Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 174 Original Sheet No. 174 : Effective

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

25. Capacity Curtailment

(a) Seller's Right to Curtail

Seller shall have the right to curtail or interrupt

transportation services in whole or in part on all or a

portion of its system at any time for reasons of Force

Majeure or, when in Seller's judgment reasonably

exercised, capacity or operating conditions so require.

(b) Seller Shall Issue Notice of Curtailment

Seller shall promptly provide Buyer(s) with notice of

curtailment at a time and in a manner that is reasonable

under then existing conditions. Notification will be

provided by telephone, facsimile and posted to Seller's

EBB. When possible, such notice shall be provided in

advance. In the event of a curtailment of firm service,

the notice shall include a concise statement regarding

the cause of the curtailment. Seller shall provide a

more detailed explanation of the cause of the curtailment

upon request.

In the event the curtailment is to become effective

during the current Gas Day and Seller issues the

curtailment notice to Buyer prior to Buyer's receipt of

the Daily Confirmation Statement pursuant to Section

21(e) of the General Terms and Conditions of Seller's

FERC Gas Tariff, then the curtailment may extend no

longer than the end of the current Gas Day. If, however,

Seller deems that it is necessary to limit deliveries on

the next Gas Day also, then Seller will specify Buyer's

reduced level when it sends Buyer its Daily Confirmation

Statement.

In the event the curtailment is to become effective

during the current Gas Day and Seller issues the

curtailment notice to Buyer after Buyer's receipt of the

Daily Confirmation Statement pursuant to Section 21(e) of

the General Terms and Conditions of Seller's FERC gas

Tariff, then a revised Daily Confirmation Statement will

be issued.