Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 64 Original Sheet No. 64 : Effective

RATE SCHEDULE LSS

LEIDY STORAGE SERVICE

(Continued)

3. Rates and Charges

(a) Charges for Storage Service provided under this Rate

Schedule are referenced to the rates charged Seller by

its upstream service provider, Transco. As Seller's

rates are referenced to Transco's rates they will change

concurrently with any change in Transco's rate.

(b) For Storage Service provided for Buyer each Month under

this Rate Schedule, Buyer shall pay to Seller the sum of

the following charges:

(1) Storage Demand Charge: A charge per Dt of Storage

Demand.

(2) Storage Capacity Quantity Charge: A charge per Dt

of Storage Capacity Quantity.

(3) Storage Injection Charge: A charge per Dt for gas

delivered into storage for Buyer's account.

(4) Storage Withdrawal Charge: A charge per Dt for gas

withdrawn from storage for Buyer's account.

(5) Excess Delivery from Buyer's Storage Gas Balance

Charge: A charge per Dt for all gas withdrawn from

storage for Buyer's account in excess of Buyer's

firm withdrawal entitlement.

(6) Excess End of Season Inventory Charge: The portion

of Transco's excess end of season inventory charge

under Transco Rate Schedule LSS which is allocated

by Seller to Buyer(s) under this Rate Schedule.

(c) The applicable rates for the charges set forth above are

shown on the currently effective Sheet No. 7 of this

Tariff.

(d) Seller shall retain from Buyer's storage injection and

storage withdrawal quantities equivalent quantities of

natural gas as retained by Transco for the injection

of gas into storage and withdrawal of gas from storage,

and transportation of storage gas to and from Seller's

system.