Eastern Shore Natural Gas Company

Second Revised Volume No. 1

Effective Date: 03/27/2000, Docket: RP00-537-000, Status: Effective

First Revised Sheet No. 206 First Revised Sheet No. 206 : Effective

Superseding: Original Sheet No. 206

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

29. Capacity Release (Continued)

(l) Prearranged Releases Not Subject to Prior Notice

(Continued)

(3) Any Prearranged Release pursuant to Section 29(l) of

thirty-one (31) days or less may not be rolled over,

extended or in any way continued beyond the initial

term of the release without being subject to the

requirements of Section 29(m). Capacity may be

re-released for thirty-one (31) days or less at any

mutually agreed upon rate to the same Replacement

Buyer only if a period of at least twenty-eight (28)

calendar days has elapsed since the end of the

latest release of the same capacity.

(m) Prearranged Releases Subject to Prior Notice

For Prearranged Releases (i) between thirty-one (31) Days

and one (1) year at any mutually agreed upon rates or

(ii) greater than one (1) year at lower than maximum

tariff rates are subject to competitive bidding. Seller

shall post the notice of a prearranged offer for release

on its EBB. The notification shall include the following

information:

(1) The identity of the Releasing Buyer.

(2) The proposed commencement date and term of the

release.

(3) All conditions of release objectively stated

including, but not limited to, any recall

conditions.

(4) The Rate Schedule, specific quantity of capacity

to be released, the Point of Receipt and the

Delivery Point Area.