Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 25 Original Sheet No. 25 : Effective

RATE SCHEDULE FT

FIRM TRANSPORTATION SERVICE

(Continued)

5. Receipts and Deliveries (Continued)

(b) Based upon the scheduled nominations, Seller

shall make delivery of Buyer's scheduled quantity taking

into account any applicable fuel retention quantity

pursuant to Section 31 of the General Terms and

Conditions of Seller's FERC Gas Tariff. It is the

intention of Seller that daily deliveries of gas at the

Point(s) of Delivery shall be equal to daily receipts of

gas at the Point(s) of Receipt less any applicable fuel

retention.

quantities greater than or less than the quantities

confirmed or scheduled then such quantities shall be

considered an imbalance. Imbalances will be subject to

"cash out" at the end of the Month in accordance with

Section 23 of the General Terms and Conditions of

Seller's FERC Gas Tariff.

(d) Nothing herein shall obligate Seller to schedule

quantities hereunder on any Day in excess of Buyer's

MDTQ, as may be adjusted pursuant to Section 25, Section

26 and Section 29 of the General Terms and Conditions of

Seller's FERC Gas Tariff. If Buyer should take delivery

on any Day of any quantities in excess of Buyer's

Authorized Daily Quantity, then such quantities shall be

considered Unauthorized Overrun Quantities.

(e) Subject to the availability of capacity, Buyer has the

right to utilize Secondary Point(s) of Receipt and

Secondary Delivery Point Area(s).

(f) Buyer shall take delivery from Seller hourly quantities

during any Day in accordance with Section 20 of the

General Terms and Conditions of Seller's FERC Gas Tariff.

6. General Terms and Conditions

The provisions of the General Terms and Conditions of Seller's

FERC Gas Tariff, as such provisions may be amended from time

to time, are incorporated as part of this Rate Schedule.

However, in the event of any inconsistencies between the

General Terms and Conditions and this Rate Schedule FT, the

terms and conditions of this Rate Schedule shall control.