Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Sub 2nd Revised Sheet No. 193F Sub 2nd Revised Sheet No. 193F

Superseding: Sub First Revised Sheet No. 193F

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

29. Capacity Release (Continued)

(h) Capacity Releases Not Subject to Prior Notice or Competitive

Bidding (Continued)

(3) A release to an asset manager exempt from bidding

requirements under Section 29(h)(1) is any Prearranged

Release that contains a condition that the Releasing

Shipper may, on any day during a minimum period of five

(5) months out of each twelve-month period of the

release, call upon the Replacement Shipper to (i)deliver

to the Releasing Shipper a volume of gas up to one-

hundred percent of the daily contract demand of the

released transportation capacity or, (ii) purchase a

volume of gas up to the daily contract demand of the

released transportation capacity. If the capacity

release is for a period of one year or less, the asset

manager?s delivery or purchase obligation described in

the previous sentence must apply for the lesser of five

(5) months or the term of the release. If the capacity

release is a release of storage capacity, the asset

manager?s delivery or purchase obligation need only be

one-hundred percent of the daily contract demand under

the release for storage withdrawals or injections, as

applicable.

(4) A release to a marketer participating in a state-

regulated retail access program exempt from bidding

requirements under Section 29(h)(1) is any prearranged

capacity release that will be utilized by the

Replacement Shipper to provide the gas supply

requirement of retail consumers pursuant to a retail

access program approved by the state agency with

jurisdiction over the local distribution company that

provides delivery service to such retail consumers.

(i) Capacity Releases Subject to Prior Notice and Competitive

Bidding

(1) Except as provided in Section 29(h), a Firm Shipper that

wants to release any or all of its firm capacity must

notify the TSP of the terms and conditions under which

the Shipper will release its capacity. The Firm Shipper