Eastern Shore Natural Gas Company

Second Revised Volume No. 1

Effective Date: 10/01/2002, Docket: RP02-449-001, Status: Effective

Second Revised Sheet No. 144 Second Revised Sheet No. 144 : Effective

Superseding: Rst Revised Sheet No. 144

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

18. Payments

(a) Payment of Bills for Service

Buyer shall pay to Seller by wire transfer of immediately

available funds on or before the tenth (10th) calendar

day of the Month Seller's bill for the Reservation

Charges rendered pursuant to Section 17(a) of the

General Terms and Conditions of Seller's FERC Gas Tariff

and on or before the twentieth (20th) calendar day of

each Month Seller's bill for the remainder of the charges

for gas service rendered, also pursuant to Section 17(a)

of the General Terms and Conditions of Seller's FERC Gas

Tariff. Party making payment should identify invoice

number(s) on all payments, submit supporting

documentation; party receiving payment should apply

payment per supporting documentation provided by the

paying party; and if payment differs from billed amount,

remittance detail should be provided with the payment

except when payment is made by electronic funds transfer

(EFT), in which case, the remittance detail is due within

two Business Days of the payment due date. If the normal

payment date is a Saturday, Sunday or holiday, then

payment is due the next Business Day.

(b) Failure to Pay

Should Buyer fail to pay all of the amount of any bill as

herein provided when such amount is due, Buyer shall pay

a charge for late payment which shall be included by

Seller on the next regular monthly bill rendered to Buyer

under Section 17 of the General Terms and Conditions of

Seller's FERC Gas Tariff. Such charge for late payment

shall be determined by multiplying (1) the unpaid portion

of the bill, by (2) the ratio of the number of days from

the due date to the date of actual payment to 365, by (3)

a rate of interest equal to the prime interest rate, as

published in The Wall Street Journal under "Money Rates"

the first (1st) Business Day following due date of

payment, plus one percent (1%). If such failure to pay

continues for thirty (30) calendar days after payment is

due, Seller, in addition to any other remedy it may have