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. 43 Original Sheet No. 43 : Effective

RATE SCHEDULE T-1

FIRM TRANSPORTATION SERVICE

1. Availability

This Rate Schedule is available to Delmarva Power and Star

Enterprise ("Buyer(s) or Buyer") for the provision of firm

transportation of natural gas by Eastern Shore Natural Gas

Company ("Seller") provided Buyer has executed a contract with

Seller for service under Rate Schedule T-1 in the form of a

Service Agreement as set forth in Seller's FERC Gas Tariff

("T-1 Agreement").

2. Applicability and Character of Service

(a) This Rate Schedule shall apply to Firm Transportation

Service rendered by Seller for Buyer pursuant to Seller's

specific Section 7(c) authority issued by the Commission.

(b) Transportation service provided under this Rate Schedule

shall be on a firm basis and shall not be subject to

interruption or curtailment except as caused by Force

Majeure or as otherwise provided in the General Terms and

Conditions of Seller's FERC Gas Tariff.

3. Rates and Charges

(a) For Firm Transportation Service rendered for Buyer each

Month under this Rate Schedule, Buyer shall pay to Seller

the sum of Seller's Reservation and Commodity Charges

determined as follows:

(1) Reservation Charge: The applicable Reservation

Rate multiplied by the applicable Maximum Daily

Transportation Quantity (MDTQ).

(2) Commodity Charge: The applicable Commodity Rate

and surcharges multiplied by the quantities

delivered pursuant to Section 5 of this Rate

Schedule from Point(s) of Receipt on Seller's

system to Buyer's Point(s) of Delivery.

(b) Buyer shall reimburse Seller for any fuel and line losses

associated with rendering service pursuant to this Rate

Schedule. Such reimbursement shall be accomplished by

adjusting the quantity of gas delivered for the account

of Buyer(s) under this Rate Schedule at the Point(s) of

Delivery by a quantity calculated by multiplying the