Eastern Shore Natural Gas Company

Second Revised Volume No. 1

Effective Date: 11/01/1997, Docket: CP96-128-004, Status: Effective

Original Sheet No. 207 Original Sheet No. 207 : Effective

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

29. Capacity Release (Continued)

(m) Prearranged Releases Subject to Prior Notice (Continued)

(5) The prearranged and maximum reservation or

volumetric rates applicable to the capacity to be

released.

(6) The start and end dates for the bidding period.

(7) The criteria for selecting the Best Bid.

(8) The date and time the Release Notice is posted on

Seller's EBB.

(9) The length of time for a prearranged Replacement

Buyer to match the terms and conditions of the Best

Bid.

(10) Whether contingent bids are permitted and, if so,

the length of time during which the contingent

Bidder(s) will be allowed to accept or decline the

capacity without condition.

(11) Any tie-breaking methodologies.

If the Best Bid is superior to the initial prearranged

agreement, then Seller shall promptly contact the

prearranged Replacement Buyer, by telephone or facsimile

transmission, and the prearranged Replacement Buyer shall

have the option to match the terms and conditions of the

Best Bid in accordance with Section 29(m)(7) or Section

29(g) and thereby be awarded such capacity. The maximum

length of time within which a prearranged Replacement

Buyer may match the Best Bid is one (1) hour after

evaluation period ends in accordance with Section 29(f).

The terms of the awarded bid(s) shall be posted by Seller

in accordance with Section 29(h).