Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Orignal Sheet No. 138 Orignal Sheet No. 138 : Effective

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

16. Measurement Equipment

(a) Measurement Stations on Seller's System

At each Point of Delivery, Seller will install, maintain,

and operate a measurement station equipped with

measurement equipment which shall consist of the

necessary metering devices, designed and installed in

accordance with, but not limited to, the published

recommendations of the American Gas Association, the

American National Standards Institute and the United

States Department of Transportation as Seller deems to be

in accordance with accepted industry practice. Buyer

shall reimburse Seller, at Seller's discretion, for all

expenses incurred by Seller in connection with the design

and construction of such measurement station, together

with all associated piping and equipment.

(b) Buyer's Check Measurement Equipment

Buyer, acting jointly with Seller, may install, maintain,

and operate at its own expense such check measurement

equipment as desired, provided that such equipment shall

be so installed as not to interfere with the operation of

Seller's measurement equipment.

Seller and Buyer shall have the right to have

representatives present at the time of installing,

reading, cleaning, changing, repairing, inspecting,

testing, calibrating, or adjusting done in connection

with measurement equipment involved in billing and used

in measuring or checking the measurement of deliveries.

The records from such measurement equipment shall remain

the property of their owner, but upon request, each will

submit to the other its records together with

calculations therefrom, for inspection and verification,

subject to return within ten (10) calendar days after

receipt thereof.

(d) Installation

All installations of measurement equipment applying to or

affecting deliveries shall be made in such manner as to

permit an accurate determination of the volume of natural