Eastern Shore Natural Gas Company

Second Revised Volume No. 1

Effective Date: 10/01/2000, Docket: RP00-537-000, Status: Effective

First Revised Sheet No. 126 First Revised Sheet No. 126 : Effective

Superseding: Original Sheet No. 126

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

13. Right of First Refusal Procedures

(a) For (1) firm transportation service rendered under

Seller's blanket certificate or Part 284 of the

Commission's regulations at Seller's maximum applicable

firm transportation rate and with a term of twelve (12)

or more consecutive months and not subject to Natural Gas

Act Section 7(b) abandonment requirements or (2) for firm

transportation service rendered under Seller's blanket

certificate or Part 284 of the Commission's regulations

at Seller's maximum applicable firm transportation rate

that is not available for twelve (12) consecutive months

and with a term of one (1) year or more and not subject

to Natural Gas Act Section 7(b) abandonment requirements,

Seller shall provide Buyer written notice of Seller's

intent to terminate its firm Service Agreement(s) with

Buyer at least eight (8) Months prior to the expiration

of such Service Agreement(s). In the event Buyer desires

to continue to receive all or a portion of its firm

contract entitlement under such Service Agreement(s),

after receiving notice as specified above, Buyer shall

provide at least six (6) months written notice of the

same to Seller prior to the expiration of such Service

Agreement(s).

(b) If existing Buyer desires to retain its firm Service

Agreement(s), such Buyer will not be subject to the

bidding procedures specified herein below if such Buyer

agrees to pay Seller the maximum applicable firm

transportation rate(s) for a term of five (5) years or

more, and enters into the appropriate form of Service

Agreement(s) with Seller reflecting such agreement.