Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 105 Original Sheet No. 105 : Effective

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

7. Release and Indemnification

Buyer shall waive and release Seller from any claims for any

and all damages, costs, losses or expenses resulting from or

arising out of interruption or curtailment of service, whether

caused by capacity or supply constraints on Seller's system;

provided, however, that the foregoing shall not result in the

waiver or release of a claim against Seller for Seller's

negligence, bad faith, fault or willful misconduct. Further,

Buyer shall indemnify and hold Seller harmless from any and

all suits, actions, debts, accounts, damages, costs, losses

and/or expenses brought by or accruing to or for the benefit

of the end-users downstream of a Point(s) of Delivery, where

Buyer controls and operates the facilities downstream of such

Point(s) of Delivery or where Buyer has arranged for the

transportation and delivery of gas on behalf of such end-user,

resulting from or arising out of interruption or curtailment

of service whether caused by capacity or supply constraints on

Seller's system; provided, however, that the foregoing shall

not require Buyer to indemnify and hold Seller harmless from

a claim against Seller for Seller's negligence, bad faith,

fault or willful misconduct. Nothing in this section shall

prevent a Buyer from asserting a claim against another Buyer;

in the event of such a claim between Buyers, Seller will make

available such information in its possession relevant to such

claim.