Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 12/21/2005, Docket: RP06-144-000, Status: Effective

Fourth Revised Sheet No. 162 Fourth Revised Sheet No. 162 : Effective

Superseding: Third Revised Sheet No. 162

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

22. Unauthorized Daily Overrun (Continued)

(b) Overrun Charges and Penalties (Continued)

taken on that Gas Day, an overrun charge equal to

Seller's Rate Schedule IT rate per dt and such

quantities shall be treated as deliveries under

Seller's applicable Rate Schedule(s) and as an

imbalance. If Buyer takes an Unauthorized Daily

Overrun on any Gas Day and such quantities taken exceed

the Authorized Daily Quantity plus the applicable

Overrun Tolerance Quantity, and curtailment is not in

effect, Buyer shall pay, in addition to such IT charge,

a penalty of the higher of (i) $50 per dt or (ii) two

times the mid-point of the range of prices reported for

"Transco Zone 6 Non-NY" published in the Daily price

survey by Platt's Gas Daily for the day on which the

unauthorized daily overrun occurs, for all Unauthorized

Daily Overrun quantities taken on that Gas Day.

However, if Buyer takes an Unauthorized Daily Overrun

on any Gas Day during a period of curtailment, and such

quantities taken exceed the Authorized Daily Quantity

plus the applicable Overrun Tolerance Quantity, Buyer

shall pay Seller, in addition to such IT charge, a

penalty of the higher of (i) $50 per dt or (ii)three

times the mid-point of the range of prices reported for

"Transco Zone 6 Non-NY" published in the Daily price

survey by Platt's Gas Daily for the day on which the

unauthorized daily overrun occurs, for all Unauthorized

Daily Overrun quantities taken on that Gas Day.

(c) Seller shall waive any penalties against Buyers whose

scheduled and flowing IT quantities are bumped as a

result of firm intra-day nomination changes. Intraday

bump notices should indicate whether daily penalties

will apply for the gas day for which quantities are

reduced. The waiver of such penalties shall apply only

for the day on which scheduled IT quantities were

bumped.

Furthermore, Seller shall waive any penalties against

Buyer in circumstances where the imposition of such

penalty is not necessary to protect the operational

integrity of the system and/or Seller's ability to

render reliable service.