Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Sub 4th Revised Sheet No. 193 Sub 4th Revised Sheet No. 193

Superseding: Third Revised Sheet No. 193

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

29. Capacity Release (Continued)

(d) Submission of Offers and Bids (Continued)

(4) (Continued)

period of one year or less if the release is to take

effect on or before one year from the date on which the

pipeline is notified of the release. Payments or other

consideration exchanged between the Releasing and

Replacement Shippers in a release to an asset manager

as defined in Section 29(h)(3) are not subject to the

maximum rate. Releasing Shipper has the choice to specify

dollars and cents or percents of maximum tariff rate in

the denomination of bids and TSP shall support this. Once

the choice is made by the Releasing Shipper, the bids must

comport with the choice. If the Releasing Shipper elects to

offer a capacity segment that is only in Rate Zone 2

for more than one year, the maximum tariff rate for

such offer shall be the difference between the maximum

tariff rates for Rate Zone 1 and Rate Zone 2 for the

applicable Rate Schedule.

(5) Release offers must specify the level of firm

entitlements that the Releasing Shipper is electing to

release, expressed as a numeric quantity in Dt per

Gas Day for transportation, storage injection,

storage withdrawal, and a per release quantity for

storage capacity and total release period quantity.

(6) Release offers must indicate whether the capacity is

to be released on a recallable basis, and if so, the

terms and conditions of such recall, and whether the

Releasing Shipper is authorized to reput the release

if and when it notifies TSP that the recall is no

longer in effect and the applicable reput method; or

whether the capacity is to be released on a

permanent basis. Reput method and rights are

individually negotiated between the Releasing Shipper

and the Replacement Shipper.