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

Original Sheet No. 173C.01 Original Sheet No. 173C.01 : Effective

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

24. Operational Flow Orders (Continued)

(g) OFO Penalties (Continued)

Such penalty will be in addition to any other penalties

and/or "cash out" provisions of the General Terms and

Conditions of Seller's FERC Gas Tariff.

(h) Disposition of OFO Penalties

Seller shall refund or carry forward penalty revenues

net of costs associated with the OFOs in accordance

with Section 36 of the General Terms and Conditions of

Seller's FERC Gas Tariff.