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. 119 Original Sheet No. 119 : Effective

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

12. Construction of Facilities (Continued)

(f) (Continued)

under Section 7(c) of the Natural Gas Act. Further,

nothing in Section 12 of these General Terms and

Conditions shall prevent Seller from contesting an

application for service filed pursuant to Section 7(a) of

the Natural Gas Act. Seller reserves the right to seek

a waiver of the policy set forth herein, for good cause

shown, during any proceeding before the Commission

instituted under Section 7 of the Natural Gas Act.

(g) Buyer shall make payments within fifteen (15) calendar

days of the date of receipt of any billings submitted by

Seller pursuant to Section 12 of these General Terms and

Conditions. Seller may submit billings to Buyer up to

sixty (60) calendar days prior to commencing construction

for estimated costs to be incurred by Seller as provided

in Section 12 of these General Terms and Conditions. Any

such estimated billings shall be reconciled to the actual

costs of construction and any deficiency owed by Buyer

shall be paid within fifteen (15) calendar days of the

date of receipt of Seller's final bill. For purposes of

Section 12 of these General Terms and Conditions, a bill

is deemed to be received by Buyer the earlier of actual

receipt or three (3) Business Days after the postmark or

postal meter date. If the normal payment date is a

Saturday, Sunday or holiday, then payment is due the

following Business Day. Late payments shall be subject

to Section 18 of these General Terms and Conditions. Any

amount paid by Buyer in excess of the actual cost due

Seller shall be promptly refunded to Buyer or credited

to Buyer's account for future services upon completion of

the work.