Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Third Revised Sheet No. 169A Third Revised Sheet No. 169A : Effective

Superseding: Second Revised Sheet No. 169A

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

23. Balancing of Transportation Services (Continued)

(g) Imbalance Netting and Trading (Continued)

determined only after such netting. Imbalance Trading

is available to permit Buyers to trade netted month-end

imbalances incurred during the same month. An

Imbalance Trade must result in a decrease in each

Buyer's imbalance.

For each previous month, Seller will establish an

Imbalance Trading Period during which it will accept

Imbalance Trading Forms.

(1) Seller shall provide Buyers the ability to post

and trade imbalances until at least the close of

the seventeenth (17th) business day of the month.

(2) Seller shall provide Buyer the ability to view

and, upon request, download posted imbalances.

(3) Imbalances tp be posted for trading should be

authorized by the Buyer.

(4) Authorizations to post imbalances that are

received by Seller by 11:45 a.m. (CCT) should be

effective by 8:00 a.m. (CCT) the next business

day. Imbalances previously authorized for posting

will be posted on or before the ninth (9th)

business day of the month.

(5) Seller is not required to post zero imbalances.

(6) Netting, posting and trading of imbalances shall

be accomplished based upon Seller's current method

for accounting for imbalances.

(7) Seller shall enable the imbalance trading process

by: receiving the Request for Imbalance Trading,

receiving the Imbalance Trade Confirmation,

sending the Imbalance Trade Notification, and

reflecting the trade prior to or on the next

monthly Buyer imbalance or cashout.