Eastern Shore Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 330 Original Sheet No. 330 : Effective

FORM OF SERVICE AGREEMENT

Firm Storage Service

(For Use Under Seller's Rate Schedule LSS)

(Continued)

ARTICLE V

(Continued)

Term of Agreement and Commencement of Service

(Continued)

5.3 In the event Buyer elects the alternative specified in

Section 5.2(a) and Seller elects to, and is able to, extend the

term of its then effective LSS Service Agreement with Transco on

terms and conditions acceptable to Buyer and Seller, then Seller

and Buyer will execute a new Service Agreement under Seller's Rate

Schedule LSS for a term that coincides with the term of the

extended LSS Service Agreement with Transco.

5.4 In the event Buyer elects the alternative specified in

Section 5.2(b), Seller will use best efforts to assign such

capacity to Buyer and Seller agrees to use best efforts to assist

Buyer in its efforts to obtain Storage Service directly from

Transco under Transco's Rate Schedule LSS. Such assignment will be

effective on the day after the expiration of the LSS Service

Agreement between Buyer and Seller. Upon the effective date of

such assignment Buyer accepts all of the associated obligations

related to such service.

5.5 In the event Buyer elects the alternative specified in

Section 5.2(c) or is deemed to have elected the alternative

specified in Section 5.2(c), Seller will endeavor to locate a

replacement Buyer or seek abandonment of its obligtion to receive

such Storage Service under Transco's Rate Schedule LSS with such

abandonment proposed to become effective on the expiration date of

the LSS Service Agreement between Buyer and Seller. In either

event the term of this Agreement will be as provided in Section 5.1

above.

ARTICLE VI

Point(s) of Receipt

6.1 The Point(s) of Receipt for all gas delivered for the

account of Buyer into Seller's pipeline system under this Agreement

shall be at the Point(s) of Receipt on Seller's pipeline system as

set forth on Exhibit "B" attached hereto.