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. 112 Original Sheet No. 112 : Effective

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

11. Request for Service (Continued)

(e) Creditworthiness (Continued)

(1) (Continued)

(iii) A written attestation from Requesting

Party that it is not operating under any

chapter of the bankruptcy laws and is not

subject to liquidation or debt reduction

procedures under state laws, such as an

assignment for the benefit of creditors, or

any informal creditor's committee agreement.

An exception can be made for a Requesting

Party which is a debtor in possession

operating under Chapter XI of the Federal

Bankruptcy Act but only with adequate

assurances that any billing will be paid

promptly as cost of administration under the

federal court's jurisdiction;

(iv) A written attestation from Requesting Party

that it is not subject to the uncertainty

of pending liquidation or regulatory

proceedings in state or federal courts which

could cause a substantial deterioration in its

financial condition, which could cause a

condition of insolvency, or which could

seriously affect the ability to exist as an

ongoing business entity; and

(v) A written attestation from Requesting Party

that no significant collection lawsuits or

judgments are outstanding which could seriously

reflect upon the business entity's ability to

remain solvent.

(2) If Requesting Party has an ongoing business

relationship with Seller, no uncontested delinquent

balances shall be outstanding for storage and

transportation services or any imbalances previously

billed by Seller and Requesting Party must have paid

its account during the past according to the

established terms and not made deductions or

withheld payment for claims not authorized by

contract.