Eastern Shore Natural Gas Company

Second Revised Volume No. 1

Effective Date: 11/01/2002, Docket: RP00-393-002, Status: Effective

First Revised Sheet No. 161 First Revised Sheet No. 161 : Effective

Superseding: Original Sheet No. 161

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

22. Unauthorized Daily Overrun

(a) Unauthorized Daily Overrun Defined

An Unauthorized Daily Overrun is defined as any quantity

of gas taken by Buyer on any Gas Day from Seller in

excess of the Authorized Daily Quantity. For the purpose

of this Section 22, Buyer's Authorized Daily Quantity

shall equal the sum of the following :

(1) Buyer's scheduled MDTQ or any maximum limitations

imposed thereon pursuant to Section 24, Section 25

or Section 26 of the General Terms and Conditions of

Seller's FERC Gas Tariff, and

(2) Buyer's MDSTQ or any maximum limitations imposed

thereon pursuant to Section 24, Section 25, or

Section 26 of the General Terms and Conditions of

Seller's FERC Gas Tariff, and

(3) Buyer's scheduled quantity under Seller's Rate

Schedule IT.

(b) Overrun Charges and Penalties

The level of overrun charges and penalties paid by Buyer

to Seller will depend on whether Buyer's takes exceeded

Buyer's Authorized Daily Quantity plus an Overrun

Tolerance Quantity and the applicable curtailment

conditions at the time of such overrun. The Overrun

Tolerance Quantity shall equal five percent (5%) of the

Authorized Daily Quantity during the period beginning on

May 1 of any year and extending through the next

succeeding September 30 and three percent (3%) of the

Authorized Daily Quantity during the period beginning

October 1 and extending through April 30 of the next

succeeding year. If Buyer takes quantities on any Gas

Day in excess of Buyer's Authorized Daily Quantity, and

such quantities taken do not exceed the Authorized Daily

Quantity plus the applicable Overrun Tolerance Quantity,

Buyer shall pay Seller, for all such overrun quantities