Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 166 Original Sheet No. 166 : Effective

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

23. Balancing of Transportation Services (Continued)

(f) Imbalances shall be "Cashed Out" (Continued)

At the time Seller bills Buyer for transportation service

during a given Month Seller shall also bill Buyer, or

credit Buyer's bill, as appropriate, to resolve in cash

the imbalance between Seller's scheduled receipts for

such Buyer and Seller's actual deliveries for the

account of such Buyer.

(1) The Index Price for purposes of resolving imbalances

shall be the index "cash out" prices for the

relevant Month, accepted by the Commission,

established for purposes of resolving imbalances by

Transcontinental Gas Pipe Line Corporation. The

Index Price utilized in each case shall be inclusive

of any transportation charges assessed by

Transcontinental Gas Pipe Line Corporation in the

course of "cashing out" imbalances on such upstream

facilities that are attributable to points of

interconnection with Seller's facilities.