Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 50 Original Sheet No. 50 : Effective

RATE SCHEDULE IT

INTERRUPTIBLE TRANSPORTATION SERVICE

(Continued)

3. Rates and Charges (continued)

(b) The maximum and minimum Commodity Rates for Interruptible

Transportation Service on Seller's system under Rate

Schedule IT are shown on the currently effective Sheet

No. 4 or Sheet No. 5, as applicable, of this Tariff.

Buyer shall pay such maximum rate for service under this

Rate Schedule unless Seller agrees to discount its rate

to Buyer. If Seller agrees to discount such rate, it

shall, upon forty-eight (48) hours written notice, advise

Buyer of the effective date of such rate and the quantity

of gas so affected; provided however, such discount shall

not be unduly discriminatory. The rate for service under

this Rate Schedule shall not be discounted below the

minimum rate.

Buyer and Seller may mutually agree to a negotiated rate,

which rate shall be less than, equal to, or greater than

Seller's maximum rate and shall not be less than the

minimum rate, and may be based upon a rate design other

than straight fixed variable (SFV). Such negotiated rate

shall be set forth in the Service Agreement.

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 Delivery

Point Area(s) by a quantity calculated by multiplying the

applicable fuel retention percentage specified on the

effective Sheet No. 4 or Sheet No. 5 of Seller's FERC Gas

Tariff by the quantity received for the account of Buyer

at the Point(s) of Receipt.

(d) Buyer shall reimburse Seller for the costs of any

facilities installed by Seller with Buyer's consent which

are necessary to receive, measure and deliver gas to or

for the account of Buyer, unless Seller waives this

requirement in writing pursuant to Section 12 of the

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