Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 113 Original Sheet No. 113 : Effective

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

11. Request for Service (Continued)

(e) Creditworthiness (Continued)

(3) A Requesting Party which has a request accepted by

Seller and executes a valid Service Agreement to

receive service under any of Seller's Rate

Schedule(s) shall, as a Buyer, furnish Seller at

least annually, and at such other time as is

requested by Seller, updated credit information as

specified in Section 11(e) of these General Terms

and Conditions for the purpose of enabling Seller to

perform an updated credit evaluation. In addition,

Seller reserves the right to request such

information at any time if Seller is not reasonably

satisfied with Buyer's creditworthiness or ability

to pay based on information available to Seller at

that time.

(4) Seller shall not be required to perform and shall

have the ability to suspend service for any Buyer

who has become insolvent, fails to timely provide

information to Seller as requested in Section 11(e)

of these General Terms and Conditions, or fails to

demonstrate ongoing creditworthiness as a result of

credit information obtained pursuant to Section

11(e) of these General Terms and Conditions,

provided, however, Buyer may receive or continue to

receive service if Buyer elects one (1) of the

following options:

(i) Payment in advance for up to two (2) Months

service;

(ii) A standby irrevocable letter of credit, in form

and substance satisfactory to Seller, in a face

amount up to two (2) Months service. The

letter of credit must be drawn upon a bank

acceptable to Seller;