Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 39 Original Sheet No. 39 : Effective

RATE SCHEDULE ST

SWING TRANSPORTATION SERVICE

(Continued)

5. Receipts and Deliveries (Continued)

(d) The unit price paid by Seller for Third Party Swing

Supply shall be the applicable BQSP and Buyer shall pay

Seller the applicable BQSP for Third Party Swing Supply

when it takes title at its Primary Point(s) of Receipt on

Seller's system.

(e) Seller's obligation with regard to Third Party Swing

Supply upstream of its system, pursuant to this Rate

Schedule, is limited to the transportation of Swing

Supply provided by the Third Party supplier(s) designated

by Buyer(s). Seller has no obligation to locate

alternative Swing Supply in the event Buyer's supplier(s)

fails to deliver the nominated Swing Supply to the

specified Point(s) of Receipt. Buyer shall waive and

release Seller from any claims for any and all damages,

costs, losses or expenses resulting from or arising out

of the failure of Buyer's supplier(s) to deliver Third

Party Swing Supply.

(f) Based upon confirmed 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 on Seller's system adjusted for any applicable

fuel retention.

(g) Swing Transportation Service provided under this Rate

Schedule utilizes a Predetermined Allocation Method to

allocate deliveries of natural gas to Buyer's various

supply resources based upon Buyer's previously provided

instructions to Seller.

(1) Seller's Predetermined Allocation Method will be

based upon the currently available Tariff

provisions and operating guidelines of the

interconnecting upstream pipeline(s). In the event

that the interconnecting upstream pipeline(s)

changes its procedures, Seller may file to change

its procedures effective coincident with the

applicable upstream pipeline changes.