Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 45 Original Sheet No. 45 : Effective

RATE SCHEDULE T-1

FIRM TRANSPORTATION SERVICE

(Continued)

5. Receipts and Deliveries (Continued)

(a) Transportation Service under this Rate Schedule shall

consist of: (Continued)

(1) (Continued)

Maximum Daily Transportation Quantity (MDTQ) plus an

amount for any applicable fuel retention. Point(s)

of Receipt are those points on Seller's system

specified in the executed T-1 Agreement between

Seller and Buyer.

(2) The transportation of gas through Seller's

pipeline.

(3) The delivery of equivalent quantities, after making

allowance for any applicable fuel retention, at

Buyer's Point(s) of Delivery as specified in the

executed T-1 Agreement between Seller and Buyer.

(b) As nearly as practicable, Buyer shall cause its upstream

supplier(s) to deliver to Seller uniform hourly

quantities. Buyer shall take delivery at Point(s) of

Delivery with Seller hourly quantities during any Day in

accordance with Section 20 of the General Terms and

Conditions of this Tariff.

delivery of Buyer's scheduled quantity taking into

account any applicable fuel retention quantity pursuant

to Section 31 of these 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.

(d) If Buyer should take delivery on any Day of any

quantities greater than or less than the quantities

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.