Eastern Shore Natural Gas Company

Second Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 01/16/2004, Docket: RP04-109-001, Status: Effective

Third Revised Sheet No. 221 Third Revised Sheet No. 221 : Effective

Superseding: Second Revised Sheet No. 221

EASTERN SHORE NATURAL GAS COMPANY

GENERAL TERMS AND CONDITIONS

(Continued)

35. Cash Out Refund/Surcharge

(a) Transportation Service Provider (TSP) will refund or

surcharge for each annual billing period, any difference

between the revenues received by TSP and the costs

incurred by TSP under the "cash out" provisions of TSP's

FERC Gas Tariff. For purposes of this Section an annual

billing period shall be the twelve (12) Month period

commencing each April 1st and ending the following March

31st.

(b) Subsequent to the end of each annual billing period TSP

shall compare the revenues received by TSP under the

"cash out" procedures with the costs incurred by TSP

under such "cash out" procedures, as further adjusted for

interest from the date of collection until the date

credited using the current Federal Energy Regulatory

Commission interest as defined in 18 C.F.R. Section

154.403 (7). If the revenues received exceed the costs

incurred, then TSP shall refund, within sixty (60)

calendar days of the end of the annual billing period,

the net over recovery to all firm and interruptible

transportation Service Requesters in accordance with each

transportation Service Requestors' pro rata share of the

total transportation quantities which TSP has delivered

during said annual billing period. If, however,the

revenues received are less than the costs incurred,

then TSP shall recover the net under recovered balance by

means of a surcharge applicable to each dekatherm

delivered to all firm and interruptible transportation

Service Requesters. Said surcharge shall be effective

July 1 of each year and shall be calculated on the same

basis as the refund of over-recoveries described above;

i.e., net under recovered balance divided by the total

transportation quantities which TSP has delivered during

the annual billing period.

(c) If the original amount used to calculate said surcharge

is not collected exactly through the surcharge, any under

or over-recovery will be carried forward and included in

the determination of the next period's refund or

surcharge.