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transcript

STATE OF SOUTH CAROLINA

South Carolina Electric dr Gas Company Coatracts fornatural gas service on an interruptlble basis

)) BEFORE THE) PUBLIC SERVICE COMMISSION

) OF SOUTH CAROLINA)) COVER SHEET))) DOCKET

) NUMBER: 2009 - - G)))

(Please type or print)

Submitted by: K. Chad Bu ess

Address; SCANA Co

1426 Main Street MC 130

Columbia SC 29201

SC Bar Number: 69456

Telephone: 803-217-8141

Fax: 803-217-7931

Other:

Etrtall: chad. bur ess cans. cornOTE: The cover sheet ormation contsine erein neither replaces nor supplements the filing service of pleadings or o cr papers

as required by law. This form is required for usc by the Public Service Commission of South Carolina for thc purpose of docketing and must

be filled out completely.

DOCKETING INFORMATION (Check all that apply)

P Emergency Relief demanded in petition P Request for item to be placed on Commission's Agenda expeditiously

Other:

INDUSTRY (Check one) NATURE OF ACTION (Check all that apply)

P Electric

p El~mao s

p Electric/Telecommunications

p Electric/Water

Q Electric/Water/f elecom

P Ei~m~ater/S ~H ass

Q Railmad

P Sewer

P Telecommunications

p transportation

P Water/Sewer

p Administrative Matter

P Other:

Q Affidavit

H Agreement

Q Answer

P Appellate Review

Q Application

Q Certificat

P Comments

P Complaint

P Consent Order

P Discovery

Q Exhibit

Q Expedited Consideration

Q Interconnection Asieemmt

p lntercounecticu Amendment

P Late-Filed Exhibit

Q Lener

Q Memorandum

Motion

P Objection

p petition

P Petition for Reconsideration

P Petition for Rulemaking

p Petition for Rule to Show Cause

p Petition to Intervene

Petition tc Intervene Out of Time

Q Prefiled Testimony

p pmmotion

P P meadow

Q Protest

Q Publish' Affidavit

P Request

Q Request for Certification

P Request for Investigation

P Resale Agreement

P Resale Amendnmnt

p Reservation Lcuer

P Response

p Response to Discovery

Q Return to Petition

p Stipulation

P Subpoena

P Tariff

P Other:

WPWhM.Powca FoR (IYIHO

July 10, 2009

VIA ELECTRONIC FILING

The Honorable Charles TerreniChief Clerk/Administrator

Public Service Commission of South Carolina101 Executive Center Drive (29210)Post Offtce Drawer 11649Columbia, South Carolina 29211

RE: Service Agreement and Transportation Agreement between South CarolinaElectric and Gas Company and National Starch LLC.

Dear Mr. Terreni:

Enclosed for filing only is a service agreement for natural gas on an interruptible basisand a transportation agreement between South Carolina Electric & Gas Company and NationalStarch LLC.

By copy of this letter, we are providing counsel for the South Carolina Office ofRegulatory Staff with a copy of the enclosed documents for its records.

If you have any questions, please advise.

K. Chad Burgess

KCB/kmsEnclosures

cc: Shannon Bowyer Hudson, Esquire(via U.S.First Class Mail w/enclosure)

30ttttt gervl4ss, hc. I legal 8tgataas - 4 38 ~ Gganbh Satb twahna ~ tttl 8 1(8831 317814 I ~ 8 t883) 217 Wt essasaaass

SERVICE AGREEMENT

/"l c"» ' i"» I!I ':;, 'ytl jli, ij'

This Agreement made and entered into this~0 day of+~~, 2009, by and

between SOUTH CAROLINA ELECTRIC & GAS COMPANY, its successors and assigns,hereinafter called "Seller" and NATIONAL STARCH LLC, its successors and assigns, hereinaftercalled "Buyer".

WITNESSETH

WHEREAS, Seller owns and operates a natural gas system in the State of South Carolinawhich 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 a Service Agreementbetween Indopco, Inc„d/b/a National Starch and Chemical Company and Seller, dated March 27,2007, which is hereby being mutually terminated at 10:00 A.M. Eastern Time on March 1, 2009,aild

WHEREAS, Seller and Buyer are negotiating certain other Agreements whereby Seller mayaccept, transport, and re-deliver Buyer's gas to Buyer, and

WHEREAS, Buyer has requested that Seller provide natural gas from Seller's system supplywhen not providing transportation services for Buyer, and

WHEREAS, Buyer has agreed to purchase natural gas from Seller according to the terms andconditions of this Service Agreement when natural gas is tendered by Seller whenever and to theextent Buyer has a requirement for fuel in Priority-of-Service Category 3F as set forth in Article III,Paragraph 1, of the General Terms and Conditions to Industrial Service Agreement hereto attached,for Buyer's facility located in North Charleston, 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:

I, SCOPE OF DELIVERY

INTERRUPTIBLE GAS PRIORITY-OF-SERVICE CATEGORY 3FSeller acknowledges that Buyer may utilize a source of gas other than system supplygas from Seller's sources. Buyer's gas may be transported to Buyer by Seller uponexecution of a Transportation Agreement between Buyer and Seller, Natural gas isprovided hereunder to satisfy Buyer's requirements when Seller is not providingtransportation services.

Buyer agrees to purchase from Seller, and Seller agrees to sell to Buyer, up to aMaximum Daily Quantity of 290 dekatherms of natural gas per day on an interruptible

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basis, to be purchased and utilized by Buyer when and to the extent Seller has gasavailable, tenders such gas to Buyer and Buyer has a requirement for fuel. Sellermakes no guarantee of deliveries hereunder. Interruptible gas will be offered when,and to the extent, available in accordance with the operating procedures set forth in

Article IV, Paragraph 4, of the General Terms and Conditions to Industrial ServiceAgreements hereto attached. Any gas taken by Buyer, including gas utilized as fuel forpilots, after any order of Seller calling for complete curtailment of Buyer's interruptible

load, or any gas taken by Buyer in excess of a partial curtailment order, shall beUnauthorized Overrun Gas and shall subject Buyer to the penalty rate per dekathermset forth in Article IV, Paragraph 6, of the General Terms and Conditions to IndustrialService Agreements hereto attached. Deliveries of Interruptible Gas under this

paragraph of the Service Agreement shall be utilized by Buyer only in Priority-of-Service Category 3F as set forth in Article III, Paragraph I, of the General Terms and

Conditions hereto attached.

2. HOURLY DELIVERIES

Seller shall not be obligated to make hourly deliveries of gas pursuant to Paragraph 1

above at an hourly rate exceeding 24 dekatherms per hour. Seller reserves the right toregulate 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 specifiedquantity.

3. POINT OF DELIVERY

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 and

. Buyer. All gas shall be delivered at this location and it shall be the Buyer' sresponsibility to extend all fuel lines from this location to the point or points of usage.

DELIVERY PRESSURE

Seller agrees to use clue care and diligence to furnish gas hereunder at such uniformpressure as Seller may elect up to, but not exceeding 20 pounds per square inch gauge,and not less than 5 pounds per square inch gauge, at the "Point of Delivery". Buyershall 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, occur on Buyer's side of the "Delivery Point".

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5. INITIAL SERVICE

Buyer agrees to begin purchasing natural gas under the terms and conditions of thisService Agreement at 10:00 A.M. Eastern Time on March 1, 2009, at which time theService Agreement between Indopco, Inc. , d/b/a National Starch and Chemical

Company and Seller dated March 27, 2007, shall terminate.

6. TERM OF AGREEMENT

This Agreement shall become effective on March I, 2009, and shall continue in fullforce and effect through February 28, 2010, and from month to month thereafter unlesseither party 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.

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 corrected for BTU content, pressure, temperature,supercompressibility, specific gravity, and other factors where applicable.

(A) BASE RATE INTERRUPTIBLE GAS PRIORITY-OF-SERVICECATEGORY 3F

Each month, the Base Rate for daily volumes of Interruptible Gas delivered bySeller to Buyer in Priority-of-Service Category 3F 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 A attached hereto, as may be amended or superseded by the PublicService Commission of South Carolina, and is incorporated in and made a part ofthis 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.

(B) 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 Category 3F. 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).

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(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 sellInterruptible gas to Buyer for the next ensuing calendar month to displacetransportation 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 her'eunder.

(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' ssystem 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.

8. STANDBY CHARGES

In consideration of Buyer's requirement for standby service for Buyer's requirements inPriority-of-Service Category 3F, Buyer agrees to pay Seller the sum of two hundredand fifty dollars ($250,00) per month as a standby charge. This charge shall be inaddition to any other monies charged for standby volumes delivered in Priority-of-Service Category ~3 from Seller's system supply.

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 Agreement between the parties. All volumes in excess of thetransported volumes will be considered as having been delivered pursuant to thisService Agreement.

10. SPECIAL PROVISION

Seller acknowledges that Buyer does not plan to install alternate fuel facilities to serveBuyer's requirements for fuel during curtailments of interruptible natural gas deliveriesin Priority-of-Service Category 3F. Buyer hereby agrees that curtailment is at the solediscretion of Seller and Buyer agrees to accept any and all curtailments imposed bySeller. Failure to accept curtailment for any reason will subject Buyer to the penaltyprovisions specified in the General Terms and Conditions to Industrial Service

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Agreements. Buyer hereby expressly acknowledges that Seller shall not be liable in

damages for, or on account of any curtailment or interruption of deliveries.

11. CREDITWORTHINESS

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 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 of nonpayment.

12. ASSIGNMENT

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

13. GENERAL TERMS AND CONDITIONS

The General Terms and Conditions to Industrial Service Agreements dated January 1,1985, attached hereto and duly executed by both parties, are hereby incorporated in andmade a part of this Service Agreement. Should there be any conflict between any

portion of the Geneml Terms and Conditions to Industrial Service Agreements and thisService Agreement, the parties 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 4 Gas CompanyContract Administration, Mail Code 102Columbia, South Carolina 29218

To Buyer; National Starch LLCP. O. Box 5913Bridgewater, N J 08807-5913Attn: V. Peterson

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

NATIONAL STARCH LLCBUYER

SOUTH CAROLINA ELECTRIC & GASCOMPANY

BY: Martin K. Phalen

VICE PRESIDENT —GAS OPERATIONSTITLE

ESS WITNE

DATE DATE

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EXHIBIT A

SOUTH CAROLINA EL'ECTRIC 4 GAS COMPANY,

GAS COST CALCULATION

" . APPLICABILITY

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

COST QF GAS

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

Cost of Gas =~D x TS

Where.

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

D= The cost of gas attributable to all sales made by Seller to Buyers under aninterrup6ble rate or contract where the:Buyer has alternative fuel capability andhas certified to the Seller the as-fired price of its alternative fuel such that Sellercould not supply gas at a price that. is competitive snd 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 determ'ined bydividing total annual sales recorded in Accounts 480 through 483 plus distributiongas used in electnc generation by the total annual gas entering the Seller's system.The annual sales factor shall be computed for the twelve months ending eachMarch and apphed beginmug with the Qrst billing cycle of the following Mayeach year.

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

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

SOUTH CAROLINA ELECTRIC & GAS CONIPANY

T)IIBorlgl~NERAL TERMS AND CONDITIONS TO INDUSTRIAL SERVICE AGREEMENTS FOR Go-;to be returned JANUARY I, 1985to SCAG Compeoy

Article I

GENERALThese Terna and CocdiTions lo Industrial Swvice Agnmmenls are supphmenlary lo the Rtriss and Regulations issued by Ihe Pubgc Servke Commission of South Carolina and Ihe

General Terms and Condilkms ol South Carogna Elecbk 6 Gas Company ss provided by Ihe PuMc Senrice Commission of South Cmolina.

The pnwlsion of these Tenne and Condlthms apply lo at peimns, pwlnmships, ccrpcm5ons or rrihms designated as industrial uses who are hnviugy recmvlng gas servke horn Saulh

Carogna Ehrcec 6 Gas Company under raW scheduhm or servke agreemenh Bed with Ihs Commbskm

South Camgna Elecbk 6 Gas Company is refened to hsmhr ss 'SegeC, and Ihe user or pmspecths user is refenad W as 'Buym'. Tlm Pubdc Service Commisskm ot Sougr Csrosns is

mfenwl lo hsrek as 'Commhsion'.

t.2,3.

5.6.7.8.9.101112

Article II

DEFINITIONSExcept where Ihe conbxl otherwise indicates another or deerent meanlog or brtenL Ihe folkwstg ianna am klended and used and shall be conshued W have meaning as folkms

'Dey' shall mean a pericd of twenty-four (24) consecugve bourn beginning snd ending at 8:00 A.M,

Eastern

Time or at such gme as Ihe seller and Ihe Buyrx may agree upon.'Month' shag mean tm period between any tno (2) regs kr readings of Sage's meters which shel rmt be less Ihsn twenty-eight (28) days nor more than grirty-four (34) days.'Year shet mean a pmlod of 365 days~with Ihe day of lirst delhrwy oi gas hmsunder, and each 365 days gmree6er except Ihat In s year having a dsk of February 29th,

such year shat rxmsht of 366 days.'cubk foot of gas' shat mean'Ihe amount of gas requhmf lo rri s cubic foot of space when ihe gas is al an absolute pressum of fowteen and seventy-Ihree hundmdgw (14.73) pounds

per square hrch al s lsmperatum of sixty (60) degrees Fahrenheit.'CCP shah mean mw hundmd (100) cubic feet of gas."MCF' shall mean mw Ihousand (1000) cubic feet of gas.BTU' shall mean s BnYish Thermal Ung and ls Ihe amount of heal required lo raise Ihe lempwa lure of one (I) pound of water t' Fahnmhit ai 60' FahnmheiL

"MMBTIF shag mmm cne nrigon Brigsh Thermal Units.'Thwm shall mean Ihe quangly of heat enmgy whkh b 100,000 Brigsh Thermal Ungs.'Dekagwnn' (dt) shel mean on mlBon BrBsh Thermal Units and h synonymous lo Ihe tenn MMBTU.

'Natural Gas' or 'Gss' shas mean natural gss, pnxessed, unpmcessed, vapodzed I'quid naWral gas, synlhetk gas, pmpanevrir rixture or sny mixtms of lhasa gases."Firm Service" shad mean from publshed lalfs andior contracts under which Serer Is sxpnmsly obligated lo deliver specec volumes within a given bme perbd and wich an0cipaks no

inlenupgons but whkh may pmmil unexpeded inienu pew in case gm supply lo highsi priorgy cusfomws k Ihreatened.

'Intemrptble Smvice' shall mean smvice fmm appmved conlrarris under whkh Company is not xfnesssly obligated lo degver speciTic volumes within a given Bne period, and which

anfidpates and pemris inbmupgon on short noBce, or smvke under sppmved mnlrscts whkh expressly or impfmdly require inslalktlon of alternate fuel capaNly.'Commercial Sivlce" shall mean swvice lo Customws engaged prlmaiy M gm sale of goods or servkss induding inseugorw and local, sam and federal govemnuml agenies for usesogmr Ihan gmse invcMng msnufaiuring or electric power generagon."Indusbial Sevices' shag mean senrice lo customers engaged prhnsrgy W e pnxwss whkh crsales w changes raw or unfinished materials into another form or produm induding Ihe

generagon of elecbk power.'Pknt Pmleikm Gas' shall mean gm rrririmum volumes required to prevent physical hmm lo the plant iaciTilks or danger to plant perwxmel when such prolecgon rarvmt be afforded

through Ihe use of an agemats fuel This Indudes Ihe protecdon cf such makrlel W process as would ogvxwise be destroyed, bul shall rmt include detveries rsqrrired to maintain phnl

pmducgon, A detwm'na5on wgl be made by Ihe Seller of minimum viumes requinxl. Such essenrial volwnes we be dispakhed accmdingly.

'Feedslock Gss' shel mean natural gss used ss a raw malarial for gs chemkal prcperges in osaBng an end pmducL

'Pnxess Gas' shall mean gas used for whkh agemsle tush, other gmn anogwi gaseous fuel, are nol lechnkagy feasible such as in apptcagons requiring pmcbe lemperatum controls

and pmcise flame charecwrislhs.'Boiler Fver shas mean naWral gas used as fuel for lhe generatkm ot steam and in internal combusgon turbine engines for the generagons of elecbidly.'Alternate Fuel CapabRy' shag mean e sltuarion whee an sgemata fuel rxwld have been utezsd whether or not Ihe laciTiges for such use have actually been 'vwtaged; provided

however, whee ihe use of nawral gas is for plant prolecgrm, feedslock or process uses snd Ihs only agamate fuel N propane or other gaseous hml, then gm Buyer wB be treated as il

he had no agemala Wel capabiTily.

Yhrs Supply Defickncf shall mean any occunsnce relating lo Segm's gas supply which causes Se5er to delver less gmn gw islet requirements ol iis system, iniudlng futures ofsuppliem lo degver ges kr any reason, requirement d gas for sysmm sbxage, conservagon of gas for tumrs degvmy, or any other occunwrce which is not enrsneramd herein which

affairs Seser's gas supply.

'Slmage Injecgon ququlenvmls' shag mean ag volumes required by Ihe Setw lor injecgon info undergmund storage, induding cushion gas, and for lquiricslion, Induding fuel used hxmjecgon and in bquikagon plants, or for such other storage prrteds Ihal may be devekped expnmsly for Ihe pmtedkn of supply W high priority uses.'Seter Use' shat mean fuel used for gas compnrsrion, LPG planar and LNG frisnts, olhsr gas needed by Segeys fadlilies W fumeh Ihe requirements of Buyem, logelher with

unaccounted lor grm Tiris gas shel be oonsdsmd hrckded In Priorit of Smvke Categmy 1. Other rribri uses ot Seger, such as flame slabr1lzagon requirements, wil be met as long assuch uses do not jopangzs service to ils giili ssrvks Buyem.'Essential'Human Needs" shag mean natural gas senrke, whkh, if denied, would cause shutdown of an operation resuBng In the dosing ot Ihe esmblishment essential to maintaining

Ihe hmdth and safrriy of gm general puMc.'The Pokt of Degvwy' shaN be at Ihe ougst of Itm Serisrs measmlng equipmenl and regulagng equipmenl.

'Emergency Smvke' shall mean supplsnwnml degvwies of nakrsl gss Ihst msy be mquired W hxeslat insparable injury lo life or pmperly Including erwlronmenli emegenrries.

Article III

CURTAILMENT OF SERVICE1. In Ihe event of a Gss Supply Celkiency on Ihe Saga(a system, the Seller slmg require rtailnmnl of servke lo Buyer h accordance with Ihe foriowing pmcedurei

s. The Seger shat ader curlalknenl of salas made b Buyers purchasing gas under Ihe Seta/a rale scheduks ix spedal conhack In descending order h accordance with priority ofswvke categories set forth below. Appnwed emwgency gas h accepted irom curtailment

1. Reskfengsl and smug commenlsl Buyers (less Ihan 50 MCF on a peak day) and esssnfial human needs customsm whee Ihere is oo Insisted or avalkble ahemale fuel

capabilriy.

2. Large commerdsl died gsnm requlnmwnls (80 MCF or mom on a peak day); rvm indusbial mquhsmenls for plant pmlecborg feedslock and process needs; and storageinjecgon nqusamsnls.3A Firm induririsl requirements for uses other than boiler fuel whkh do not qualify tor Cawgmy 2.36. Firm commenrisl and industrisl boger fuel nquirements up lo 1,000 MCF on a peak dsy.3C. InlenupNe nquimmerris lor human need lypes of facflges such as pubric buihfings, hosplhts and laundries.30. Inlenuploe nquhsmsnts for direct rmme app5cadons whkh can uelze only anodmr gaseous fuel as an sgernale.3E. Intenupitris nquirsmenls for rgrsrx Bema applicagons which can ueze s fuel ogmr Ihan a gaseous lust as an alternate.3F. InknupNe requhsmenls for biter fuel use of less than 300 MCF an a peak day.4, (LEFT BIANK INTENTIONALLY)

5. (LEFT BLANK INTENTIONALLY)

6. InlenupNe Boher Foal requirements of 300 MCF or nxxe, but less Ihsn I~MCF an a peek day, whats slemale fuel capsbWles can meat such rsquksmsnh.y. Intenuplble Boihr Fuel requirements ot 1,600 MCF or nes, but less than 3,000 MCF cn a peak day, where alsmsls fuel cpaMibes can meet such~.8. Inhnuplble Boher Fuel requkwnenls of 3,000 MCF or mom, bul less Ihan 10,000 MCF an a peak day. whse altsmah fuel cspsMities csn mast such requirsmenls9. Intwruplible Boher Fuel mqukwnenh of 10.000 MCF or mwa an a peak dsy, where slemate fuel capabilles can msel such requlremenh.10. Natural gas rsquiwnents of cuslomws, who have an alamein fuel as gslr prknwy enwgy some, but use naknal gas as a standby lust.

b. Curlaibsnt wW be in descendmg athr beginn'mg wigr Catayxy 10 (Le. Category I Is ls Mghest priorit).c. A determinahon d fhe category in which a Buyer is placed wl be made each year based upon usage n Ihe precsd'sg twelve months ending Augusl 31 end(or ament conbad as

ol Ihe sama dale. Ths placemenl of 8 Buyer in s cahgory in aaxmhnce wNh Ihe delermlnahon mwle benin wgle eNechve November I of Ihe cunent year, extending lmeghCdober 31 of ls fohowing year. A moving base perkxl wlh be used each year wlh such base pwbd lo indude Ihe precedbg twelve rwelhs endhg August 31 d Ihe current

yacc Redssslhalons h calegories wll be elfechve on November I ol be current year. Whee 8 redassgcs5on is necessary, fhe eNsded Buyer wW be ndried of suchredassilical'en prior lo November I of Ihe current year.

d. Whws daily volunes sre nol avalabh lo make Ihe dehrmkslion ol Ihe 60 MCF/day required h Ihe Curhiknent Plan, Ihen squlremenls slsl be delennhed by laking IhoseBuyem having actual usage of 1000 MCF or mora per mene br any month during Ihe prev'eus helve (12) month period ending August 31. Such mon we use wll be divided byIhe number of days during Ihat speaTic bweg cyde. By means d Ihe average dally volume Ihus oblabed, ls Seer wg be placed in Ihe appropriah calsgay. Where daily

volumes br ls peak monS in Ihe base period srs avshabh lo make Ihe nxmimd deaxminalon, Ihen such vokwss wW bs used.e. Any new Buyer added during any base pwiod will be phced In Ihe appmpriate category by Ihe Sehsr in accordance wlb Ihe best information svalable.

Article IV

SCOPE OF AGREEMENT1. Seheys natural gss opwagons are regulated by Ihe Ommi'sskm snd are subject lo 'Rules amf Rsguhlbns Governing Sewice Supphed by Gas Systems b South Carohna as ansnded

from lme lo (ime. Deliverim of gss hereunder am subject fo lola( or part'uri antslment or Inlsnuplbn by Sehw pumuant lo operalng procedures as are now, or

may hereafhr be, presented by Ihe Cmmisske. Buys hweby ex(xessly~Nst Sehw shah nol be Sable m damages for, or on account of, any curlalmenl or intenuplion oldeliveries where such axhlnwri or inlenuplm h be resul of, or pasuant lo, opwahng pmcwlums by Ihe Commlssins disding cwtailment or mtenupbon ol seeks.

2. Buyer shall consuN with and furnish lo Ihs Selsr such infonnalbn as Ihe Seger may require lo determine Ihe avalhbW(y d swvks at a parikuhr localon before pmceeding wlh phrs brany new or nddlloal gas loads. No new or addihonal gas loads wl be saved i( it is Shrnriixd Ihal such saves wW jeopardize service to exislng cuslomea by increasing Ihe lolal

syslmn's finn load reqwemenh sbms avahable supphsn3. Oehveries d 'Rrm Gas' up lo Ihe Maximum Daly Qusndy set bnh b fhe Smvice Agniemenl, shel be lire srd shall nol be subjed lo axlartll or inlsnuplbn by Seler except lsl

caused by Force Msjure, or operahng rendhors beyond Seheys conlml. or whee weh curlslbsnt or elenuplon s Ihe mml o(. or pursuant lo, operalng procedums pscrlbed by beCommhsion. Oehverles hereunder shah have priodly over al debveries made by Selhr on an htsnuplble bash,Delivwies of "Inlwruptlbh Gss' shah be subject lo axlaitment or inlsnuplion by seller at sny Ikne and from Oms to 5me when, in Bshe( 8 sole judgment, il does nol have gas avalhble,and Buyer hereby Sxpsmly acknowledges Ihal Seller shah not be lade in damages br, or on account of, any curlalment or intenuphon of dehvwlex Seler agnes lo give Buyer not

kss lsn two (2) hours nohs of curirriknenl or errup6on in wrihng or orally in psmon or by hlephone; pevided, however, Ihal if curlalhnent or interruption is occasioned by an event ofForce Majeure eNecbng tls ssgsrs system, sslsr shah be obligated lo give only such nogce ss is pmdicabh in Ihe mcumstarees. seger agrees lo~fe curtailment no6ces loone of Ihe person desbnaled fram lime b Wne by Buyer as sulhorimd to receive such notices. If Buyer has not made such designalon, or if Segw h unsuccessid in ils dforh to

promphy convmxricate will Ihe pemons so designated, Ihen said nolbs shall bs sulficienl if given by Selhr lo eny person wbo is on Buys's pmmisss w who answem Buyers telephone.Whenever and lo Ihe extent that the Ssler h unable lo debar Ihe gas requksmw ls of the Buyer, the Buyer shall have Ihe right to purchase gas or olsr bel sulkienl lo make up such

defldeocy Irom such olsr sowce or sounxs as msy at Ihe Wne be available lo Buyer.

5. Gas laken by a Buyer d 'Fkm Gas an any day, without ssthrs advance sppevaL which exceeds Buyer's Maximum Daly Quanhly shall be considered to be Unaulerized overrun GasSsler shall bg, and Buyer shag psy, for such Unaulerized Ovemm Gas at Ihe folkwbg rates, in addilkm lo al other charges payable to Ssler hwsunder.

(s) For Ihe first three percent (3%)o( the Maximum Daily Quan wy, Ihe Un ulhmlzed Overrun Gas shel be paid for 8( I Z hmes Ihe Base Rale set brlh in Ihe Senrice AgreemenL and

(b) For Ihe next two percent (2%) of Ihe Maximum Dshy Quanfily, ls Unsulerized Ovenun Gas shall be pakl br at 3.0 Ones Ore Bess Rale sst lorlh In the Service AgmemenL and

(c) For sddlbnal volumes Ihe Unaulhmlzed Overmn Gas shah be paid for at 5.0 hmes Ihe Base Rale set for in Ihe Swvice Agreement.

The payment of an Ovemm PenaNy shall noL wear rmy circumstances, be mnsidered as giv'mg Buyer Ihe right lo lake Unaulerlzed Owmun Gss, nor shag such paymsni be nsldered

to exdude or lnil any other mmedks avalhble b Selsr or another Buyer against Ihe ogending Buyer lor isles lo comply with Ih obbg8lions to shy slain ils Maximum Daily Ciusnbly.

6. Any intenuphble gas taken by Buyer agar Ihe eNedlve hour of an order calhng br compleh curtagnenl of al htsnupbble gas delv erie hereunder shah be considered lo be Unauthorized

overrun Gas, seller shall Ml and Buyer shah pay, ior such Unsulhalzad ovenun Ges al Ihe rate of Twenty-five dolkus and no ame ($26.00) per dekslhenn, h addthon lo Ihe BaseRah speciTsd in Ihe Swv'ee Agmemeni for such gas Used.

The paymenl ol Ovenun penalty shall nol, under any drcumslances, be considered as gag ls Buyer Ihe right lo lake Unauthorized Ovemin Gas, nor shah such paymenl beconsidered lo exclude or lml any causes of sc5on or other remedies available lo Seller agabst the Buyer for lmture lo comply wlb mlaibnent ordws issued by Seller hweundw,

y. The South Cwolina Pubhc Service ommhsice has pesalbed Ihs folbw'eg opershng pcedures In egad lo Ihe curtailment of inlerrup0bh service by Selkx:During Ihs pared when operating condbas mquke cwhhmmls in any type of intwruplble swvbe, Saber shall curtail dehrsries of gss wileut disaiminslfon within endnrxe prioiily o(service cafegaies eslsblhhed by the Soufh Cmolba Ruble Servbe Commission and pursmet ol curtailment esbuchons reiver horn ils supplier or supp6em made h ccadance with

Gensari Tenne snd Corx(i6ons lo Ihe Service Agreement between Seler and II suppber or supphsrs and any sutsequenl mod Wcafion or amendmenl Ihenef.0uym ngr88S lst 86 gss dahvaisd hweUnder shah bs Used by Ihs BUTW arid Ihal re poflkxi Ihwsd shah be f8snkL

Article V

QUALITYThe gss defivered hereunder shel be natural gss or sny malum of natural snd mnnufadured gas, indudlng but nol limited to, synthelc gas or lqullsd pelroteum gas as provktsd br in

Psragmph 3 hereof; provkhd, however, that moistwe, impurilfes, bellum, naknal gssirine, butane, propane and other hydmerbons except methane may be mneved prior lo delvsry lo

Buyer, Selsr msy subject or permi( Ihe subjeclon of Ihe gas to ompress'm, heahng, aehng, deaning, or oNer pneesses, which are nol substsnlaly detrimental lo lhe merchanlablily

of Ihe gas.The gss delivered hesundsr shall have 8 total healing value ol not less Ihan 960, nor mwe Ihan 1,400 BTlys per cubic kel of dry gas, and be ressoably (ree of moiskne, objechonabhhquids and solids so as lo be UIWzed immedhfely upon delvmy lo Buyer, end shel conlab nol mae Ihsn 200 grains of lola( sulphur, nor more than 16 gains of hyriegen sulphide perMCF.

seller may permit Ns suppliers or it may ihelf supply gss from any shridriry equipment inshled by il or by hs supplies, pmvlded Ihst Ihs gas so supphd shel be sasorsbq equivahnt loIhe naknal gas supplied hwaunder, and whptable for use by Seer mthoul ls ecessily ot making olsr Ihan minor dgjuxbnenh to foal burning equkmsnLli lhe nakual gas offered br de5vwy by Seller shel hl al sny hme lo conform lo any of Ihe speciTicatlons sel brlh In hs Ar5de V, Quality, Ihen Buyer agrees to rewy Sehr Ihweof and

Buyer, hrwsupon, may at ih ophon mbse lo accept dshvwy pending correcbon by Selw. Upon 085efs hikus lo propwly remwly sny deyidency in quahty as speeded hara's, OsnSeer mey accept dehwy of such natural gas and make changes necwsary lo bring such gas bio conformlly wlh such speaTicaikms mxl Buyer shah Ihen dedud fmm (ubmpa(sents sny essonnebh expenses lncunad by 8 h efhdhg such change ss agmed lo by both perihs

Odorizafke of gas delvemd hereundw is nol mqukad of Sehw. However, relrkW in lhasa Terms and Condilkns shall predude Sehw fram orbriring such gas N Seler so desires or itSeller is requkwl by federal or stale mguhlay agendas lo perbnn such odorizatkxz

1. The velum

(s)(b)

Article Vl

MEASUREMENTSes and lolal heagng value ol Ihe gss delivmed hweundsr shat be deimmlned as folknm:

The Unit of Volume shag be a cubic fcot ot gas.When orgies meters are used, volumes delivered shag be computed In accordance wgh Ihs specBcagons, formulae and tables published Aprg 1966, as Gas MeasuremenlCommktee Rspml Ho. 3 of Ihs Americ'an Gas AssodaUon, snd any modiTxesons and amendments thereto, and shag indude fhs use et gangs connecgom,Ag volumes dekvsred shall be consctsd lo the pressure base of 1473 psig and lernperatum base of 60' F. The average absolute elmospherk pressum shall be assumed lobe fourhmn and seven lenlhs (14.7) poimds lo the square inch, irrespective of actual elevaficn or locslion of the point of delivery above sea level or vsrialhns w suchslmospherk pressure from lime to lime.

The lemperakrre of Ihe gas shag be assumed lo be 60 degrees Fahmnheit (60') unless Seller sleek to inning a recording thermometer or temperature oorremlng device. If srecording therinomeler is insisted, Ihs srithme6cal average of Ihe 24 hour period will be used lo determine the lemperature conscsy.Ths sparge gravity of Ihe gas shag bs determined by a recording grsv Nomsler of slandanf manufacture Installed in s suitable locagon. Where a recording grsvkonwtru is notused, Ihe specgk gravity of the gas shall be assumed to be Ihe same as grat of Segers supplier(s).The total heagng value of the gas degvered hmeunder may bs deteimkmd by Belier by using s smndarri type of reconNng cakrlmster, pecbometer, chromalograph, or otherapproved Insbument which shall be so kxwled, ate suitable point on Segw'4 Nne, in order that lhe BTU content of gas dsgversd twmunder may be properly obtained. Whererequired, daily reading from Ihe recorri so obtained shag be crmeded fo the basis of measurement pmvided and from a sahrrated basis to Ihe average moisture content otNm gas delkrersd, Nw resuh bekrg Ihe BTU content of Ihe gas delkrwsd during Ihe billing perkd. In Ihe event that Seller does not Install s mcording instrument ku suchdsisrminaikn or Ns instrument knot operaling properly, Ihe lotal healing value shag be determined from a recording ca orlmeter or comparable instrument properly inslegedand operated by Bakers suppger of nstuml gas, provided, such values are sppscable to Ihe gss that may be delivered to the Buyer. When Seller is making propane-air losuppkrmenl its gas supply, Ihe BTU content of Ihe gas shall bs cakxriated by a method such ss using lhe recorded gravily of Ihs pmpene. air, Ihe nalural gas and lhecombined mixture along with tlw measured BTU value of ths ges where avaNabh. The BTU content of pmpsne shall be assumed lo be 91,600 BTU's psr gallon.

Article Vi)

MEASURING EQUIPMENTSeger will maintain and operate, st ils own, expense snd at the point of delivery of gas hereunder, a melar or melam snd olher necessary equipment by whkh Ihe volume of gas delivered

hmeundsr shaN be measured. Such metem snd equipmenl shall remain Ihe properly of Ihe Seller.Buyer agrees lo fumkh to Seller electricriy lor operating Segers meters, at rml cost lo Seller.

Buyer agrees to change Ihe charh on Segers meters at no cost lo Seller snd forward same lo Saner.

Buyer hereby grants lo Seter suitable rights-rri-way and easements necessary or incidental for the krslssagon, maintenance, operation and removal of pipegne and other (acili6es

together wgh rights of ingress Ihsrelo and egress Ihere from st sg Nmes snd hereby agrees to deliver to Seger, kx Ihe sum of one doter ($1.00), sn appropriate instrument or granidefining such rights and sesemenls krcaksri on Buym's planl sile.

Buyer may inslsg, maintain snd operate such check measuring equipment, Induding a recording grsvltometer and

calorimeter

a il shag desire, ~Ihat such equipment shak be soinslaged so as not lo inlerfme with gm opemrion of Seller's measuring equipment el or near ihs pokri of degver. However, ag btfmgs Io the Buyer shaN bs based on Ihe metering of the

SeNer, sub)act only lo Ihe pmvisions of Paragraph 8 ol fhis Aigde.Each party shell have Ihe right lo be present at Ihe Nms of any inslaging, reading, rfesnlng, changing, repairing, inspecgng, testing. calilxatlng, or sdjusring done in connection with Ihsother's measuring equipmeni used in measurin degveries hereunder snd each party shag advise Ihe other of any intended ma)or maintenance operation sutgciengy in advance in osierIhal Itm other party msy convenkmgy have ils reprwenlatlve pmsent.AN inslagafion of measuring equipment, applying lo or eqacgng deliveries hereunder, shall be made In such manner as to permit an accurate delermina5on of Ihe quangty ot gas delivered

and ready vsriTrcsgon of lhe accuracy of measurement. Crifke meter inslagalions, if used, shag crmform lo Ihe rcommneedalion ior design snd inslegalion contained b Ihe GssMeasursmeni Convntgm Report No. 3 lo Ihe Amedcan Gas Assodagon published April, 1956, aml any modifkagons and amendmenls Nmiaof and shall indude Ihe use of flange

connecdons.

Measurement on sage's melar or meters shat be conclusive of both paNes exoepl where Ihe melar is deferxive or lolls to register, or if found in error, in egher of which case seller shall

repair or repkrce Ihe meter snd ihe quan gly of gas delivered while Ihe melar was out of order or faged to register shall bs estimated: (a) By using ths registration of any check melar if

inslaNed and accurriely rsghterkrg, or, in Ihe absence of ia): (b) By mrrscsng Ihe error N Ihe percentage of error by cagbrsgon, leal or malhemagcsl cakulabon, or, in Ihe absence of boih

(a) and (b) then. (c) By ssgmagng Ihe quangly of deiwery from deliveries during periods under sinular conditions when Ihe meter was registering accurately; snd an appropriat Ningadjuslmenl shall bs made in eccwdence with Ihe current Rules and Reguhrlkes governing gas systsnw issued by the Commlsskm.

Seger wN msinlak ils makings in good order and fo Ibis end wN make periodic teals of its meters pumuant to Ihe current Rules snd Regukgons governing gas systems issued by Ihe

commission, or st such shorter intervals as mem to seller desirable. If Buyer is dissatisfied wqh Ihe arxxxacy at any Nme, il may call upon Baser lo have the melar tested in accordancewith ag mguhlions mlsgng lo such lasts snd results of such lasts as lound in Ihe current Rules and Rag ulasons governing gas systems issued by Ihe Commission.

10. Each party shall preserve ag records for s period of st least two (2) years

Article Vill

BUYER'S FACILITIESBuyer wB maintain at Ns own expense fsrritges irom Ihe degvery point lo the point of use and Ihe burners snd equipment for using gas, snd Buyer wgl at at times keep gss-using

equipment on said prsmhes in s condgkm conforming with such reasonable rules and regulations as may be pnmcn1md Ihwefom by reguhrlory sulhmity having jurisdkbon Ihereovw

snd wsh Ihe equremenls of any vagd hw Ihmelo apperlahlng. In Nm event Ihal miss are not prescribed by a regulatory aulhorNy, Buyer will abide by codes as used k the gssindustry.

Seller shall not appnwe sale of gas on an Intermpigrie basis lo Buyer untg and uifess Seller is salisried that Buyer hss, or wg, inslas adequate stand-by fscillges lo mssl ih full tuel

requirements durkrg periods of sustained inlenuptlons.

Segm shall not sppmve sales ot gas lo Buyer unless Seller is satisfied that Buyer hss not, or will nol inknconneu downstream lust piping of natural gas for uss in diNersnt priority44-

smvics caisgmies.

Article IX

RATE ADJUSTMENTSTaxes spplksbls lo fhe gas delivered lo Buyer hereunder as are in eNod on Janumy I" Immediately precmring ths eNecgve date of Ihmm tenne and crmdigons shag be added to

Buyers bgl. The tenn 'lax" as used harsh shas mean any tax, Ncenss fee, or charge appgcable lo the gas de5vered hereunder, imposed on Sellw by sny governmental sugmrity on

such gas. If Ihe existing rale of any such lsx in etlect on January I v, immediately preceding Ihe egecgve dale of these mrms and ondldonn be hmeafler increased or Scceeased, or if

any lax herekfore in eNect or hereaftm be imposed or m peeled, the resulting increase or decrease in such laxes, computed on s cents per deka therm basis, shall be regemed, as Ihe

case may bs, on Buyers bill.

2. Any applkable surcharge or special charges orrisred by Ihe Commhsion or sny oNer duly rxrnsgtuted regulatory body shall be induded in addition lo Ihe price oi gas computed In

sccmriance with Ihe terms ol Ihe Service Ag moment

Article X

BILLING88s computed from readkrgs liken of Seller's melms shall bs rendered snd pakl monthly wNh len (10)days of Nm billing dale. A month shall mean s period beginning on Ihe Nrst

recognized wmk day of Ihe calendar month snd ending on Ihe lirst recognized work day ot Ihe next succeerNng caktndar month, or at such other equivalent pared as SsNer maydeem necessary. Should Buyer lsN lo pay any amount due to Seller when same is due, a isla payment charge ol orm and one half pmcenl (I '/ %) wiN be added Io any bskrnceremaining twenty. live (25) days after Ihe blBng date. If such faNure to psy conUnues, Seller may suspend delivwies of gss hereunder. Ths exerdss ol such righ shall be in

addeon lo any and eN other wnsdles avaNsble lo SeNer,

If it shaN be found Nmi Buyer has been overcharged or undercharged in any fmm whatsoever under the provision hereunder, Seller shah lake action lo corred such bNUng pursuantlo cunent Rules and RegulaUons governing gas syslems issued by Ihe South CsroUna PubUc Smvice Commission.

Article XI

POSSESSION OF GAS AN INDEMNIFICATIONAs between Ihe psrges hereto, Seller shall be deemed to be in control snd possession of Ihe gas dsNverable hereunder un8 it shall have been derivmed lo Buyer al Ihe Point otDeNvery sHer which Buyer shall be deemed to be In control and possesskn Ihenel.Buyer shall 'mdemnily end hold harmless the SeNer fmm any and aN loss (induding death), damage, or NsbBty incurred by Ihe Seller by nmson of any acl of Ihe Buyer, Ns agents oremployees, in Ihe receiving, use or appkalion of said gas on Nw Buyer's side ol Ihe Point of Delivery unless Ihe same shall be due lo the sole nag Ngsnce of the SeHar, its agentsor employees. The SeNer shaN indemnify snd hold harmless Ihe Buyer fmm any and sN loss (indudlng death), damage or liabley incurred by Ihe Buyer by reason of any act of IheSsNer, its agents or employees, unless Ihe same shall bs due to Ihe sokf negNgence of Ihe Buyer, Ns agents or employees.

Article XII

WARRANTY OF TITLE TO GASSsNer warrants Ihe 56e lo aN gas dsNvered hereunder and Ihe right to seN the same and that such gas shall be kee end deer from HN liens and adverse dslms.

Article XIII

FORCE MAJEUREIn Ihs event ot eBmr parly hereto bekrg rendered unable wholly or in pari by fees majeure to cary oui ils obNgatlons under Ihb contract other than lo make payments due

hereunder, 5 is agreed Nml on such part giving notice snd full parNculars of such iorce majeure in wriNng or by lelegraph (o Ihe other party as soon as pcsAib altar Uw

occurnmce oi lhs cause relied on, then Hw oMgs lions of Ihe party giving such noHce, so far as Uwy sre aNected by such fms majeme, shall be suspended during Ihe mnewousof any inabrlty so caused but for no kmger perkxl and such cause shaH as far as possible be remedied wNh aN reasonable dispatch. The term 'force majeure" ss employed herein

shall mean sds of God, sldkes, lookouts, or other industria dlsturtences, erris cf publb enemy, wars, blockades, insurrecUons. rtots, epdemics, landsNdes, lightning, earthquakes,

eras, storms, Hoods, washouts, arrests, snd restraints of government aml people, civil disturbances, explosions, breakage or accidents lo machinery or Uncs or pipe, freezing ofweNs or Uncs or pipe, psrgal or entire faNure ol soume of supply, snd any oUwr causes whether of the kind herekr enumerated or othenriss, not within Ihe control ol Ihs party

dalming suspension end which by Ihe exercbe of dir dlHgence such party Is unable lo prevent or overcome; such ianna shsN Srswlse lndude (a) in Ihose instances where either

party Iweio is required lo obtain servNudes, righktvrieray grants, permits, or licenses; and (b) in those instances where eHher party harem 8 required lo furnish matertab amf

supplies lo secure grants or permission from any governmental agency lo enable such party lo luHiN Ns obrigsHons hereunder, Ihe inaMity of such party lo acquire at amsonable

cost and after the exerdse of reasonable dNigence such material and suppNes, permNs and permhsions.

It is undemlood and agreed Ihat Ihe sstNement of sMres or krckouls shall be enUrely wiLWm Ihe discregon of Ihe pmty involved and Urst Ihs above requirement that any force

majeure shaN be remedied will aN reasonable dispatch shall noi require Ihe ssNsmenl ol strike or lockouls acceding to Ihs demands of opposing party when such course is

inadvisable in the diswegon of such parly.

Article XIV

MISCELLANEOUSIt either party shsN lsN to perform any of Ihs covenants or oMgaNcns imposed upon It under and by virtue ol Ihe Service Agreement of which Ihese General Terms and Condifions

ars a perl, (except where such failure shaN be excused under any ol Ihe provtricns of Ihis service AgreemenU, then in such event, lhe other party may, at ils opBm, tenninaie thb

Service Agreement by pmceeding as follows; The party not In defauH shaN cause a wriNen noNce lo be served on the party in default slagng specNcagy the cause for lerminaHng

Wis Servke Agmemenl and dedaring il lo be Ihe inlenNon of Ihe party giving lhe noNce lo terminals Ihe same; Ihereupon, the pmly in defauN shall have Nrty (30) days after Ihe

service of Ihe aforesskl notice 8 whkh lo remedy and remove sak! cause or causes and fully indemnify the party not in default for any and aN consequences of such bresdr, Ihen

such noUce shall bs withdrawn snd Ibis Service Agreement shall conNnue In full force and elfed. In case the party in dsfauN does nol so remedy and rwnove Ihs noUce for sny snd

eN consequences of such breach, within said period oi Ihirty (30) days, then Ihb Senrice Agreement shall become null end vokl kom and sHer Ihs expiration of said period. Any

canceNaNon of Ibis Service Agreemenl pumuant lo Ihe prrnrislons of Ibis ArUcle shaN bs wNhoul pre)urbe lo Ihe light of party nol in defaug lo cogem sny amounts than due il and

wHhout waiver of any other remedy lo whkm Ihe party not in default may be snNNed for vlolaNon of Ihls Senrics AgreementThe Service Agmemenl, of which these Genera(Terms and Conditions sm a part Ihereof, shaN be binding upon and irmre to Ihe benelil ot Ihe Seller and Uw Buyer and their

successor and assigns.

Except as oUmrwise pnwldsd, any notice, request, demand, statement or Ml, whkh eNher Buyer or SeUer msy desire lo give lo Ihs other shall be in wriHng and shall bs considered

as tuNy deNvered when maNed by prepakl registered maN addressed lo said pwly st ils lest known posl ofNce address, or at such other addresses as siUwr party may designate in

wribng. Routine communicaNons, Induding monthly statemsnls and peynwnb, shag be considered as duly delivered when maNsd by eNher registered or ordinary mail.

Buyem covenants snd agrees lo execufe or Be, or cooperate wNh SeNsr in Ihe execuNon or UUng ol, any repmt. certilicate or other document requimd by sny governmental agencyhaving jurisdicHon over this contract or Um parUes hereto, or any olher certificate or doctxnsnl requested by Seller necessary for SeNer to obtain Ihe benefit of eny exemplkrn fern

sales, use or oNmr tax. Buyer shall Irdemnify SeNer for eny loss sustained by Seller as s resuk ot Buyer's breach of this crwsnsnz

The paNes hecto in exscuHng ths Service Agreement and lhasa General Terms and CondiNons, acknowledge thai !hase General Terms snd Condeons we a perl of Ihe Service

Ag ament

Buyer: Seller. So ar li a I trice Gs 0 m

By: By: MarUnK Phal n

Title: Title: Vice P Gas D

Wltnessr Witness:

Dater'

This originalto be returnedto SGE&G Company

TRANSPORTATION AGREEMENT DP&IGlNAL

Tti Agr t ad d t*redi t thi ~&d y f D~ , 2009,by and between SOUTH CAROLINA ELECTRIC & GAS COMPANY, its successors and assigns,hereimdter called "Seller" and NATIONAL STARCH LLC, its successors and assigns, hereinaftercalled "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 terms of aTransportation Agreement between Indopco, Inc. , d/b/a National Starch and Chemical Companyand Seller dated March 27, 2007, which is hereby being mutually terminated at 10;00 A.M. EasternTime on March I, 2009, and

WHEREAS, Buyer has requested that Seller transport certain volumes of natural gasbelonyng 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 agreementshereinrdter set forth to be kept by the parties hereto, it is mutually agreed as follows:

I, SCOPE OF DELIVERY

Seller agrees to accept deliveries of natural gas belonging to Buyer at Seller's deliverypoint from the upstream pipeline located near North Charleston, South Carolina, and totransport Buyer's gas and redeliver to Buyer. Service provided hereunder is in lieu ofnatural gas provided from Seller's system supply to satisfy Buyer's fuel requirements inPriority-of-Service Category 3F. 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 interrupted by any upstreampipeline.

2. DAILY DELIVERIES

Seller agrees to accept and transport up to 290 dekatherms, excluding shrinkagevolumes, of natural gas on a daily basis. Buyer will notify Seller, in writing, of Buyer' sintent to transport by the end of the month and will provide the estimated volumes ofgas, in dekatherms, 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 a dailybasis. It is Buyer's responsibility to notify producers, Seller, and connecting pipelinesregarding any change in transportation volumes. Seller will accept changes in daily

SCBG06-012

volumes dispatched from upstream pipelines; 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 transportation gas. Limitations or restrictions may be because of, but not

limited to, the utilization of deliverability capacity by Seller for Seller's system supply

requirements.

3. INITIAL SERVICE

Seller agrees to begin transporting gas for Buyer at 10:00A, M. Eastern Time on March

1, 2009, at which time the Transportation Agreement between Indopco, Inc. , d/b/a

National Starch and Chemical Company and Seller dated March 27, 2007, shall

terminate.

4. TERM OF AGREEMENT

This Agreement shall become effective on March 1, 2009, and shall continue in full

force and effect through February 28, 2010, and from month to month thereafter unless

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 be

seventy-eight cents ($0,78) per dekatherm.

6. 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 thirty (30) days written

notice of any adjustment.

7. BALANCING OF VOLUMES

The volume of gas received on a daily basis for Buyer's account may not equal the

volume, less shrinkage, delivered to the Buyer. The result will be deemed an

imbalance. Buyer's account will be reviewed at the end of each month, or on

termination of Transportation Service, or curtailment or discontinuance thereof. 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 excess at the Base

Rate as specified in the Service Agreement which provides for standby 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 transported by Seller shall not exceed the Contract Maximum Daily

Quantity specified in Paragmph 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 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 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 gasbefore 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 gasbe fore 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 ofdelivery to Seller for transportation have good and merchantable title to all gas sodelivered Iree and clear of aU 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 tosaid gas, including claims for any royalties, taxes, license fees or charges applicable tosuch gas or to the delivery thereof to Seller for transportation.

10. CREDITWORTHPKSS

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 support

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.

11. 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 its

sole discretion.

SCEG06-012

12. GENERAL TERMS AND CONDITIONS

The General Terms and Conditions to Industrial Service Agreements dated Ianuary 1,1985, are hereby incorporated in and made a part of this Transportation Agreement,

Should there be any conflict between any portion of the General Terms and Conditions

to Industrial Service Agreements and this Transportation Agreement, the parties agree

that the provisions of the Transportation Agreement shall prevail.

13. NOTICES

All correspondence required under this Transportation Agreement is to be addressed as

follows:

To Seller: South Carolina Electric &, Gas CompanyContract Administration, Mail Code 102Columbia, SC 29218

To Buyer: National Starch LLCP. O. Box 5913Bridgewater, NJ 08807-5913Attn: V. Peterson

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

Transportation Agreement. Any required expenses will be subject to Buyer' s

prior approval.

(c) Seller retains sole discretion as to whether or not a particular Buyer or particular

Buyers 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.

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.

SCEG06-01 2

(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 third 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 ofcurtailment provided to Seller by the third party.

(d) It is contemplated that service pursuant to this Transportation Agreement shall beprovided within the existing limitations of Seller's system, and Seller shall notbe required to expand or alter the said system.

16. PRIORITY AND ALLOCATION OF TRANSPORTATION SERVICE

It is acknowledged by Buyer that other end-users of natural gas may from 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 redelivery 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 delivery 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 system for redelivery thereof shallbe based upon the category 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 thepriority 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 andredeliverability 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 redelivery relative to a single category of standby service is greater than the

SCEG06-012

capacity 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 category 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 judipnent of Seller.

IN WITNESS WHEREOF, this Transportation Agreement has been executed on the date firstabove written by the parties hereto by their officers or other authorized representatives.

NATIONAL STARCH LLCBUYER

SOUTH CAROLINA ELECTRIC & GASCOMPANYSELLER

BY: Martin K. Phalen

VICE PRESIDENT —GAS OPERATIONSTITLE

DATEJ7 oc

SCEG06-0 I 2

SOUTH CAROLINA ELECTRIC & GAS COMPANY

Th~ jtjjyttkIoENERAL TERMS AND CONDITIONS TO INDUSTRIAI. SERVICE AGREEMENTS FOR GAS

to be returned JANUARY 1, 1985t(3SGE&G Cy(Rtganjf

Article I

GENERALThese Tenne and Cowfikrw lo Indusbial Smvlce Agreemerris are supplemenlwy to Ihe Rrries snd Regukrfions Issued by lhe Pubk Service Commission of South Carolina and ihe

General Terna snd CondiTmns of South Carolina Ehcbic 8 Gas Company as provided by the Public Smvice Commission of Smdh Carofina.

The pmvision of these Terna and Condigons apply to afi persons, parlnerships, corporafions or rrihms designated ss industrwl usem who are Ww(ugy reoeiving gas smvlce fiom South

Carolina Elecfric It Gas Company under rate scheduhe or servke agremnenis Bed wiN fim Cmmmkrskrn

South Caroline Eledric 8 Gss Company is rewned to herein as 'Sefier, and Ihe user or prospedive user is mferred to as 'BuyeC. The Pubic Senrice Commission of South Carolina is

referred to henwr as 'Commisskmh

1.2.3.

5,6.7.8.9.101112

25.26.

Article II

DEFINITIONSExcept whee the conlexl otheiwhe indicates anofimr or difierenl meaning or intent, fhe fofiowing tenne sm Inknded and used snd shafi be construed lo have meaning as fdlows

'Day shall mean a period of Iweniy four (24) consirixr6ve hours beginnwg and ending at 800 AM. Eadem Tinm or at such fime as the Seller and Ihe Buyer may agnm upon.Month' shall mean Ihe period between eny two (2) reguhr readings of Segw's meiers which shafi not be Wss !hen twentyetght (28) days nix narc than grirtyfwr (34) days.

'Yem" shaN mean a period of 365 days commeieng wgh Ihe day of first delivery of gas hemunder, and each 365 days theres(ter except that in a year having a date ot Febnmry 29th,

such year shafi consbt of 366 days.'Cubk ioot of gas' shall mean gw amount of gas requked to fill a cubic foot of space when Ihe ges is at an absolute pressure of fourteen and seventy-three hundredfiw (14.73) pounds

per square Inch at a lemperalme of sixiy (60) degrees FahrenheiL'CCF' shall mean one hundmd (100)cubic (set of gas.'MCF" shag mean one thousand (1000) cobb feet of ges.BTLr shafi mwm a Msh Thermal Unit and b Ihe emmet of heat required to rake the Wmperelure of one (I) pound of water I' Fahrenheit at 60' Fahmnheit

'MMBTU' shafi mean one mfifion Brqsh Thermal Unfis."Therm' shall mean Ihe quangty of heat energy which is 100,000 Brigsh Themwl Uniis.

Deka(harm' (dt) shab mean on mifiion BriTish Thermal Units and is synonymous to ihe tenn MMBTU.'NaW ref Gas' or q)ss shall mean natural gas, pocsssed, unprocessed, vaporized Iquid natural gas, synlhe5c gas, pmpane air mixkne or any mixtme of ihese gases."Firm Service shall mean from published ter 5fs and(or mntrads under which Ssfier is expressly oMgawd to deliver speciTic volumes within a given time period and wuch angci pales noinlmruprions but which may pmmit unexpeded inlenupgon in case fiw supply W higher prioNy customem is thmatenmL

'Inwnup(krie Sewice' shall mean servke fram approved contrada under which Company is not axpnmly obggaled lo deliver specific volumes violin a given lime pmiod, and which

an(kipates snd panels intenupfion on short notice, or servivm under approved contrada which expmssly or impliedly require instafiafion of alternate fuel capabilyy.'Commercial Smvke' shefi mean senrice to Customem engaged prinmnly In gm sale of goods or senriom incwding nsqufions and IxaL sate and federal government agencies for usesother than those involving manuleduring or elsdric power generation.*Indusbial Seniices' shaN mean senrke lo cuslomms engaged primarily in a pnxess which creales or changes raw or unfinished mawrials into another fmrn or pnxluct induding fiw

generafion of eleciric poww.'Plant Protedion Gss" shall nvmn Ihe minimum volumes required to prevent physical bann lo Ihe plant faaTTiies or danger to plant pemormel when such pmtection cannot be afforded

Ihrough the wm of an aliemaw (uel. This indudes Ihe proteckn of such material in pmcess as would otherwise be destroyed, but shafi not irckde deriveries required W maintain photproduclkm, A delennina5on wB be made by Ihe Seller of minimum volumes required. Such essengsl volumes will be dispatched accordingly.'Feedstock Gas" shall mean newral gas used as a rnv malarial for ils chemical proper(isa in creafing an end pmduN

Pmess Gas' shafi mean gas used lor which alkmale fueb, other Ihan another gaseous fueL sre not technhagy fessfir W such as in applicalkms requiring pmcbe lemperature conbrris

and predse fisme chararzerisfrcs.

Bofier Fuel' shsfi mean natuml gas used as fuel for Ihe generation of steam and in internal combustion Wrbine engines for Ihe generations of ewcbicity,

Agemate Fuel CapaW1ily' shall mein e siluafion where an afiemsle fuel could have been utilized whether or nol the facefies for such use have adusfiy been hslsfied; pmvided

however, where Ihe use of natural gas is for pwnt protection, feedstock or process uses and Ihe only alternate fuel is propane or ofher gaseous fuel, then Ihe Buyer wgl be teated as 5he had no alwmaw kml capabfity.'Gas Supply Deliciency' shall mean any occurrence mbiing to Sekr's gas supply which causes Seller lo deliver Wss than Ihe lolal requkemenls of k syswm, incwding failures ofsuppgers lo delnrer gas Wr any reason, requirement of gas Wr system storage, consenrafion of gas tor future defivery, or eny other occurrence whkh is nol enumerated herein which

afieds Sefim's gss supply."Storage injedion Requirements' shaN mean ag volumes required by Ihe Selwr for injec6on into undmg mund storage, indud'mg cushion gas, and for liquryicafion, induding fuel used for

Mission and in gqulAcafion pbnts, or for such other storage prrtecb gml may ba deveh pad expmssly Wr lhe protecfion of supply io high prioqy users,'Sefier Use' shall mean Wel used for gas comprein. LPG plants and LNG friants, other ges needed by Sefiw's facg5es lo furnish Ihe requiremenls of Buyem, logether mth

unaccounkd for gas. This gas shall be considered induded in Primiiy of Senrice Calegory 1. Other wtel uses of Seller, such as IWme stabilizsfion requirements, wi1( be met as long assuch uses do not jsopanilze swvice to its firm smvlce Buyers."Essenrial Human Needs' shaN mean neiwal gas swvice, whkh, if denied, mmkl cause shuidown of an operatkn resu(fing in Ihe dosing of Ihe establishment esseirik lo main(sining

lhe heafih end safely of Ihe general public.~Point of Oefiveiy shall be at gm ougel of Ihe Sekr's measuring equipment end regulafing equipmm(L

'Emergency Service' sha( mean supplemenhl de5veries of new ra( gas Ihat may be required lo foreswg kreparable injmy lo 5fe w pmperty krcluding environmental emergencies.

Article Itl

CURTAILMENT OF SERVICE1. W Ihe ment of a Gas Supply Midency on Ihe Segm's system, Ihe Seger shall nquke cwlalhwnt of senrice In Buyer in accordance with Ihe fofioelng procedum:

e. The Seller shall on(sr curwilment of sales made lo Buyers purchasing gas umkr Ihe Seller's rale schedules or special cankacm in descending order M accordance m'Ih prkxily ofservke categories set fmth below. Approved emwgency gas is accepted fmm cunaitment

1. Residential and smafi commercial Bc(em (less than 50 MCF on a peak day) and essential human needs customem where firem is no instalkd or avaihble afiemate fuel

capability.2. Large commenkl direct fiame requkements (50 McF or mom on a peak day); firm industria requkemenls for plani pmtectwn, feedslock snd process needw and sforage

lecgoii mqukumenk

3A. Finn imluslrial requirements for uses other Ihan boihr luel which do not qualify for Category 2.3B.Finn ccmmsrcWI nod hdustria bofiw fuel requhemerris up to 1,000 MCF on a peak day.3C. Inlmrupgbw requinmmnts Wr human need types of hei(ilies such as pubk bukfiogs, hospiWW ard launddes.3D. Interrupfibh nqulremenls for direct flame applicatkms whkh can ulifize only another gaseous fuel as an efiemale.3E. Inlenupliue requkemenw kx dkect Ihme appkations which can uSzw a (uel other fimn a gaseous bml as ao altmnate.3F. InlenupNe requlnmwnls fix boiler fuel use of less than 300 MCF on a peak day.4. (LEFT BLANK INTENTIONALLY)

5. (LEFT BlANK INTENTIONALLY)

6. Intenuptible Bolter Fuel mqulrmnenls d 300 MCF or mom, but less Inn n I 500 MCF oo a peak dey, whee alternate kel capablgges can meet such requkmnents.7. Intenupgbls Boger Fuel mquiremenh of 1,500 MCF or nem, but less than 3,000 MCF an a peak day, whee skemale fuel capabNNes can mast such eqiremenls.S. Inlsnuplkle Sager Fuel requlremenh of 3,000 MCF or morn, but less than 10,000 MCF on a peak day, whee aNemate kwl cspabSibes can meet mch requineenls.9. InlenupNs Mer Fuel requirements of 10000 MCF or mas an a peak day, whee alternate fuel capabNNes can meal such requirmrmnls.

10.Natural gas reqdremenls ot customms, who have an agernste fuel as Nelr primary enmgy source, but use natural gas ss s shndby fueL

b. Curlslheni wN bs in descerding onfer beginning with Caisgay 10 (I s. Cahgwy I ls Ihe highesl prkmty).

c. A delennharion of Ihs category k which e Buyer Is phced wgl be made each year based upon usage In Ihe receding krelve months ending August 31 wx/w cunsnt contrad ssol Ihe wune date. The plscemsnl ol a Buyer in a category In sccoxlance with Ihe deierminatkn made herein will be eNscbve November I of ihe current year, extending through

Odober 31 ol lie fofowing year. A movkrg base period wN be used each year with mxn base period lo indude the preceding twelve months ending August 31 o( Ihe current

year. RedassNcalkxe In categories will be elhc5ve on November I ol Ihe current year. Where a rarhsszkagon is necessary, the a(faded Buyer will be ooliTied ot suchredassifica5on prer lo November I at Ihe currant year.

d. Where dagy volumes are nol avsihble lo make Ihe delerminalkm of Ihe 50 MCF/day required h Ihe Curlaknent Phn, Ihen requirmmets shag be determhed by taldng SessBuyms having actual mage of 1000 McF or moe per month for sny month during Ihe pievkus twelve (12) month perio ending August 31. such month's uss wgl be divided byIhe number of days during that specNe b@ng cyde. By means of Ihe average dsgy volume thus obtained, Ihe Buyer will be phced in Sm appropriate categay. Where daily

vdumes forge peek monk in Nre base pared sm svaihble to make Se required determination, Sen such volumes wig be used.e. Any new Buyer added during any base perkxl will be placed in Ihe appropriah category by the Seller in acconhnce wgh Ihe best infomelion available,

Article (V

SCOPE OF AGREEMENTI, gazer s natural gas operagons are regulated by the Commlmions smt are subjed lo 'Rules and Reguiagons Governing Service Supplied by Ges Systems in Souh Carofhe" as amended

(rom Ikne lo hne. Dellverhs of gas hereunder are subjed h total or pedal axhknent or inlenupgon by SeNer pumuanl lo operakng procedures as srs ncw, or

may hereafter be, prescribed by Ihe Cormnhskn. Buyer hmsby expmssly ednowlerhes Ihst Seger shag not bs liable in damages fix, or on account of, any curlaknent or inlsnuplkn of

degvaries where such curtailment or intenuption h Ihe suck of, or pursuant to, operating pecedures by the Commission diredlng mriailmenl or inlermpgon of senrirm

2. Buyer sturil consuk wgh and furnish to Ihe Safer such Informs Non as ihe Seller may require lo determine Ihs svsi1abllily cf service at a particular loca(ion bekxe fxoceeding with plans krany new or eddigonsl gas loads. No new or additional gas loads wg be served il il Is determined Ihsl such advice wiN jeopardize service lo exisgng customed by inasasing Ihe hlalsystem's k'rm kad reqmnmenls above svahble supplies.

3. Dernmrim of 'Finn Gas' up to ths Maximum Daily Qmmgly set krlh in the smvice Agreemenl, shall be Snn snd shall noi bs subjed to curtailment oi inlenuptbn by safer except thai

caused by Force Majum or operagng cond5m beyond sells/s control or whee such cwlailment or hlenup5on is Ihe msult o( or pursuant lo, operating procedures prescribed by ihe

Commission. Degverles hereunder shall have prior gy over all deNveries made by Seller on sn intsnupkble bash.4. Dekvwles of 'Interruptible Gss' shall bs subied to curlakment or hterruplkn by Seger at any lime and imm 6me d tins when, In Seller's sole )udgment It does not have gas avsilsbh,

and Buyer hereby expmssly scnoledges that Safer shag nol be Ihble in damages for, or on account of, any curlafmenl or klsrruption of deilerles. Sayer agnes lo give Buyer retless Sen teo (2) bourn notice of curlagment or Inlenuplion in writing or orally In paean or by telephone; pnwldsd, however Ihat If curls gment or inlenupl'en h occasioned by en event ofForce Mejeum effecNng Ne Bakers syshm, Sshr shall be obggslsd to give rely such noNcs as is predicable in Ihe circumstance. Seger agrees to communkale curlsknenl nogces lo

one of the person designated from lime lo lime by Buyer as augerized to receive such relices. If Buyer has not made such designation, or if Seller Is unsuccessful h h efforls to

pmmplly corrvrsmicale with Ne persons so designated, Ihen said norice shag be srriNcient if given by selhr lo any pmson who is on Buyers premises or who an(were Buyer's lelephons.

Whenever, and to Ihe extant Ihel the Sezer is umbh lo dekver Ihe gas requimmenh d fhs Buyer, Ihe Buyer shag have Ihe dght lo purchase gas or other fuel sugident to make up such

deSdsncy (rom such other source or sources as may al Ihe fime be avallabh to Buyer.

5. Gas taken by a Buyer d 'Firm Gas on sny dsy, wiNeut Seger's advance apprcvat which exceeds Buyer's Maxknum Daily Quangly shag be consktsred to be Una Ihorlzed Ovenun Gas.Seller shaf MN, and Seer shag pay, for such Uneulhorlmd Ovenun Ges al Ihs ollowing rates, in addiTion lo eg o5mr charges payable to Seger hmeunder.

(a) For the liat Ihree percent (3%)of Ihe Maxknum Daily Quantity, Ihe Unauhorized ovemm Gas shall be paid for al 1.25 limes Ihe Base Rale set forth in Ihe service Agreemsnt, snd

(b) For Ihe next two pmcenl (25k) of Ihe Maximum Defy Quan6tr, Ihe Unaulhorizml ovemm Gas shall be paid ior ai 3 0 smes Ihe Base Rale set forih h Ihe senrice Ag cement, and

(c) For addilhnal volumes Ihe Unauthorized Overrun Gas shaN be paid for st 5 0 limes Ihs Base Rale sei for ln Ihe Smvhe Agrsmnenc

The peymwri of sn Overrun Penalty shall ret under any ckcumslances, be~as gMng Buyer Ihe right to lake Unsulhorlrod Overrun Gas. nor shell such paymeni be considered

to exdude or limit any other remmges available h Sailer or wether Buyer against Ihe offending Buyer for hkure lo comply wkh h obligations lo shy within Ns Maximum Dagy Quanbly.

6, Any inlenupSble gas laken by Buyer after Ihe egregrm hour oi an order calling kx complete cunngment of all inhnupgris gss deliveries hereunder shay be considered lo be Unauthorized

ovsnun Gas, seller shaN bN snd Buyer shag pay, tw such Unaulhwlzed ovenun Gas at Ihe rate of Twenty-live dollars snd no oents ($25.00) per dekalherm, in addition to Ihe BaseRah sped Bed in Ihe Swvice Agreemenl for such gas used.

The payment oi Ovenun penally shall noL under any drarmstances, be amsk/ared as givmg Ihs Buyer Ihe right Io hks Unaugerized Ovenun Gas, nor shall such psymenl be

conskhred lo exdude or limit eny causes ol scgon or oger meed'es available to Selhr against Ihe Buyer for laika lo comply wkh curlaibnent adws issued by Seker lemunder.

7. The Souh Camllna Publk Service Ccmmlsmm has pwcribed the fofowing oparsi'eg pecedures in regard lo Ihe curtailment of inlanuptible seMce by Seller.

During he period when operating condilkms require clemente In sny type of htenupllble advice, Seller shall curlap deliveries d ges wilhoul dhcriminslkm wkhin endwss priority of

service calegahs established by Nm South Carofna Pubgc Smvice Commirske and pumuant of curlai1menl hslrucgoru neeived kern its supplier or supplied made h accadsnm with

General Tenne and Condllkms lo Ihe Smvice Agnemenl between Salle and it supplier or suppllem and any subsequent mcdlgcalion or amendment thenef.

5. Buyer agrees Ihat az gas degvered hereunder shag be used by ihe Buyer and thai re pwgon thereof shag be resold.

Article V

QUALITYThe gas deSvered hereunder shall be natural gas or any mixture of natural snd menuhckxmf gas, induding but nol Srwhd to, synlhegc gas or liqulfied peteleum gas as pruvkled for in

Pamgraph 3 hmno(; pevided, however, Ihat nehtum, impuritie, he5um, nahrd gmebne, butane, propane and other hydrocarbons except methane mey be reneved prkx lo dehrery lo

Buyer, seger may subject or permit Ihe subjedion d Ihs gas lo comprsssiwx basting, cooSng, dsanire, or other procmmes, which are ret substaolhlly detrimental to Se merchanlabitily

ol the gas.The gas degvered hmeunder shag have a lolal basting vake o(not hss than 550, nor more Ihan I 400 Bytfs per cubic fcol o( dry gas. and be r asonably free of moislue, ob)clientsbqulds snd soNs so as lo be uiNzed immediately upon delivmy to Buyer, and shah aefaln nol more Ihan 200 gains of lohl sulphur, nor moe Smn 15 grams of hydrogen sdphide perMCF.

Seller may permit ih suppliers or 5 may itseN supply gss kom any shndzry equipment hslalled by il or by its supphm, provkled Ihat Ihe gas so sup phd shag be reasonably equivalent toIhe new ral gas supplied hmsunder snd sdaphble for uss by Buyer wghoul Ihe necessity o( making other Ihan mhor adjuslmenls to fuel burning equlpmenl.

If Ihe natural gas offered hr degvwy by Seller shak fag at any Ikne lo conform lo any of Ihe spedgcagoiw ssl forth h Ihe Argds I/, Qusgy, then Buyer agrees lo nody Seger fhereof and

Buyer, thereupon, may ai ils oplke rekne lo accept dehmy pending conacNon by Sehr. Upon Segm's fai1um h properiy remedy sny sficiency h qualNy as spedfied herein, Ihen

Buyer may accept dslivmy of such natural gas and make changes necessmy to hing such gas into conformity with such spececalkns and Buyer shag Ihen dedud fern futuepayments any mssonsbh expenses haeed by it h elhding such change as agreed lo by both panhs.

Odonzagon d gss depvsnxl hemunder is not mqubml of Seller. However, nothing in lhasa Tenne snd Caxeions shag predude Seller fern cdorizlng such gss if Seller so deskss or it

Seger is required by hdsral or slate reguhlwy agendas to pwform such odorizsgon.

1. The volumes

(a)(b)

Article Vl

MEASUREMENTSand lolal hssgng value of Ihe gas degvmed hmeunder shag be detennlned as fogoww

The Unit of Volume shag be a cubic fool of gas.When NiTice msiers sre used, volumes degvmml shag be rxxnpulsd in accordance with Ihs spsdgcagons, formulas and lables publMted April 1855, as Gss MeasurementCommigee Repori No. 3 of Ihe Americ'an Gas Assodagcn, and any modecagons and smendmenls Nmmto, and shag include Ihe use d gangs connec6ons.AN volumes degvered shall be conected lo Ihe press um bass of 14.73 psig snd Ismperature base of 60' F, The average absolute a~ pressum shall be assumed lobe tourisen and seven lenths (14,7) pounds lo the square inch, inespectlve of adust elevagon or location of Ihe point of delivery above sea level or variatkms in suchatmospheric pressure from lime lo Nme.

The lsmpmslure of Ihe gss shall be assumed lo be 60 degrees

Fahrenheit�

(60') unless seller sleds lo instag s reconring Ihermomeler or ternperatum correcgng device. If arecording lhemmmeter ts InslaNed, Ihe srilhmeecal average ol Nw 24 hour period will be used IO determine Ihe temperature correcgy.The speciTw grsvily of gw gas shag be determined by a recording grsvgometer ol standard manuladure instaged kr a sugabkv kxwtion. Whee a recmding gmvkometer is notused, Ihs slwdlic gravity of Ihe gas shall be assumed to be Ihe same as that of Seim's soppier(s).The total heagng value of Ihe gss delhwred hereunder may be delemsned by Seller by using s stands nl type of recording calorkneler specbomeler, chromaiograph, or odwr

approved kwsument which shall be so kxmled, al a sueable point on seiers ihe, in order Ihat Ihe BTU content of gas delivmed hereunder may be propmly obtained. wheerequired, daily reading fmm Ihe reconl so obtained shag be corrected to fhe bash o( measurement provkled snd from s saturated bash lo Ihe average nmbtum content ofNm ges deerered, Ihe resuN beng Ihe BTU mntent of Ihe gss delivwed during Ihe billkrg period. In Ihe event that seller does not install a recording inslnmwnt for suchdelerminarxm or ils 'nslnnnenl is not operagog properly, Ihe Ideal healing value shall be determined from a recordktg calorimeter or comparable Instnnnent propmly Mslaged

snd operated by Segeys suppger of natural gas, pnwided, such values are applicable to Ihe gss that mey be delivered lo the Buyer. When Seller is maldng propane. air lo

supplement Ns gas supply, Ihe BTU conmnt of Ihe gas shag be calculated by a msgmd such as using Ihe recorded gravity of Ihe pmpanerrir, Nw natural gas and Ihecombhed mixture along wgh Nw measured BTU vskm of Nm gss where avaitable, The BTU content of pmpane shag be assumed lo be 81,500 STU's per gagon.

Article Vll

MEASURING EQUIPMENTSeller will maintain and operate, al ils own, expense rmd ai the point of degvery of gas hereunder, a meter or meters and other necessary equipment by which Ihe volume oi gas delivered

hmeunder shall be measured. Such meters and equipmem shag remain Ihe properiy of Ihe Seksr.Buyer agrees to furnish to Seller electricqy for operating Segers meters, al not rxwt to Seller.

Buyer agmes to change Ihe charts on Sager's melam al no cost ln Seger and feward same lo Seger.

Buyer hereby grants fo Seller suitable rights-ofnvny and easements necessary or incidental iw Ihs instagagon, maintenance, operagon and mmoval of pipeline and other fadliges

together with rights of ingress Ihereto snd egress there fmm at ag limes and hweby agrees to deliver to Seller, for the sum of one dollar (31.00), an appmprlate instrument or grant

defining such rights snd easements located on Buyers plant sile.

Buyer msy inslag, maintah and operate such check measwing equipmen4 indudlng a recording grnvltometer and calorimeter as 6 shall desire, provided Ihst such equipment shai be soin staged so ss rmt lo interfere with Ihe operation of Segw's measurhg equipment at or near Ihe point of deliver, However, ag bggngs to Ihe Buyer shall be based on Ihe metering o( Ihe

Seger, subleri only to Nw provirions of Paragraph 8 of Ibis Article.

Each party shall have Nw right to be pmsent at Ihe lime ol any Instslgng, remgng, creasing, changing, repairing, krspecetg, lasting, calibrating, or ad)usgng done in mnnecbon with Ihs

others measuring equipmenl used in measuring delwedes hereunder and each party shall advise Ihe other ot any Iniended major maintenance opsraNon sulficienNy in advance in order

that Ihe ogwr party may convemently have ils iepreseotathm presenL

AN instagngon of measuring equipment applying to or egec6ng deliveries hereunder, shall be made in such manner as lo pwme sn accurate delenninsgon ot Ihe quangty of gas degvemd

and ready verificagon oi Ihe accuracy of measuremenL Origce meter instslkrrions, if used, shag conform to ttw recommendaNon for design and Inslstkrdon sonar incr in Ihe GasMeasuremmri Commgtse Report Ho. 3 to Ihe Americm Gas Assoda0on puMshed Aprg, 1055, snd any mcdikagons and amendmenls Ihenmf and shall in duds Ihe uss of gangsconnsNons.Measurement on Seller's melar or melam shall be condo shre of boih paNes except where the meter is detsctlvs or fails to register, or If found in error, in either of which case Seger shall

repair or replace Ihe melar and Ihe quanfily oi gas degvmed whge Ihs mstw was oul o( order or lager lo regbter shall be estimated; (a) By using Ihe regiskaNon d any check malar If

inslaisd and arxwmtety reglslering, or, in the absence of (a): (b) By correcgng Ihs enw il lhe percentage of error by calibmiion, lest or mathemaiical cakuhgon, or, in Ihs absence of boih

(a) and (b) Ihen: (c) By sstlmsNng the quantity of degvery from deliveries during periods under similar conditions when Ihe melar wss registering accwstely'I and an appropdate biging

adjuslmeni shag be made in ncccnfance VNh Ihe cunnnt Rules and Regulations governing gss systems issued by Ihe Commfsslon,

Seller will maintain Ns meters in good order and to this end will make pmiodic lasts of its meters pursuant to Ihe current Rules and Regulations governing gas systems issued by Ihe

Commlsskm, or at such shorter Intervals as seem fo Seger desirable. If Buyer is dissatisfied wilh Ihe accuracy ai any Nms, il may call upon SeNer lo have Ihe melar tested in accordance

with sg regulsfions relating lo such lasts snd remes of such lasts as kiund in Nw current Rules and Rag ulagons governing gas systems issued by the Commissicn.

10. Each party shall preswve sg reconls for s period of at least two (2) years

Article Vill

BUYER'S FACILITIESBuyer will maintain sl Ns own expense fadlees fmm Ihe delivery point to Ihe poini of use and Ihs burners and equipmenl for using gas, and Buyer wig si ag 6mes keep gesnrsing

equipment on said premises in a condition conforming with such reasonable miss and regutagons as may be prescribed therefore by reguhkxy auger ey having jurbdrcgon Iheeover

snd weh Ihe mquirements of any vagd law Ihemlo npperinlning. In Ihe event Ihat rules are nol prescribed by a regulalmy authorNy, Buyer will abide by codes as used In Nte gssindusby.

Seller shall nol appmve sale of gas on an iniermplible basis to Buyer until and unless Seger is satisfied that Buyw has, or will, krstag adequate stand. by fadligas to meal its fug fuel

requirements dudng pmlods of sustained interruplkns.

Seger shag not approve sales of gas lo Sayer unbss SeNer is salbried Ihat Buyer has not or wi8 not in erconnect downstream fuel piping of natural gas for use in dWerent priorqyvri-

sewlcs categories.

Article IX

RATE ADJUSTMENTS1. Taxes spplkwbts to Ihe gas dsgvered to Buyer hweundsr as are ir effect on January I"immediately precergng Ihe egecgve date of these terms and conditions shall be added lo

Buyers bill. The tenn'tax'as used herein shag mean any tax, Ncense fee, or charge appicable lo fhe gas degvered hemunder, imposed on seller by any govsmmenlsl aulhorgy on

such gas, If Ihe exisgng rale of any such lax in efled on January In, immediately preceding Ihe egecgve dale of Itmse lerms snd condifions, be hereafter increased or decreased, or if

any lsx heretofore in effect or hsieaeer be imposed nr repealed, Ihs resuelng Increase or decrease in such laxes, computed on a cents psr dekstherm basis, shall be regemed, as Nw

case may be, oo Buyer's bie.

2. Any appgcnble surcharge or special chmges ordered by Ihe Commission or eny other duly consgtuted regulatory body shall be induded in addigon lo Ihe price of gas computed in

aoconlance with Ihe lerms of Ihe Smvice AgnmmenL

Article XBILLING

Bgs computed from madings Isken of Segers nurism shall be rendered and paid mongdy vnlh ten (10)days of gmbiring date. A month shag mean a period beginning on gw Nmi

recogriized work day of Ihe calendar nxmlh end ending on Ihe first recognized wwk day of Ihe next succeeding calendar month, or st such other equivalent pariod as SeNsr msydeem necessary. Shoukl Buyer lai to psy sny amount due to Seger when wune h due, a his paymenl chmge of one and one half percent (I Ni 5) wg be added lo any balancemmsining twenty-Nve (25) days after Ihe billing dafe. If such fsihxa lo psy congnues, seller may suspend eliveries of gas hereundw. The exercise of such righ shall be in

addgon lo sny amf ag other remedies avagable lo Seger.li it shall be found Ihat Buyer hss been mmrcharged or undechsged in any form whatsoever under Ihe provision henmnder, Seller shall lake acgon lo coned such bSng pursuantlo cwrent Rules wxl Regulations governing gas syskmw issued by Ihe south carolina public senrics commission.

Article XI

POSSESSION OF GAS AN INDEMNIFICATIONAs behveen Ihe partes hereto, Seger shall be deemed lo be In consol snd possessbn of Ihe gas delhmrsble hereundw ung il shak have been degvered lo Buyer at the Prrint dOegvery arisr which Buyer shall bs deemed to be in control snd possession gmmof.

Buyer shell indemniyy and hold hsmdess the Seger fmm any and ag loss gndurgng death), damage, or Nabgky incurred by Ihe Safer by reason ot sny act ot Ihs Burrs, Ns agents oremployees, in Ihs nxeivtng, use or appttcagon at saki gas on Ihe Buyer's sids oi Ihe paint of Oelivery unless Ihe same shag be due fo Ihe srrie negligence of the Selhr, its agentscr employees. The Seger shag indemnity and hold harmless Ihe Buyer from sny and ag loss (indudmg death), damage or liabely incuned by Ihe Buyer by reason of any mri of theSeller, ils agents or empbyees, unless lhe same shall be due lo Ihe sold nag lgence of Ihe Buyer, Ns agents or employees.

Article XII

WARRANTY OF TITLE TO GASSelhr warrants Ihe Nge to ag gas delivered hweunder and the right lo sell Ihe same and Ihat such gas shag be fme and dear fmm ag gens and adverse claims.

Article Xlll

FORCE MAJEUREIn Ihe event of either party herelo being rendered unable wholly or in pari by knee majeure lo cany out iis obggarions under Ibis contract other than lo make payments duehereunder, itis Mreed gml on such party gkring no5ce and fug paigcutars of such foms majeure in wrigng or by telegraph to Ihe ogwr party as soon as possible aller Ihe

rxzuimnce of Ihe cause relied on, gmn the obggagons of lhs parly giving such nolke, so far as Ikey am ageded by such force majeure, shag be suspended during Ihe mngnuous

of any insbgly so caused but lor no longer period and such cause shall as fsr as possible be remedied with ag reasonable dispatch. The lerm 'force majeure' as employed herein

shsgmesn ads of God, strikes, lockorris, or other industria disturbances, ads of public enemy, wars, blockades, tnsunecgons, riots, epidemics, landsgdes, lightning, ea Ihquskes,

fires, skxms, goods, weshouls, arrests, and restraints of government snd people, civil disturbances, exploslons, breakage or accklents to machinmy or lines or pipe, freezing ofwells or lines or pipe pmtial or enlka fiulure ol source of supply snd any other causes whether of the land harem enumerated or olherwkm, not wNhh Ihe control of Ihe parlyclaiming mmpmmon and which by Ihe exercise of dir diligence such party is unabs lo pmvent or overcome; such tenne shall likswhe indude (a) in those instances where either

perly hemto is nquked lo obhrin servgudes, rights-cfnvay gmnls, permikr, or Ncenses; sml (b) N lese mslances wham either pwty harms is requked lo hmhh malwi Is smf

supplws Io secum grants or permission from any governmental agency to enable such party to fugig ils obggalkes hereunder, Ihe Inablgty of such party lo acquire sl reasonable

mst and alter Ihe exercise of mmormbts ditlg ence such materiafs and supplies, permgs and pennisskms.

It h undemtood and agreed Ihat Ihe selgemenl of sklkes or tockouh shall be eneely within Ihe d'aeration of the party involved and Ihat lhe above requirement Ihat any force

majeure shall be remedied wig ag nmsonable dispatch shag nol mquire Ihe seigement of strikes or lockouts acceding lo the demands of opposkrg party when such course is

Irmdlllssbls ln the ifwcrsgon of such party.

Article XIV

MISCELLANEOUSlf either party shag fail lo perform any of Ihe covenants or oblga5ons imposed upon il under and by vktue of Ihe Smvice Agreemenl of wirich these Genwal Tenne and ondibons

are s part, (except where such tagore shag be excused under any of Ihe provhions of Ibis Service Agreemenl), Ihen In such event, Ihe other party may, st Ns opgon, Ierminae Ibis

Senrke Agreemenl by proceedkrg as follows: The party nol in dafaug shag cause s wrigen rmtice to be sewed an Ihe party in defaug, slaying specikagy Ihe cause Nr termlrwgng

Ibis service Agnmment end dectaring it lo be Ihe intengon oi the party giving fhe notice lo lermkwte Ihe same; thereupon, Ihs parly in default shall have Ihlrty (30) days aller Ihe

service of the aforesaid notice in whkh to remedy and remove said cause or causes and krily indemngy gm party nol in defaug kx any snd at consequences of such breach, Ihen

such no5ce shag bs withdrawn and Nris Service Agreement shall conbnue in kri force and egsct In case the party in default does not so remedy and remove Nw nolkw for any and

ag consequenom of such bnmch, within said period of ttrirty (30) days, Ihen Ihh Senrice Agreement shag become null and vcid lmm and aller Ihe expiralicn of saki period. Any

ranceltagon of Ibis service Agreement pursuant lo Ihe provisions oi Ibis Arllde shall be without prejudke to the right of party nol in delaug lo collect any amounts then due il sndwigmul waiver ot any dher remedy lo which Ihe parly nol N dsfeuN may be enikled for riolagon of gfs Smvtce Agreement.

The Service Agnwnent of whke these General Terms and cond%one me a pert thereof, shag be binding upon and inure lo Ihe benegl of ftw Seller and Ihe Buyer and their

3. Except as olhmwiss pnwided, sny nogce, request demand, slaiement or big, wirich sgher Buyer or Seller msy deme io give lo Ihe other shall be in writin and shall be conridemd

as fully debveral when maged by prepaid registered mail addressed lo saki party at Ns tmt known post oNce address, or el such other addnmses as either party may designate in

wrigng. Rougrw mmmunicagons, Inckrdlng monthly statements and paymenls, shag bs considemd as duly degvered when maged by either registered or onrinary nw 5.4. Buyms covenanh and agrees lo execute or Be, or cooperate with Seier in Ihe execugon or filing of, any report, cwkTicate or other document required by any governmental agency

having jurisrgcgon over Ibis conbact or the parges hereto, or any other cerNicsle or document requested Ig Seger necessary fw Seller lo obtain Ihe beneril of any exempgon from

sales, use or ogmr tsx Buyer shag indemnify Seller for sny loss sustained by Seller as a nwult of Buyers breach of the covenant

5. The purges hereto Bexecugng Nm Serrice Agnmment snd gwse General Terms and Condeons, acknowledge Ihal lhasa General Terms and CondiTions am a pmt of Nm SwvkeAgreement.

Buyer: Seller. South Carolina Electri and Gas Com a

By: By: klargn IC helen(.

TiBe: Title: Vice Pres as 0 rations

Ntnessi

Oahm oatm

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