Eastern Shore Natural Gas Company

Second Revised Volume No. 1

Effective Date: 03/01/2009, Docket: RP09-337-000, Status: Effective

First Revised Sheet No. 194A First Revised Sheet No. 194A

Superseding: Original Sheet No. 194A

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

29. Capacity Release (Continued)

(k) Billing and Payment (Continued)

(2) For all released capacity, other than permanent

releases, Releasing Shipper shall remain ultimately

responsible to TSP for full payment of the

reservation charge, any applicable reservation-

related surcharges, and any other fixed charges for

which Releasing Shipper is otherwise obligated to

TSP. Until payment by Replacement Shipper to

TSP of any unpaid reservation charges, any claims

Releasing Shipper may have relating to those charges

shall be subordinated to those of TSP. Any

reservation charge payments made by Replacement

Shipper to TSP will not be withheld from Releasing

Shipper by TSP due to Replacement Shipper?s failure

to pay TSP other amounts owed that are unrelated

to the capacity released by the Releasing Shipper.

(3) In the event that a Replacement Shipper (including a

Secondary Replacement Shipper) fails to pay TSP?s

bill relating to the released capacity by the due

date, TSP shall reverse the applicable credit(s)

and bill the Releasing Shipper in the following Month

for those charges previously credited, plus

interest. TSP shall, within five (5) Business

Days, provide the Releasing Shipper (the most recent

Releasing Shipper, where the capcity has been

secondarily released) with written or telephonic

notice of such nonpayment. Upon Releasing Shipper?s

receipt of such notice of Replacement Shipper?s

nonpayment, Releasing Shipper, without prejudice to

any other rights it may have, may immediately recall

the released capacity upon 24-hour notice to

Replacement Shipper, in accordance with Section 29(l)

unless within such period Replacement Shipper pays in

full the outstanding indebtedness, together with

accrued interest at the Commission approved interest

rate.