Eastern Shore Natural Gas Company

Second Revised Volume No. 1

Effective Date: 11/01/1997, Docket: CP96-128-004, Status: Effective

Original Sheet No. 23 Original Sheet No. 23 : Effective

RATE SCHEDULE FT

FIRM TRANSPORTATION SERVICE

(Continued)

3. Rates and Charges (Continued)

Point Area(s) by a quantity calculated by multiplying the

applicable fuel retention percentage specified on the

effective Sheet No. 4 or Sheet No. 5 of Seller's FERC Gas

Tariff by the quantity received for the account of Buyer

at the Point(s) of Receipt.

(d) Buyer shall reimburse Seller for the costs of any

facilities installed by Seller with Buyer's consent which

are necessary to receive, measure and deliver gas to or

for the account of Buyer within Buyer's firm entitlement,

unless Seller waives this requirement in writing pursuant

to Section 12 of the General Terms and Conditions of

Seller's FERC Gas Tariff.

(e) If Seller curtails Buyer's scheduled delivery quantity

pursuant to Section 25 or Section 26 of the General Terms

and Conditions of Seller's FERC Gas Tariff and the

curtailment was not due to a Force Majeure event as

described in Section 28 of the General Terms and

Conditions, then Buyer will receive a Reservation Charge

credit. Such credit shall be computed for each Day

Seller is curtailing Buyer's scheduled quantity. The

credit for a given Day shall equal the FT Reservation

Charge divided by the number of days in the respective

Month times the difference between Buyer's scheduled

quantity and Buyer's adjusted transportation quantity as

a result of Seller's curtailment order.

If the curtailment was due to a Force Majeure event as

described in Section 28 of the General Terms and

Conditions of Seller's FERC Gas Tariff, the Buyer shall

receive a partial Reservation Charge credit for the

undelivered quantity, equal to the portion of the monthly

Reservation Charge that is attributable to return on the

common equity component of capital plus associated taxes.

Such credit shall be computed for each Day Seller is

curtailing Buyer's scheduled quantity, and shall be

calculated in the same manner as described above for non-

Force Majeure curtailments.