Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Third Revised Sheet No. 156 Third Revised Sheet No. 156 : Effective

Superseding: Second Revised Sheet No. 156

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

21. Nominations and Scheduling of Transportation Services

(Continued)

(e) Scheduling of Nominations

Nominated quantities, including overrun quantities (shown

as a separate transaction line on the nomination) shall

be subject to daily confirmation by Transportation

Service Provider. Nominations to be confirmed must have

confirmation of the receipt and delivery quantities with

the affected upstream pipeline(s) and downstream Delivery

Point Operators. Such confirmed quantity shall be deemed

the scheduled quantity.

(i) With respect to the timely nomination/confirmation

process at a receipt or delivery point, in the

absence of agreement to the contrary, the lesser of

the confirmation quantities should be the confirmed

quantity. If there is no response to a Request for

Confirmation or an unsolicited Confirmation

Response, the lesser of the confirmation quantity

should be the new confirmed quantity.

(ii) With respect to the processing of requests for

increases during the intraday

nomination/confirmation process, in the absence of

agreement to the contrary, the lesser of the

confirmation quantities should be the new confirmed

quantity. If there is no response to a Request

for Confirmation or an unsolicited Confirmation

Response, the previously scheduled quantity should

be the new confirmed quantity.

(iii)With respect to the processing of requests for

decreases during the intraday

nomination/confirmation process, in the absence of

agreement to the contrary, the lesser of the

confirmation quantities should be the new confirmed

quantity, but in any event no less than the

elapsed-prorated-scheduled quantity. If there is

no response to a Request for Confirmation or an

unsolicited Confirmation Response, the greater of

the confirmation quantity or the elapsed-prorated-

scheduled quantity should be the new confirmed

quantity.