Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Sub Original Sheet No. 193G Sub Original Sheet No. 193G

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

29. Capacity Release (Continued)

(i) Capacity Releases Subject to Prior Notice and Competitive

Bidding (Continued)

(1) (Continued)

must also notify the TSP of any Replacement Shipper

designated to obtain the released capacity under the

terms and conditions specified by the Firm Shipper.

(2) The TSP must provide notice of offers to release or to

purchase capacity, the terms and conditions of such

offers, and the name of any Replacement Shipper, on the

TSP?s IWS, for a reasonable period.

(3) The TSP must allocate released capacity to the person

offering the highest rate and offering to meet any other

terms and conditions of the release. If more than one

person offers the highest rate and meets the terms and

conditions of the release, the released capacity may be

allocated on a basis provided in TSP?s tariff, provided

however, if the Replacement Shipper offers the highest

rate, the capacity must be allocated to the designated

Replacement Shipper.

(j) Permanent Releases

A Firm Shipper which has a currently effective executed

Service Agreement with TSP under either of TSP?s firm

transportation Rate Schedules FT and ST may release its

capacity to a qualified Replacement Shipper for the

remaining term of the Service Agreement(s) and be

relieved of all liability under its Service Agreement(s)

prospective from the effective date of such release,

provided that the following conditions are satisfied:

(1) The Replacement Shipper executes a new Service

Agreement(s) under the applicable Rate Schedule

pursuant to Part 284 of the regulations of the

Commission that is subject to pre-grant of

abandonment;