Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 126A Original Sheet No. 126A : Effective

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

13. Right of First Refusal Procedures (continued)

(c) If Buyer notifies Seller of its intent to exercise its

right of first refusal and does not agree to the

provision of Section 13(b) of these General Terms and

Conditions, then Seller shall post on its EBB a notice

of potential availability of firm capacity at least

ninety (90) calendar days prior to the expiration of the

Service Agreement(s). Such EBB notice shall describe the

quantity, the firm Point(s) of Receipt and Delivery

Point Area(s) associated with the firm capacity, and the

duration of the posting period, which period shall not be

less than thirty (30) calendar days, during which time

Seller will receive bids for the capacity. In addition,

the EBB notice shall indicate whether Seller is willing

to receive bids for the available capacity at a level

below Seller's maximum applicable firm transportation

rate but greater than a certain rate floor, and any

minimum term and/or quantity conditions.