Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 11/01/2002, Docket: RP00-393-002, Status: Effective

First Revised Sheet No. 58 First Revised Sheet No. 58 : Effective

Superseding: Original Sheet No. 58

RATE SCHEDULE GSS

GENERAL STORAGE SERVICE

(Continued)

 

5. Withdrawals from Storage

 

(a) Buyer shall nominate quantities for withdrawal from

storage with Seller in accordance with Section 21 of the

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

 

(b) Seller shall make all necessary arrangements with Transco

to have gas withdrawn from storage and transported to

Seller's system.

 

(c) Seller shall receive gas withdrawn from storage at

Seller's interconnect(s) with Transco and Buyer shall be

responsible for making all arrangements for the

transportation of such gas from Buyer's Point(s)of

Receipt on Seller's system to Buyer's Delivery Point

Area(s).

 

(d) Seller shall be obligated to withdraw from storage, on

behalf of Buyer, at Buyer's request, natural gas

quantities up to, but not in excess of, the quantities

determined in accordance with the provisions specified in

Transco Rate Schedule GSS.

 

(e) Buyer shall maintain the Minimum Inventory Balances

specified in Transco Rate Schedule GSS.

 

(f) Buyer shall achieve the Minimum Inventory Turnover

specified in Transco Rate Schedule GSS. Failure to

comply with the Minimum Turnover requirements shall

result in Seller deducting the applicable quantity from

Buyer's Storage Gas Balance. Such quantity shall be

forfeited by Buyer to Seller, free and clear of all liens

and encumbrances. Seller shall post such forfeited

quantities on its EBB as gas available for sale to the

highest bidder within a 24 hour notice period. Such

posting may provide as a condition of sale that such gas

be withdrawn from storage within a specific period of

time. Upon receipt of payment, Seller shall credit to

the account of the Buyer whose gas was forfeited 90

percent of the proceeds for such sale, and shall retain