Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 176 Original Sheet No. 176 : Effective

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

25. Capacity Curtailment (Continued)

(f) Order of Curtailment (Continued)

(1) Scheduled interruptible transportation service for

the resolution of imbalances under interruptible

Service Agreements.

The capacity available, if any, shall be allocated

among such Buyers with the Buyer paying the highest

rate (not to exceed the maximum rate for such

service set forth in Seller's applicable Rate

Schedule) having the highest priority; provided

however, Buyers paying a negotiated rate which

exceeds the maximum rate will be considered for

purposes of this Section 25(f)(1) to be paying the

maximum rate. Service scheduled at the same price

shall be curtailed pro rata based on confirmed

nominations.

(2) Scheduled transportation service for interruptible

services not otherwise classified in Section

25(f)(1) above.

The capacity available, if any, shall be allocated

among such Buyers with the Buyer paying the highest

rate (not to exceed the maximum rate for such

service set forth in Seller's applicable Rate

Schedule) having the highest priority; provided

however, Buyers paying a negotiated rate which

exceeds the maximum rate will be considered for

purposes of this Section 25(f)(2) to be paying the

maximum rate. Service scheduled at the same price

shall be curtailed pro rate based on confirmed

nominations.

(3) Scheduled transportation service under all firm Rate

Schedule(s) and within Buyer's MDTQ and MDSTQ.

The capacity available shall be prorated based on

the Buyer's MDDO in each Delivery Point Area under

the affected Rate Schedule(s).