Eastern Shore Natural Gas Company

Second Revised Volume No. 1

Effective Date: 10/15/1998, Docket: RP98-402-000, Status: Effective

First Revised Sheet No. 304 First Revised Sheet No. 304 : Effective

Superseding: Original Sheet No. 304

FORM OF SERVICE AGREEMENT

Interruptible Transportation (IT) Service

(For Use Under Seller's Rate Schedule IT)

(Continued)

ARTICLE IV

Payment and Rights of Termination

4.1 Except as provided to the contrary in any written

agreement(s) between Buyer and Seller in effect during the term

hereof, Buyer shall pay Seller, for all service rendered hereunder,

the applicable maximum rate, and all other lawful charges, as

specified in Seller's Rate Schedule IT, as filed with the FERC and

as said Rate Schedule may hereafter be legally amended or

superseded. Buyer and Seller may mutually agree that Buyer shall

pay a rate other than the applicable maximum rate so long as such

rate is between the applicable maximum and minimum rates specified

for such service in Seller's Tariff. Buyer and Seller may agree

that a specific discounted rate will apply only to certain

quantities under this Agreement; that a specified discounted rate

will apply only if specified quantities are achieved or only if the

quantities do not exceed a specified level; that a specified

discounted rate will apply only during specified periods of the

year or for a specifically defined period; and/or that a specified

discounted rate will apply only to specified rate zones, Delivery

Point Areas, delivery points or other defined geographic area.

4.2 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.

4.3 In the event Buyer and Seller mutually agree to a

negotiated rate(s) and/or terms of service hereunder (if authorized

by the Commission), provisions governing such negotiated rate

(including surcharges) and terms shall be set forth on Exhibit "A"

to this Agreement.