Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 108 Original Sheet No. 108 : Effective

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

10. Order No. 497 Compliance Procedures

(a) Standards of Conduct

Seller will conduct its business in accordance with the

standards of conduct contained in Section 161.3 of the

Commission's Regulations.

(b) Shared Operating Personnel and Facilities

Seller has two (2) affiliated distribution company

customers, Chesapeake Utilities Corporation - Delaware

Division and Chesapeake Utilities Corporation - Maryland

Division, and relies on its parent and affiliates for

certain administrative and support services which are

provided from office facilities located at 350 South

Queen Street and 909 Silver Lake Boulevard in Dover,

Delaware 19904.

Seller does not share any operating personnel with

Chesapeake Utilities Corporation. Seller shares

telephone equipment and a computer network with its

affiliates. All computer equipment and data files will

be configured in a manner to establish and maintain

operational separation between Seller and its affiliates.

Such measures shall include, but not be limited to, the

use of password protection of Seller's data files to

insure that affiliates' employees are unable to access

sales, cost or pricing data pertaining to Seller's

customers, or other data pertaining to Seller's customers

that could provide Seller's affiliates with any

commercial or competitive advantage.

497 are supplemented, revised or otherwise modified by

the Commission, such requirements shall be deemed

incorporated herein by reference to the extent such

requirements apply to Seller.