Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 114 Original Sheet No. 114 : Effective

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

11. Request for Service (Continued)

(e) Creditworthiness (Continued)

(4) (Continued)

(iii) A guaranty, in form and substance satisfactory

to Seller and executed by an entity Seller

deems creditworthy, of Buyer's performance of

its obligations to Seller; or

(iv) Such other form of security as Buyer may agree

to provide and as may be acceptable to Seller.

In the event such Buyer fails to immediately prepay

the required two (2) Months of revenue under Section

11(e)(4)(i) of these General Terms and Conditions or

furnish security under Section 11(e)(4)(ii), Section

11(e)(4)(iii), or Section 11(e)(4)(iv) of these

General Terms and Conditions, Seller may, without

waiving any rights or remedies it may have, suspend

further service until security is received.

The insolvency of a Buyer shall be evidenced by the

filing of such Buyer, or any parent entity thereof,

of a voluntary petition in bankruptcy or the entry

of a decree or order by a court having jurisdiction

in the premises adjudging such Buyer, or any parent

entity thereof, bankrupt or insolvent or approving

as properly filed a petition seeking reorganization,

arrangement, adjustment or composition of, or in

respect of such Buyer, or any parent entity thereof,

under the Federal Bankruptcy Act or any other

applicable federal or state law, or appointing a

receiver, liquidator, assignee, trustee,

sequestrator, (or similar official) of such Buyer,

or any parent entity thereof, or of any substantial

part of its property, or the ordering of the

winding-up or liquidation of its affairs, with said

order or decree continuing unstayed and in effect

for a period of sixty (60) consecutive calendar

days.