Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Fourth Revised Sheet No. 198 Fourth Revised Sheet No. 198

Superseding: Third Revised Sheet No. 198

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

29. Capacity Release (Continued)

(l) Recall Rights (Continued)

(2) Recall Notification (Continued)

(c) For the recall notification provided to the

TSP, the TSP?s Tariff will specifiy whether the

quantity should be expressed in terms of:

(i) total released capacity entitlements; or

(ii) adjusted total released capacity

entitlements based upon the Elapsed

Prorata Capacity (EPC).

The capacity entitlements resulting from the

use of either (i) or (ii) should be the same.

(d) In the event of an intraday capacity recall,

the TSP will determine the allocation

of capacity between the Releasing Shipper and

the Replacement Shipper(s) based upon the

Elapsed Prorata Capacity (EPC). Variations to

the use of EPC may be necessary to reflect the

nature of the TSP?s tariff, services, and/or

operational characteristics.

(e) The amount of capacity allocated to the

Replacement Shipper(s) should equal the original

released capacity less the recalled capacity

that is adjusted based upon the EPC or other

TSP tariff specific variations of the EPC in

accordance with NAESB WGQ Standard No. 5.3.56.

(f) The TSP should not be obligated to deliver in

excess of the total daily contract quantity of

the release as a result of NAESB WGQ Standard

No. 5.3.55.

(3) Other Recall Notification Requirements

(a) The Replacement Shipper should provide the TSP

with no more than two Internet E-mail addresses