Eastern Shore Natural Gas Company

Second Revised Volume No. 1

Effective Date: 03/01/2009, Docket: RP09-337-001, Status: Effective

Sub First Revised Sheet No. 192 Sub First Revised Sheet No. 192

Superseding: Original Sheet No. 192

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

29. Capacity Release (Continued)

(d) Submission of Offers and Bids (Continued)

(1) (Continued)

The Releasing Shipper may withdraw its offer to

release capacity during the bid period when it can

justify that unanticipated circumstances have

occurred creating a need for the capacity and no

minimum bid has been made on the offered capacity.

Offers to release capacity shall be binding until

a written or electronic notice of withdrawal is

received by the Transportation Service Provider.

(2) The TSP shall not award capacity release offers to

the Replacement Shipper until and unless the

Replacement Shipper meets the TSP?s creditworthiness

requirements applicable to all services that it

receives from the TSP, including the service

represented by the capacity release.

(3) A potential Replacement Shipper may withdraw a bid

until the close of the posting period for

competitive bids. However, bids will be binding

until TSP receives written or electronic notice

of bid withdrawal from the Bidder. If a potential

Replacement Shipper submits a new bid for a released

capacity, the existing bid for the same capacity

must first be withdrawn, and any new bid for that

released capacity must be at an equal or higher

rate. Bids submitted by a Replacement Shipper are

binding if selected.

(4) Capacity bids may be submitted on a reservation or

volumetric basis. TSP shall support volumetric

releases with volumetric commitments by fully

accounting for volumetric and reservation components,

consistent with the rules and regulations enunciated

by the Commission. The capacity bids must be stated

as a total rate per dt (including base tariff rate and

surcharges). The rate charged the Replacement Shipper

for a release of capacity may not exceed the applicable

maximum rate, except that no rate limitation applies to

the of capacity for a