Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 35 Original Sheet No. 35 : Effective

RATE SCHEDULE ST

SWING TRANSPORTATION SERVICE

(Continued)

3. Rates and Charges (Continued)

(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 of Seller's FERC Gas Tariff, 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 ST 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.