers using the Company's service for firm general commercial, industrial, agriculture, religious or charitable purposes and for residential where more than one dwelling unit is supplied through one meter. Also, this rate schedule is only available where there is an average usage of at least 130 therms during the billing months of June, July and August. The average usage is derived by combining the therm usage for each of the billing months previously listed and dividing by three. It is not available for resale.

' RATE PER MONTH

Basic Facilities~C'"'ha'-r""'"'e'-: ---------------------------------"$.::2.::8.:.;.9:..:2~

Plus Commodity Charge:

All Therms@ $ 0.93960 per therm

WEATHER NORMALIZATION ADJUSTMENT

An adjustment to the commodity charges for the billing months of November-April above will be made in accordance with the Weather Normalization Adjustment.

DEKA THERM BILLING

Customers that have installed chart metering facilities may be billed on a per Dekatherm basis (1 dekatherm = 10 therms).

The amount per dekatherm will be determined by mulliplying the above by 1 o.

MINIMUM CHARGE

The monthly minimum charge shall be the basic facilities charge as stated above.

UNMETERED GAS LIGHTING PROVISION

Gas used for lighting will be determined based on BTU ratings of fixtures installed and will be billed the commodity charges

listed above.

SEASONAL BLOCK CHARGE

A charge will apply for customers who disconnect service and subsequently request reconnection of service at the same premise within a 12 month period. This is commonly referred to as seasonal block. The charge will be based on the number of months the customer is disconnected times the basic facilities charge as staled above. In determining the months of disconnection, any number of days disconnected within a month constitutes a whole month of disconnection. If reconnection is requested to be performed after normal business hours, an additional charge of $20.00 will be added to the charges as calculated above.


The commodity charges above include gas costs of $0.4901 O per therm and are subject to adjustment by order of the Public Service Commission of South Carolina.


To the above will be added any applicable sales tax, franchise fee or business license tax which may be assessed by any state or local governmental body.

PAYMENT TERMS


TERM OF CONTRACT

Contracts shall run continuously from time service is commenced at each location until service to customer is permanently disconnected. A separate contract shall cover each meter at each location. No contract shall be written for less than twelve (12) months.


The Company's General Terms and Conditions are incorporated by reference and a part of this rate schedule.

Effective For Bills Rendered On and After the 1st Billing Cycle of October 2017

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Exhibit ASOUTH CAROLINA ELECTRIC S GAS COMPANY

RATE 33

GAS

MEDIUM GENERAL SERVICE

AVAILABILITY

Available only to those cusiemers using the Company's service Im gml general commmela. Industrial, egrlmihurs, reggleus or charitablepurposes end for residengal where more Ihan one dwelgng unb ls supplied through ons melar. Also, lhls rais schedule is only avagablewhere lhers ls sn average usage of al least 130 Ihepns during Ihe biding months ol June, July and August. The average usage ls derfvedby cemblning Ihe Iherm usage (or cadi of the bgllng months previously Ihlad end dividing by three. 0 is nol avsgable for resale.

RATE PER MONTH

Basic Faciliges Char e: 323.92

Plus Commodity Charge:Ag Therma 30.93960 per therm

WEATHER NORMALIZATION ADJUSTMENT

An ad)uslmenl lo Ihs commodity charges for the billing months o( November-Aprg above will be made In accordance with the WeatherNormallzagon Ad)uslmenk

DEKATHERM BILLING

customers Ihal have Inslaged chart metering (acilities msy be billed on a per Dekatherm basis (I dekatherm = 10 Iherms).The amount par dekalherm will bs determined by multiplying Ihe above by lb.

MINIMUM CHARGE

The monthly minimum charge shall be Iha basic fsciliges charge as slated abave.

UNMETERED GAS LIGHTING PROVISION

Gee used far gghgng wgl be determined based an 0TU rulings ol gslures insteged end vag be bided Ihs conimodity chargesbaled above.

SEASONAL BLOCK CHARGE

A charge will apply (or cuslamers who dlsconnerJ service and subsequenuy request reconnemion of servhe al Ihe same premise within a12 month period. This Is commonly rsterred lo as seasonal block. The cliargs will be based on Ihs number of months ihe customer lsdisconnected gmes Ihs baste (adgties charge ss slated above. In delermlnlng the months of dlscannecgon, any number id daysdlscomtectad wghin a month consglules a whole month of dlsmmnedlon. I( reconnecdon ls requested lo be perfarmsd alter normalbusiness hours, sn add 0 tonal charge of 320 00 wig be added lo the charges as calculalml shove.


The commodity charges above Include pss coals of 30.49010 per therm and ars su%el lo ed)ustment by order af Ihs Pubgc ServtcaCommission of South Caroline.


To Ihe above will bs added any appgcable salas tss, franchise fsa ar business gcense tas whhh lnsy bs assessed by any stale ar localgovernmental tmdy.

PAYIIIIENTTERMS

Ag bgls ere nei and payable when rendered.

TERNIDFCONTRACT

Contracts shall run continuously from lime service ls commenced et each tocagon ungl service lo customer ls pennsnengy disconnected. Aseparate centred shag cover each melar el each locagon. No contract shag be wrigan lar less lhan twelve (12) menthe.


The Company's General Terms snd Condigons are incorporsled by reference and s perl of Ibis rale srhedula.

Effective For Bills Rendered On and After the 1st Billing Cyrfe of October 2017

B

SOUTH CAROLINA ELECTRIC AND GAS COMPANY PURCHASED GAS ADJUSTMENT

FIRM GAS ONLY

This adjustment is applicable to and is part of the Company's firm gas rate schedules. The cost will be calculated to the nearest one-thousandths of a cent, as determined by the following formula, and will be included in the base rates to the extent approved by the Public Service Commission. All costs and factors will be recalculated monthly for a forward looking 12-month period. Adjustments in gas cost factors will be made for all factors in any month in which the recalculation indicates that any factor requires an adjustment of more than $0.04 per therm. If the recalculation indicates the adjustment is less than or equal to $0.04 per therm, then the Company may nevertheless adjust the rate if, in its sole discretion, it determines that a rate adjustment would reasonably impact customers' bills. The recalculation shall be made based on information current as of a mid-month date selected by the Company which allows for revised factors to be filed and acted on by the Commission before the first billing cycle of the month in which they are to be effective. All components of the recalculation (commodity costs, demand charges, firm sales, industrial revenue credits, capacity release credits, over or under collections, carrying costs, etc.) shall reflect current forecasts and balances as of the date of the recalculation. Differences between firm cost of gas revenues actually billed and firm cost of gas expenses actually incurred for each month, as defined below, will be calculated monthly, for both Demand Charges and Firm Commodity Benchmark charges, and accumulated. The accumulated amounts will be applied to subsequent cost of gas factor calculations as detailed herein with monthly carrying costs calculated at the rate of one-twelfth of the annual applicable interest rate. This annual rate is defined as the rate of interest as of the first day of each month for 10-year U.S. Government Treasury Bills plus an all-in spread of 65 basis points (0.65 percentage points) with this total carrying costs annual rate not exceed 6%. The rate will be applied to the cumulative balance of over or under recovery as of the close of the prior month for each customer class for both demand and commodity with no carrying cost applied to over or under-collection balances equal to or exceeding $20 million dollars. The resulting interest adjustment will be applied to the demand and commodity cost of gas recovery balances for each customer class. The Demand Charges and Firm Commodity Benchmark charges shall be calculated as set forth below.

A. Demand Charges:

Demand Charges per Therm by Class = [a-(b+c)) x Rate Class Percentages Firm Sales Therms by Rate Class

(a) Capacity charges and reservation fees for transportation, storage and LNG. (b) Released capacity at 75% of the net compensation received from secondary market

transactions. (See "Note-1" below) (c) Margin Revenue from interruptible rates above $.02081 per therm. Margin Revenue is

the total amount received for such sale less the commodity cost of gas determined in B below.

Effective On and After The First Billing Cycle of January 2010

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EXHIBIT 8

SOUTH CAROLINA ELECTRIC AND GAS COMPANYPURCHASED GAS ADJUSTMENT

FIRM GAS ONLY

This adjustment is applicable to and is part of the Company's firm gas rate schedules. The costwill be calculated to the nearest one-thousandths of a cent, as determined by the followingformula, and will be included in the base rates to the extent approved by the Public ServiceCommission. All costs and factors will be recalculated monthly for a forward looking 12-monthperiod. Adjustments in gas cost factors will be made for all factors in any month in which therecalculation indicates that any factor requires an adjustment of more than $0.04 per therm. If therecalculation indicates the adjustment is less than or equal to $0.04 per therm, then the Companymay nevertheless adjust the rate if, in its sole discretion, it determines that a rate adjustmentwould reasonably impact customers'ills. The recalculation shall be made based on informationcurrent as of a mid-month date selected by the Company which allows for revised factors to befiled and acted on by the Commission before the first billing cycle of the month in which they areto be effective. All components of the recalculation (commodity costs, demand charges, firmsales, industrial revenue credits, capacity release credits, over or under collections, carryingcosts, etc.) shall reflect current forecasts and balances as of the date of the recalculation.Differences between firm cost of gas revenues actually billed and firm cost of gas expensesactually incurred for each month, as defined below, will be calculated monthly, for both DemandCharges and Firm Commodity Benchmark charges, and accumulated. The accumulated amountswill be applied to subsequent cost of gas factor calculations as detailed herein with monthlycarrying costs calculated at the rate of one-twelfth of the annual applicable interest rate. Thisannual rate is defined as the rate of interest as of the first day of each month for 10-year U.S.Government Treasury Bills plus an all-in spread of 65 basis points (0.65 percentage points) withthis total carrying costs annual rate not exceed 6%. The rate will be applied to the cumulativebalance of over or under recovery as of the close of the prior month for each customer class forboth demand and commodity with no carrying cost applied to over or under-collection balancesequal to or exceeding $20 million dollars. The resulting interest adjustment will be applied to thedemand and commodity cost of gas recovery balances for each customer class. The DemandCharges and Firm Commodity Benchmark charges shall be calculated as set forth below.

A. Demand Charges:

Demand Charges per Therm by Class = a- b+c x Rate Class Percenta esFirm Sales Therms by Rate Class

(a)(b)

(c)

Capacity charges and reservation fees for transportation, storage and LNG,Released capacity at 75% of the net compensation received from secondary markettransactions. (See "Note-1" below)Margin Revenue from interruptible rates above $ .02081 per therm. Margin Revenue isthe total amount received for such sale less the commodity cost of gas determined in B

below.


8

All calculations of Demand Charges by customer class shall be done monthly. The full amount of any Margin Revenue as stated in C above, shall be credited to the Demand Cost. Additionally, SCE&G will revise the rate class percentages to reflect the current weighting of 50% of annual peak day forecast and 50% of forecast annual sales in each annual Purchased Gas Adjustment filing.

NOTE-1: "Released Capacity" shall include all transactions which involve the use of gas transportation capacity rights, storage rights or similar off-system rights or assets owned by SCE&G, but only if the cost of those rights or assets is borne by firm gas customers in South Carolina. "Net value received" shall mean the gross compensation received from the "released capacity" transactions, less all transportation charges, taxes or other governmental charges, brokerage fees or commissions, or other costs or charges related to the transaction, including all costs incurred in purchasing natural gas supplies that form part of the transaction .

B. Firm Commodity Benchmark:

Where: Firm Gas Cost per Therm = jQ.:fti s

(p) Total variable cost of natural gas (processed or unprocessed), vaporized liquid natural gas, synthetic gas, propane-air mixture, landfill gas, or other source of methane gas or any mixture of these gases entering the Company's system in dollars including any additions or subtractions from Price Risk Adjustment.

(d) The cost of gas attributable to all sales made by the Company to customers under an interruptible rate or contract or any Special Market Priced Customers, such costs to be calculated by dividing the total price paid for commodity gas for the month by the volumes of gas purchased for the month (adjusted for shrinkage) with the resulting unit price then multiplied by interruptible sales therms for the month. (See "Note-2" Below)

(s) Total firm therm sales of gas. Total sales being defined as those sales excluding gas sold under D above recorded on the Company's books in Accounts 480 through 483 per The Uniform System of Accounts for Class A and B Gas Utilities of the National Association of Regulatory Utility Commissioners (NARUC).

NOTE-2: Special Market Priced Gas includes, without limitation, market priced gas sold to Compressed Natural Gas (CNG) customers under SCE&G's Developmental Rate for CNG and emergency gas customers sold under provisions providing for Emergency Gas sales. The appropriate revenue related tax factor is to be included in the calculation of Demand Charges and the Firm Commodity Benchmark.

C. Alternative Commodity Benchmark Calculation Related to Interruptible Sales

Interruptible sales are priced to reflect the cost of gas supplies available at the time the sales are transacted. The Firm Commodity Benchmark is calculated as a system-wide average at month's end. In some cases, the market price of gas supplies may change within a month such that the Firm Commodity Benchmark plus $.02081 per therm is higher than the price quoted for interruptible sales. In such cases, SCE&G may calculate an Alternative Commodity Benchmark for those interruptible sales whose prices fall below the Firm Commodity Benchmark. SCE&G shall then use that Alternative Commodity Benchmark plus $.02081 per therm in calculating the Margin Revenue from those sales.


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EXHIBIT B

All calculations of Demand Charges by customer class shall be done monthly. The fullamount of any Margin Revenue as stated in C above, shall be credited to the DemandCost. Additionally, SCE8 G will revise the rate class percentages to reflect the currentweighting of 50% of annual peak day forecast and 50% of forecast annual sales in eachannual Purchased Gas Adjustment filing.

NOTE-1: "Released Capacity" shall include all transactions which involve the use of gastransportation capacity rights, storage rights or similar off-system rights or assets owned bySCE&G, but only if the cost of those rights or assets is borne by firm gas customers in SouthCarolina. "Net value received" shall mean the gross compensation received from the "releasedcapacity" transactions, less all transportation charges, taxes or other governmental charges,brokerage fees or commissions, or other costs or charges related to the transaction, including allcosts incurred in purchasing natural gas supplies that form part of the transaction.

Firm Commodity Benchmark:

Where: Firm Gas Cost per Therm = ~ds

(p) Total variable cost of natural gas (processed or unprocessed), vaporized liquid naturalgas, synthetic gas, propane-air mixture, landfill gas, or other source of methane gas orany mixture of these gases entering the Company's system in dollars including anyadditions or subtractions from Pdice Risk Adjustment.

(d) The cost of gas attributable to all sales made by the Company to customers under aninterruptible rate or contract or any Special Market Priced Customers, such costs to becalculated by dividing the total price paid for commodity gas for the month by the volumesof gas purchased for the month (adjusted for shrinkage) with the resulting unit price thenmultiplied by interruptible sales therms for the month. (See "Note-2" Below)

(s) Total firm therm sales of gas. Total sales being defined as those sales excluding gassold under D above recorded on the Company's books in Accounts 480 through 483 perThe Uniform System of Accounts for Class A and B Gas Utilities of the NationalAssociation of Regulatory Utility Commissioners (NARUC).

NOTE-2: Special Market Priced Gas includes, without limitation, market priced gas sold toCompressed Natural Gas (CNG) customers under SCE8 G's Developmental Rate for CNG andemergency gas customers sold under provisions providing for Emergency Gas sales.The appropriate revenue related tax factor is to be included in the calculation of Demand Chargesand the Firm Commodity Benchmark.

C. Alternative Commodity Benchmark Calculation Related to Interruptible Sales

Interruptible sales are priced to reflect the cost of gas supplies available at the time the sales aretransacted. The Firm Commodity Benchmark is calculated as a system-wide average at month'send. In some cases, the market price of gas supplies may change within a month such that theFirm Commodity Benchmark plus $.02081 per therm is higher than the price quoted forinterruptible sales. In such cases, SCE&G may calculate an Alternative Commodity Benchmarkfor those interruptible sales whose pdices fall below the Firm Commodity Benchmark. SCE&Gshall then use that Alternative Commodity Benchmark plus $ .02081 per therm in calculating theMargin Revenue from those sales.


B

The Alternative Commodity Benchmark --The Alternative Commodity Benchmark shall be calculated using the following formula :

Cost of Gas per Therm = -1L d

(p) Total variable cost of gas (of whatever type) entering the Company's system that was purchased, nominated, injected or otherwise obtained to support the interruptible sales whose prices are lower than the Firm Commodity Benchmark.

(d) The interruptible sales, in therms, whose prices are lower than the Firm Commodity Benchmark.

The costs and quantities of gas used in such calculation shall be excluded from the calculation of the Firm Commodity Benchmark under Section B, above. Margin Revenue from Interruptible Sales: In those months in which SCE&G elects to compute an Alternative Commodity Benchmark for interruptible sales, it shall use that Alternative Commodity Benchmark to compute Margin Revenue from interruptible sales and shall include the Margin Revenue so calculated in factor (c) of the Demand Cost calculation under Section A, above.

Whenever SCE&G elects to compute an Alternative Commodity Benchmark for interruptible sales, it shall provide written notice thereof to the Commission and the Office of Regulatory Staff, within 30 days of adopting the resulting adjustment to prices and volumes.


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EXHIBIT B

The Alternative Commodity Benchmark -The Alternative Commodity Benchmark shall becalculated using the following formula:

Cost of Gas per Therm =~d

(p)

(d)

Total variable cost of gas (of whatever type) entering the Company's system that waspurchased, nominated, injected or otherwise obtained to support the interruptible saleswhose prices are lower than the Firm Commodity Benchmark.The interruptible sales, in therma, whose prices are lower than the Firm CommodityBenchmark.

The costs and quantities of gas used in such calculation shall be excluded from the calculation ofthe Firm Commodity Benchmark under Section B, above.Margin Revenue from Interruptible Sales: In those months in which SCE&G elects to compute anAlternative Commodity Benchmark for interruptible sales, it shall use that Alternative CommodityBenchmark to compute Margin Revenue from interruptible sales and shall include the MarginRevenue so calculated in factor (c) of the Demand Cost calculation under Section A, above.

Whenever SCE&G elects to compute an Alternative Commodity Benchmark for interruptiblesales, it shall provide written notice thereof to the Commission and the Office of Regulatory Staff,within 30 days of adopting the resulting adjustment to prices and volumes.


• I

S O U T H C A R O L I N A E L E C T R I C & GAS COMPANY

GAS COST CALCULATION

APPLICABILITY

This calculation is applicable to and is part of the Seller's Service Agreement for interruptible gas deliveries.

COST OF GAS

,· ·

The cost of gas per dekatherm for the current month shall be determined (to the nearest thousandth of a cent) by the use of the equation below:

Where:

Cost of Gas = (P - D) x T s

P = Total cost of natural gas (processed or unprocessed) vaporized liquid natural gas, synthetic gas, propane-air mixture, landfill gas, or other source of methane gas or any mixture of these gases entering the Seller's system during the current month in dollars.

D = The cost of gas attributable to all sales made by Seller to Buyers under an interruptible rate or contract where the Buyer has alternative fuel capability and has ce1tified to the Seller the as-fired price of its alternative fuel such that Seller could not supply gas at a price that is competitive and service is provided by Seller under the competitive pricing provisions of the rate or contract.

S = Total gas entering the Seller's system during the cunent billing month excluding gas sold under D above times the annual sales factor which will be determined by dividing total annual sales recorded in Accounts 480 through 483 plus distribution gas used in electric generation by the total annual gas entering the Seller's system. The annual sales factor shall be computed for the twelve months ending each March and applied beginning with the first billing cycle of the following May each year.

T = Adjustment for revenue related Taxes plus one (1)

NOTES: (1) The amounts calculated in the formula above shall include any applicable credit or debit adjustment reflecting corrections to a prior month's Gas Cost calculation.

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EXHIBIT C

SOUTH CAROLINA ELECTRIC 4 GAS COMPANY

GAS COST CALCULATION

APPLICABILITY

This calculation is applicable to and is patt of the Seller's Service Agreement forinterruptible gas deliveries,

COST OF GAS

The cost of gas per del&atherm for the current month shall be determined (to the nearestthousandth of a cent) by the use of the equation below:

CostofGas=~Dx TS

Where:

p= Total cost of natural gas (processed or unprocessed) vaporized! iquid natural gas,synthetic gas, propane-air mixture, landfill gas, or other source of methane gas orany mixture of these gases entering the Seller's system during the current monthin dollars.

D= The cost of gas attributable to all sales made by Seller to Buyers under aninterruptible rate or contract where the Buyer has alternative fuel capability andhas ceitifled to the Seller the as-fired price of its alternative I'uel such that Sellercould not supply gas at a price that is competitive and service is provided bySeller under the competitive pricing provisions of the rate or contract,

Total gas entering the Seller's system during the current billing month excludinggas sold under D above times the annual sales factor which will be determined bydividing total annual sales recorded in Accounts 480 through 483 plus distributiongas used in electric generation by the total annual gas entering thc Seller's system.The annual sales factor shall be computed for the twelve months ending eachMarch and applied beginning with the first billing cycle of the following Mayeach year.

T = Adjustment for revenue related Taxes plus one (I)

NOTES: (I) The iunounts calculated in the formula above shall include any applicablecredit or debit adjustment reflecting corrections to a prior month's GasCost calculation.

& GAS COMPANY

GENERAL TERMS AND CONDITIONS TO ~rt~c~:1TRIAI! SERVICE AGREEMENTS FOR u R 'G JN Al GENERAL

These Terms and Conditions to Industrial Service Agreements are supplementary to the Rules and Regulations issued by the Public Service Commission of South Carolina and the General Tenns and Conditions of South Carolina Electric & Gas Company as provided by the Public Service Commission of South Carolina. The provision of these Tenns and Conditions apply to all persons, partnerships, corporations or others designated as industrial users who are lawfully receiving gas service from South Carolina Electric & Gas Company under rate schedules or service agreements filed with the Commission. To the extent these Terms and Conditions conflict with the General Terms and Conditions for natural gas service, the General Tenns and Conditions for natural gas service control. South Carolina Electric & Gas Company is referred to herein as "Seller", and the user or prospective user is referred to as "Buyer'. The Public Service Commission of South Carolina is referred to herein as "Commission".


Except where the context otherwise indicates another or different meaning or intent, the following tenns are intended and used and shall be construed to have meaning as follows: 1. 'Day" shall mean a period of twenty-four (24) consecutive hours beginning at 10:00 A.M. Eastern Time or at such other hours as may be designated. 2. "Month' shall mean the period between any two (2) regular readings of Seller's meters which shall be not less than twenty-eight (28) days or more than thirty-four (34) days. 3. 'Year" shall mean a period of 365 days commencing with the day of first delivery of gas hereunder, and each 365 days thereafter except that in a year having a date of February 29th,

such year shall consist of 366 days. 4. 'Cubic foot of gas" shall mean the amount of gas necessary to fill a cubic foot of space when the gas is at a temperature of sixty degrees Fahrenheit (60'F) and under an absolute

pressure of fourteen and seventy-three hundredths pounds per square inch (14.73 psia). 5. 'CCF" shall mean one hundred (100) cubic feet of gas. 6. "MCF" shall mean one thousand (1000) cubic feet of gas. 7. "BTU" shall mean a British Thermal Unit and is the amount of heat required to raise the temperature of one (1) pound of water 1' Fahrenheit at 60° Fahrenheit. 8. "MMBTU" shall mean one million British Thennal Units. 9. 'Therm' shall mean the quantity of heat energy which is 100,000 British Thermal Units. 10. 'Dekatherm" (dt) shall mean the quantity of heat energy which is 1,000,000 British Thermal Units. 11. "Natural Gas" or "Gas" shall mean natural gas, processed or unprocessed, vaporized liquid natural gas, synthetic gas, propane-air mixture, landfill gas, other unconventional source of

methane gas or any mixture of these gases. 12. 'Finn Service" shall mean service from rate schedules and/or contracts under which Seller is expressly obligated to deliver specific volumes within a given time period and which

anticipates no interruptions but which may permit unexpected interruptions in case the supply to higher priority customers is threatened. 13. ' Interruptible Service" shall mean service from rate schedules and contracts under which Company is not expressly obligated to deliver specific volumes within a given time period, and

which anticipates and permits interruption on short notice, or service under rate schedules or contracts which expressly or impliedly require installation of alternate fuel capability. 14. 'Commercial Service" shall mean service to Customers engaged primarily in the sale of goods or services including institutions and local, state and federal government agencies for

uses other than those involving manufacturing or electric power generation. 15. ' Industrial Services" shall mean service to customers engaged primarily in a process which creates or changes raw or unfinished materials into another form or product including the



17. 'Feedstock Gas" shall mean natural gas used as a raw material for its chemical properties in creating an end product. 18. 'Process Gas' shall mean gas used for which alternate fuels, other than another gaseous fuel, are not technically feasible such as in applications requiring precise temperature controls

and precise flame characteristics. 19. "Boiler Fuel" shall mean natural gas used as fuel for the generation of steam and in internal combustion turtJine engines for the generations of electricity. 20. "Alternate Fuel Capability" shall mean a situation where an alternate fuel could have been utilized whether or not the facilities for such use have actually been installed; provided

however, where the use of natural gas is for plant protection, feedstock or process uses and the only alternate fuel is propane or other gaseous fuel, then the Buyer will be treated as if he had no alternate fuel capability if such fuel is unobtainable for serving fuel needs.

21 . 'Gas Supply Deficiency" shall mean any occurrence relating to Seller's gas supply which causes Seller to deliver less than the total requirements of its system, including failures of suppliers to deliver gas for any reason, requirement of gas for system storage, conservation of gas for future delivery, or any other occurrence not enumerated herein which affects Seller's gas supply.

22. 'Storage Injection Requirements" shall mean all volumes required by the Seller for injection into underground storage, including cushion gas, and for liquefaction, including fuel used for injection in liquefaction plants, or for such other storage projects that may be developed expressly for the protection of supply to high priority users.

23. 'Seller Use" shall mean fuel used for gas compression, LPG plants and LNG plants, other gas needed by Seller's facilities to furnish the requirements of Buyers, together with unaccounted for gas. This gas shall be considered included in Priority of Service Category 1. Other vital uses of Seller, such as flame stabilization requirements, will be met as long as such uses do not jeopardize service to its firm service Buyers.

24. 'Essential Human Needs" shall mean natural gas service, which, if denied, would cause shutdown of an operation resulting in the closing of an establishment essential to maintaining the health and safety of the general public.

25. 'The Point of Delivery' shall be at the outlet side of the Seller's measuring equipment and regulating equipment. 26. 'Emergency Service' shall mean supplemental deliveries of natural gas that may be required to forestall irreparable injury to life or property including environmental emergencies.


1. In the event of a Gas Supply Deficiency on the Seller's system, the Seller shall require curtailment of service to Buyer in accordance with the following procedure: a. The Seller shall order curtailment of sales made to Buyer's purchasing gas under the Seller's rate s.chedules or special contracts in descending order in accordance with priority of

service categories set forth below. Approved emergency gas is excepted from curtailment. 1. Residential and small commercial Buyers (less than 50 MCF on a peak day) and essential human needs customers where there is no installed or available alternate fuel capability. 2. Large commercial direct flame requirements (50 MCF or more on a peak day); firm industrial requirements for plant protection, feedstock and process needs; and storage injection requirements. 3A. Finn industrial requirements for uses other than boiler fuel which do not qualify for Category 2. 3B. Finn commercial and industrial boiler fuel requirements up to 1,000 MCF on a peak day. 3C. Interruptible requirements for human need types of facilities such as public buildings, hospitals and laundries. 3D. Interruptible requirements for direct flame applications which can utilize only another gaseous fuel as an alternate.

1

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SOUTH CAROLINA ELECTRIC & GAS COMPANYGENERAL TERMs ANC coNC ITIC Ns To I NousTRIAL sERvlcE AGREEMENTs FQR

TIII R I G INArticle I

GENERALThese Ter/ns and Conditions to Industrial Sewice Agreements are suppbmsnfary to Ihe Rules and Rsgulagons issued by Iha Public Servkxr Commission of South Camlina and IhsGensml Terms and Conditions of South Carogns Eledrlc & Gas Company as provided by the Public Service Commission of South Carolina.The provision ol Ihese Tenne snd Condilhns apply lo ag persons, parlnemhips, corporations or others designated as industria users who am lawfugy receiving gas senrice from SouthCarolina Electri 6 Gas Company under mle schedules or service agreements filed with Ihe Commission. To the extent these Terms and Conditions conflict with Ihe Geneml Tenne andConditions lor natural gas seniice, Ihe General Tenne and CondiUons for natural gas service control.South Carolina Electric 6 Gas Company b referred lo herein as 'Seller", and Ihe user or prosperzivs user Is referred Io as 'Buyer". The Public Senrlcs Commission of South Carolina Is

referred to herein as 'Commission'.

Article II

DEFINITIONS

Except where Ihe context otherwise indicates another or difierent meaning or intent, Ihe fogowing lerms are inlended and used and shall be construed lo have meaning as follows:

1. 'Dsy'shall mean a pwlod of twenty four (24) mnsecutive bourn beginning at 10 00 A M. Eastern T/me or at such other hours ss may be designated.2. 'Month'hall mean Ihe period between sny kvo (2) regular readings ol sage(s meters whkh shsU be not kss Ihan twenty eight(28) days or mare Ihan Ihirly four (34) days.3. Year" shall mean a pedcd of365 days commendng with Ihe day of llrsidegvery of gas hereunder, and each 365 days Ihemsfter except Uiat In a year having a dale of February 29th,

such year shall consist of 366 days.4. 'cubicfoot of gas'hag mean Ihe amount of gas necessary lo lig a cubic tool of space when Ihe gas is ate lemperalure of sixty degrees Fahrenheil(60'F) and under an absolute

pressure of lourleen and seventy-Ihree hundredlhs pounds per square Inch (14.73 psia).5. 'CCF'shall mean one hundred (100) cubic feel of gas.6. 'MCF'hall mean one Ihousand (1000) cubic feet of gas.7. 'BTU'hall mean a British Thermal Unit and Is Ihe amount of heat required lo raise the lemperature of one (I) pound of water 1'ahrenheit at 60'ahrenheit8. 'MMBTU'hall mean one rrutlion Bridsh Thermal Units.9. 'Therm'hall mean Ihs quantity of heat energy whkh is 100 000 British Thermal Units.

10. 'Dekalhem((dl) shall mean Ihe quantity ot hest energy which Is 1000000 British Thermal Units,

11. 'Natural Gas'or'GaM shag mean natural gas, p/ocesssd orunprocessed, vaporized gquid natural gas, synlhetW gas, pmpanewlr mkture, landgl gas, other unmnvenUonal source ofmethane gas or any mixture oilhese gases.

12. 'Firm Service'hall mean senrice fmm mle scheduhs and/or contracts under which Seller is expressly obligated to deliver speciTc volumes within a given lime perbd and whkhsntklpates no inierruplions but whkh may permit unexpected Interruptions In case Ihe supply W higher priority customers is threatened.

13. "Intenuplibh Service'hall mean service from rate schedules and contracts under which Company Is not expressly obligated la deliver specific volumes within a given time period, andwhich antidpales and permits inlenupUon on shorinotice, or service under rate schedules or mntracls which expressly or Imptedly require inslagalion of alternate fuel capability.

14. 'Commercial Service" shall mean servke lo Cusiomem engaged primarily In Ihe sale of gocds or sewlces Inrdudtng institutions and local, state and ledeml government agendas loruses other Ihan Ihose InvoMng manuWcluring or etedric power generation.

15, 'Industria Services'hall mean ssrvikm lo cuslomem engaged primaril In a process which creates or changes raw or unfinished material into another form or produrz induding thegenersgon oi electric power.

16. 'Plant prolecgon Gas'hall mean Ihs minimum volumes required lo prevent physical bann lo Ihe plant facilities or danger to plant personnel when such prolecgon canimt be sifordedthrough Ihe use of an alternate Wel. This indudes Ihe pmlection of such malarial In process as would olhenvise be destroyed, bul shall nol Include deliveries rsquinxl lo maintain phnlproduction. A determirratlon wgl be made by the Setter of minimum volumes required. Such essenUsl volumes will be dispathed acco/dingly.

17, 'Feedslock Gas'shag mean natural gas used as a rsw malarial for its chemical properties in creating an end pmducL

18. 'Process Gas'hall mean gas used lor which alternate lush, other than another gaseous fuel, are nol lechnicsgy feasible such as in applications requiring p/udse lemperaiure conbolsand pmdse flame charaderistics.

19. "Boiler Fuel'shall mean naWral gas used as tuel for Ihe generation of steam and In krternat combustion lurbine engines lor Ihe generations of electrkity.20, "Alternate Fuel Capabggy" shall mean a situation where an alternate fuel coukl have been ulgized whether or not Ihe facilities for such use have actually been inslaged; pmvlded

however, where Ihe use of naWral gas is ior plant pmlecrion, feedslock or process uses and Ihe only alternate fuel Is pmpsne or other gaseous fuel, then Ihe Buyer will be Ireawd as if

he had no akemale fuel capability if such fuel fs unobtainable for serving fuel needs,21, 'Gas Supply Dafirfencf shall mean any occurrence relaUng to Sells(s gas supply which causes Seller to deliver less than the total requirements of ils system, including failures of

suppliers to deliver gas ior any reason, mquirement of gas for system storage, consewalkm of gas for lulure delivery, or any other occurrence not enumerated herein which affectsSegs(s gassupply.

22. 'Storage Injectkm Requiremenb( shall mean sg volumes required by the Seller for injection Into underground storage, including cushion gas, and for liquefsdion, Induding fuel used for

injscgon in llquefadion plants, or for such o thar storage pmjecm Ihal may be developed expiessly ior Ihe protecqon of supply to high priority users.23. 'Seller Use'hall mean fuel used for gas compression, LPG plants and LNG plants, other gas needed by Sells(s faciglles to furnish Iha requirenenls of Buyem, together with

unaccounted for gas. TMis gas shall be considered Induded In Priority of Sewlce Category 1. Giber vital uses ol Seller, such as flame stabilization requirements, will be met as long assuch uses do not jeopardize service to ils 0rm service Buyers.

24, 'Sssenlial Human Needs" shaU mean natural gas service, whkh, if denied, would cause shutdown of an operaUon resulgng In Ihe dosing oi an establishment sssen6al lo maintaining

Ihe health and safety ol Ihe general public.

25. 'The Point of Delivery'shall be at the outlet side oflhe Sage(s measuring equipment and regulating equipment.26. 'Emergency Service'shall mean supplemental degverles ofnatural gas Ihst may be required lo Wmstall irreparable Injury lo life or pmperly Induding envimnmental emergendss.

Article Ill

CURTAILMENT OF SERVICE1. In Ihe event Cia Gas Supply Degdency on Ihe Salle(s system, the Seller shall require cu/tagmenl of service lo Buyer In accordance with the following procedure:

8 The Seller shall order curtailment of sales made lo Buyer's purchasing gas under Ihe Selbr's rale schedules or special contracts in descending order in accordance with priodly oiservice categorie set forih below. Approved emergency gas Is excepted fmm curiagment,

1. Residential and small commerdal Buyem (less Ihsn 50 MCF on a peak dsy) and essenUal human needs customers where them Is no Instagad or available alternate fuel

cspabgity,2. Large commerrwl direct game requirements (50 McF or mors on a peak day); firm Industrial requirements for plant protedion, feedslock and procem needs; and storageinjection requirements.3A. Finn Industrial requirements in/uses other Ihan boiler fuel which do not qualify ior Calsgoiy 2.30, Firm commemial and industrial boiler fuel requirements up lo 1,000 MCF on a peak day.3C, tnlerruptible requiremenW for human need lypes of facilities such as public bugdings, hospimls and Wundries,

3D, tnlerruplible requirements for dired llama applications whbh can utilize only another gaseous fuel as an alternate.

1

Interruptible requirements for direct flame applications which can utilize a fuel other than a gaseous fuel as an alternate .

3F. Interruptible requirements for boiler fuel use of less than 300 MCF on a peak day.



6. Interruptible Boiler Fuel requirements of 300 MCF or more, but less than 1,500 MCF on a peak day, where alternate fuel capabilities can meet such requirements .

7. Interruptible Boiler Fuel requirements of 1,500 MCF or more, but less than 3,000 MCF on a peak day, where alternate fuel capabilities can meet such requirements.

8. Interruptible Boiler Fuel requirements of 3,000 MCF or more , but less than 10,000 MCF on a peak day, where alternate fuel capabilities can meet such requirements .

9 . Interruptible Boiler Fuel requirements of 10 . 000 MCF or more on a peak day, where alternate fuel capabilities can meet such requirements.

10. Natural gas requirements of customers, who have an alternate fuel as their primary energy source, but use natural gas as a standby fuel.

b . Curtailment will be in descending order beginning with Category 10 (i.e. Category 1 is the highest priority). c. A determination of the category in which a Buyer is placed will be made each year based upon usage in the preceding twelve months ending August 31 and/or current contract as

of the same date. The placement of a Buyer in a category in accordance with the determination made herein will be effective November 1.of the current year, extending through October 31 of the following year. A moving base period will be used each year with such base period to include the preceding twelve months ending August 31 of the current year. Reclassifications in categories will be effective on November 1 of the current year. Where a reclassification is necessary, the effected Buyer will be notified of such reclassification prior to November 1 of the current year.

d. Where daily volumes are not available to make the determination of the 50 MCF/day required in the Curtailment Plan, then requirements shall be determined by taking those Buyers having actual usage of 1000 MCF or more per month for any month during the previous twelve (12) month period ending August 31. Such month's use will be divided by the number of days during that specific billing cycle. By means of the average daily volume thus obtained, the Buyer will be placed in the appropriate category. Where daily volumes for the peak month in the base period are available to make the required determination, then such volumes will be used.

e. Any new Buyer added during any base period will be placed in the appropriate category by the Seller in accordance with the best information available.


1. Sellers natural gas operations are regulated by the Commissions and are subject to "Rules and Regulations Governing Service Supplied by Gas Systems in South Carolina" as amended from time to time. Deliveries of gas hereunder are subject to total or partial curtailment or interruption by Seller pursuant to operating procedures as are now, or may hereafter be, prescribed by the Commission. Buyer hereby expressly acknowledges that Seller shall not be liable in damages for, or on account of, any curtailment or interruption of deliveries where such curtailment or interruption is the result of, or pursuant to, operating procedures by the Commission directing curtailment or interruption of service.


3. Deliveries of "Firm Gas" up to the Maximum Daily Quantity set forth in the Service Agreement, shall be firm and shall not be subject to curtailment or interruption by Seller except that caused by Force Majure, or operating conditions beyond Sellers control, or where such curtailment or interruption is the result of, or pursuant to, operating procedures prescribed by the Commission. Deliveries hereunder shall have priority over all deliveries made by Seller on an interruptible basis.

4. Deliveries of "Interruptible Gas" shall be subject to curtailment or interruption by Seller at any time and from time to time when, in Sellers sole judgment, it does not have gas available, and Buyer hereby expressly acknowledges that Seller shall not be liable in damages for, or on account of, any curtailment or interruption of deliveries. Seller agrees to give Buyer not less than two (2) hours notice of curtailment or interruption in writing or orally in person or by telephone; provided, however, that if curtailment or interruption is occasioned by an event of Force Majeure effecting the Sellers system, Seller shall be obligated to give only such notice as is practicable in the circumstances. Seller agrees to communicate curtailment notices to one of the person designated from time to time by Buyer as authorized to receive such notices. If Buyer has not made such designation, or if Seller is unsuccessful in its efforts to promptly communicate with the persons so designated, then said notice shall be sufficient if given by Seller to any person who is on Buyers premises or who answers Buyers telephone. Whenever, and to the extent that the Seller is unable to deliver the gas requirements of the Buyer, the Buyer shall have the right to purchase gas or other fuel sufficient to make up such deficiency from such other source or sources as may at the time be available to Buyer.

5. Gas taken by a Buyer of "Firm Gas" on any day, without Sellers advance approval, which exceeds Buyers Maximum Daily Quantity shall be considered to be Unauthorized Overrun Gas. Seller shall bill, and Buyer shall pay, for such Unauthorized Overrun Gas at the following rates, in addition to all other charges payable to Seller hereunder: (a) For the first three percent (3%) of the Maximum Daily Quantity, the Unauthorized Overrun Gas shall be paid for at 1.25 times the Base Rate set forth in the Service Agreement, and {b) For the next two percent (2%) of the Maximum Daily Quantity, the Unauthorized Overrun Gas shall be paid for at 3.0 times the Base Rate set forth in the Service Agreement, and (c) For additional volumes the Unauthorized Overrun Gas shall be paid for at 5.0 times the Base Rate set for in the Service Agreement. The payment of an Overrun Penalty shall not, under any circumstances, be considered as giving Buyer the right to take Unauthorized Overrun Gas, nor shall such payment be considered to exclude or limit any other remedies available to Seller or another Buyer against the offending Buyer for failure to comply with its obligations to stay within its Maximum Daily Quantity.

6. Any gas taken by an interruptible Buyer after the effective hour of an order calling for curtailment of all interruptible gas hereunder shall be billed pursuant to Article Vll{B)(D of the Company's then approved General Terms and Conditions for natural gas service.

7. The Public Service Commission of South Carolina has prescribed the following operating procedures in regard to the curtailment of interruptible service by Seller: During the period when operating conditions require curtailments in any type of interruptible service, Seller shall curtail deliveries of gas without discrimination within end-use priority of service categories established by the Public Service Commission of South Carolina and pursuant of curtailment instructions received from its supplier or suppliers made in accordance with General Terms and Conditions to the Service Agreement between Seller and it supplier or suppliers and any subsequent modification or amendment thereof.

8. Buyer agrees that all gas delivered hereunder shall be used by the Buyer and that no portio'n thereof shall be resold.

Article V QUALITY

1. The gas delivered hereunder shall be natural gas or any mixture of natural and manufactured gas, including but not limited to, synthetic gas or liquified petroleum gas as provided for in Paragraph 3 hereof; provided, however, that moisture, impurities, helium, natural gasoline, butane, propane and other hydrocarbons except methane may be removed prior to delivery to Buyer, Seller may subject or permit the subjection of the gas to compression, heating, cooling, cleaning, or other processes, which are not substantially detrimental to the merchantability of the gas.



4. If the natural gas offered for delivery by Seller shall fail at any time to conform to any of the specifications set forth in the Article V, Quality, then Buyer agrees to notify Seller thereof and Buyer, thereupon, may at its option refuse to accept delivery pending correction by Seller. Upon Sellers failure to properly remedy any deficiency in quality as specified herein, then Buyer may accept delivery of such natural gas and make changes necessary to bring such gas into conformity with such specifications and Buyer shall then deduct from future payments any reasonable expenses incurred by it in effecting such change as agreed to by both parties.

5. Odorization of gas delivered hereunder is not required of Seller. However, nothing in these Terms and Conditions shall preclude Seller from odorizing such gas if Seller so desires or if Seller is required by federal or state regulatory agencies to perform such odorization.

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3E. Inhrrup tibia requirements for direcl game applicagons which can utilize a lust other Ihan a gaseous fuel as an age male,3F, Intenuplible requirements for bailer fuel use of less Ihan 300 MCF on a peak day.4, (LEFf BLANK INTENTIONALLY)


6. Inlenuptible Boiler Fuel requirements of 300 MCF or more, bul less Ihsn 1 500 MCF on a peak day, where agems le fuel capabgiUas can meet such requirements.7. IntenupUble Boiler Fuel requirements of 1,500 MCF or more, bui less than 3 000 MCF on a peak day, vrhere agemate fuel capabilities can meetsuch requirements.6. Inta rruplible Boiler Fuel requirements of 3 000 MCF or more, but less than 10 000 MCF on a peak day, where

alternate

luel capabiligas can meet such requiremenh.9. Inlerruplible Boiler Fuel requirements of 10 000 MCF or more an a peak day, where alternate fuel capabilities can meet such requirements.10, Natural gas requirements of customers, who have an agemale fuel as Ihelr primary energy source, but use natural gas as a standby fuel.

b. Curtailment will be in descending order beginning with Category 10 (i.e. Category I Is Ihe highest priorit).c. A determination of Ihe category in which a Buyer is placed will be made each year based upon usage in the preceding twelve months ending August 31 and/or current contrad as

of Ihe same dale Tha placemenl of a Buyer in a category in accordance wrlh the delenninagon made herein will be el/ecUve November I of the current year, extending IhroughOdober 31 of ihe fallowing year. A moving bass period will be used each year with such base period lo Indude the preceding twelve months ending August 3'I of Ihe currentyear, Redassilicagons In categories wgl be eriedive on November I of Ihe cunenl year. Where a redassigcalion Is necessary, the eNecled Buyer will be noUfied of surhredassiTrcation prior lo November I of Ihe currenl year.

d. Where daily volumes are not available lo make Ihe determination of Ihe 50 MCF/day required in Ihe Curtailment Plan, Ihen requirements shall be determined by laking thoseBuyers having adust usage ot 1000 MCF or more per month lor any month during Ihe previous br/elva (12) month period ending August 31, Such month's use will be divided byIhe number of days during Ihat spedflc billing cyde. By means of Ihe average daily volume thus oblainerl, lhe Buyer wgl be placed in Ihe appropriate category. Where dakyvolumes for the peak month in Ihe base period are available lo make Ihe required determination, Ihen such volumes wgl be used.

e. Any new Buyer added during any base period will be pbced in Ihe appropriate calegor/by the Seker in accordance with the best information available.

Article IV

SCOPE OF AGREEMENT1. Sage/s natural gas opemlions are regulated by Ihe Commissions and are sub)rrri lo 'Rules and Regulations Governing Service Supplied by Gas Systems In South Camlina" as amended

from Ume lo lime. Degveries of gas hereunder are subject to total or partial curtailment or interruption by Seger pursuant to operating pmcedures as are now, ormay hereafter be, prescribed by tha Commission. Buyer hereby expressly acknowledges Ihal Seller shall nol be liable In damages for, or on account of, any curtailment or Interruption ofdeliveries where such curlsgmenl or interruption Is Ihe resug of, or pursuant to, operating procedures by lhe Cornmfssion dlrereng curiagmenl or Interruption of senrice.

2. Buyer shall consug with and furnish lo Ihe Seller such information as Ihe Seller may require lo determine Ihe availabiliiy of service ai a particular location belore pmoeeding with plans for

any new or addiUonal gas loads. No new or addidonal gas loads will be served if it is determined Ihat such senrlce will jeopardize senrlce to exlsUng customers by increasing the lolalsystem's Urm load requirements above available supplies.

3. Deliveries of qqrm Gas'p lo Ihe Maximum Daily Quantity set forth In Ihe Senrlce Agreemenl, shall be Urm and shall nol be subject to curtailment or inlenuplion by Seller except thatcaused by Force Majure, or operating conditions beyond Seller's control, or where such curtailment or Interruption is the resug ol, or pursuant lo, operagng procelures prescribed by IheCommission. Deliveries hereunder shall have priorit over ag deliveries made by Seller on an interrupubis basis.

4. Deliveries of 'Inlermplible Gas'hall be subject lo curtailment or interruption by seller al any lime and from Ume lo Ume when, in sage/s sole judgment, il dces not have gas available,

and Buyer hereby expressly acknowledges Ihat Seller shall nol be gable In damages for, or on account of, any curtagmenl or Interruption of degverles, Seller agrees to give Buyer nolless than two (2) hours nogce of curtailment or inlerrupUon in writing or orally in pemon or by lelephone; provided, however, Ihal if curtailment or Inteuuplion is occasioned by an event ofForce MaJeure effecgng the Sage/s system, Seller shall ba obggaled to give only such nogce as is pracgcabla In the circumstances. Seller agrees to communkale curtailment notices to

one of Ihe pemon designated from lime lo time by Buyer as authorized lo mceive such nogces. If Buyer has not made such designation, or if Seller is unsuccessful in Us efforts lo

prompgy mmmunicate with Ihe pomona so desfgnaled, then said nogce shall be sugidenl if given by Seller lo any person who is on Buys/s premises or who answers Buys/s lelephone.Whenever, and to Ihe extent that lhe Seller is unable lo defiver Ihe gas requirements of Ihe Buyer, the Buyer shall have Ihe right lo purchase gas or other tuel suflident to make up suchdegdency from such other source or sources as may at the time be available lo Buyer.

5. Gas taken by a Buyer of 'Finn Gas'n any day, without Sage/s advance approval, which exceeds Buyer's Maximum Daily Quantity shall be considered lo be Unauthoriized Overrun Gas.Selter shall bill, and Buyer shag pay, for such Unauthorized Overrun Gas al Ihe fogowlng rates, in addiTion lo ag other charges payable lo Seller hereunder,

(a) For the Umt three percenl (3%) of the Maximum Daily Quantity, Ihe Unauthorized Overrun Gas shall be paid lor al 125 Umes Ihe Base Rate set forth In Ihe Service Agreemenl, and

(b) For the next two percent (2%) of Ihe Maximum Daily Quantity, the Unauthorized Overrun Gas shall be paid for al 3.0 limes Ihe Base Rate sel forth In the Senrlce Agreemenl, and

(c) For addgional volumes Ihe Unauthorized Ovenun Gas shall be pakl far at 5 0 limes Ihe Base Rate set for in Ihe Service AgreernenLThe payment ot an Overrun Penalty shall nol under any circumstances be considered as giving Buyer Ihe right to lake Unauthorized Ovenun Gas nor shall such payment be consideredto exdude or Umit any other remedies avaihbte to Selhr or anoyrer Buyer against Ihe offending Buyer for failure lo comply with Us obggagons lo stay within ils Maximum Daily Quantify.

6. Any gas taken by an inlerrupsble Buyer aller Ihe egedfve hour of an order calling for curlagment of ag Interruplible gas hereunder shall be billed pursuant lo Article VU(S)(t) of theCompany's Ihen approved General Tenne and Conditions for natural gas service.

7. The Public Service Commission of South Carolina has prescribed the fogcwlng operagng procedures in regard lo Ihe curisgment ofinlenuptible service by Seller

During Ihe period when operating conditions require curlailmenls in any type ol lnlerruptrble san/ice, Seller shall curlag deliveries of gas without discriminagon within end-use priority of

service categories established by the Public Service Commission of South Carolina and pursuant of curtailment Inslrucqons received from Us suppger or suppliers made in accordancewgh General Terms and Conditions to the Service Agreement between Seller and il sup plier or suppgers and any subsequent modigicagon or amendmenl thereof,

8. Buyer agrees that ag gas delivered hereunder shall be used by the Buyer and that no portion thereof shall be resold

2.

3,

4,

5.

Article V

QUALITYThe gas delivered hereunder shall be natural gas or any mixture of natural and manufactured gas, induding but not limited lo, synthetic gas or liquified petroleum gas as provided for in

Paragraph 3 hemof; provwed, however, that moisture, impurities, begum, natural gasoline, butane, propane and other hydrocarbons except methane may be removed prior u& delivery to

Buyer, Seller may subject or permil Ihe subjection of Iha gas to compression, heaUng, cooling, cleaning, or other processes, which ara not substangagy detrimental lo the merchanlabgilyof the gas.

The gas degvered hemunder shall have a intel healing value of nol less than 950, nor mom than IN00 BTU's per cubic foot of dn/ gas, and be reasonably free of mots turn. objecgoushieliquids and solids so as lo ba utilized Immediately upon delivery lo Buyer, and shall conlain not more than 200 grains of total sulphur, nor mom than 15 grains ol hydrogen sulpNde perMCF,

Seller may permit its suppgers or it may itself supply gas from any eland-by equlpmenl Installed by 0 or by ils suppliers, pmvlded that Ihe gas so supplied shall be reasonably equivalent tothe rralural gas supplied hereunder, and adaptable for use by Buyer without Iha necessity of making other Ihan minor adjuslmenls lo tuel burning equipmenl.If Ihe natural gas offered for delkrery by Seller shall fail al any lime lo mnlorm lo any of Ihe spedficaUons set forth In the Arllde V, Quality, then Buyer agrees to notify Seller Ihereof and

Buyer, Ihereupon, may aliis option refuse lo accept delivery pending correcrion by Seller, Upon Sage/s failure to properly remedy any deflciency in quality as specilied herein, Ihen

Buyer may accept delivery of such natural gas and make changes necessary lo bring such gas into conformity with such spedfications and Buyer shall then deduct from future

payments any reasonabk expenses incuned by it in eUemtng such change as agreed to by both parties.Odorizatio of gas degvered hereunder is nol required of Seger. However, nothing in Ihese Terms and Condiltons shall predude Seller from odmlzing such gas il Seller so desires or if

Seller is required by federal or slate regulatory agencies lo perform such odorization.

1. The volumes and total heating value of the gas delivered hereunder shall be determined as follows: (a) The Unit of Volume shall be a cubic foot of gas. (b) When orifice meters are used, volumes delivered shall be oomputed in accordance with the specifications, formulae and tables published April 1955, as Gas Measurement

Committee Report No. 3 of the American Gas Association, and any modifications and amendments thereto, and shall include the use of flange connections. (c) All volumes delivered shall be corrected to the pressure base of 14.73 psig and temperature base of 60' F. The average absolute atmospheric pressure shall be assumed to


(d) The temperature of the gas shall be assumed to be 60 degrees Fahrenheit (60') unless Seller elects to install a recording thermometer or temperature correcting device. If a recording thermometer is installed, the arithmetical average of the 24 hour period will be used to determine the temperature correctly.

(e) The specific gravity of the gas shall be determined by a recording gravitometer of standard manufacture installed in a suitable location. Where a reoording gravitometer is not used, the specific gravity of the gas shall be assumed to be the same as that of Seller's supplier(s).







5. Each party shall have the right to be present at the time of any installing, reading, cleaning, changing, repairing, inspecting, testing, calibrating, or adjusting done in connection with the other's measuring equipment used in measuring deliveries hereunder and each party shall advise the other of any intended major maintenance operation sufficiently in advance in order that the other party may conveniently have its representative present.

6. All installation of measuring equipment, applying to or effecting deliveries hereunder, shall be made in such manner as to permit an accurate determination of the quantity of gas delivered and ready verification of the accuracy of measurement. Orifice meter installations, if used, shall conform to the reoommendation for design and installation contained in the Gas Measurement Committee Report No. 3 to the American Gas Association published April, 1955, and any modifications and amendments thereof and shall include the use of flange connections.

7. Measurement on Seller's meter or meters shall be conclusive of both parties except where the meter is defective or fails to register, or if found in error, in either of which case Seller shall repair or replace the meter and the quantity of gas delivered while the meter was out of order or failed to register shall be estimated: (a) By using the registration of any check meter if installed and accurately registering, or, in the absence of (a): (b) By correcting the error if the percentage of error by calibration, test or mathematical calculation, or, in the absence of both (a) and (b) then: (c) By estimating the quantity of delivery from deliveries during periods under similar conditions when the meter was registering accurately; and an appropriate billing adjustment shall be made in accordance with the current Rules and Regulations governing gas systems issued by the Commission.

8. Seller will maintain its meters in good order and to this end will make periodic tests of its meters pursuant to the current Rules and Regulations governing gas systems issued by the Commission, or at such shorter intervals as seem to Seller desirable. !!Buyer is dissatisfied with the accuracy at any time, it may call upon Seller to have the meter tested in accordance with all regulations relating to such tests and results of such tests as found in the current Rules and Regulations governing gas systems issued by the Commission.

9. Each party shall preserve all reoords for a period of at least two (2) years.




3. Seller shall not approve sales of gas to Buyer unless Seller is satisfied that Buyer has not, or will not interconnect downstream fuel piping of natural gas for use in different priority-ofservice categories.

Article IX RATE ADJUSTMENTS

1. Taxes applicable to the gas delivered to Buyer hereunder as are in effect on January 1 •1 immediately preceding the effective date of these terms and conditions shall be added to Buyer's bill. The term "tax'' as used herein shall mean any tax, license fee, or charge applicable to the gas delivered hereunder, imposed on Seller by any governmental authority on such gas. If the existing rate of any such tax in effect on January 151, immediately preceding the effective date of these terms and oonditions, be hereafter increased or decreased, or if any tax heretofore in effect or hereafter be imposed or repealed, the resulting increase or decrease in such taxes, ccmputed on a cents per dekatherm basis, shall be reflected, as the case may be, on Buyer's bill.


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1. The volumes

(a)

(b)

(c)

(d)

(e)

(n

Article Vi

MEASUREMENTSand lolal healing value of Ihe gas delivered hereunder shall be determined as fogows:The Ung of Volume shall be a cubic ioot of gas.When origce melam are used, volumes delivered shall be mmputed in accordance with Ihe speciTicatlons, formulae and lables published Aprg 1955, as Gas MeasurementCommhtee Report No. 3 of Ihe American Gas Association, and any modiTicalions and amendmenls Iherelo, and shall include Ihe use of flange connections.AU volumes degvered shall be corrected lo Ihe pressure base of 14 73 psig and temperature base of 60'. The average absolute atmospheric pressure shall be assumed lobe fourteen and seven lenths (14.7) pounds lo Ihe square Inch, irrespedive of actual elevalioq or locagon of Ihe point of delivery above sea level or variation in suchatmospheric pressure from Ume to Ume.

The temperature ol the gas shall be assumed to be 60 degrees

Fahrenheit

(60') unless Seller clads lo inslag a recording Ihermomeler or lemperature correding device. Itsrecording thermometers inslaged, Ihe arithmetical average of Ihe 24 hour period will be used lo determine Ihe lemperalure corredly.The specific gravity of Ihe gas shag be determined by a recording gravilometer of standard manufacture inslaged in a suitable location. Where a mmrdng gravitomeler Is nolused, Iha spedgc gravity of the gas shall be assumed lo be Ihe same as that of Seller's supplier(s).The total heagng value of Ihe gas degvered hereunder may ba determined by Seller by using a standard lype of recording cakrrimeter speclmmeter chromalograph or otherapproved Instrument which shall be so lomled, ate suitable point on Segeys line, In order Ihat lhe BTU content of gas delivered hereunder may be properly obtained. Whererequired, dally reading fmm Ihe record so obtained shall be mrrecled to Ihe basis of measurement provided and from a saturated basis to Ihe average moisture conlent ofthe gas delivered, Ihe resug being the BTU content of Ihe ges delivered during Ihe billing period. In Ihe event that Seller does not install a recording Instrument for suchdetennlnaUon or its Instrument is nol operagng pmperly, Ihe lotal healing value shall be determined horn a recording calorimeter or compamble Instmment properly inslal(edand operated by Segeys supplier ol natural gas, provided, such values am applicable to Ihe gas that may be delivered to Ihe Buyer.

2.3.

4,

5,

7.

8.

9

Article Vll

MEASURING EQUIPMENTSeller wgl maintain and operate, at ils own, expense and at the point of delivery of gas hereunder, a melar or meters and other necessary equlpmenl by which the volume of gas deliveredhemunder shall be measured. Such meters and equipment shall remain Ihe property of Ihe Seller.Buyer agrees lo lumish to Seller electrldty for operating Segers meters, at nutcoal to Seller.Buyer hereby grants lo Seller suitable rights of way and easements necessary or inddental lor ihe inslaga lion, mainienance, operagon and removal of pipagne and other fadlilles

together with righls of ingress thereto and egress there from at ag Umes and hereby agrees lo deliver lo Seller, lor Ihe sum of one dollar (31 00), an appmpriate Instrument or granideilning such rights and easemenls located on Buyers plant she.Buyer may Install, maintain and operate such check measuring equipment, induding a reconling gravilometer and calorimeter as il shall desire, provided Ihat such equipment shall be soInslaged so as nol to interfere with Ihe opmalion oi Segeys measuring equipmenl at or near Ihe point of degver. However, ag billings to Ihe Buyer shall be based on fhe meterin of IheSeller, subject only lo Ihe pmvisions of Paragraph 8 of Ibis Arlide,Each party shall have Ihe rlghl to be present at the Ume of any Instaglng, reading, deanlng, changing, repairing, inspeding, lasting, cagbragng, or adjusting done In connecUon with Iheothers measuring equipment used in measuring deliveries hereunder and each party shall advise the other of any intended major maintenance operagon suddenily In advance in orderthat the other party may mnveniengy have ils representative present.Ag Inslagatfon of measuring equipment, applying to or egecling dekveries hereunder, shall be made In such manner as lo permg an accurate demrminagon of Ihe quantity of gas deliveredand ready verilicalion of the accuracy of measuremenL Orikce melar instalhlions, if used, shall conform lo Ihe recommendagon lor design and inslagation contained in the GasMeasurement Commigee Report No, 3 lo Ihe American Gas Association published April, 1955, and any modificaUons and amendments Ihereof and shall include the use of gangsconnections.Measunimenl an Sellers melar or meters shall be condusive of boih parges excepl where the meter 8 defective or lettv lo register, or 6 found in error, in egher of which case Seger shallrepa(r or replace Ihe melar and Ihe quantity of gas delivered while Ihe mehr was out of order or lailed lo register shall be estimated: (a) By using Ihe registration of any check melar if

inslsged and accurately registering, or, in Ihe absence of (a): (b) By correcgng the error 6 Ihe percentage of enor by calibration, test or malhemalkal calculagon, or, in Ihe absence ol boih

(a) and (b) tlwn: (c) By estimating Ihe quantity of delivery fmm deliveries during perkxls under similar conditions when the meter was registering accurately; and an appropriat biging

ad)uslmenl shall be made in accordance with Ihe current Rules and Regulations governing gas systems issued by Ihe Commission.Seller will maintain its meters in good onler and to Ibis end wgl make periodi lasts of its meters pursuant lo Ihe current Rules and Regulations governing gas systems Issued by IheCommission, or at such shorter intervals as seem to Seller desirable. 8 Buyer is dissalisked with Ihe accuracy at any time, it may call upon Seter lo have Ihe meter tested ln acmrdancewith ag regulations relating lo such lasts and resugs of such lasts as found In Ihe current Rules and Regula lions governing gas systems issued by Ihe Commission.

Each party shall preserve ag records for a pedod of at least two (2)

yearn.

Article Vill

BUYER' FACILITIESBuyer will maintain at ils own expense fadliges from Ihe degvery point lo Ihe poinl of use and Ihe burners and equipment for using gas, and Buyer will al ag limes keep gas-usingeryrtpment on said premises In a mndilion can(arming with such reasonabkr miss anrl regulations as may be prescribed Iherafore by regulatory authorit having jurisdiction Ihereovarand with Ihe requirements of any valid law Ihereto appertaining. In Ihe event Ihal rules are not prescribed by a regulatory aulhorgy, Buyer will abide by axles as used in Ihe gasindustry.

Seller shall not appmve sale of gas an an interruplible basis to Buyer until and unless Seller Is satisfied Ihat Buyer has, or will, inslag adequate slandqry ladglies lo meet ils full fuel

requfremenls during periods of sustained interruptions.Seller shall not approve sales of gas lo Buyer unless Seller is salisked Ihat Buyer has not, or will nol inlerconned downstream fuel piping ol natural gas for use In different prioriilymf-

servlce categories.

Article IX

RATEADJUSTMENTSI, Taxes applicable to Ihe gas delivered le Buyer hereunder as are ln effedon January la immediately preceding Ihe ef(edive date of these ianna and conditions shall be added lo

Buyers bill. The lerm lax's used herein shall mean any tax, license fee, or charge appgcable to Ihe gas delivered hemunder, fmposed on Seller by any governmental authorqy onsuch gas, If Ihe eriisling rate of any such tax In egad on January I", Immediately preceding the egecgve date of Ihese terms and mndgions, be hereafter increased or decreased, or if

any lax heretofore In effect or hereafter be Imposed or repealed, the resuhlng increase or decrease in such laxes, computed on a cents per dekalherm basis, shall be reflected, as Ihecase may be, on Buyers bill.

2. Any applicable surcharge or special charges ordered by the Commission or any other duly constituted regulatory body shali be induded in addison lo Ihe price ofgas computed in

accordance with Ihe lerms of Ihe Service AgreemenL

X

BILLING

1 . Bills computed from readings taken of Seller's meters shall be rendered and paid monthly with ten (10) days of the billing date . A month shall mean a period beginning on the first


deem nece ssa ry. Should Buyer fail to pay any amount due to Seller when same is due , a late payment charge of one and one half percent (1 Y, %) will be added to any balance remaining twenty-five (25) days after the billing date. ti such failure to pay continues, Seller may suspend deliveries of gas hereunder. The exercise of such right shall be in addition to any and all other remedies available to Seller. ·








1. In the event of either party hereto being rendered unable wholly or in part by force majeure to carry out its obligations under this contract, other than to make payments due hereunder, it is agreed that on such party giving notice and full particulars of such force majeure in writing or by telegraph to the other party as soon as possible after the occurrence of the cause relied on, then the obligations of the party giving such notice, so far as they are affected by such force majeure, shall be suspended during the continuous of any inability so caused but for no longer period and such cause shall as far as possible be remedied with all reasonable dispatch. The term "force majeure" as employed herein shall mean acts of God, strikes, lockouts, or other industrial disturbances, acts of public enemy, wars, blockades, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, storms, floods, washouts, arrests, and restraints of government and people, civil disturbances, explosions, breakage or accidents to machinery or lines or pipe, freezing of wells or lines or pipe, partial or entire failure of source of supply, and any other causes whether of the kind herein enumerated or otherwise, not within the control of the party claiming suspension and which by the exercise of dir diligence such party is unable to prevent or overcome; such terms shall likewise include (a) in those instances where either party hereto is required to obtain servitudes, rights-of-way grants, permits, or licenses; and (b) in those instances where either party hereto is required to furnish materials and supplies to secure grants or permission from any governmental agency to enable such party to fulfill its obligations hereunder, the inability of such party to acquire at reasonable cost and after the exercise of reasonable diligence such materials and supplies, permits and permissions.



1. If either party shall fail to perform any of the covenants or obligations imposed upon it under and by virtue of the Service Agreement of which these General Terms and Conditions are a part, (except where such failure shall be excused under any of the provisions of this Service Agreement), then in such event, the other party may, atits option, terminate this Service 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 this Service 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 thirty (30) days after the service of the aforesaid notice in which to remedy and remove said cause or causes and fully indemnify the party not in default for any and all consequences of such breach, then such notice shall be withdrawn and this Service Agreement shall continue in full force and effect. In case the party in default does not so remedy and remove the notice for any and all consequences of such breach, within said period of thirty (30) days, then this Service Agreement shall become null and void from and after the expiration of said period. Any cancellation of this Service Agreement pursuant to the provisions of this Article shall be without prejudice to the right of party not in default to collect any amounts then due it and without waiver of any other remedy to which the party not in default may be entitled for violation of this Service Agreement.





Buyer: Seller:

-t: l:&~ I ::,e-:._-_-+-=---"-'-~~;;~(;_._.__,_=J,,=l=/g=======

By:

Manager- Large Customer Accounts & Services Title:

Date: ___ fl-'-+'I //-<---=,3,__/J~7~----/ I

Date:

4

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1.

2,

Article X

BILLINGBills computed from readings taken of Segers meters shall be rendered and pakl monthly with len (10) days of Ihe bltgng dale, A month shaU mean a period beginning on Ihe firstrecognized work day ol Ihe calendar month and ending an Ihe lira l recognized work day of Ihe next succeeding calendar month, or at such other equivalent period as Seller maydeem necessary, Should Buyer fail to pay any amount due lo Seger when same fs due, a late payment charge of one and one half percent (I Ni To) will be added lo any balanceremaining twenly-live (25) days after Ihe biging date. II such fagure to pay continues, Setkrr may suspend deliveries of gas hereunder. The exerdse oi such right shall be inaddition lo any and ag other remedies available lo Seller.If it shall be hund Ihai Buyer has been overcharged or undercharged In any form whatsoever under Ihe provision hereunder, Seger shall take adlon Io correct such billing pursusnllo current Rules and Regulations governing gas systems issued by Ihe Public Service Commission ot South Carolina.

Article XI

POSSESSION OF GASANINDEMNIFICATIONAs between the parties hereto, Seger shall be deemed lo be in mntrol and possession of Ihe gas deliverable hereunder until it shall have been delivered lo Buyer at Ihe Point ofDelivery aller which Buyer shall be deemed lo be In mntml and possession thereof.Buyer shall Indemnify and hold harmless Ihe Seller from any and all loss (including death), damage, or liability Incurred by the Seller by reason of any ad of Ihe Buyer, ils agents oremployees, in the receiving, use or application of said gas on Ihe Buyer's side of the Poini of Delivery unless the same shall be due lo Ihe sole negligence of Ihe Seller, its agentsor employees. The Seller shell indemnify and hold harmless Ihe Buyer tram any and at loss (including death), damage or liability incurred by Ihe Buyer by reason of any acl of theSeller, lls agents or employees, unless Uie same shall be due lo Ihe sole nag Ugence of Ihe Buyer, Us agents or employees.

Article XII

WARRANTY OF TITLE TO GASSeller wananls Ihe lite to all gas delivered he mund sr and ihe right lo sell Ihe same and Ihal such gas shag be free and clear from all liens and adverse daims.

Article XIII

FORCE MAJEUREIn Ihe event of either party hereto being rendered unable wholly or in part by force majeure lo carry out its obligations under Ihb conlmct, other than lo male payments duehemunder, il is agreed Ihat on such party giving notice and full parUculam of such force majeure in writing or by telegraph lo Ihe oiler party as soon ss possible aller theoccurrence of Ihe cause mlied on, Ihen Ihe obligations of the party giving such nogce, so far as Ihey are aftected by such force majeum, shag be suspended duiing Ihe continuousof any inability so caused bul for no longer period and such cause shall as fares possible be remedied with ag reasonable dispatch. The lerm 'fome majeure" as employed hereinshall mean acts of God, strikes, lockouls, or other Industrial disturbances, ace of public enemy, wars, blockades, insurredions, riots, epklemlcs, landslides, lighinlng, earthquakes,fires storms, goods washouts arrests and restraints of

government

and people dvil disturbances, explosions breakage or accidents to machinery or lines or pipe, freezing ofwells or lines or pipe, partial or entire failure of source of supply, and any other causes whether of Ilw kind herein enumerated or olhenvise, noi within Ihe mnlml ol Ihe partyclaiming suspension and whkh by Ihe exerdse of dir diligence such party ls unable to prevent or overcome; such lerms shall likewise Indude (a) In Ihose Instances where egherparty hereto Is required to obtain serviludes, rights.of-way grants, permits, or Ucenses; and (b) In those Instances where either party hereto is required to furnish materials andsupplies lo secure grants or pemrisslon from any governmental agency to enable such party lo fullig Us obligagons hereunder, the inability of such parly to acquire at reasonablecost and after Ihe exemfse of reasonable diligence such materials and supplies, permits and permissions.II is understood and agreed Ihat the settlement of strikes or lockouls shall be entirety within Ihe discregon of Ihe party Involved and Ihat Ihe above requirement Ihal any forcemajeure shall be remedied wgl sg reasonable dispatch shall noi require the settlement oi strikes or lockouls acceding lo Ihe derrwnds at opposing party when such coume is

Inadvisable in Ihe discretion of such party.

1.

2.

3,

4,

5,

Article XIV

MISCELLANEOUSII either party shall fall lo periorm any of the covenants or obl'Barons imposed upon it under and by virtue of Ihe Service Agreement of whkh Ihese General Terms and Conditionsare a part, (except where such failure shall be excused under any of the proviskms of Ibis Service Agreemenl), then in such event, Ihe other party may, slits option, terminate IbisSeniice Agreenwnt by proceeding as follows: The party not in default shall cause a writte noUce to be served on Ihe party in delaug, slating spedticagy Ihe cause for terminatingIbis Service Agreement and dedaring illa be Ihe intention of Ihe party giving ihe notice to lerminate (he same; Ihereupon. Ihe party in default shall have Ihirly (30) days ager theservice ot Ihe aforesaid notice In which to remedy end remove said cause or causes and fully indemnify the party not In defau U for any and all consequences of such breach, Ihensuch notice shall be withdrawn and Ibis Senrice Agreement shall continua in fur force and effect. In case the party In defa uk does nol so remedy and remove Ihe noUce for any andat consequences of such breach, within said period of Ihirly (30) days, Ihen Ibis Service Agree men l shall become null and vokl fram and after the expimtlon ol said perkxl. AnycancellaUon of Ibis Service Agreement pursuant lo Ihe provisions ol Ibis Artide shall be without prejudice io Ihe right ol party nol In default lo collect any amounts Ihen due it andwithout weUrer ol any other remedy lo which the parly nol in default may be entitled lor violation of this Service AgreamsnL

The Service Agreemenl, ot which lhasa General Terms and Conditions are a part thereof, shall be binding upon and inure lo Ihe benefit of Ihe Seller and Ihe Buyer and theirsuccesmm and assigns.Except ss othenvise provided, any nolkw, request, demand, statement or bill, which either Buyer or Seger may desire lo give lo the other shall be In writing and shall be consideredas fully delivered when mailed by prepakl registered mail addressed lo said party slits last known postoffice address, or al such other addresses as either parly mey designate In

wriUng. Routine mmmunlca liens, Indudlng monthly statemenls and payments, shall be considerel as duly delivered when mailed by either registered or ordinary mail,

Buyem covenants and agrees lo execute or file, or cooperate with Seller in Ihe execution or Uling of, any repori, carliTicale or other document required by any governmental agencyhaving jurisdidian over Ibis contmd or Ihe parties hereto, or any other certilicate or document mquested by Seller necessary for Seger lo obtain Ihe benefit of any exemption from

sales, use or other lax. Buyer shaB Indemnify Seller for any loss sustained by Seller as a result of Buyers breach of Ibis covenant.

The parties hereto in executing Ihe Service Agreement and lhasa General Terms and CondiTions, acknowledge Ihal these General Terms and Conditions am a part of Ihe Service

AgieemenL

Bu

By:

Seller. Sou reline E rl nd s Com an

By; I . a ns

Tltlm ana sr- Lar e Customer Accounts 3 Services

Date: Date:

A G R E E M E N T

This A g r e e m e n t m a d e and e n t e r e d into t h i s d 6¥-- day of ~ 0~ b q , 2017, by and between SOUTH CAROLINA ELECTRIC & GAS COMPANY, its successors and assigns, hereinafter called "Seller" and SONOCO PRODUCTS COMPANY, its successors and assigns, hereinafter called "Buyer".

WITNESS ETH

WHEREAS, Seller owns and operates a natural gas distribution system in South Carolina and supplies natural gas to Buyer, and

WHEREAS, Seller provides transportation service to Buyer under the terms of a Transpo1iation Agreement between Buyer and Seller dated July 12, 2012, which is hereby being mutually terminated at 10:00 A.M. Eastern Time on December 1, 2017, and

WHEREAS, Buyer has requested that Seller transp01i certain volumes of natural gas belonging to Buyer through Seller's facilities and deliver said volumes of gas to Buyer.

NOW THEREFORE, in consideration of the foregoing and the covenants and agreements hereinafter set forth to be kept by the parties hereto, it is mutually agreed as follows:


Seller agrees to accept deliveries of natural gas belonging to Buyer at Seller's delivery point from the upstream pipeline located near Haiisville, South Carolina, and to transport Buyer's gas and redeliver to Buyer. Service provided hereunder is in lieu of natural gas provided from Seller's system supply to satisfy Buyer's fuel requirements in Priority-of-Service Categories 3E & 8. Buyer agrees that the transp01iation service is provided on an interruptible basis. Interruptions of transportation service shall be at the sole discretion of Seller or whenever service is interrupted by any upstream pipeline.

2. DAILY DELIVERIES

Seller agrees to accept and transp01t up to 8,496 dekatherms, excluding shrinkage volumes, of natural gas on a daily basis. Buyer will notify Seller, in writing, of Buyer's intent to transport by the end of the month and will provide the estimated volumes of gas, in dekatherms, to be transported on a daily basis during the next calendar month. During any calendar month in which Buyer is transporting gas to supply Buyer's full requirements in Categories 3E & 8, transpmiation gas will fully satisfy the natural gas requirements in Category 3E first. All remaining transportation volumes will be used to satisfy Category .8. second. In the event Buyer elects to transpmi gas to satisfy only one category of service during any calendar month, then positive balances that may

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ORIGINALTRANSPORTATION AGREEMENT

~re%This Agreement made and entered into this 6 ~ day of 4+~6~, 2017,

by and between SOUTH CAROLINA ELECTRIC & GAS COMPANY, its successors and assigns,hereinafter called "Seller" and SONOCO PRODUCTS COMPANY, its successors and assigns,hereinaIIer called "Buyer".

WITNESSETH

WHEREAS, Seller owns and operates a natural gas distribution system in South Carolina andsupplies natural gas to Buyer, and

WHEREAS, Seller provides transportation service to Buyer under the temis of aTransportation Agreement between Buyer and Seller dated July 12, 2012, which is hereby beingmutually terminated at 10:00 A.M. Eastern Time on December 1, 2017, and

WHEREAS, Buyer has requested that Seller transpoit certain volumes of natural gasbelonging to Buyer through Seller's facilities and deliver said volumes of gas to 13uyer.

NOW THEREFORE, in consideration of the foregoing and the covenants and agreementshereinafter set forth to be kept by the parties hereto, it is mutually agreed as follows;


Seller agrees to accept deliveries of natural gas belonging to Buyer at Seller's deliverypoint fiom the upstream pipeline located near Hartsville, South Carolina, and totransport Buyer's gas and redeliver to Buyer, Service provided hereunder is in lieu ofnatural gas provided fiom Seller's system supply to satisfy Buyer's fuel requirements inPriority-of-Service Categories 3E & 8. Buyer agrees that the transportation service isprovided on an interruptible basis, Interruptions of transportation service shall be atthe sole discretion of Seller or whenever service is inteiTupted by any upstreampipeline.

2, DAILY DELIVERIES

Seller agrees to accept and transpoit up to 8 496 dekatherms, excluding shrinkagevolumes, of natural gas on a daily basis. 13uycr will notify Seller, in writing, of Buyer'intent to transport by the end of the month and will provide the estimated volumes ofgas, in dekathcrms, to be transported on a daily basis during the next calendar month.During any calendar month in which Buyer is transporting gas to supply Buyer's fullrequirements in Categories 3E & 8 transportation gas will fully satisfy the natural gasrequirements in Category 3F first. All remaining transportation volumes will be usedto satisfy Category 8 second, In the event Buyer elects to transport gas to satisfy onlyone categoiy of service during any calendar month, then positive balances that may

SCEG06-0 l2

S e l l e r , a n d c o n n e c t i n g p i p e l i n e s

r e g a r d i n g a n y c h a n g e in t r a n s p o r t a t i o n v o l u m e s . S e l l e r w i l l a c c e p t c h a n g e s i n d a i l y

v o l u m e s d i s p a t c h e d from u p s t r e a m p i p e l i n e s ; h o w e v e r , S e l l e r r e s e r v e s t h e r i g h t to l i m i t

o r r e s t r i c t t h e v o l u m e s a c c e p t e d a n d t r a n s p o r t e d a t a n y t i m e , w h e n e v e r , i n S e l l e r ' s s o l e

o p i n i o n , o p e r a t i n g c o n d i t i o n s w a r r a n t a l i m i t a t i o n o r r e s t r i c t i o n o n t h e a c c e p t a n c e o r

d e l i v e r y o f t r a n s p m i a t i o n gas. L i m i t a t i o n s o r r e s t r i c t i o n s m a y b e b e c a u s e of, b u t n o t

l i m i t e d to, t h e u t i l i z a t i o n o f d e l i v e r a b i l i t y c a p a c i t y by S e l l e r for S e l l e r ' s s y s t e m s u p p l y

r e q u i r e m e n t s .

3 . I N I T I A L S E R V I C E

S e l l e r a g r e e s to b e g i n t r a n s p o r t i n g gas for B u y e r a t 1 0 : 0 0 A.M. E a s t e r n T i m e o n

D e c e m b e r 1, 2 0 1 7 , a t w h i c h t i m e t h e T r a n s p 0 1 i a t i o n A g r e e m e n t b e t w e e n B u y e r and

S e l l e r d a t e d J u l y 12, 2 0 1 2 , s h a l l t e r m i n a t e .

4. T E R M OF A G R E E M E N T

T h i s A g r e e m e n t s h a l l b e c o m e e f f e c t i v e o n D e c e m b e r 1, 201 7 , and s h a l l c o n t i n u e in full

f o r c e a n d e f f e c t t h r o u g h N o v e m b e r 30, 2 0 2 2 , a n d f r o m m o n t h to m o n t h t h e r e a f t e r

u n l e s s e i t h e r p a r t y s h a l l g i v e w r i t t e n n o t i c e o f i n t e n t i o n to t e r m i n a t e a t l e a s t thi1iy (30)

days p r i o r to e x p i r a t i o n o f t h e o r i g i n a l t e r m o r any o n e m o n t h e x t e n s i o n t h e r e o f .

5. R A T E

E a c h m o n t h , t h e r a t e f o r d a i l y v o l u m e s t r a n s p o r t e d for a n d d e l i v e r e d t o B u y e r s h a l l be

t w e n t y - f i v e c e n t s ( $ 0 . 2 5 ) p e r d e k a t h e r m .

6. S H R I N K A G E

S e l l e r w i l l r e t a i n 3 % o f all v o l u m e s d e l i v e r e d to S e l l e r o n B u y e r ' s b e h a l f f o r s h r i n k a g e

a n d l i n e l o s s e s . T h e v o l u m e s r e t a i n e d by S e l l e r w i l l n o t c r e a t e o r c o n t r i b u t e to an

i m b a l a n c e . S e l l e r r e s e r v e s t h e r i g h t to a d j u s t t h e s h r i n k a g e f a c t o r , u p o r d o w n , to

a c c o u n t for a c t u a l l i n e l o s s e s . S e l l e r a g r e e s to g i v e B u y e r t h i r t y ( 3 0 ) days w r i t t e n

n o t i c e o f any a d j u s t m e n t .

7. B A L A N C I N G OF V O L U M E S

T h e v o l u m e o f gas r e c e i v e d o n a d a i l y b a s i s f o r B u y e r ' s a c c o u n t m a y n o t e q u a l t h e

v o l u m e , less s h r i n k a g e , d e l i v e r e d to t h e Buyer. T h e r e s u l t w i l l b e d e e m e d a n

i m b a l a n c e . B u y e r ' s a c c o u n t w i l l be r e v i e w e d at t h e e n d o f e a c h m o n t h , o r o n

t e r m i n a t i o n o f T r a n s p m i a t i o n S e r v i c e , o r c m i a i l m e n t o r d i s c o n t i n u a n c e t h e r e o f . If the

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exist at the end of the month will not be used to satisfy the requircinents of any othercategory.

Buyer has the right to change tire volume to be transported during the month on a dailybasis, It is Buyer's responsibility to notify producers, Seller, and connecting pipelinesregarding any change in transportation volumes. Seller will accept changes in dailyvolumes dispatched from upstream pipelines,'owever, Seller reserves the right to limitor restrict the volumes accepted and transported at any time, whenever, in Seller's soleopinion, operating conditions warrant a limitation or restriction on the acceptance ordelivery of transportation gas. Limitations or restrictions may be because of, but notlimited to, the utilization of deliverability capacity by Seller for Seller's system supplyrequirements.

3. INITIAL SERVICF.

Seller agrees to begin transporting gas for Buyer at 10:00 A.M. Eastern Time onDecember I, 2017, at which tinie the Transportation Agreement between Buyer iuidSeller dated July 12, 2012, shall terminate,


This Agreement shall become effective on December I, 2017, and shall continue in fullforce and effect through November 30, 2022, and I'iom month to month thereafterunless either party shall give written notice of intention to terminate at least thirty (30)days prior to expiration of the original term or any one month extension thereof.

5. RATE

Each month, the rate for daily volumes transported for and delivered to Buyer shall betwenty-five cents ($0.25) per dekathcrm.

6. SHRINI&AGE

Seller will retain 3'/o of all volumes delivered to Seller on Buyer's behalf for shrinkageand line losses. The volumes retained by Seller will not create or contribute to animbalance. Seller reserves the right to adjust the shrinkage factor, up or down, toaccount for actual line losses. Seller agrees to give Buyer thirty (30) days writtennotice of any adjustment.

7. BALANCING OF VOLUMES

The volume of gas received on a daily basis for Buyer's account may not equal thevolume, less shrinkage, delivered to the Buyer. The result will be deemed animbalance. Buyer's account will be reviewed at the end of each month, or ontermination of Transportation Service, or curtailment or discontinuance thereof. If the

SCEG06-012

S e l l e r d u r i n g the p e r i o d u n d e r review, Buyer s h a l l be b i l l e d for s u c h e x c e s s at the B a s e

Rate as s p e c i f i e d in t h e S e r v i c e A g r e e m e n t w h i c h p r o v i d e s for s t a n d b y service. If the net imbalance is such that the Buyer has received less gas than was delivered to the Seller, the Seller will buy excess gas at Seller's lowest delivered purchase price in that month from any of Seller's suppliers.

Daily volumes transpmied by Seller shall not exceed the Contract Maximum Daily Quantity specified in Paragraph 2, DAILY DELIVERIES. In the event a daily volume is delivered to Seller which exceeds the Contract Maximum Daily Quantity, the excess daily volumes will be purchased by Seller at Seller's lowest delivered price from any of Seller's suppliers.

8. POSSESSION OF GAS

After Buyer delivers gas or causes gas to be delivered to Seller at the point(s) of receipt hereunder, Seller shall be deemed to be in control and possession of the gas until it is redelivered to Buyer at the point of delivery. Buyer shall have no responsibility with respect to any gas deliverable by Seller or on account of anything which may be done, happen or arise, with respect to such gas until Seller delivers such gas to Buyer or for the account of Buyer. Seller shall have no responsibility with respect to such gas before Buyer delivers such gas to Seller or after Seller redelivers such gas to Buyer or on account of anything which may be done, happen or arise with respect to such gas before such delivery or after such redelivery.

9. WARRANTY OF TITLE TO GAS

The Buyer warrants for itself, its successors and assigns, that it will at the time of delive1y to Seller for transpmiation have good and merchantable title to all gas so delivered free and clear of all liens, encumbrances and claims whatsoever. Buyer will indemnify Seller and save it harmless from all suits, actions, debts, accounts, damages, costs, losses and expenses arising from or out of adverse claims of any or all persons to said gas, including claims for any royalties, taxes, license fees or charges applicable to such gas or to the delive1y thereof to Seller for transpo1iation.


Seller, in order to satisfy itself of the ability of the Buyer to meet its obligations under the contract, may conduct periodic reasonable credit reviews in accordance with standard commercial practices. Buyer agrees to assist in these reviews by providing financial information and at the request of the Seller, will maintain such credit supp01i or surety including, but not limited to, an unconditional and irrevocable letter of credit to provide adequate security for protection against the risk of nonpayment.

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net imbalance is such that the Buyer has received more gas than was delivered to theSeller during the period under review, Buyer shall be billed for such excess at the BaseRate as specified in the Seiw ice Agreement which provides for standby service. If thenet imbalance is such that the Buyer has received less gas than was delivered to theSeller, the Seller will buy excess gas at Seller's lowest delivered purchase price in thatmonth from any of Seller's suppliers.

Daily volumes transposed by Seller shall not exceed the Contract Maximum DailyQuantity specified in Paragraph 2, DAILY DELIVERIES. In the event a daily volumeis delivered to Seller which exceeds the Contract Maximum Daily Quantity, the excessdaily volumes will be purchased by Seller at Seller's lowest dclivcrcd price from any ofSeller's suppliers.

8. POSSESSION OF GAS

After Buyer delivers gas or causes gas to be delivered to Seller at the point(s) of receipthereunder, Seller shall be deemed to be in control and possession of the gas until it isredelivered to Buyer at the point of deliveiy. Buyer shall have no responsibility withrespect to any gas deliverable by Seller or on account of anything which may be done,happen or arise, with respect to such gas until Seller delivers such gas to Buyer or forthe account of Buyer. Seller shall have no responsibility with respect to such gasbefore Buyer delivers such gas to Seller or aIIer Seller redelivers such gas to Buyer oron account of anything which may be done, happen or arise with respect to such gasbcforc such delivery or aller such redeliveiy.

9. WARRANTY OF TITLE TO GAS

The Buyer warrants for itself, its successors and assigns, that it will at the time ofdeliveiy to Seller for transportation have good and merchantable title to all gas sodelivered free and clear of all liens, encumbrances and claims whatsoever. Buyer willindemnify Seller and save it harmless fiom all suits, actions, debts, accounts, damages,costs, losses and expenses arising from or out of adverse claims of any or all persons tosaid gas, including claims for any royalties, taxes, license fees or charges applicable tosuch gas or to the delivery thereof to Seller for transpottation.

l 0. CREDITWORTHINESS

Seller, in order to satisfy itself of the ability of the Buyer to meet its obligations underthe contract, may conduct periodic reasonable credit reviews in accordance withstandard commercial practices. Buyer agrees to assist in these reviews by providingfinancial information and at the request of the Seller, will maintain such credit suppoi1or surety including, but not limited to, an unconditional and irrevocable letter of creditlo provide adequate security for protection against the risk of nonpayment.

SCEG06-012

A S S I G N M E N T

C u s t o m e r s h a l l n o t a s s i g n t h i s A g r e e m e n t o r its r i g h t s h e r e u n d e r w i t h o u t t h e p r i o r

w r i t t e n c o n s e n t o f t h e C o m p a n y , w h i c h c o n s e n t m a y be w i t h h e l d i n t h e e x e r c i s e o f its

s o l e d i s c r e t i o n .

12. G E N E R A L T E R M S A N D C O N D I T I O N S

T h e G e n e r a l T e r m s and C o n d i t i o n s to I n d u s t r i a l S e r v i c e A g r e e m e n t s are h e r e b y

i n c o r p o r a t e d in and m a d e a p a r t o f t h i s T r a n s p m i a t i o n A g r e e m e n t . S h o u l d t h e r e be any

c o n f l i c t b e t w e e n any p m i i o n o f t h e General T e r m s and C o n d i t i o n s to I n d u s t r i a l S e r v i c e

A g r e e m e n t s and t h i s T r a n s p o r t a t i o n A g r e e m e n t , t h e p a r t i e s a g r e e t h a t t h e p r o v i s i o n s o f

t h e T r a n s p o r t a t i o n A g r e e m e n t shall p r e v a i l .

13. N O T I C E S

All c o r r e s p o n d e n c e r e q u i r e d u n d e r this T r a n s p m i a t i o n A g r e e m e n t is to be a d d r e s s e d as

follows:

To Seller:

T o Buyer:


Sonoco Products Company Attn: Lisa Beasley P. 0. Box 160 Haiisville, SC 29551

14. SPECIAL PROVISIONS

(a) The Buyer bears sole responsibility for costs incurred to deliver transportation gas to Seller.

(b) Buyer shall be required to reimburse Seller for any out-of-pocket expenses incurred in connection with the initiation and rendering of service under this Transpo1iation Agreement. Any required expenses will be subject to Buyer's prior approval.

( c) Seller retains sole discretion as to whether or not a paiiicular Buyer or paiiicular Buyers shall receive service pursuant to Transportation Agreements.

15. CURTAILMENT OF TRANSPORTATION SERVICE

(a) Transportation service may be cmiailed or discontinued at the sole option of Seller after not less than two (2) hours advance notice by telephone or otherwise.

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11. ASSIGNMENT

Customer shall not assign 1hts Agreement or its rights hereunder without the priorwritten consent ol'the Company, which consent may be witl&eld in the exercise of itssole discretion.


The General Terms and Conditions to Industrial Service Agreements are herebyincorporated in and made a part of this Transportation Agreement. Should there be anyconflict between any portion of the General Terms and Conditions to Industrial ServiceAgreements and this Transportation Agreement, the parties agree that the provisions ofthe Transportation Agreement shall prevail.

13. NOTICES

All correspondence required under this Transportation Agreement is to be addressed asfollows:

To Seller: South Carolina Electric k Gas CompanyLarge Customer Group, Mail Code B-102Cayce, SC 29033

To Buyer: Sonoco Products CompanyAttn; Lisa BeasleyP. O. 13ox 160Hartsville, SC 29551

14. SPECIAL PROVISIONS

(a) The Buyer bears sole responsibility for costs incurred to deliver transportationgas to Seller.

(b) Buyer shall be required to reimburse Seller for any out-of-pocket expensesincuned in connection with the initiation and rendering of service under thisTransportation Agreement. Any required expenses will be subject to Buyer'prior approval.

(c) Seller retains sole discretion as to whether or not a particular Buyer or particularBuyers shall receive service pursuant to Transportation Agreements.

15. CURTAILMENT OF TRANSPORTATION SERVICE

(a) Transportation

service

may be curtailed or discontinued at the sole option ofSeller after not less than two (2) hours advance notice by telephone or otherwise.

SCEG06-0I2

5

However, the Buyer shall continue to hold title to any gas (less shrinkage) received by Seller and not delivered priot to such cmiailment or discontinuance. Seller will notify Buyer when conditions permit Seller to resume transportation service.

(b) Transportation service may also be curtailed or discontinued by some patiy other than Seller (e.g., a producer or upstream pipeline). Seller has no responsibility to notify Buyer of curtailment by any third party.

( c) When deliveries of gas to Seller on behalf of Buyer are cmiailed or discontinued, Buyer will automatically begin receiving standby service from Seller's system supply in accordance with the Service Agreement which provides for standby service. Buyer will be placed on standby service at the effective time of curtailment provided to Seller by the third pmiy.

( d) It is contemplated that service pursuant to this Transportation Agreement shall be provided within the existing limitations of Seller's system, and Seller shall not be required to expand or alter the said system.

16. PRIORITY AND ALLOCATION OF TRANSPORTATION SERVICE

It is aclmowledged by Buyer that other end-users of natural gas may from time to time contract with Seller for the transp01iation of natural gas owned by them. In the event that available capacity or operating conditions exist which limit the acceptance by Seller of natural gas to an amount that is less than the aggregate volume of all such natural gas tendered for transportation and redelivery by any or all end-users that have contracted with Seller for transpo1iation service, the following priorities and allocations shall apply:

(a) All natural gas purchased by Seller for its system supply or otherwise owned by Seller shall have the highest priority of acceptance into Seller's system and the highest priority of delivery throughout Seller's system.

(b) The priority of acceptance of natural gas owned by end-users, whoever they may be from time to time, and tendered to Seller's system for redelivery thereof shall be based upon the category of service, pursuant to the General Terms and Conditions to Industrial Service Agreements attached hereto, for which Seller has agreed to provide standby service associated with a Transp01iation Agreement with any such end-user. Higher priorities of standby service pursuant to individual agreements between Seller and end-users shall determine the priority of acceptability and redeliverability of natural gas tendered to Seller for transp01iation in accordance with the priority categories in the Cmiailment Plan. If any Transp01iation Agreement between Seller and an end-user does not contain a provision for standby service and a specified category of service with respect to said standby service provision, then the acceptability and

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However, the Buyer shall continue to hold title to any gas (less shrinkage)received by Seller and not delivered prior to such ciutailmcnt or discontinuance.Seller will notify Buyer when conditions permit Seller to resume transportationservice.

(b) Transportation service may also be curtailed or discontinued by some party otherthan Seller (e.g., a producer or upstream pipeline). Seller has no responsibility tonotify Buyer of curtailment by any tliird party.

(c) When deliveries of gas to Seller on behalf of Buyer are curtailed or discontinued,Buyer will automatically begin receiving standby service from Seller's systemsupply in accordance with the Service Agreement which provides for standbyservice. Buyer will be placed on standby service at the effective time ofcui1ailment provided to Seller by the third party.

(d) It is contemplated that service pursuant to this Transportation Agrecmcnt shall beprovided within the existing limitations of Seller's system, rnid Seller shall notbe required to expand or alter the said system.

16. PRIORITY AND ALLOCATION OF TRANSPORTATION SERVICE

It is aclcnowledged by Buyer that other end-users of natural gas may fi'om time to timecontract with Seller for the transportation of natural gas owned by them. In the eventthat available capacity or operating conditions exist which limit the acceptance bySeller of natural gas to an amount that is less than the aggregate volume of all suchnatural gas tendered for transportation and redeliveiy by any or all end-users that havecontracted with Seller for transportation service, the following priorities and allocationsshall apply:

(a) All natural gas purchased by Seller for its system supply or otherwise owned bySeller shall have the highest priority of acceptance into Seller's system and thehighest priority of deliveiy throughout Seller's system.

(b) The priority of acceptance of natural gas owned by end-users, whoever they maybe from time to time, and tendered to Seller's systeni for redelivery thereof shallbe based upon the categoiy of service, pursuant to the General Terms andConditions to Industrial Service Agreements attached hereto, for which Sellerhas agreed to provide standby service associated with a TransportationAgreement with any such end-user. Higher priorities of standby service pursuantto individual agreements between Seller and end-users shall determine thcpriority of acceptability and redeliverability of natural gas tendered to Seller fortransportation in accordance with the priority categories in the Curtailment Plan,If any Transportation Agreement between Seller and an end-user does notcontain a provision for standby service and a specified category of service withrespect to said standby service provision, then the acceptability and

SCECi06-0 I 2

S e l l e r s h a l l h a v e

t h e l o w e s t p r i o r i t y o f a c c e p t a b i l i t y and r e d e l i v e r a b i l i t y .

( c) In t h e e v e n t t h a t t h e t o t a l v o l u m e o f n a t u r a l gas t e n d e r e d to S e l l e r for a c c e p t a n c e

and r e d e l i v e r y r e l a t i v e to a s i n g l e c a t e g o r y o f s t a n d b y s e r v i c e is g r e a t e r t h a n t h e

c a p a c i t y d e t e r m i n e d by S e l l e r to be a v a i l a b l e for a c c e p t a n c e and redelive1y o f

n a t u r a l gas i n s a i d c a t e g o r y o f s t a n d b y s e r v i c e , t h e n a c c e p t a n c e and redelive1y o f

s u c h t e n d e r e d gas shall be a l l o c a t e d p r o r a t a b a s e d u p o n t h e c o n t r a c t v o l u m e s in

all a g r e e m e n t s for t r a n s p o r t a t i o n s e r v i c e c o n t a i n i n g s a i d categ01y o f s t a n d b y

s e r v i c e o n t h e S e l l e r ' s system.

T h e d e t e r m i n a t i o n o f t h e e x i s t e n c e o f l i m i t a t i o n s on c a p a c i t y o r o p e r a t i n g c o n d i t i o n s

w h i c h l i m i t t h e a c c e p t a b i l i t y or d e l i v e r a b i l i t y o f n a t u r a l gas t e n d e r e d to S e l l e r for

t r a n s p o r t a t i o n s h a l l b e a t t h e sole d i s c r e t i o n and j u d g m e n t o f S e l l e r .

IN WITNESS W H E R E O F , t h i s T r a n s p 0 1 t a t i o n A g r e e m e n t has b e e n e x e c u t e d o n t h e d a t e f i r s t

a b o v e w r i t t e n by the p a r t i e s h e r e t o by t h e i r o f f i c e r s o r o t h e r a u t h o r i z e d r e p r e s e n t a t i v e s .

S O N O C O P R O D U C T S C O M P A N Y

B U Y E R

B;z;..~"71 V2 4. TITLE I I

I/ /l:s 07 DATE

SOUTH CAROLINA ELECTRIC & GAS COMPANY

s177~ ,a_ ~~ ~

BY: William G. Watkins

Manager - Large Customer Accounts & Services TITLE

///v//2 ~ · DATE

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redeliverability of any natural gas tendered by such end-user to Seller shall havethe lowest priority of acceptability and redeliverability.

(c) In the event that the total volume of natural gas tendered to Seller for acceptanceand redeliveiy relative to a single categoiy of standby set&ice is greater than thecapacity determined by Seller to be available for acceptance and redelivery ofnatural gas in said category of standby service, then acceptance and redelivery ofsuch tendered gas shall be allocated pro rata based upon the contract volumes inall agreements for transportation service containing said categoiy of standbyservice on the Seller's system.

The determination of the existence of limitations on capacity or operating conditionswhich limit the acceptability or deliverability of natural gas tendered to Seller fortransportation shall be at the sole discretion and judgment of Seller,

IN WITNESS WHEREOF, this Transportation Agreement has been executed on the date firstabove written by the paries hereto by their officers or other authorized representatives.

SONOCO PRODUCTS COMPANYBUYER

SOUTH CAROLINA ELECTRIC & GASCOMPANY

BY: William G. Watkins

TITLE

DATE

P i"W-

/2'7

Mana ~er — Lar ~e Customer Accounts & ServicesTITLE /~DATE

SCEG06-012

& GAS COMPANY GENERAL TERMS AND CONDITIONS TO INDUSTRIA~ SERVICE AGREEMENTS FOR Ge R 1 61 NA L

Article I GENERAL

These Terms and Conditions to Industrial Seivice Agreements are supplementary to the Rules and Regulations issued by the Public Seivice Commission of South Carolina and the General Terms and Conditions of South Carolina Electric & Gas Company as provided by the Public Seivice Commission of South Carolina. The provision of these Terms and Conditions apply to all persons, partnerships, corporations or others designated as industrial users who are lawfully receiving gas seivice from South Carolina Electric & Gas Company under rate schedules or seivice agreements filed with the Commission. To lhe extent these Terms and Conditions conflict with the General Terms and Conditions for natural gas seivice, the General Terms and Conditions for natural gas seivice control. South Carolina Electric & Gas Company is referred to herein as 'Seller', and the user or prospective user is referred to as "Buyer". The Public Seivice Commission of South Carolina is referred to herein as 'Commission".


Except where the context otherwise indicates another or different meaning or intent, the following terms are intended and used and shall be construed to have meaning as follows: 1. 'Day" shall mean a period of twenty-four (24) consecutive hours beginning at 10:00 A.M. Eastern Time or at such other hours as may be designated. 2. "Month" shall mean the period between any two (2) regular readings of Sellers meters which shall be not less than twenty-eight (28) days or more than thirty-four (34) days. 3. 'Year" shall mean a period of 365 days commencing with the day of first delivery of gas hereunder, and each 365 days thereafter except that in a year having a date of February 29th,

such year shall consist of 366 days. 4. 'Cubic foot of gas" shall mean the amount of gas necessary to fill a cubic foot of space when the gas is at a temperature of sixty degrees Fahrenheit (60°F) and under an absolute

pressure of fourteen and seventy-three hundredths pounds per square inch (14.73 psia). 5. "CCF' shall mean one hundred (100) cubic feet of gas. 6. "MCF" shall mean one thousand (1000) cubic feet of gas. 7. "BTU' shall mean a British Thermal Unit and is the amount of heat required lo raise the temperature of one (1) pound of water 1° Fahrenheit at 60° Fahrenheit. 8. 'MMBTU" shall mean one million British Thermal Units. 9. 'Therm' shall mean the quantity of heat energy which is 100,000 British Thermal Units. 10. 'Dekatherm" (di) shall mean the quantity of heat energy which is 1,000,000 British Thermal Units. 11. 'Natural Gas" or 'Gas" shall mean natural gas, processed or unprocessed, vaporized liquid natural gas, synthetic gas, propane-air mixture, landfill gas, other unconventional source of

methane gas or any mixture of these gases. 12. "Firm Seivice' shall mean seivice from rate schedules and/or contracts under which Seller is expressly obligated to deliver specific volumes within a given time period and which

anticipates no interruptions but which may permit unexpected interruptions in case the supply to higher priority customers is threatened. 13. ' Interruptible Seivice' shall mean seivice from rate schedules and contracts under which Company is not expressly obligated to deliver specific volumes within a given time period, and

which anticipates and permits interruption on short notice, or seivice under rate schedules or contracts which expressly or impliedly require installation of alternate fuel capability. 14. 'Commercial Seivice" shall mean seivice to Customers engaged primarily in the sale of goods or seivices including institutions and local, state and federal government agencies for

uses other than those involving manufacturing or electric power generation. 15. ' Industrial Seivices" shall mean seivice to customers engaged primarily in a process which creates or changes raw or unfinished materials into another form or product including the



17. 'Feedstock Gas" shall mean natural gas used as a raw material for its chemical properties in creating an end product. 18. "Process Gas' shall mean gas used for which alternate fuels, other than another gaseous fuel, are not technically feasible such as in applications requiring precise temperature controls

and precise fiame characteristics. 19. 'Boiler Fuel" shall mean natural gas used as fuel for the generation of steam and in internal combustion turbine engines for the generations of electricity. 20. 'Alternate Fuel Capability" shall mean a situation where an alternate fuel could have been utilized whether or not the facilities for such use have actually been installed; provided

however, where the use of natural gas is for plant protection, feedstock or process uses and the only alternate fuel is propane or other gaseous fuel, then the Buyer will be treated as if he had no alternate fuel capability if such fuel is unobtainable for seiving fuel needs.

21. 'Gas Supply Deficiency" shall mean any occurrence relating to Sellers gas supply which causes Seller to deliver less than the total requirements of its system, including failures of suppliers to deliver gas for any reason, requirement of gas for system storage, conseivation of gas for future delivery, or any other occurrence not enumerated herein which affects Sellers gas supply.

22. 'Storage Injection Requirements' shall mean all volumes required by the Seller for injection into underground storage, including cushion gas, and for liquefaction, including fuel used for injection in liquefaction plants, or for such other storage projects that may be developed expressly for the protection of supply to high priority users.

23. 'Seller Use' shall mean fuel used for gas compression, LPG plants and LNG plants, other gas needed by Sellers facilities to furnish the requirements of Buyers, together with unaccounted for gas. This gas shall be considered included in Priority of Seivice Category 1. Other vital uses of Seller, such as flame stabilization requirements, will be met as long as such uses do not jeopardize seivice to ils firm seivice Buyers.

24. 'Essential Human Needs' shall mean natural gas seivice, which, if denied, would cause shutdown of an operation resulting in the closing of an establishment essential to maintaining lhe health and safety of the general public.

25. 'The Point of Delivery" shall be at the outlet side of the Sellers measuring equipment and regulating equipment. 26. 'Emergency Seivice' shall mean supplemental deliveries of natural gas that may be required to forestall irreparable injury to life or property including environmental emergencies.


1. In the event of a Gas Supply Deficiency on the Sellers system, lhe Seller shall require curtailment of seivice to Buyer in accordance with the following procedure: a. The Seller shall order curtailment of sales made to Buyers purchasing gas under the Sellers rate schedules or special contracts in descending order in accordance with priority of

seivice categories set forth below. Approved emergency gas is excepted from curtailment. 1. Residential and small commercial Buyers (less than 50 MCF on a peak day) and essential human needs customers where there is no installed or available alternate fuel capability. 2. Large commercial direct fiame requirements (50 MCF or more on a peak day); firm industrial requirements for plant protection, feedstock and process needs; and storage injection requirements. 3A. Firm industrial requirements for uses other than boiler fuel which do not qualify for Category 2. 3B. Firm commercial and industrial boiler fuel requirements up to 1,000 MCF on a peak day. 3C. Interruptible requirements for human need types of facilities such as public buildings, hospitals and laundries. 3D. Interruptible requirements for direct flame applications which can utilize only another gaseous fuel as an alternate.

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SOUTI-I CAROLINA ELECTRIC & GAS COMPANYGENERAL TERMS ANO CON OITIONS To IN OIISTRIAL SERVICE AGREEMENTS FOR GQS R I 6 I N A L

Article I

GENERALThese Terms and Conditions to Industrial Service Agreements are supplementary lo Ihe Rules and Regulations issued by the Public Senrioe Commission of South Camlina and IheGeneral Tenne and Conditions ol South Carolina Electric Il Gas Company as provfded by Ihe Public Service Commission of South Carolina.Tlw provision of lhasa Tenne and Conditions apply lo all persons, parlnerships. corporations or others designated as industria users who are lawfully receiving gas service trom SouthCarolina Electric 8 Gas Company under mie schedules or senrke agreemenls filed with Ihe Commission. To Ihe extent these Terms and Cond(Sons conltiri wilh Ihe General Tenne andCenditions for natural gas service, Ihe General Terms and Condtrions for natural gas service control.South Carolna Electtk 8, Gas Company k referred to herein as 'Selert and Ihe user or pmspedive user is referred lo as 'Buyer'. The Public Servke Commission of South Carolna Is

referred lo herein as 'Commission".

Article II

DEFINITIONS

Except where Ihe context othemise indicates another or different meaning or Intent, the lolowing ianna are Intended and used and shall be construed lo have meaning as follows:

1. 'Day'hall mean a period of twenty four (24) consecullve hours beginning at 10 00 A M. Eastern Time oral such other hours as may be designated.2, "Month'shall mean the period between any two (2) regular readings of Salle(s melam whkh shall be not less than twenty eight(28) days or more than thirty four (34) days.3. 'Year'shag means periorl of 365 days commencing wifh Ihe day Gf lrsl delivery of gas hereunder, and each 365 days Ihemafter except Ihat in a year having a date of February 29th,

such year shall consist of 366 days4. 'cubic fool of gas'hall mean Ihe amount of gas necessary lo fill a cubic (oui of space when Ihe gas is at a lempemlure of sixty degrees Fahrenheit (60'F) and under an absolute

pressure oi lourleen and seventy-Ihree hundredths pounds per square Inch (14.73 psla).5, "CCF'hall mean one hundred (100) cubk feet of gas.6. 'MCF'shall mean one thousand (1000) cubic (seto(gas.7, 'BTU'hall mean a Brllsh Thennal Unit and Is the amount of heat required to raise Ihe lemperature of one (1) pound of water I'ahrenhel at 60'ahrenheit.8. 'MMBTU'shag mean one million BriTish Thermal Units.

9. 'Therm'hall mean Ihe quantity a(heal energy which is 100000 British Thermal Units.10. 'Dekalhenn" (di) shall mean Ihe quantity of heat energy whkh Is 1000 000 British Thermal Units.

11. 'Natural Gas or "Gas'shall mean natural gas, processed or unproExrssed, vaporized liquid naiuml gas, synthetic gas, propane-air mixture, landlil gas, other unconventional sourceofmethane gas or any mixture Gf these gases.

12. 'Finn Sewke" shall mean sewlce from rale schedules and/or contrada under whkh Seller is expressly obligated to deliver specific volumes within a given lime period and whkhanticipates no interruptions bul which may permit unexpected interruptions in case Ihe supply to higher priority cuslornem Is Ihrealened.

13. Inlerrupktrte Service'hall mean smvice irom rale schedules and contrada under whkh Company is nol expressly obligated lo deliver specilc volumes withk a given lime period, andwhkh anldpatas and permits Inlermptlon on short nolce, or servke under rale schedules or contmck which expressly or Impliedly require Inslala lion of alemale iuel capablity.

14. "Commerdal Senrlce shall mean service to Customers engaged pnmanly in the sale of goods or services indudrng Instlutions and local, slate and lederal government agendas for

uses other than Ihose involving manutarturing or eledrk power generalon.15. Industrial Services" shall mean service lo customers engaged primarily in a process which creates or changes mw or unlnlshed material into another form or produrri Including Ihe

genemlon ot electrk power.16. 'PlanlProleclon Gas'hall mean Ihe minimum volumes required to prevent physical harm to Ihe plant fadliles or danger lo plant personnel when such proleclon cannot be afforded

Ihrough Ihe use of an a lama le fuel. This Includes the protection of such malerkl in process as would olhenvise be destroyed, but shall not Include deliveries required to maintain plantpnxludion. A determination will be made by Ihe Seller of minimum volumes required. Such esse nasl volumes will be dispatched accordingly.

17, 'Feedslock Gas" shall mean natural gas used as a mw material (or ils chemical properties In creating an end product.18. 'Process Gas'shag mean gas used for which alemale fuels, other Ihan another gaseous(uet, are not technically feaslbte such as in applications requiring precise temperature controls

and praise lame characterislks.19. 'Boiler Fuel" shall mean natural gas used as fuel for the generation of steam and in internal combustion lurbine engines lor Ihe generations of electricity,

20. 'Alemale Fuel Capablly" shall mean a situation whee an alemate fuel mukl have been utriized whether or not the fadlilies for such use have actually been inslaled; pmvidedhowever, whew Ihe use of natural gas Is for plant proledion, feedsiock or process uses and Ihe only alemaie fuel is propane or other gaseous fuel, then Ihe Buyer will be treated as if

he had no alternate fuel capabilily 8 such fuel Is unobtainable for senring fuel needs.21. 'Gas Supply Deldency'hall mean any occurrente relating to Selkys gas supply which causes Selkr lo delver less than the lotal requirements of ils system, including failures oi

supplers lo deliver gas for any reason, requirement of gas for system storage, conservation of gas for fulum delivery, or any other occurrence not enumerated herein whkh affedsSclera gss supply.

22, 'Storage Injection Requirements" shag mean el volumes required by Ihe Seller (or injection into undergmund storage, including cushion gas, and (or iiquefadion, including fuel used for

injection In liquefaction plants, or for such other storage projects Ihat may be developed expmssly for Ihe protecdon of supply lo high priorliy users.23, 'Seller Use'hall mean fuel used lor gas oompression, LPG plants and LNG plants, other gas needed by Sclera (acililies lo furnish Ihe requirements of Buyers, logether with

unaccounted ior gas. This gas shall be considered induded in Prkrrity of Servkw Category 1, Other vital uses of Seller, such as lame stabilzalion requirements, witt be met as long assuch uses do not leopanlze service to ls lirm service Buyers.

24. 'Essential Human Needs'hall mean natural gas service, which, if denied, would cause shutdown of en operation resoling In Ihe closing of an establishment essenlal to maintaining

Ihe haseh and safely ol Ihe general public.25. 'The Polnlof Delvery'shag be at Ihe outlet side of the Sellers measuring equipmenl and regukling equfpment,26, 'Emeqiency Service'shag mean supplemental deliverks ofnatural gas Ihal may be requimd lo forestal irreparable injury lo life or pmperly Inriudtng environmental emergenries.

Article III

CURTAILMENT OF SERVICE1, In ew event of a Gas Supply DEMency on the Sellers system, Ihe Seller shall require curlailmenl of service to Buyer in accordance with Ihe following procedure:

s, The Seller shall order curtailment of sales made lo Buyeys purchasing gas under Ihe Sclera rale schedules or special contracts in descending order in scconlance with priority oiservice categories set forth below. Approved emergenCy gaa Is excepted fern curtailment.

1, Residential and small commercial Buyers (less than 50 MCF on a peak day) and essential human needs customers where Ihere is no Installed or available slemale fuel

capablity,2, Large Commercial direcl flame requirements (50 MCF or more on a peak day); firm Industria requirements lor plant protection, feedslock and process needs; and storageInleclon requirements.3A. Firm Industrial requirements for uses other Ihsn boiler fuel whkh do nol qualify for Category 2.38. Firm commerdat and industrial boiler (uel requirements up to 1,000 MCF on a peak day.30. Inlerruptble requirements for human need lypes of facilities such as public buildings, hospitals and laurdries.30. Intermptlbie requirements for direct lame applications which can utilze only another gaseous fuel as an agemate.

I

Interruptible requirements for direct flame applications which can utilize a fuel other than a gaseous fuel as an alternate.

3F. Interruptible requirements for boiler fuel use of less than 300 MCF on a peak day .



6. Interruptible Boiler Fuel requirements of 300 MCF or more, but less than 1,500 MCF on a peak day, where alternate fuel capabilities can meet such requirements.

7. Interruptible Boiler Fuel requirements of 1,500 MCF or more, but less than 3,000 MCF on a peak day, where alternate fuel capabilities can meet such requirements.

8 . Interruptible Boiler Fuel requirements of 3,000 MCF or more, but less than 10,000 MCF on a peak day, where alternate fuel capabilities can meet such requirements.

9. Interruptible Boiler Fuel requirements of 10 . 000 MCF or more on a peak day, where alternate fuel capabilities can meet such requirements .

10 . Natural gas requirements of customers, who have an alternate fuel as their primary energy source, but use natural gas as a standby fuel.

b. Curtailment will be in descending order beginning with Category 10 (i.e. Category 1 is the highest priority) .

c. A determination of the category in which a Buyer is placed will be made each year based upon usage in the preceding twelve months ending August 31 and/or current contract as

of the same date . The placement of a Buyer in a category in accordance with the determination made herein will be effective November 1 of the current year, extending through

October 31 of the following year . A moving base period will be used each year with such base period to include the preceding twelve months ending August 31 of the current

year. Reclassifications in categories will be effective on November 1 of the current year. Where a reclassification is necessary, the effected Buyer will be notified of such

reclassification prior to November 1 of the current year.

d. Where daily volumes are not available to make the determination of the 50 MCF/day required in the Curtailment Plan, then requirements shall be determined by taking those

Buyers having actual usage of 1000 MCF or more per month for any month during the previous twelve (12) month period ending August 31. Such month's use will be divided by

the number of days during that specific billing cycle. By means of the average daily volume thus obtained, the Buyer will be placed in the appropriate category. Where daily

volumes for the peak month in the base period are available to make the required determination, then such volumes will be used.

e. Any new Buyer added during any base period will be placed in the appropriate category by the Seller in accordance with the best information available.


1. Seller's natural gas operations are regulated by the Commissions and are subject to 'Rules and Regulations Governing Service Supplied by Gas Systems in South Carolina" as amended from time to time. Deliveries of gas hereunder are subject to total or partial curtailment or interruption by Seller pursuant to operating procedures as are now, or may hereafter be, prescribed by the Commission. Buyer hereby expressly acknowledges that Seller shall not be liable in damages for, or on account of, any curtailment or interruption of deliveries where such curtailment or interruption is the result of, or pursuant to, operating procedures by the Commission directing curtailment or interruption of service.


3. Deliveries of 'Firm Gas" up to the Maximum Daily Quantity set forth in the Service Agreement, shall be firm and shall not be subject to curtailment or interruption by Seller except that caused by Force Majure, or operating conditions beyond Seller's control, or where such curtailment or interruption is the result of, or pursuant to, operating procedures prescribed by the Commission. Deliveries hereunder shall have priority over all deliveries made by Seller on an interruptible basis.

4. Deliveries of "Interruptible Gas" shall be subject to curtailment or interruption by Seller at any time and from time to time when, in Seller's sole judgment, it does not have gas available, and Buyer hereby expressly acknowledges that Seller shall not be liable in damages for, or on account of, any curtailment or interruption of deliveries. Seller agrees to give Buyer not less than two (2) hours notice of curtailment or interruption in writing or orally in person or by telephone; provided, however, that if curtailment or interruption is occasioned by an event of Force Majeure effecting the Seller's system, Seller shall be obligated to give only such notice as is practicable in the circumstances. Seller agrees to communicate curtailment notices to one of the person designated from time to time by Buyer as authorized to receive such notices. If Buyer has not made such designation, or if Seller is unsuccessful in its efforts to promptly communicate with the persons so designated, then said notice shall be sufficient if given by Seller to any person who is on Buyer's premises or who answers Buyer's telephone. Whenever, and to the extent that the Seller is unable to deliver the gas requirements of the Buyer, the Buyer shall have the right to purchase gas or other fuel sufficient to make up such deficiency from such other source or sources as may at the time be available to Buyer.

5. Gas taken by a Buyer of 'Firm Gas" on any day, without Seller's advance approval, which exceeds Buyer's Maximum Daily Quantity shall be considered to be Unauthorized Overrun Gas. Seller shall bill, and Buyer shall pay, for such Unauthorized Overrun Gas at the following rates, in addition to all other charges payable to Seller hereunder: (a) For the first three percent (3%) of the Maximum Daily Quantity, the Unauthorized Overrun Gas shall be paid for at 1.25 times the Base Rate set forth in the Service Agreement, and (b) For the next two percent (2%) of the Maximum Daily Quantity, the Unauthorized Overrun Gas shall be paid for at 3.0 times the Base Rate set forth in the Service Agreement, and (c) For additional volumes the Unauthorized Overrun Gas shall be paid for at 5.0 times the Base Rate set for in the Service Agreement. The payment of an Overrun Penalty shall not, under any circumstances, be considered as giving Buyer the right to take Unauthorized Overrun Gas, nor shall such payment be considered to exclude or limit any other remedies available to Seller or another Buyer against the offending Buyer for failure to comply with its obligations to stay within its Maximum Daily Quantity.

6. Any gas taken by an interruptible Buyer after the effective hour of an order calling for curtailment of all interruptible gas hereunder shall be billed pursuant to Article Vll(B)(D of the Company's then approved General Terms and Conditions for natural gas service.

7. The Public Service Commission of South Carolina has prescribed the following operating procedures in regard to the curtailment of interruptible service by Seller: During the period when operating conditions require curtailments in any type of interruptible service, Seller shall curtail deliveries of gas without discrimination within end-use priority of service categories established by the Public Service Commission of South Carolina and pursuant of curtailment instructions received from its supplier or suppliers made in accordance with General Terms and Conditions to the Service Agreement between Seller and it supplier or suppliers and any subsequent modification or amendment thereof.

8. Buyer agrees that all gas delivered hereunder shall be used by the Buyer and that no portion thereof shall be resold.

Article V QUALITY

1. The gas delivered hereunder shall be natural gas or any mixture of natural and manufactured gas, including but not limited to, synthetic gas or liquified petroleum gas as provided for in Paragraph 3 hereof; provided, however, that moisture, impurities, helium, natural gasoline, butane, propane and other hydrocarbons except methane may be removed prior to delivery to Buyer, Seller may subject or permit the subjection of the gas to compression, heating, cooling, cleaning, or other processes, which are not substantially detrimental to the merchantability of the gas.



4. If the natural gas offered for delivery by Seller shall fail at any time to conform to any of the specifications set forth in the Article V, Quality, then Buyer agrees to notify Seller thereof and Buyer, thereupon, may at its option refuse to accept delivery pending correction by Seller. Upon Seller's failure to properly remedy any deficiency in quality as specified herein, then Buyer may accept delivery of such natural gas and make changes necessary to bring such gas into conformity with such specifications and Buyer shall then deduct from future payments any reasonable expenses incurred by it in effecting such change as agreed to by both parties.

5. Odorization of gas delivered hereunder is not required of Seller. However, nothing in these Terms and Conditions shall preclude Seller from odorizing such gas if Seller so desires or if Seller is required by federal or state regulatory agencies to perform such odorization.

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3E. Inlenuplible requirements ler direcl lame applica lone which can ulilze a fuel other than e gaseous fuel as an a llama le.3F. Inlerruplibls requirements tor boiler fuel use ol less than 300 MCF an a peak day.4. (LEFT BLANK INTENTIONALLY)


6. Interruptible Boiler Fuel requirements of300 MCF or more, bul less Ihan I 500 MCF on a peak day, wherealternate

fuel capabliles can meal such requirements.7. Inlerruptitile Baler Fuel requirements of 1500 MCF or more, but less than 3000 MCF on a peak day, where alternate fuel capablliles can meet such requirements.8. Inlenuptible Boiler Fuel requirements of 3000 MCF or mare, but less than 10000 MCF on a peak day, where alemals fuel capabiliries can meal such rerlulremenls.8, Interrupgbkt Seller Fuel requirements ot10000 MCF or more on a peak day, where agemale fuel capabilities can meet such requirements.10. Natural gas requirements ol customers, who have an alernale fuel as their primary energy source, but use natural gas as a standby iuel,

b. Curlaiknenl wig be kt descending order beginning with Category 'tg (I e. Category I Is Ihe highest priori).c. A determination of Ihe category in which a Buyer is placed will be made each year based upon usage in the preceding twelve months ending August 31 and/or current contract as

of Ihe same date. The placerrwni of a Buyer in a category in acmrdance with Ihe determination made herein will be eNedive November I of Ihe current year, extending IhroughOctober 31 of Ihs folowlng year. A niovlng base period will be used each year with such base period to indude Ihe preceding twelve months ending August 31 of the cunenlyear. Redassifications In categories will be effective on November I ol Ihe current year, Where a redassilicalion Is necessary, Ihe eifecled Buyer will bs nolilied of suritredassigcation prior lo November I ol Ihe current year.

d. Where daily volumes ars nol available lo make the determination of Ihe 50 MCF/day required kt the Curtailment Plan, then requirements shall be determined by taking IhoseBuyers having actual usage of 1000 MCF or more per month for any month during Ihe previous twelve (12) month period ending August 31, Such month's use will be divided byIhe number of days during Ihal specilic billing cyde. By means of Ihe average daily volume Ihus obtained, the Buyer wgl be placed in Ihe appropriate category. Where dailyvolumes for Ihe peak month in Ihe base period are available to make Ihe required determination. Ihen such volumes wgl be used.

e, Any new Buyer added during any base period will be placed fn the appropriate calegory by ihe Seller In accordance with Ihe bsel information available.

Article IV

SCOPEOFAGREEMENTI, SelleVs natural gas operations are regulated by Ihe Commissions and are subjetri lo 'Rules and Regutagons Govemfng Service Supplied by Gas Systems in South Camlina's amended

from time lo lime. Deliveries ot gas hereunder are subject lo total or parUal curtailment or interruption by Seller pursuant to operating procedures as are now, ormay herealer be, prescribed by Ihe Commission. Buyer hereby expmssly acknowledges thai Seller shall not be liable In damages for, or on account of, any curtalmenl or InlenupUon of

deliveries where such curtailment or Inlenuplion is Ihe resull of, or pumuanl to, operating procedures by Ihe Commission direcUng curtailment or inteirupgon of seniice.2. Buyer shall consult with and famish lo Ihe Seller such Information as tha Seller may require lo determine Ihe avalablily of service al a particular location be(are pmceeding wllh plans tor

any new or addiUonal gas loads. No new or additional gas loads will be served if it Is determined Ihal such seniice will jeopardize service lo existing customers by increasing Ihe lotalsystem's Iirm load requirements above available suppliesDeliveries of 'Firm Gas'p lo Ihe Maximum Daly Quangly sel forth In the Service Agreemenl, shag be firm end shall not be sub)ed to curlalment or interruption by Seller except Ihatcaused by Force Majure. or operating mndiUons beyond Sclera control. or where such curtailment or interruption is Ihe resul of, or pursuant lo, opealing procedums prescribed by IheCommission. Deliveries hereunder shag have priority over el deliveries made by Seger on an inlerrupfible basis.

4, Deliveries of 'Inlerruplible Gas" shall be subject lo curtailment or interruption by Seller al any lime and from lime lo time when, In SeleVs sole judgment, 0 does not have gas available,and Buyer hereby expressly acknoviledges Ihat Seller shall not be liable in damages for, or an acmuni of, any curlalmenl or lnlerrupgon of deliveries, Seger agrees to give Buyer notless Ihsn two (2) hours notice ol curiailment or Inlenupgon In wrging or orally in pemon or by lelephons; provided, however, that if curtailment or interrupgon Is occasioned by an event ofForce Majeure eNecUng lm SageVs system, Seller shall bs oblgaled lo give only such notice as is practicable in Ihs drcumslances. Seller agrees to communicate curlalmenl notices loone of the person designated from lime to time by Buyer as aulhoriized to mceive such notices. If Buyer has not made such designation, or if Seller is unsuccessful in ils eNorls lo

prompgy mmmunicate with Ihe persons so designated, Ihen said notice shall be sulident if given by Seller to eny person who is on Buyer's premises or who answers Buyeys telephone.Whenever, and lo Ihe extent Ihal Ihe Seller is unable lo deliver Ihe gas requiremenls of Ihe Buyer, Ihe Buyer shall have Ihe right lo purchase gas or other fuel sufficient to make up suchdelriency from such other source or sources as may at the Urne be available Io Buyer,

5. Gas laken bye Buyer of Tirm Gas'n any day, without Selleris advance approval, which exceeds Buyers Maximum Daily Quantity shall be considered lo be Unauthorize Ovenun GasSeller shaU bill snd Buyer shall pay lor such Unauthorize Overrun Ges el the fogowlng rates in addilon lo all other charges payable lo Seller hereunder:

(a) For Ihe lirst three percent (3'4 ) of Ihe Maximum Daily Quantity, Ihe Unauthorized Overrun Gas shall be paid feral I 25 times the Base Rale eel forth in Ihe Service Agreamsnl, and(b) For Ihe next hvo percent (2%) of the Maximum Daily Quantity, Ihe Unauthorized Dverrun Gas shall be paid for at 3 0 Umes the Base Rate sel IoM in Ihe Service Agreement, and

(c) For addikonal volumes Ihe Unauthorize Overmn Gas shall be paid for at 5 0 times Ihe Base Rate sel for in Ihe Service Agreement,The paymenl of an Dvenun Penagy shall not under any circumstances be considered as giving Buyer gie right lo take Unauthorized Overrun Gas nor shall such payment be mnsideredto exdude or Umil any other remedies available lo Seller or another Buyer against Ihe ogendlng Buyer for failure lo mmply with its obligagona to slay wlhin its Maximum Daily Quantity.

6, Any gas taken by an tnwrrupgbts Buyer after Ihe eNsctive hour of an order calling for curlailmeni of al inlenupUble gas hereunder shell be billed pursuant to Argde YU(B)(t) of IheCompany's Ihen approved General Terms and Conditions for natural gas service.

7. The Public Service Commission oi South Carotlna has prescribed the following operagng procedures in regard to Ihe curtailment of inlerruptible service by Seller.

During the period when opemting conditions require curlailmenls in any lype of interrupkbts senrice, Seller shall curtail deliveries of gas without discrimination within end-use prlorily of

senrice categories established by the Pubic Service Commission of South Carolna and pursuant of curlalmenl insbuckons received from Us suppler or suppliers made in accordancewith General Tenne and Conditions lo Ihe Senrice Agreement between Seller and il supplier or suppliers and any subsequent modilcalion or amendmenl Ihereof.

8. Buyer agrees that el gas degvered hereunder shall be used by Ihe Buyer end that no gorgon Ihereof shag be resold.

1.

2.

3.

4.

5.

Article V

QUALITYThe ges delivered hereunder shall be natural gss or any mixture of natural and manufactured gas, induding but not limited lo, synthetic gas or liquilied peWtaum gas as provided ior in

Pamgraph 3 hereof; provided, however, that moisture, impurities, bellum, natural gasolne, butane, propane and other hydmcarbons exmpt methane may be removed prior lo delivery toBuyer, Seller may subjerri or permit the subjecgon of the gas to compression, healing, molng, cleaning, or other processes, which are not subslanlaly detrimental to Ihe merchanlabllyof the gas.

The gas delvered hereunder shall have a total heating value of not less Ihan 9MI, nor mare than I 40tl BTU's per cubic foot of dry gas, and be reasonably free of molslum, objectionableliquids and solkls so as lo be utilized immediately upon delivery to Buyer, and shall mnlain not more Ihan 200 grains of total sulphur, nor more Ihan 15 grains of hydrogen sulphide perMCF.

Seger may permit ls suppkem or it may gseli supply gas from any stand-by equipment installed by 0 or by its suppliers, provided that Ihe gas so supplied shall be reasonably equivalent toIhe natural gas supplied hereunder, and adaptable for use by Buyer without the necessity of making other Ihan minor adjuslmenls lo fuel burning equipment.If Ihs natuml gas offered lor delivery by Seller shall fail at any time to conform to any of Ihe specTiicalons sel forth in the Arlcle Y, Quality, Ihen Buyer agrees to noUfy Seller thereof and

Buyer, thereupon, may al ls opUon refuse lo accept delivery pending correcUon by Seller. Upon Selleris falurs lo properly remedy sny deliciency In qualily as specified herein, thenBuyer may accept delivery of such natural gas and make changes necessary lo bring such gas inta conformity with such spedficagons and Buyer shall then deduct from future

paymenls any reasonable expenses incurred by It in elfecling such change as agreed to by both parties.Odorizaiion of gas delivered hereunder is not required of Seler. However, nothing in these Tenne and Conditions shall preclude Seller from odorizing such gss if Seller so desires or if

Seller Is required by federal or slate regulatory agencies to perte rm such odorizalion.

VI

MEASUREMENTS

1. The volumes and total heating value of the gas delivered hereunder shall be determined as follows: (a) The Unit of Volume shall be a cubic foot of gas. (b) When orifice meters are used, volumes delivered shall be computed in accordance with the specifications, formulae and tables published April 1955, as Gas Measurement

Committee Report No. 3 of the American Gas Association, and any modifications and amendments thereto, and shall include the use of flange connections. (c) All volumes delivered shall be corrected to the pressure base of 14.73 psig and temperature base of 60° F. The average absolute atmospheric pressure shall be assumed to


(d) The temperature of the gas shall be assumed to be 60 degrees Fahrenheit (60°) unless Seller elects to install a recording thermometer or temperature correcting device. If a recording thermometer is installed, the arithmetical average of the 24 hour period will be used to determine the temperature correctly.

(e) The specific gravity of the gas shall be determined by a recording gravitometer of standard manufacture installed in a suitable location. Where a recording gravitometer is not used, the specific gravity of the gas shall be assumed to be the same as that of Seller's supplier(s).







5. Each party shall have the right to be present at the time of any installing, reading, cleaning, changing, repairing, inspecting, testing, calibrating, or adjusting done in connection with the other's measuring equipment used in measuring deliveries hereunder and each party shall advise the other of any intended major maintenanoe operation sufficiently in advance in order that the other party may conveniently have its representative present.

6. All installation of measuring equipment, applying to or effecting deliveries hereunder, shall be made in such manner as to permit an aocurate determination of the quantity of gas delivered and ready verification of the aocuracy of measurement. Orifice meter installations, if used, shall conform to the recommendation for design and installation contained in the Gas Measurement Committee Report No. 3 to the American Gas Association published April, 1955, and any modifications and amendments thereof and shall include the use of flange connections.

7. Measurement on Seller's meter or meters shall be conclusive of both parties except where the meter is defective or fails to register, or if found in error, in either of which case Seller shall repair or replace the meter and the quantity of gas delivered while the meter was out of order or failed to register shall be estimated: (a) By using the registration of any check meter if installed and accurately registering, or, in the absence of (a): (b) By correcting the error if the peroentage of error by calibration, test or mathematical calculation, or, in the absence of both (a) and (b) then: (c) By estimating the quantity of delivery from deliveries during periods under similar conditions when the meter was registering accurately; and an appropriate billing adjustment shall be made in accordance with the current Rules and Regulations governing gas systems issued by the Commission .

8. Seller will maintain its meters in good order and to this end will make periodic tests of its meters pursuant to the current Rules and Regulations governing gas systems issued by the Commission, or at such shorter intervals as seem to Seller desirable. If Buyer is dissatisfied with the aocuracy at any time, it may call upon Seller to have the meter tested in accordance with all regulations relating to such tests and results of such tests as found in the current Rules and Regulations governing gas systems issued by the Commission.

9. Each party shall preserve all records for a period of at least two (2) years.




3. Seller shall not approve sales of gas to Buyer unless Seller is satisfied that Buyer has not, or will not interconnect downstream fuel piping of natural gas for use in different priority-ofservioe categories.

Article IX RA TE ADJUSTMENTS

1. Taxes applicable to the gas delivered to Buyer hereunder as are in effect on January 1st immediately preoeding the effective date of these terms and conditions shall be added to Buyer's bill. The term "tax' as used herein shall mean any tax, license fee, or charge applicable to the gas delivered hereunder, imposed on Seller by any governmental authority on such gas. If the existing rate of any such tax in effect on January 1st, immediately preceding the effective date of these terms and conditions, be hereafter increased or decreased, or if any tax heretofore in effect or hereafter be imposed or repealed, the resulting increase or decrease in such taxes, computed on a cents per dekatherm basis, shall be reflected, as the case may be, on Buyer's bill.


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1. The volumes

(a)(b)

(c)

(d)

(e)

Article Vl

MEASUREMENTSand total healing value oi the gas delivered hereunder shall be determirmd asfollows.'he

Unit of Volume shall be a cubic feet of gas.When oriTice meters are used, volumes delivered shall be computed in accordance with lhe specifications, formulae and lables published April 1955, as Gas MeasurementCommittee Report No. 3 ol the American Gas Association, and any modillcalions end amendments thereto, and shall Indude Ihe use o( gangs connecpons.AU volumes delivered shall be corrected to Ihe pressure base of 14.73 psig and temperature base of 60 F. The average absolute atmospheric pressure shall be assumed lobe fourteen and seven tenths (14,7) pounds lo Ihe square inch, irrespedive of adust ehvagon or location ol Ihe point of delivery above sea level or variation in suchatmospheric pressure from lime lo timrx

The temperature of Ihe gas shall be assumed lo be 60 degrees Fahrenheil(60') unless Seller ehcls lo inslag a recording Ihermometeror temperature correcUng device, If arecording Ihermometer is instated, Ihe arghmegcal average ol the 24 hour period wit be used lo determine Ihe temperature correcgy.The spedlic gravity of the gas shall be dotermined by a recording gmvitomeler of standard manufacture installed in a suitable locafion. Where a rerxxding g ravilome ter Is notused, the specific gravity of Ihe gas shall be assumed lo be Ihe same as that of Selleris supplier(s).The lolal heating value of Ihe gas delivered hereunder may be determined by Seller by using a standard type of recording calorimeter spectrometer chromalograph or otherapproved Instrument whwh shall be so located, at a suitable point on Segers line, in order that Ihe BTU content of gas delivered hereunder may be properly obtained. Whererequired, daily reading from Ihe record so obtained shall be correded lo Ihe basis of measurement provided and from a saluraled basis to Ihe avemge moisture content ofIhe gas detvered, the resug being Ihe BTU content at Ihe gas delivered during Ihe biting period. In Ihe event Ihat Seller does nol Insist a reconfing instrument for suchdetermination or ils instrument is not operating propedy, Ihe total heating value shall ba determined Irom a mcording calorimeter or comparable Instrument properly installedand opera led by Sage(s suppger of natural gas, provided, such values are applicable lo Ihe gas Ihal may be delivered to Ihe Buyer.

1.

2.3,

4,

5.

6.

7.

8.

9.

Article Vi)

MEASURING EQUIPMENTSeller will maintain and opemle, at its own, expense and at Ihe point of delivery of gas hereunder a melar or meters and other necessary equipmenl by whkh the volume of gas deliveredhereunder shall be measured. Such meters and equipment shall remain Ihe property of lhe Seller.Buyer agrees to furnish lo Seger electricity for operating Seller's meters, at not cost lo Seller.Buyer hereby grants to Seger suitable rights of way and easements necessary or Inddenlal lor Ihe Inslagalion, maintenance, operation and removal of pipegne and other fadliliestogegmr with rights ol ingress iherelo and egress there from at ag times and hereby agmes to degver to Seller for Ihe sum of one doter (51 00), an appropriiate instrument or grantdefining such rights and easements located on Buyers plant sile.

Buyer may Insist, maintain and operate such check measuring equipmenl, including a recording g ravitometer and calorimeter as it shall desire, pmvlded that such equipmenl shall be soinslagad so as nol to interfere with Ihe operation of Segers measuring equipment at or near Ihe point of degver, However, ag bitlngs lo Ihe Buyer shag ba based an Ihe metering of IheSeller, subject only lo Ihe provisions of Paragraph 8 of Ibis Arlide.Each party shall have the right to be present at the time of any installing, reading, deaning, changing, repairing, in spading, testing, calibrating. or adjusUng done in connection with Iheothe(s measuring equipment used In measuring deliveries hereunder and each party shall advise Ihe other of any intended ma]or malnlenanre operation suffidenlly In advance In orderthat the other pariy may conveniently have gs representative present.AU Inslagalion of measuring equipment applying lo or effecting deliveries hereunder, shall be made in such manner as to permit an accurate determination of Ihe quantity of gas deliveredand ready venyication of the accuracy of measurement, OriTrce meter instagations, 5 used, shall conform to Ihe recommendalion for design and Installation contained fn Ihe GasMeasuremenl Committee Report No, 3 lo Ihe American Gas Association published Aprg, 1955, and any modifications and amendments thereof and shall indude Ihe use ol Uangecunnecgons.Measuremenl on Se ters melar or meters shag be condusive of both parties except where Iha melar Is defecgve or fats lo register, or if found in error, in either ol which case Selhr shallrepair or replace Ihe melar and Iha quantity of gas delivered while the melar was out of order or faged to regfsler shall be estimated; (a) By using Ihe regislragon of any check melar il

Inslaged and accurately registerin, or, in Ihe absence of (a): (b) By correcting Ihe error il Ihe percentage of enor by calibration, lest or mathematical calculagon, or, In Ihe absence of boih

(a) and (b) then: (c) By estimaUng the quantity of delivery from deliveries during periods under similar condiUons when Ihe meter was registering accurately; and an appropriate billing

ad)raiment shall be made in accordance with Ihe cunenl Rules and Regulations governing gas systems Issued by Ihe Commission.Seller will maintain its melers In good order and to Ibis end will make periodic tests of its meters pursuant to the current Rules and Regulations governing gas systems issued by IheCommission, or at such shorter intervals as seem to Seller desirable. If Buyer Is dissatisfied with Ihe accuracy al any time, it may call upon Seller to have the meter tested in accordancewith ag regulations relating to such lasts and resutls of such lasts as found in Iha current Rules and Regulations governing gas systems issued by Ihe Commission.Eadr party shall pmsewe ag remrds for a period of at least two (2) years.

Article V((I

BUYER'S FACILITIESBuyer will maintain at ils own expense hMIilies from Ihe degvery point lo Ihe point of use and Ihe burners and equipmenl for using gas, and Buyer will at ag times keep gas-usingequipmenl on said premises In a condition conforming with such reasonable rules and regulagons as may be prescribed Iherefore by regulatory authorit having jurisdlcgon Ihereoverand wilh Ihe requirements of any valkl law Ihereto appertaining. In Ihe event that miss ara nol prescribed by a ragulatmy authority, Buyer will abide by codes as used in Ihe gasindusby.Seller shall nol appmve sale of gas on an Inlermplible basis lo Buyer until and unless Seller is satisfied that Buyer has, or will, install adequate stand-by far Utes lo meet its full fuelrequlmmenls during periods of sustained interruptions,Seller shall not approve sales of gas to Buyer unless Seller is satisfied Ihal Buyer has nol, or will not intemonnect downstream fuel piping of natural gas for use In digerenl prlorilyml-

servlce categories.

Article IX

RATEADJUSTMENTS1, Taxes applicable to the gas delivered to Buyer hereunder as are in effect an January I" Immediately preceding the effective date of these ierms and conditons shall be added to

Buyer's bill. The lerm "lax's used herein shall mean any tax, Ucense fee, or charge applicable to Ihe gas degvered hereunder, Imposed an Seller by any governmental authorit onsuch gas. If ihe exlstng rale of any such tax in effecl on January IA immedislely pret@ding Ihe egecgve dale of these tenne and conditions, be hereafter increased or decreased, or if

sny lax heretofore In etlecl or hereafter be Imposed or repealed, Ihe resulting Increase or decrease in such taxes, computed an a cents per dekalherm basis, shall be regeded, as Ihecase may be, an Buys(s bill,

2. Any applicable surcharge or special charges ordered by Ihe Commission or any other duly constituted regulatory body shat be induded in addition to Ihe price ofgas computed in

accordance with the lerms ol Ihe Serrice Agreement,

1. Bills computed from readings taken of Seller's meters shall be rendered and paid monthly with ten (10) days of the billing date. A month shall mean a period beginning on the first


deem necessary . Should Buyer fail to pay any amount due to Seller when same is due, a late payment charge of one and one half percent(1 Y, %) will be added to any balance remaining twenty-five (25) days after the billing date. If such failure to pay continues, Seller may suspend deliveries of gas hereunder. The exercise of such right shall be in addition to any and all other remedies available to Seller. ·








1. In the event of either party hereto being rendered unable wholly or in part by force majeure to carry out its obligations under this contract, other than to make payments due hereunder, it is agreed that on such party giving notice and full particulars of such force majeure in writing or by telegraph to the other party as soon as possible after the occurrence of the cause relied on, then the obligations of the party giving such notice, so far as they are affected by such force majeure, shall be suspended during the continuous of any inability so caused but for no longer period and such cause shall as far as possible be remedied with all reasonable dispatch. The term "force majeure" as employed herein shall mean acts of God, strikes, lockouts, or other industrial disturbances, acts of public enemy, wars, blockades, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, storms, floods, washouts, arrests, and restraints of government and people, civil disturbances, explosions, breakage or accidents to machinery or lines or pipe, freezing of wells or lines or pipe, partial or entire failure of source of supply, and any other causes whether of the kind herein enumerated or otherwise, not within the control of the party claiming suspension and which by the exercise of dir diligence such party is unable to prevent or overcome; such terms shall likewise include (a) in those instances where either party hereto is required to obtain servitudes, rights-of-way grants, permits, or licenses; and (b) in those instances where either party hereto is required to furnish materials and supplies to secure grants or permission from any governmental agency to enable such party to fulfill its obligations hereunder, the inability of such party to acquire at reasonable cost and after the exercise of reasonable diligence such materials and supplies, permits and permissions.



1. If either party shall fail to perform any of the covenants or obligations imposed upon it under and by virtue of the Service Agreement of which these General Terms and Conditions are a part, (except where such failure shall be excused under any of the provisions of this Service Agreement), then in such event. the other party may, at its option, terminate this Service 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 this Service 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 thirty (30) days after the service of the aforesaid notice in which to remedy and remove said cause or causes and fully indemnify the party not in default for any and all consequences of such breach, then such notice shall be withdrawn and this Service Agreement shall continue in full force and effect. In case the party in default does not so remedy and remove the notice for any and all consequences of such breach, within said period of thirty (30) days, then this Service Agreement shall become null and void from and after the expiration of said period. Any cancellation of this Service Agreement pursuant to the provisions of this Article shall be without prejudice to the right of party not in default to collect any amounts then due it and without waiver of any other remedy to which the party not in default may be entitled for violation of this Service Agreement.





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Seller:

By:

Title: Manager- Large Customer Accounts & Services

Date: ___ /i~'(T-'/j~;?-r-0~/-~-----I I

Date:

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Article X

BILLINGB his computed fram readings laken of Segers meters shall be rendered and pakl monthly with ten (I 0) days of the billing date. A month shall mean a period beginning on the lirst

recognized work day of Ihe calendar month and ending on Ihe gmt recognized work day of Iha next succeeding calendar month, or al such other equivalent period ss Seller maydeem necessary. Should Buyer lail lo pay any amount due to Seller when sama is due, a late payment charge of one and one half percent (I Y %) will be added lo any balanceremaining twenty-five (25) days alter Ihe billing dale. If such fagure to pay conUnues, Seller may suspend deliveries of gas hereunder. The exerdse of such right shall be In

addiUon lo any and ag other remeges avagabh lo Selkrr.If it shall be found Ihal Buyer has been overcharged or undercharged In any form whatsoever under Ihe provision hereunder, Seller shall lake acgon to correct such billing pursuantlo current Rules and Regulations governing gas systems issued by Ihe Public Service Commission of South Carolina,

Article XI

POSSESSION OF GAS AN INDEMNIFICATIONAs bekveen Ihe partkw herett, Seller shall be deemed lo be in conkol and possession of Ihe gas daliverabm hereunder until it shall have been delivered lo Buyer al Ihe Paint olDelivery after which Buyer shell be deemed lo be In control and possession thereof.Buyer shall Indemnify and hokf harmless Ihe Seger from any and ag loss (Induding death), damage, or liability Incurred by Ihe Seller by reason of any acl of Ihe Buyer, ih agents oremployees, in Uie receiving, use or a ppgca ion of said gas on Ihe Buyer's side of Ihe Point of Delivery unless Ihe same shall be due to the sole nag Ugence of Ihe Seller, its agentsor employees. The Seller shall indemniyy and hold harmless Ihe Buyer from any and ag loss (induding death), damage or gabggy Incurmd by Ihe Buyer by reason of any acl of IheSeller, ils agents or employees, unless Ihe same shall be due lo Ihe sole nag Ugenca ol ihe Buyer, Us agents or employees.

Article XII

WARRANTY OF TITLE TO GASSeger warrants Ihe lige Io ag gas delivered hereunder and Ihe righl to sell Ihe same and Ihat such gas shall ba free and clear Irom ag liens and adverse daims.

1.

2.

Article XIII

FORCEMAJEUREIn Ihe event ol either party hereto being rendered unable wlmgy or in pari by iorce majeure lo carry out ils obgga lions under this conkacL other than lo make payments duehereunder, it is agreed thai on such party giving rmtkw and tug pargculam of such force majeure In wrging or by lelegraph lo Uie other party as soon as possible ager Iheoccurrence of Ihe cause relied on. then Ihe ohggagona of Ihe party giving such nogce, so lar as Ihey are erected by such lorce majeure, shall be suspended during Ihe continuousof any inabggy so caused but for no longer period and such cause shall as far as possible be remedied with ag reasonable dispatch. The term 'force majeure" as employed hereinshall mean arzs of God, strikes, lockouts, or other industrial disturbances, acts of public enemy, wars, blockades, insurrecfions, riots, epidemics, landslides, lightning, earthquakes,liras, storms, floods, washouts, arrests, and reslmlnts of government and people, dvg disturbances, explosions, breakage or acrfdents to machirery or lines or pipe, freezing ofwells or fines or pipe, parget or entire failure ol source of supply, and any other causes whelher of ihe kind herein enumerated or otherwise, not within Ihe control of Ihe parlychiming suspension and whkh by Ihe exerdse of dir d figence such party is unable kr prevent or overcome,'uch lerms shall likewise indude (a) In Ihosa Instances where eitherparty hereto is required to obtain servltudes, rights.of-way grants, penngs, or kansas; and (b) in ihose instances where either party hereto Is required to lumhh malertals andsupplies lo secure grants or permission from any governmental agency lo enable such party lo fulfill gs obggagons hereunder, the Inabggy ol such party to acquire at reasonablecost and after Ihe exerdse of reasonable diligence such materials and supplies, permits and permissions,lt Is understood and agreed Ihal Ihe setgemenl of strikes or lockouls shall be entirely wghin Ihe discreSon of Ihe party involved and that Ihe above mquirement Ihal any force

majeure shall be remedied will ag reasonable dispatch shall ret require Ihe seglement of strikes or lockouls aoceding lo ihe demands of opposing party when such course isinadvisable In Ihe dlscregon of such party.

Article XIV

MISCELLANEOUSIf eghsr party shall fail lo perform any of Ihe covenants or obligaUons imposed upon 0 under and by vlrtue of Ihe Service Agreemant of which lhasa General Tenne and Conditions

are a pari, (except where such failure shall be excused under any of the provisions of this Servka Agreement), then In such event, Ihe other party may, el Us opl'mn, lerminale Ibis

Senrioe

Agreemen by pmceedlng as folknmi The party not in defaug shall cause a writte noise to be served on fhe parly In default, staUng spertficagy Ihe cause for tarmlnagng

Ibis Servke Agreemenl and dedaring il to be Ihe inienUcn of Ihe party giving the rekce lo lerminate Ihe same; Ihereupon, Ihe party In delaug shall have Ihlrly (30) days ager thesenrice of Ihe aforesaid notice In whkm lo remedy and remove saki cause or causes and fully Indenmify Ihe party not In de!aug for any and ag consequences of such breech, Ihen

such notice shall be wghdrawn and Ibis Service Agreemenl shall continue In full lame and erect, In case Ihe party In defaug does nol so remedy and remove Ihe noNce for any andag consequences of such breech, within said peried of Ihirly (30) days, then Ibis Servke Agresment shall become null and vokl from and after Ihe expiregun of said period. Any

cancellation of this Seniice Agreement pursuant le Ihe provisions of Ihls Artkfe shall be whhoul prejudice lo Ihe right of party not in defaug to cored sny amounts Ihen due 0 andwithout waiver oi any other remedy to whkh Ihe party nol in defaug may be entgled for violation of Ibis Service Agreement.The Sewlce Agreement, of whkh lhasa General Terms and Cond irons are a perl thereof, shall be binding upon and inure lo the benegl of Ihe Seller and the Buyer and Iheir

successors and assigns.Except as olhenvise pmvided, any notice, request, demand, statement or bill, which either Buyer or Seger may desire lo give lo Ihe other shall be In wrglng and shall be consideredas fully delivered when mailed by prepaid registered mail addmssed to said party at Us last known post office address, or at such other addresses as egher party may designate In

wrikng. Rougne communications, Indudlng monthly statemenls and payments, shall be considered as duly delivered when mailed by either registered or mdinary mall.

Buyers covenants and agrees lo execute or Ule, or cooperate with Seller in Ihe execution or ligng of. any report, cerligee le or other decumani required by any governmental agencyhawD Nrisdfrtton over Ibis conkarri or ihe parties hereto, or any other carliTicale or document mquesled by Seger necessary for Seller lo obtain Ihe benegt of any exemplhn fmm

sales, use or other tax. Buyer shall Indemnify Seller for any loss sustained by Seller as a resug of Buyer's breach of Ibis covenant.

The parties hereto in executing Ihe Service Agreemeni and lhasa General Terms and Conditions, acknowledge Ihal these General Terms and CondiTions are a part of the Service

Agraemenl.

Buyer.

By:

ySeller. Sou ro 'na E ric and Gas Co an

By: Wggam G. Watkln

Title: Mana er- Lar ecustomerAccountsSServlces

Dale: ye x/m Date:

public - south carolina

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