Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 44 Original Sheet No. 44 : Effective

RATE SCHEDULE T-1

FIRM TRANSPORTATION SERVICE

(Continued)

3. Rates and Charges (Continued)

(b) (Continued)

applicable fuel retention percentage specified on the

effective Sheet No. 6 of Seller's FERC Gas Tariff by the

quantity received for the account of Buyer at the

Point(s) of Receipt.

pursuant to Section 25 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. The

credit for a given Day shall equal the T-1 Reservation

Charge divided by the number of Days in the respective

Month times the difference between Buyer's MDTQ and

Buyer's adjusted transportation quantity as a result of

Seller's curtailment order.

4. Nominations and Scheduling

(a) If Buyer desires transportation of natural gas on any Day

under this Rate Schedule, Buyer shall provide a

nomination to Seller in accordance with Section 21 of the

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

(b) Seller shall confirm Buyer's nominations of receipts and

deliveries and schedule gas in accordance with Section 21

of the General Terms and Conditions of Seller's FERC Gas

Tariff. Such quantities will only be scheduled if Seller

can confirm such quantities with other parties at or

upstream of the Point(s) of Receipt and with the

Delivery Point Operator.

5. Receipts and Deliveries

(a) Transportation Service under this Rate Schedule shall

consist of:

(1) The receipt of gas for the account of Buyer at

specified Point(s) of Receipt up to Buyer's