Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 208 Original Sheet No. 208 : Effective

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

29. Capacity Release (Continued)

(n) Releases that are Not Prearranged but are Subject to

Prior Notice and Competitive Bidding

Releases that are not prearranged are subject to prior

notice and competitive bidding. Seller shall post the

notice of 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, which term must be at least one (1) Gas Day

commencing at nine o'clock (9:00) a.m. CCT.

(3) The existence of any conditions of release,

objectively stated, including, but not limited to,

any recall and whether minimum term, rate, or

quantity conditions apply. Any minimum term, rate,

or quantity conditions will be posted at the option

of the Releasing Buyer.

(4) The Rate Schedule, specific quantity of capacity

to be released, the Point of Receipt and the

Delivery Point Area.

(5) The 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) 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.