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. 63 First Revised Sheet No. 63 : Effective

Superseding: Original Sheet No. 63

RATE SCHEDULE LSS

LEIDY STORAGE SERVICE

1. Availability

This Rate Schedule is available for the purchase of natural

gas storage service from Eastern Shore Natural Gas Company

("Seller") by any party ("Buyer") certificated by the Federal

Energy Regulatory Commission (the "Commission" or "FERC"), or

any predecessor agency, to receive service under Seller's Rate

Schedule LSS on November 1, 1997 subject to the following

conditions:

(a) Buyer and Seller must execute a contract for service

under Rate Schedule LSS in the form of a Service

Agreement as set forth in Seller's FERC Gas Tariff ("LSS

Agreement"); and

(b) Seller has an executed Service Agreement with

Transcontinental Gas Pipe Line Corporation ("Transco")

for service under Transco Rate Schedule LSS which is

sufficient to support Storage Service provided by Seller

under this Rate Schedule.

2. Applicability and Character of Service

(a) This Rate Schedule shall apply to Storage Service,

including the associated transportation of gas from

upstream storage system(s) to Seller's system rendered by

Seller for a Buyer pursuant to the executed Service

Agreement for service under this Rate Schedule.

(b) Storage Service provided under this Rate Schedule within

the limitations described in Section 4 and Section 5

hereof, shall be considered firm, and shall not be

subject to interruption or curtailment except that caused

by Force Majeure or by operating conditions beyond

Seller's or Buyer's control.

(c) Storage Service provided under this Rate Schedule is

subject to the Transco Rate Schedule LSS and the General

Terms and Conditions of Transco's FERC Gas Tariff in

effect on November 1, 1997, as may be amended from time

to time. Furthermore, Transco Rate Schedule LSS storage

service is provided under individual Natural Gas Act

Section 7(c) certificates and therefore is not eligible

for capacity release.