Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 291 Original Sheet No. 291 : Effective

FORM OF SERVICE AGREEMENT

Firm Transportation Service

(For Use Under Seller's Rate Schedule T-1)

(Continued)

ARTICLE II

Quantity

2.1 The Maximum Daily Transportation Quantity ("MDTQ") shall

be set forth on Exhibit "B" attached hereto. The applicable MDTQ

shall be the largest daily quantity of gas, expressed in dekatherms

("dt"), that Seller is obligated to transport and make available

for delivery for the account of Buyer under this Service Agreement

on any one Gas Day.

2.2 Buyer may tender natural gas for transportation to Seller

on any Gas Day, up to the MDTQ, plus the Fuel Retention Quantity,

as defined in Section 31 of the General Terms and Conditions of

Seller's FERC Gas Tariff. Seller agrees to receive the aggregate

of the quantities of natural gas that Buyer tenders for

transportation, plus the Fuel Retention Quantity, at the Point(s)

of Receipt, up to the Maximum Daily Receipt Obligation ("MDRO")

specified for each Point of Receipt as set forth on Exhibit "A"

attached hereto, and to transport and make available for delivery

for the account of Buyer at each Point(s) of Delivery specified on

Exhibit "B" attached hereto, quantities of natural gas up to the

amount scheduled by Seller, less the Fuel Retention Quantity, and

Buyer agrees to accept or cause acceptance of such delivery by

Seller.

ARTICLE III

Payment and Rights of Termination

3.1 Upon the commencement of service hereunder, Buyer shall

pay Seller, for all service rendered hereunder, the rates

established under Buyer's Rate Schedule T-1 as filed with the FERC

and as said Rate Schedule may hereafter be legally amended or

superseded.

3.2 In the event Buyer fails to pay for the service provided

under this Agreement or otherwise fails to meet Seller's standards

for creditworthiness, Seller shall have the right to terminate this

Agreement pursuant to the conditions set forth in Section 11,

Section 18 and Section 19 of the General Terms and Conditions of

Seller's FERC Gas Tariff.